U.S. Department of Education, Office of Federal Student Aid, Awards MAXIMUS a Contract to Help Admin
U.S. Department of Education, Office of Federal Student Aid, Awards MAXIMUS a Contract to Help Administer the Defaulted Student Loan Debt Program
RESTON, Va.--(BUSINESS WIRE)-- MAXIMUS (NYS: MMS) , a leading provider of health and human services worldwide, announced today that its MAXIMUS Federal Services subsidiary has signed a new contract with the U.S. Department of Education, Office of Federal Student Aid (FSA), to provide Operation and Maintenance support for the Debt Management and Collections System (DMCS). The contract has an approximate two-year and three month base period valued at approximately $143.3 million and eight one-year option periods. Based on estimated volumes, the total contract value is expected to be approximately $848.4 million if all options are exercised. The base contract will begin on September 30, 2013 and will run through December 31, 2015.
FSA is the largest provider of student financial aid in the nation, providing more than $150 billion in federal grants, loans and work-study funds each year to more than 15 million students paying for college or career school. A critical role of FSA is managing the outstanding federal student loan portfolio and securing repayment from federal student loan borrowers. FSA utilizes the DMCS to support this important role.
Under the contract, MAXIMUS will provide a wide range of citizen-centric administrative business functions including an in-bound customer contact center to respond to inquiries from borrowers and various third parties. The Company's comprehensive solution also includes the operation of an intake facility for correspondence, collateral and other hard-copy materials, a correspondence unit to respond to borrowers' inquiries, a financial transaction processing center, and a mail fulfillment center.
Thomas Romeo, President of MAXIMUS Federal Services commented, "We are very excited about this new contract to support FSA in their mission of helping Americans who are struggling with their student loan debt. MAXIMUS is a trusted partner for operating government programs and providing friendly and reliable citizen services and assistance. We bring many years of experience to FSA as we expand our federal operations into new agencies that will benefit from the core competencies we've developed over decades of working with our government partners."
"This contract underscores our efforts to extend our core offerings, such as citizen engagement, customer contact centers and case management, to a wider set of agencies and adjacent programs," commented Richard A. Montoni, Chief Executive Officer of MAXIMUS. "We've made significant progress over the last eighteen months as we put a strategic focus on supporting and growing our business with the U.S. Federal Government. MAXIMUS brings unparalleled experience in citizen engagement and we are very excited about working with FSA on this critical program."
MAXIMUS brings a unique, single-focus to government agencies. The Company serves as the nation's largest administrative support vendor for Medicaid and the Children's Health Insurance Program, managing one in two Medicaid managed care enrollments. MAXIMUS is helping government clients meet the requirements of the Affordable Care Act by operating eight customer contact centers to support state and federal agencies with their health insurance exchange business operations. The Company is also the largest independent reviewer of health care appeals for CMS, and also provides independent review services for the Department of Veterans Affairs, the U.S. Office of Personnel Management, as well as more than 44 state regulatory agencies nationwide. Since 1989, MAXIMUS Federal has completed more than two million health care appeals under rigorous quality control standards.
MAXIMUS is a leading operator of government health and human services programs in the United States, United Kingdom, Canada, Australia and Saudi Arabia. The Company delivers business process solutions to improve the cost effectiveness, efficiency and quality of government-sponsored benefit programs, such as Medicaid, Medicare, Children's Health Insurance Program (CHIP), Health Insurance BC (British Columbia), as well as welfare-to-work and child support programs across the globe. The Company's primary customer base includes federal, provincial, state, county and municipal governments. Operating under its founding mission of Helping Government Serve the People®, MAXIMUS has approximately 9,750 employees worldwide. For more information, visit www.maximus.com.
KEYWORDS: United States North America Virginia
The article U.S. Department of Education, Office of Federal Student Aid, Awards MAXIMUS a Contract to Help Administer the Defaulted Student Loan Debt Program originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.