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(DLB - 93 - 5) Direct Loan Servicing Contract Awarded

Bulletin ID
DLB - 93 - 5
PublicationDate: 12/1/93
BulletinID: DLB - 93 - 5


On Tuesday, December 21, 1993, the Department of Education (ED)
awarded the Direct Loan servicing contract to Computer Data
Systems, Inc. (CDSI) of Rockville, Maryland. The contract functions
include maintaining ED‘s database on Direct Loan recipients,
providing alternate origination functions for schools that do not
originate Direct Loans, handling billings and collections, and providing
customer service. The contract will last through September 1995, with
six one-year options to renew through September 2000. CDSI will
manage the contract and provide data center and system development
services. Additional services will be provided through five
subcontractors:

AFSA Data Corporation will operate the Direct Loan Servicing Center
in Utica, New York and will also handle alternate loan origination.
AFSA provides a fully operational loan origination and servicing
system, and a fully functional document imaging and retrieval system.
Each system will be modified for use in the Direct Loan Program.

- Arthur Andersen/Andersen Consulting will provide
assistance in systems development, auditing, and
testing.

- Deloitte & Touche will staff the independent
quality control unit, work on acceptance testing,
and provide configuration management support.

- Digital Equipment Corporation (DEC) will provide
the loan servicing hardware.

- Base Technologies, Inc. (BTI) will supply
warehouse storage and mailing services.

LOCATION OF SERVICES
Rockville, MD (CDSI): the data center (including the CPUs for the
imaging, accounting, and servicing systems), development staff,
contract management, billing and letter generation.

Utica, NY (AFSA): the servicing staff.

Lorton, VA (BTI): the mailing and storage facility
NOTE: The Direct Loan Payment Center will be a lockbox, with
research performed at AFSA. The location of the payment center has
not been determined.