DCS Withdraws Protest of IRS Contract Award

Diversified Collection Services (DCS) announced today that it had withdrawn its protest of the recent IRS contract award for the first phase of its private debt collection initiative. DCS, a business unit of Performant Financial Corporation, made the decision to terminate its protest of the award after conducting a thorough internal review of the award process.

“After having the time to more thoroughly analyze the processes and procedures used in the recent IRS award, it became clear that withdrawing this protest would be in the best long-term interests of both DCS and the IRS private debt collection initiative,” said Jon Shaver, vice chairman and executive vice president of Performant Financial Corporation. “DCS has a 30-year heritage of trusted partnerships with both federal and state government agencies, and we look forward to competing in the next phase of the IRS initiative.”

The second phase of the private debt collection initiative is currently scheduled for 2008, with the IRS recently stating that it intends to contract with up to 10 firms. The agency has said that it hopes that private firms will assist in collecting an additional $1.4 billion in outstanding taxes over a period of 10 years.