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Government Probes ACS On Florida Payments

The services provider says it's been subpoenaed by the Justice Department concerning possible improper payments relating to a contract with Florida's Agency for Workforce Innovation.
IT-services provider Affiliated Computer Services Inc. says it has received a subpoena from the Department of Justice requesting documents relating to possible improper payments arising from a contract with Florida's Agency for Workforce Innovation.

The contract was called into question in January, when Florida's Office of the Inspector General said it was scrutinizing performance-based payouts that ACS had received under the deal. The contract called for ACS to establish and operate one-stop employment centers for Florida job seekers. Part of its fees were based on the number of residents placed in jobs. The contract expired in June 2003 and wasn't renewed.

Among other things, Florida's inspector general's office questioned the accuracy of ACS's job-placement reports in Dade and Monroe counties, suggesting the contractor was overpaid. During the contract period, ACS was paid $7 million, including $1.4 million in performance-based payouts.

ACS also said Monday that the Securities and Exchange Commission is continuing its informal examination of the Florida contracts. In a statement, CEO Jeff Rich said the company is cooperating fully with all government investigations into the contract.

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