Raytheon Awarded Debt Collection System Contract by U.S. Department Of Ed

FALLS CHURCH, VA – Raytheon Company has been awarded a new contract for work on the Common Services for Borrowers (CSB) program by CSB prime contractor ACS Education Solutions, LLC (ACS). The award is potentially worth $168 million to Raytheon over the 10-year life of the contract, which features a five-year base contract with five one-year option periods.

The CSB program, initiated by the U.S. Department of Education’s Office of Federal Student Aid (FSA), will play an integral role in combining the servicing, consolidation and collections of business operations and functions. CSB will streamline and reengineer FSA’s business processes to deliver significant improvements in managing its student aid obligations.

Under the terms of the contract, Raytheon is providing a customized version of its Quester™ debt collection system, a significant element in the consolidation of FSA’s legacy systems into an integrated CSB system solution. Additionally, Raytheon will support system management and maintenance, including operational functions for the receipt and processing of newly subrogated debts, the reconciliation of financial reporting on defaulted loans, specialized payment processing, overall mailroom inbound document processing and imaging, as well as an outbound letter/bill generation.

“Our team is focused on providing greater services to borrowers, reducing operational overhead, and incorporating industry best practices to manage Department of Education student loan programs more effectively,” said Randall Booth, senior vice president of ACS, Inc, and president of ACS Education Solutions, LLC, “Raytheon’s track record of providing excellent service to the Department of Education in various loan management programs provides the CSB team with an experienced and knowledgeable partner. We are excited to have Raytheon as a member of our team.”

“Raytheon is looking forward to having the opportunity to leverage more than 10 years of experience working with the Department of Education on this program,” said Ron Ross, senior executive, Raytheon Information Solutions. “The combination of Raytheon’s and ACS’ loan management expertise will prove pivotal to the overall success of the CSB initiative.”

Raytheon Company, with 2003 sales of $18.1 billion, is an industry leader in defense and government electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 78,000 people worldwide.