Difference between revisions of "Portal:Outsourcing America Exposed/Featured Profile"

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==MAXIMUS and Affiliated Computer Services - For-Profit Human Services==
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==Outsourced Cities, Brought to You by CH2M Hill==
[[Image:Child-on-Suitcase350px.jpg|left|350px]]
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{{#evp:youtube|dOI9yrKGAV4|Al Jazeera's "Inside U.S.A. Privatised Cities," from October 17, 2008|left|210}} In 2005, CH2M Hill subsidiary OMI signed a contract to manage all of the municipal services -- except fire and police -- with Sandy Springs, Georgia, a newly-incorporated suburb of Atlanta that spun off from Fulton County. In the next two years, the newly-incorporated towns of Johns Creek, Milton, and Chattahoochee Hills followed suit, also signing contracts with CH2M Hill to establish fully outsourced cities.  
===MAXIMUS===
 
'''[[MAXIMUS, Inc.]]''', based in Reston, Virginia, is a publicly-traded ([https://www.google.com/finance?q=NYSE%3AMMS&ei=AA74UeCwD4K9qQH3FA NYSE:MMS]) for-profit corporation that receives government contracts to provide "business process services" to government health and human services agencies in the United States, Australia, Canada, the United Kingdom, and Saudi Arabia. The company focuses primarily on operating government-sponsored programs for vulnerable populations, such as Children’s Health Insurance Program (CHIP), Medicaid, health insurance exchanges and other health care reform initiatives under the Affordable Care Act, Medicare, welfare-to-work, and child support services.<ref name="10K2012">MAXIMUS, Inc., [http://investor.maximus.com/report/annual/2012-annual-report 2012 Annual Report/Form 10-K], November 16, 2012</ref>
 
The outsourcing of health and human services function to private for-profit firms raises significant concerns. According to non-profit research group In the Public Interest, a comprehensive resource center on privatization and responsible contracting, "many children and adults rely on government-provided health and human services. The ability of these programs to deliver services efficiently and appropriately often is a matter of life and death. Numerous state and local governmental entities are finding that turning over these programs to private contractors not only fails to achieve projected cost savings but also decreases access to these important services, hurting many vulnerable families. In many cases, the service quality declines dramatically and many sick or at-risk people are left with substandard care."<ref>In the Public Interest, [http://www.inthepublicinterest.org/sector/health-and-human-services Privatization by Sector: Health and Human Services], organizational website, accessed August 2013</ref>
 
  
[[MAXIMUS, Inc.|For more, see the full corporate rap sheet on the outsourcer Maximus, Inc. here.]]
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In Sandy Springs, where the company managed the entire municipal staff, CH2M HILL employees wore Sandy Springs uniforms and drove trucks with Sandy Springs emblems. CH2M Hill was in charge of all government services, including everything from road paving and grass cutting to issuing permits, running municipal courts, and enforcing ordinances and parking regulations. Most of the work is done by temporary workers hired by subcontractors.<ref>John Schaffner, [http://www.buckheadview.com/2011/05/sandy-springs-boots-ch2m-hill-as.html Sandy Springs drops CH2M Hill as services provider], ''Buckhead View'', May 18, 2011.</ref><ref name="AJ">Inside U.S.A., [http://www.youtube.com/watch?v=dOI9yrKGAV4 Privatised Cities], ''Al Jazeera'', October 17, 2008.</ref> <ref> David Segal, [http://www.nytimes.com/2012/06/24/business/a-georgia-town-takes-the-peoples-business-private.html?pagewanted=1&_r=0&pagewanted=all A Georgia Town Takes the People’s Business Private], New York Times, June 23, 2012. </ref>
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===Affiliated Computer Services===
 
'''[[Affiliated Computer Services, Inc.]]''' (ACS), is a private firm that specializes in the privatization of government administrative services for some of the nation's most vulnerable citizens. Since 2000, it has been a subsidiary of the publicly-traded [[Xerox Corporation]] ([https://www.google.com/finance?q=Affiliated+Computer+Services%2C+Inc.&ei=b8T_UYiINMarqAGbIw NYSE:XRX])
 
  
The services ACS markets include processing Medicaid claims, managing the electronic toll collection system E-ZPass, servicing student loans, processing child support payments, managing electronic payment card programs (such as Temporary Aid to Needy Families, Unemployment Insurance, Social Security Insurance), and processing parking tickets.<ref name="gov'tglance">Xerox Corporation/ACS Inc., [http://www.acs-inc.com/uploadedfiles/resource_library/public_sector/case_studies/ov_acs%20gs%20at%20a%20glance.pdf Government at a Glance], corporate website, accessed August 2013.</ref> ACS obtains contracts to perform functions as administration, including health care claims processing; finance and accounting; human resources; payment processing; sales, marketing, and customer care call centers; and supply chain management in both the public and private sector.<ref name="hoovers"/> As of August 2013, ACS has over 74,000 employees.<ref name="hoovers">[http://www.hoovers.com/company-information/cs/company-report.Affiliated_Computer_Services_Inc.6c86db66e79c16cb.html Company Report: Affiliated Computer Services, Inc.], ''Hoovers'' credit report, accessed August 2013.</ref> Its parent company, Xerox, grossed $22.39 billion in revenues for the fiscal year 2012, with nearly $1.2 billion in total profits.<ref name="financials">Xerox Corporation, [http://www.xerox.com/about-xerox/annual-report-2012/financial-performance/enus.html 2012 Annual Report Financial Highlights], corporate website, accessed August 2013.</ref>
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Sandy Springs, an affluent suburb of Atlanta -- home to Herman Cain, professional sports players, and the woman who voiced Iphone's Siri -- had been fighting for years to spin-off from Fulton County, with many residents resentful that they were subsidizing services for poorer parts of the county. When the town was granted its charter in 2005, it had just a few months to set up a fully-functioning city government, and CH2M Hill stepped in, offering itself up as a one-stop-outsourcing-shop.
  
ACS has come under fire for siphoning off excessive fees from recipients of Temporary Assistance for Needy Families, the mismanagement of services from parking meters to Medicaid payment systems, and the failure to complete major multimillion dollar contracts.
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[http://www.sourcewatch.org/index.php/CH2M_HILL For more, see the full corporate rap sheet on CH2M Hill here.]
 
 
[[Affiliated Computer Services, Inc.|For more, see the full corporate rap sheet on the outsourcer Affiliated Computer Services, Inc. here.]]
 

Revision as of 22:53, 15 October 2013

Outsourced Cities, Brought to You by CH2M Hill

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In 2005, CH2M Hill subsidiary OMI signed a contract to manage all of the municipal services -- except fire and police -- with Sandy Springs, Georgia, a newly-incorporated suburb of Atlanta that spun off from Fulton County. In the next two years, the newly-incorporated towns of Johns Creek, Milton, and Chattahoochee Hills followed suit, also signing contracts with CH2M Hill to establish fully outsourced cities.

In Sandy Springs, where the company managed the entire municipal staff, CH2M HILL employees wore Sandy Springs uniforms and drove trucks with Sandy Springs emblems. CH2M Hill was in charge of all government services, including everything from road paving and grass cutting to issuing permits, running municipal courts, and enforcing ordinances and parking regulations. Most of the work is done by temporary workers hired by subcontractors.[1][2] [3]

Sandy Springs, an affluent suburb of Atlanta -- home to Herman Cain, professional sports players, and the woman who voiced Iphone's Siri -- had been fighting for years to spin-off from Fulton County, with many residents resentful that they were subsidizing services for poorer parts of the county. When the town was granted its charter in 2005, it had just a few months to set up a fully-functioning city government, and CH2M Hill stepped in, offering itself up as a one-stop-outsourcing-shop.

For more, see the full corporate rap sheet on CH2M Hill here.

  1. John Schaffner, Sandy Springs drops CH2M Hill as services provider, Buckhead View, May 18, 2011.
  2. Inside U.S.A., Privatised Cities, Al Jazeera, October 17, 2008.
  3. David Segal, A Georgia Town Takes the People’s Business Private, New York Times, June 23, 2012.