RESTON, Va.--(BUSINESS WIRE)--MAXIMUS (NYSE: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.
About MAXIMUS
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.
