A subsidiary of MAXIMUS (NYSE: MMS) has won a potential 10-year, three-month $848.4 million contract to help operate a customer contact center and other facilities for the Education Department‘s Federal Student Aid office.
MAXIMUS Federal Services will start work on Sept. 30 under the contract, which contains a two-year and three month base period and eight one-year options, the company said Tuesday.
FSA uses a debt management and collection system to manage more than $150 billion in federal grants, loans and work-study funds each year for more than 15 million students paying for their college or career education.
“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, ” said Richard Montoni, MAXIMUS CEO.
“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.”
“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, ” said Tom Romeo, president of MAXIMUS Federal Services.
The subsidiary will also operate a center for handling hard copy materials such as correspondence and collateral, a unit for responding to borrowers’ inquiries, a financial transaction processing center and a mail fulfillment center.