U.S. Dept of Education spending $143.3 mn on DMCS

RESTON, USA: MAXIMUS, a provider of health and human services worldwide, announced 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 explained further as 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.

"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.