ACS wins Education deal with $2 billion potential

Affiliated Computer Service Inc. has won a contract that could be worth more than $2 billion over 10 years to process Education Department student loans, the company said Thursday.

The Common Services for Borrowers contract is worth $1 billion over five years and has five one-year options worth another $1 billion. The contract begins Jan. 1.

The contract integrates a number of separate services, including comprehensive loan servicing, consolidation and portfolio management services that will allow the department to increase service quality while lowering overall program costs, the company said.

ACS has been providing business process management services, including systems development, integration, operations and customer service, to the Education Department's direct loan program since 1993.

With the new contract, the department will modernize the servicing system and shift the contract to a performance-based arrangement.

ACS will service a portfolio of more than $95 billion in loans to more than 9 million student aid borrowers.

Included on ACS' team of subcontractors are Electronic Data Systems Inc., of Plano, Texas; Pearson Government Solutions, a division of NCS Pearson Inc., Bloomington, Minn.; Raytheon Co. of Lexington, Mass.; and more than 30 small and minority-owned businesses.

This contract is not part of a deal ACS announced in August to sell its federal business to Lockheed Martin Corp. and acquire Lockheed Martin's commercial business. The deal is expected to close by the end of November, an ACS spokesman said.

ACS also is holding onto the unit handling the company's troubled contracts at Hanscom Air Force Base in Massachusetts.

Based in Dallas, ACS reported 2002 revenue of $3.1 billion. The company employs more than 40,000 people and was ranked No. 16 on the 2003 Washington Technology Top 100 list.

In its own announcement, EDS said its subcontracting agreement with ACS is valued at approximately $180 million over the initial five years.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.