EDS Contract with British Columbia to Improve Customer Service, Debt Collection

Published on September 12, 2006 at 2:18 pm

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VICTORIA, British Columbia – A new revenue management agreement will streamline and simplify customer service, enhance personal privacy protections and provide net financial benefits to the Province worth $382 million over the next 10 years, Provincial Revenue Minister Rick Thorpe announced today.

The Province signed a 10-year contract with EDS Advanced Solutions Inc., to begin coordinating more than 40 revenue systems currently spread across ministries. This will greatly improve customer service, revenue recovery, and the collection of outstanding accounts owed to British Columbia.

“This agreement will benefit from leading edge technology and private sector investment capital to build a centre of excellence for revenue management,” said Thorpe. “Revenue collection will no longer be scattered throughout government. Our customers will see better service, accounts will be processed faster, and we will generate an additional $38 million per year in net benefits that we can put to work in our schools, hospitals, and communities.”

Beginning in December 2004, EDS Advanced Solutions will deliver information technology services to the Ministry of Provincial Revenue and perform billing, remittance and payment processing, and non-tax collection functions for several government programs. Government’s collection guidelines and procedures will continue to be governed by the ministry.

EDS Advanced Solutions will make a significant investment and assume the financial risk associated with developing and implementing new business processes and information technology systems. The potential value of the contract is estimated at $572 million (Cdn). The transformation will reduce bad debt expenses and lower borrowing costs to government; these financial benefits will be shared between EDS Advanced Solutions and the Province.

“We are committed to providing innovative and results-oriented systems that focus on timely, efficient and coordinated revenue management,” said Al Hurd, president of EDS Advanced Solutions. “This initiative will create a centre of excellence for revenue management in British Columbia.”

The contract includes a range of strict provisions that meet or exceed the privacy standards set by the Province’s Freedom of Information and Protection of Privacy Act as well as the recent recommendations put forward by the Information and Privacy Commissioner. These provisions reaffirm British Columbia’s position as a leader in privacy protection.

The measures include:

  • The Province retains control and ownership of personal information.
  • No data storage or remote access from outside Canada.
  • Technological safeguards and dedicated staff, including a security and compliance officer, who will oversee protection of personal information.
  • All directors on the board of EDS Advanced Solutions are resident Canadians.
  • Disclosure of personal information in response to a requirement of a foreign country is expressly prohibited.
  • The Province has power of attorney to step in and take control of the company’s operations in the event of an anticipated privacy breach.
  • Severe consequences, including termination of the contract and financial damages, in the event of non-compliance.
  • EDS Advanced Solutions’ employees are protected by whistleblower provisions and must report any unauthorized disclosure of information.

    EDS Advanced Solutions, a wholly-owned British Columbia subsidiary of EDS Canada, will be located in Victoria. All management and unionized ministry employees affected by the changes have been offered employment with EDS Advanced Solutions. The terms and conditions of the current collective agreement, including working conditions, salaries, pensions, and other benefits will be transferred to the new employer.

    The agreement will implement the ministry’s Revenue Management Project, one of several government alternative service delivery projects aimed at providing greater efficiency and better value for taxpayers.

    A project summary report on this contract is available at http://www.gov.bc.ca/rev online.

    Information on EDS Advanced Solutions can be found at www.EdsAdvancedSolutions.com online.

    About EDS
    EDS Advanced Solutions, a wholly-owned British Columbia subsidiary of EDS Canada, will be located in Victoria. EDS provides a broad portfolio of business and technology solutions to help its clients worldwide improve their business performance. EDS’ core portfolio comprises information-technology, applications and business process services, as well as information-technology transformation services. EDS’ A.T. Kearney subsidiary is one of the world’s leading high-value management consultancies. With more than $20 billion in annual revenue, EDS is ranked 87th on the Fortune 500. The company’s stock is traded on the New York (NYSE: EDS) and London stock exchanges. Learn more at www.eds.com.

    The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward- looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS’ control, which could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS’ most recent Form 10-Q. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.