Data system integration at Education's SFA becomes first share-in-savings contract

Data system integration at Education's SFA becomes first share-in-savings contract

By Tony Lee Orr

GCN Staff Writer

JULY 27—The revamp of the Education Department's Student Financial Assistance data system won't cost the department a dime.

Under the first share-in-savings contract in federal government history, Andersen Consulting of Chicago will integrate and simplify SFA's Central Data System and keep a percentage of the savings created by the upgrade as its award, SFA chief operating officer Greg Woods said Wednesday.

The system revamp is expected to save the department between $40 and $50 million, he said. Anderson will pocket a varying percentage of the savings, based on a sliding scale, banking a maximum of $14.4 million over the four-year period.

The integration of the system, which services the Federal Direct Loan program, calls for the elimination of redundant edits and process duplications, Woods said. The contract, inked on July 19, will prompt the discontinuation of one of SFA's legacy systems, he said.

The data system services 12 main processes. Five will be retired because of duplication in other systems; the remaining seven will be integrated into other systems.


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