CSC Wins $229 Million Contract Extension
- By Patience Wait
- Dec 06, 2001
Computer Sciences Corp. won a $229 million contract extension from the Education Department's Office of Student Financial Assistance for work at the student loan data center, the company announced Dec. 5. The extension pushes CSC's work to 2011.
As part of the extension, the work has been converted to a performance-based contract, which bases the pay to CSC on meeting service-level agreements. Since 1997, CSC has helped the Education Department migrate and consolidate eight legacy systems into a single accessible system for the office, students and bank and university personnel. CSC said the migration has already saved the department millions of dollars by consolidating its storage facilities into a single CSC data center and using the company's global technology infrastructure.
CSC of El Segundo, Calif., and the department will further lower the cost per transaction under the performance-based agreement, which allows the company to develop solutions focused on business results.
The Department of Education is modernizing the delivery of major federal student aid programs, including Pell grants and Stafford loans, which provide more than $50 billion per year to help students pay college costs.
"CSC will help the Department of Education deliver improved service and reduce the cost of delivering aid to American students seeking financial assistance," said Marcia Kim, vice president of CSC's citizen services unit. "In extending this task order, SFA is acknowledging the value of a public-private partnership in a performance-based environment."