Colorado has outsourced the processing of child support payments to a private company called Affiliated Computer Services (ACS) of Dallas, Texas.
Recently, one of ACS's computers was stolen. The computer had the names, addresses, Social Security numbers and other information on 1.5 million child support recipients, payers, and others. This is not the first time ACS has lost other peoples' data in Colorado. It also seems that ACS bonds are in default, and that ACS has been backdating stock options for its executives.
In spite of this, an Indiana agency wants to hire ACS to run their food stamp eligibility program. Why? Is it because the agency's head used to be a VP at ACS? Or because of ACS' $12,500 contribution to Indiana's Governor? Or is it because ACS is just so darned good at what they do?
This article in the November 7 Rocky Mountain News has more details on the most recent loss of peoples' data by ACS. The article lists three other incidents in Colorado going back to 2004.
Who is ACS, Anyway?
ACS link is a "business process outsourcing" company. They do data processing for other companies and government agencies. They claim to be able to lower costs for their clients.
Some of ACS' bonds are in default. Also, ACS has delayed filing its quarterly report with the Securities and Exchange Commission because of an investigation into the backdating of stock options for its executives.
ACS has also been involved in shenanigans in Canada. Like paying police officers to grease the skids so Edmonton would hire ACS to install photo-radar devices.
Unbossed has written about ACS here.
Indiana and ACS
Indiana's Family and Social Services Administration (FSSA) has negotiated a contract with ACS to run Indiana's Food Stamp eligibility program. See here.
The South Bend Tribune reported in an August 21 article that a contract with ACS in North Carolina was cancelled after ACS failed to meet deadlines, causing increased costs to that state. An ACS contract also had complaints in Georgia.
It's surprising that Indiana would even considering hiring ACS, under the circumstances.
Well, maybe it's not so surprising.
The Secretary of FSSA is a man named Mitch Roob. Coincidentally, he used to be the Vice President of ACS. Roob was appointed by Indiana Governor Mitch Daniels. ACS has donated $12,500 to Daniels' election campaigns, according to the above August 21 article in the South Bend Tribune.
Taking Down Words is an excellent Indiana-based blog seems to be on top of things there. They regularly discuss the cronyism and "government for sale" that Indiana's governor seems to be pushing.
And this link: http://www.topix.net/com/acs has a bunch of "goodies" about ACS. (Well, "baddies" would be more like it.)
Why Is Government Privatizing These Tasks?
Conservative politicians keep telling us that government is inefficient and the private sector can do everything better. There's much data to counter this blind devotion to ideology. For example, IRS employees can collect overdue taxes at far lower cost than the contractors hired to do the same work. See "IRS and Private Debt Collectors - I Don't Make this Stuff Up. I'm Not that Funny" and "Your Private Information – Sold off by the Republicans" and "Just Bad Math?" (plus articles on Unbossed too numerous to mention; go there and search for IRS).
But there's more to it than that. Many of the private corporations that get government contracts make campaign contributions. What better way to get campaign contributions from corporations than by offering to let corporations do the work that governments are supposed to do? Just ask Mitch Daniels.
Comments
Add Comment