Performant Awarded Department of Education Payment Recapture Contingency
LIVERMORE, Calif., Feb. 12, 2013 (GLOBE NEWSWIRE) -- Performant Financial
Corporation (Nasdaq:PFMT), a leading provider of technology-enabled recovery
and related analytics services, today announced that its subsidiary,
Performant Recovery, Inc., has been awarded a contract by the United States
Department of Education to serve as the Department's payment recapture
Under the terms of this contract, Performant will leverage its proprietary
data mining technology to conduct a payment recapture audit of goods and
services contracted by the Department (excluding grants and student loans) for
fiscal years 2007-2012, a portfolio totaling approximately $9 billion ($1.5
billion annually). Performant will identify, evaluate and report the root
causes for contract overpayments and support the recovery of improper
"We are excited about this opportunity to provide significant value to the
Department of Education's efforts to reduce improper payments through our
payment integrity solutions and technology," said Performant Financial's Chief
Executive Officer, Lisa Im.
Performant's success is aligned to an intensifying bipartisan effort to cut
wasteful spending in federal agencies through the Improper Payment Elimination
and Recovery Act of 2010 (IPERA). It is estimated by the U.S. Government
(paymentaccuracy.gov)that over $100 billion of federal government funds are
lost due to improper payments each year. By expanding its payment integrity
expertise in federal agencies, Performant continues to support the cause of
reducing waste of American taxpayers' dollars.
The term of the contract is from January 2013 to January 2014.
About Performant Financial Corporation
Performant Financial Corporation is a leading provider of technology-enabled
recovery and related analytics services. The Company's services help identify
and recover delinquent or defaulted assets and improper payments for various
government, healthcare and financial services markets in the United States.
The Company was founded in 1976 and is headquartered in Livermore, California.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding the Company's ability to recover improper payments on
behalf of the Department of Education. These forward-looking statements are
based on current expectations, estimates, assumptions and projections that are
subject to change and actual results may differ materially from the
forward-looking statements. Factors that could cause actual results to differ
materially include, but are not limited to, the high level of revenue
concentration among the Company's five largest customers, that many of the
Company's customer contracts are subject to periodic renewal, are not
exclusive and do not provide for committed business volumes, that the Company
faces significant competition in all of its markets, that the U.S. federal
government accounts for a significant portion of the Company's revenues, that
future legislative and regulatory changes may have significant effects on the
Company's business, failure of the Company's or third parties' operating
systems and technology infrastructure could disrupt the operation of the
Company's business and the threat of breach of the Company's security measures
or failure or unauthorized access to confidential data that the Company
possesses. More information on potential factors that could affect the
Company's financial condition and operating results is included from time to
time in the "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the Company's Form
10-Q for the quarter ended September 30, 2012. The forward-looking statements
are made as of the date of this press release and the Company does not
undertake to update any forward-looking statements to conform these statements
to actual results or revised expectations.
CONTACT: Richard Zubek
Press spacebar to pause and continue. Press esc to stop.