MAXIMUS Awarded $7.3 Million in Tennessee Child Support Contract

The State of Tennessee Department of Human Services has awarded a a massive government contract to a for-profit contractor.

MAXIMUS (NYSE:MMS) was given a five-year, $7.3 million contract to operate a child support program in the State's 25th Judicial District.

This new contract in West Tennessee will provide child support "services" to the counties of Fayette, Hardeman, Lauderdale, McNairy, and Tipton. These services were previously provided by the District Attorney General of the 25th Judicial District.

Under this contract, the Company will provide intake case processing, location of non-paying, non-custodial parents, establishment of paternity for children born outside of marriage, and establishment of court ordered child support obligations and court orders to provide medical support. MAXIMUS will also monitor payment compliance, take administrative and judicial action to enforce support compliance, and modify child support orders as necessary.

Over the five-year life span of this contract, MAXIMUS is expected to collect more than $94 million in child support revenue in the five counties.

There are 31 judicial districts providing child support services to families in Tennessee. Ten of these are operated by private contractors, and the remainder of the districts are operated by government agencies. MAXIMUS currently operates four of the ten privately-operated child support programs in Tennessee. MAXIMUS also operates the statewide customer service center and the statewide new hire reporting system for Tennessee.

MAXIMUS is one of the largest for-profit government services contractors in the United States, with more than 5,500 employees located in more than 300 offices.