1 WSEA EBT Services RFP v.8.4.docx

REQUEST FOR PROPOSAL

2022000005

Western States EBT Alliance Electronic Benefits Transfer (EBT) Services

Contents

Attachment 1: Request for Proposals Signature Page Attachment 2: SNAP/Cash Requirements Attachment 3: SNAP/Cash Written Responses Attachment 4: WIC Requirements Attachment 5: WIC Written Responses Attachment 6: ALERT AMA STARS and REDE File Formats Attachment 7: WSEA Waivers Attachment 8: State Contract Terms and Conditions Attachment 9: SNAP/Cash Interfaces Attachment 10: WIC Interface Configuration Attachment 11: Alaska DHSS Sample Security Authorization Attachment 12: WSEA EBT Pricing Schedules Attachment 13: Federal Procurement Provisions

TABLES

Issue and Timeline Information

1.1 Issuing Office:

This Request for Proposal (RFP) 2022000005 is issued for the State of Colorado (State) by the Department of Human Services (CDHS or Department), for the benefit of the Department through the CDHS Division of Procurement.

1.2 Invitation to Submit Proposals

The State of Colorado is posting this RFP on the Colorado Vender Self Service page (Colorado VSS) so that firms that have an interest may submit a proposal in accordance with the terms of this RFP.

1.3 Means of Communication

In the event that it becomes necessary to revise any part of this RFP, a modification will be published on the Colorado VSS web site at www.colorado.gov/vss. It is incumbent upon Offerors to monitor Colorado VSS carefully and regularly for any such postings.

The CDHS Division of Procurement is the SOLE point of contact concerning this RFP. All communication for this procurement must be done through the CDHS Division of Procurement point of contact indicated in this RFP and Colorado VSS.

1.4 Purpose

This RFP provides prospective firms with sufficient information to enable them to prepare and submit proposals for consideration to satisfy the need for expert assistance in the completion of the goals of this RFP.

1.5 Scope

This RFP contains the instructions governing the proposal to be submitted and the material to be included therein; mandatory requirements which must be met to be eligible for consideration; and other requirements to be met by each proposal.

1.6 Schedule of Activities

RFP PUBLISHED ON COLORADO VSS WEB PAGE

(www.colorado.gov/VSS)

PROSPECTIVE FIRMS WRITTEN INQUIRY DEADLINE (NO WRITTEN QUESTIONS WILL BE ACCEPTED AFTER THIS DATE).

Email Inquiries: cdhs_procurement @state.co.us

PROPOSAL SUBMISSION DEADLINE

See Administrative Information Section II-D for submission.

PROPOSAL SELECTION (ESTIMATED/WEEK OF)

11/01/2021

Request Debriefing Conference

CONTRACT FINALIZED (ESTIMATED/WEEK OF)

12/01/2021

CONTRACT PERIOD: (VARIES PER STATE) One initial year plus 4 one-year options to renew (option of the State)

1.7 WSEA State Standard Terms and Conditions

Attachment 8 to this RFP contains the standard terms and conditions (T&Cs) for the States participating in the WSEA EBT procurement. Offerors are requested to review the T&Cs for each State contained in Attachment 8 and provide any concerns or questions on the T&Cs by written inquiry during the question and answer period for the RFP. After the award of the WSEA contract, the States will not make any modifications to their respective T&Cs that were not addressed and agreed to during the Question and Response period.

Administrative Information

2.1 Official Means of Communication

During the solicitation process for this RFP, all official communication with Offerors will be via notices on Colorado VSS. Notices may include any modifications to administrative or performance requirement, answers to inquiries received, clarifications to requirements, and the announcement of the apparent winning Offeror. It is incumbent upon Offerors to monitor VSS carefully and regularly for any such notices.

2.2 Inquiries

Unless otherwise noted, prospective offerors may make written or e-mail inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities.

E-mail all inquiries to: cdhs_procurement@state.co.us Clearly identify your inquiries as RFP IHGA 2022000005, WSEA EBT RFP Responses to offerors’ inquiries will be published as a modification on the State of Colorado -VSS web page in a timely manner.

2.3 Modification or Withdrawal of Proposals

Proposals may be modified or withdrawn by the offeror prior to the established due date and time.

2.4 Addendum or Supplement to Request for Proposal

In the event that it becomes necessary to revise any part of this RFP, an addendum/amendment will be published on the Colorado-VSS web site. It is incumbent upon offerors to monitor VSS carefully and regularly for any such postings. It is the offeror's responsibility to make known to the Division of Procurement its interest in any addendum/amendment if it has received the RFP in a direct mailing from the Division of Procurement and no addendum has been received by mail.

2.5 Oral Presentations / Site Visits

At the conclusion of evaluation and discussion of the written proposals, the State may (at the evaluation committee’s sole discretion) request an oral presentation of the most favorable proposals. Offeror should not, however, prepare the written proposal with the assumption that an opportunity for oral presentations or revisions will be offered; rather, the most favorable proposal should be submitted as their initial written submittal.

Should the evaluation committee decide not to award solely based on initial proposals, then those proposals in the competitive range (those most responsive to the requirements and reasonably susceptible of being selected for award) will have an opportunity to make an oral presentation. The oral presentation may include a discussion for the purpose of clarification and to ensure full understanding of and responsiveness to solicitation requirements. The same criteria for evaluation will be employed and each committee member will be provided the opportunity to modify their original evaluation. Following all oral presentations, the committee will again discuss their individual evaluations.

If the evaluation committee requires such presentations, the State will schedule these sessions for the purpose of:

· Allowing the Offeror an opportunity to present its proposal to the evaluation committee;

· Allowing the Offeror an opportunity to demonstrate its background and capabilities in providing the requested services;

· Allowing the State an opportunity to obtain further clarification of proposal aspects and attempt to resolve any uncertainties;

· Resolving suspected mistakes by calling such perceived errors to Offeror’s attention without disclosing information concerning other Offerors’ proposals; and

· Allowing the State an opportunity to ask specific questions of the Offeror regarding its proposal offer.

Any presentations and/or site visits will be at the offeror's expense.

2.6 Acceptance of RFP Terms

A proposal submitted in response to this RFP shall constitute a binding offer. Acknowledgment of this condition shall be indicated by the autographic signature of the offeror or an officer of the offeror legally authorized to execute contractual obligations. It is assumed by the offeror's response that it acknowledges all terms and conditions of this invitation for an offer. An offeror shall identify clearly and thoroughly any variations between its proposal and the State's RFP. Failure to do so shall be deemed a waiver of any rights to subsequently modify the terms of performance, except as outlined or specified in the RFP.

2.7 Protested Solicitations and Awards

Any actual or prospective offeror or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to Chris Frenz, Procurement Director, Division of Procurement, christopher.frenz@state.co.us. The protest shall be submitted in writing within ten working days after such aggrieved person knows, or should have known, of the facts giving rise thereto. Reference C.R.S. Title 24, Article 109.

2.7.1 Washington State Complaints Process

In the event an actual or prospective offeror or contractor, who has an interest in contracting with the State of Washington under this RFP, believes that this Solicitation either: (a) unnecessarily restricts competition; (b) contains an unfair or flawed evaluation or scoring process; or (c) contains inadequate or insufficient information to permit preparation of a Response, the offeror or contractor shall submit a written complaint to William Taplin, Contracts Counsel, Washington State Department of Social and Health Services (WA DSHS), via email at: tapliwh@dshs.wa.gov. The complaint will be forwarded to the WA DSHS Chief of Central Contracts and Legal Services for review. The complaint must include a proposed remedy and must be submitted no later than five (5) business days prior to the date when Proposal Submissions are due. WA DSHS shall post its response to the Complaint on Washington’s Electronic Business Solution (WEBS) and on the WA DSHS procurement web page.

The WA DSHS decision regarding a complaint is final and no further administrative appeal is available. Any decision regarding a complaint submitted through this process is not binding on any other participant of the WSEA EBT Services RFP, and offerors or contractors wishing to submit a protest that is binding on other participants must do so in accordance with Section 2.7 Protested Solicitations and Awards of the RFP document.

The Washington State complaints process will be managed by and binding with Washington State Department of Social and Health Services.

2.8 Debriefing Conferences

No later than 5:00 p.m. on the third business day following the posted announcement of Successful Bidder(s) on WEBS, Bidders who are not selected as a Successful Bidder may send an email to the Director requesting a Debriefing Conference. Since debriefing conferences pertain to the formal evaluation process, Bidders who were disqualified as nonresponsive and therefore did not go through the formal evaluation process are not entitled to request a Debriefing Conference. Unless a different date is agreed upon by the Director, the Debriefing Conference will be held on the date designated in Section 1.6, Schedule of Activities. Discussion at the debriefing conference will be limited to the following:

No comparisons between Bids will be allowed during the Debriefing Conference, which shall be conducted by telephone, unless the Director agrees to an in-person meeting and shall last for a maximum period of thirty (30) minutes.

2.9 Confidential/Proprietary Information

Any restrictions of the use or inspection of material contained within the proposal shall be requested prior to the submission of the proposal itself. Written requests for confidentiality shall be submitted, by the offeror prior to the proposal submission date. The offeror must state specifically what elements of the proposal that would be considered confidential/proprietary. The Division of Procurement will make a written determination as to the apparent validity of any written request for confidentiality, the written determination will be sent to the offeror.

Requests that are granted shall use the following format:

· Confidential/proprietary information must be readily identified marked and separated/packaged from the rest of the proposal.

· Co-mingling of confidential/proprietary and other information is NOT acceptable. Neither a proposal, in its entirety, nor proposal price information will be considered confidential and proprietary.

· Any information that will be included in any resulting contract cannot be considered confidential.

After award, the offers shall be open to public inspection subject to any continued prohibition on the disclosure of confidential data, C.R.S. Title 24, Article 72, Part 2 as amended.

2.10 RFP Response Material Ownership

All material submitted regarding this RFP becomes the property of the State of Colorado. Proposals may be reviewed by any person after the "Notice of Intent to Make an Award" letter has been issued, subject to the terms of C.R.S. Title 24, Article 72, Part 2 as amended.

2.11 Proposal Prices

Estimated proposal prices are not acceptable. Best and final offers may be considered in determining the apparent successful offeror. Proposals shall be firm for a period of not less than Three Hundred Sixty-Five (365) calendar days from the date of award.

2.12 RFP Cancellation

The State reserves the right to cancel this Request for Proposal at any time, without penalty.

2.13 State Ownership of Contract Product/Services

Proposals upon established opening time become the property of the State of Colorado. All products/services produced in response to the contract resulting from this RFP will be the sole property of the State of Colorado, unless otherwise noted in the RFP. The contents of the successful offeror's proposal will become contractual obligations.

The State of Colorado has the right to retain the original proposal and other RFP response materials for our files. As such, the State of Colorado may retain or dispose of all copies as is lawfully deemed appropriate. Proposal materials may be reviewed by any person after the “Notice of Intent to Make an Award” letter(s) has/have been issued, subject to the terms of Section 24-72-201 et seq., C.R.S., as amended, Public (open) Records. The State of Colorado has the right to use any or all information/material presented in reply to the RFP, subject to limitations outlined in the clause, Proprietary/Confidential Information. Offeror expressly agrees that the State may use the materials for all lawful State purposes, including the right to reproduce copies of the material submitted for purposes of evaluation, and to make the information available to the public in accordance with the provisions of the Public Records Act.

2.14 Incurring Costs

The State of Colorado is not liable for any cost incurred by offerors prior to issuance of a legally executed contract or procurement document. No property interest, of any nature shall occur until a contract is awarded and signed by all concerned parties.

2.15 Proposal Rejection

The State of Colorado reserves the right to reject any or all proposals and to waive informalities and minor irregularities in proposals received and to accept any portion of a proposal or all items proposed if deemed in the best interest of the State of Colorado.

2.16 Vendor Identification

The tax identification number provided must be that of the offeror responding to the RFP. The offeror must be a legal entity with the legal right to contract.

2.17 News Releases

News releases pertaining to this RFP shall NOT be made prior to execution of the contract without prior written approval by the State.

2.18 Certification of Independent Price Determination

1. By submission of this proposal each offeror certifies, and in the case of a joint proposal each party, thereto certifies as to its own organization, that in connection with this procurement:

2. Each person signing the Request for Proposal Signature Page of this proposal certifies that:

(a) She/he is the person in the offeror's organization responsible within that organization for the decision as to the prices being offered herein and that she/he has not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above; or she/he is not the person in the offeror's organization responsible within that organization for the decision as to the prices being offered herein but that she/he has been authorized in writing to act as agent for the persons responsible for such decision in certifying that such persons have not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above, and as their agent does hereby so certify; and she/he has not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above.

3. A proposal will not be considered for award where (1)(a), (1)(c), or (2) above has been deleted or modified. Where (1)(b) above has been deleted or modified, the proposal will not be considered for award unless the offeror furnishes with the proposal a signed statement which sets forth in detail the circumstances of the disclosure and the head of the agency, or her/his designee, determines that such disclosure was not made for the purpose of restricting competition.

2.19 Conflicts of Interest

The holding of public office or employment is a public trust. A public officer or employee whose conduct departs from his fiduciary duty is liable to the people of the State. Rules of conduct for public officers and state employees:

(a) Engage in a substantial financial transaction for her/his private business purposes with a person whom she/he inspects, regulates, or supervises in the course of his official duties;

(b) Assist any person for a fee or other compensation in obtaining any contract, claim, license, or other economic benefit from her/his agency;

(c) Assist any person for a contingent fee in obtaining any contract, claim, license, or other economic benefit from any state agency; or

(d) Perform an official act directly and substantially affecting its economic benefit a business or other undertaking in which she/he either has a substantial financial interest or is engaged as counsel, consultant, representative, or agent.

(e) Serve on the Board of any entity without disclosure to the entity, the Secretary of State, and his/her employer.

2.20 Taxes

The State of Colorado, as purchaser, is exempt from all federal excise taxes under Chapter 32 of the Internal Revenue Code (Registration No. 84-730123K) and from all state and local government use taxes C.R.S. 39-26-114(a). Our Colorado State and Local Sales Tax Exemption Number is 98-02565. Seller is hereby notified that when materials are purchased in certain political subdivisions (for example - City of Denver), the seller may be required to pay sales tax even though the ultimate product or service is provided to the State of Colorado. This sales tax will not be reimbursed by the State.

2.21 Public Contracts for Services

CRS 8-17.5-101 (EXCLUDED; SECURITIES, INVESTMENT ADVISORY SERVICES OR FUND MANAGEMENT, SPONSORED PROJECTS, INTERGOVERNMENTAL AGREEMENTS, OR INFORMATION TECHNOLOGY SERVICES OR PRODUCTS AND SERVICES).

Effective May 13, 2008, contractors who enter into or renew a public contract for services with Colorado state agencies or political subdivisions must participate in either the Federal E-Verify program, or the Colorado Department of Labor and Employment Program. For more information see:

E-Verify Program: http://www.dhs.gov/e-verify or, Colorado Department of Labor and Employment Program and notice forms: Division of Labor: http://www.colorado.gov/cs/Satellite/CDLE-LaborLaws/CDLE/1248095356380

2.22 Contract Performance for Services Outside US or CO

CRS 24-102-206 – Contract Performance for Services Outside US or CO - Now requires Contractors to give written notice in accordance with the following State Contract terms and conditions:

If any services are performed outside the United States or Colorado:

Prior to contracting or as a requirement for the solicitation of any contract from the state for services, as appropriate, any prospective vendor shall disclose in a written statement of work whether it anticipates subcontracting any services under the contract, where such subcontracted services will be performed under the contract, including any subcontracts, and whether any subcontracted services under the contract or any subcontracts are anticipated to be performed outside the United States or the state. If the prospective vendor anticipates services under the contract or any subcontracts will be performed outside the United States or the state, the vendor shall provide in its written statement of work a provision setting forth why it is necessary or advantageous to go outside the United States or the state to perform the contract or any subcontracts.

Following the Contract Effective Date, Contractor shall provide written notice to the State, within 20 days of the earlier to occur of Contractor’s decision to perform, or its execution of an agreement with a Subcontractor to perform, Services outside the State of Colorado and/or the United States. Such notice shall specify the type of Services to be performed outside the State of Colorado and/or the United States and the reason why it is necessary or advantageous to perform such Services at such location or locations. All notices received by the State shall be posted on the Colorado Department of Personnel & Administration’s website. Knowing failure by Contractor to provide notice to the State shall constitute a material breach of this Contract.

Noncompliance Contractor’s failure to provide reports and notify the State in a timely manner may result in the delay of payment of funds and/or termination as provided under this Contract.

2.23 Subcontracts

Copies of any and all subcontracts entered into by Contractor to perform its obligations hereunder shall be submitted to the State or its principal representative upon request by the State. Any and all subcontracts entered into by Contractor related to its performance hereunder shall comply with all applicable federal and state laws and shall provide that such subcontracts be governed by the laws of the State of Colorado.

Background and Overview

3.1 Background

Over 23 years ago, with the support of the Western Governors’ Association (WGA), a group of Western States formed an alliance to jointly procure EBT services. While the composition of WSEA has changed over the past 23 years, WSEA has maintained mutual goals and objectives concerning EBT, including cooperating in the implementation of new federal regulations and technology advances, and achieving economies of scale through caseload and transaction volumes and standard processing platforms.

3.2 Overview of the Procurement

This RFP solicits the delivery of the full scope of EBT, direct deposit and commercial branded debit card services as specified in this RFP. The scope of services within this RFP reflects the goal to acquire services that meet the WSEA’s quality, performance, and cost constraint requirements.

In general, the acronym EBT within this RFP refers to all programs under EBT (SNAP/Cash and WIC). If there are requirements specific to cash or WIC, the RFP refers to cash EBT or WIC EBT.

The State of Colorado Department of Human Services (CDHS), Division of Procurement is issuing this RFP on behalf of the WSEA States. CDHS is the lead State Agency for the WSEA procurement composed of states that joined in the last procurement for EBT services in June 2015, with the exception of Washington, which rejoined the WSEA for this procurement.

CDHS retains the right to accept or reject any or all proposals if it is deemed to be in the best interest of the WSEA States. Each WSEA State participating in this procurement intends to contract separately with the selected EBT Contractor. If there are circumstances that preclude a State from contracting with the selected EBT Contractor; that State may not select from any other Offeror based on this RFP. In such circumstances, the State will withdraw from the Alliance and will have the right to initiate its own procurement for EBT services.

The current EBT contracts for the WSEA States are due to expire on the dates specified in the following Table 1: Current WSEA Contract Dates. Some of the States have remaining contract extension options that may be executed. The WSEA States may contract with the EBT Contractor selected through this procurement in advance of their current contract expiration date or in advance of any of the optional contract extension periods.

Table 1: Current WSEA Contract Dates Current WSEA EBT Contract Dates

State specific contract start dates, base contract periods and optional extension periods for each State under this procurement will be determined during individual State contract negotiations. The minimum base contract is estimated to be five (5) year with the maximum contract duration, including extension, estimated to be nine (9) years.

Pricing under any optional extension period(s) exercised under this contract will be at the same pricing structure specified for the base contract period, or lower pricing if expressed in the extension document. It is the intent of the WSEA States at the conclusion of this procurement period to continue the Alliance and jointly rebid for EBT services. By jointly issuing this RFP the WSEA States have agreed, in principle, to the requirements specified herein. As a result, the Offeror’s response is applicable to each participating WSEA State. However, the Offeror’s response shall contain state-specific responses where required.

All the WSEA States currently operate established EBT systems with an EBT Contractor. This RFP is requesting an EBT system that will result in as little disruption or change to the States’ current operations as possible and preferably no changes to the States’ EBT interfaces. However, the States will consider changes to their EBT interfaces if the proposed changes provide operational savings and/or improved services.

Offerors must propose an EBT system that meets the requirements of applicable Federal and State laws and regulations and United States Department of Agriculture (USDA) Food and Nutrition Services (FNS) technical standards and guidelines. Refer to Appendix 8: State Terms and Conditions. Offerors shall comply with all Federal regulations, circulars, policy, guidance, and technical standards pertaining to the contracted services for SNAP and WIC. This includes provisions of the Agricultural Act of 2014, and related regulations, policy, and guidance.

Federal requirements for WIC EBT processing and performance shall be considered the minimum standards for the WIC EBT system. Where specified in this RFP, the selected EBT Contractor shall be required to exceed Federal requirements and operating rules to meet state-specific requirements. As Federal and State regulations and laws, WIC EBT Operating Rules, the WIC MIS-EBT Universal Interface and the Technical Implementation Guide are changed or updated during the contract period; the EBT system must be modified to meet the new requirements at no additional cost to the States.

3.3 Overview of WSEA Programs

The following table identifies the current WSEA States and shows their caseload averages over a six-month period from April through September 2020. During the 2015 EBT re-procurement, WSEA had a combined unduplicated caseload of approximately 1.03 million households. Since 2015, the WSEA caseload has been relatively static. The one major difference in caseloads is the reentry of Washington State back into WSEA, along with its average 541 thousand cases. Today, the WSEA coalition provides SNAP, cash, and WIC benefits to over 1.63 million households. The following table provides average caseloads for the WSEA States and Guam.

Table 2: WSEA EBT Caseloads

With a nationwide SNAP caseload of approximately 19.45 million in 2020, WSEA is about 7.1% of the total caseload in the nation. Only four States (California, Florida, New York, and Texas) have caseloads larger than WSEA, with California the highest at approximately 2.4 million households.[footnoteRef:0] For the WIC program, in 2020 there were approximately 3.9 million WIC households.[footnoteRef:1] The WSEA WIC caseload is about 1.25% of the national caseload. [0: FNS SNAP Participation data as of January 21, 2021. Totals are from initial April 2020 data. ] [1: WIC Participation data from FNS Preliminary 2020 number, and assuming 1.6 participants per household. ]

3.3.1 WSEA Program Benefits

The following table provides a list of the programs which the WSEA States support through their current EBT contracts. Benefits may be provided via EBT, direct deposit or a commercial branded debit card. With the exceptions of Wyoming and Nebraska, WSEA States are providing cash benefits through EBT.

Table 3: WSEA Benefit Programs Currently Supported by EBT

Aid to the Aged, Blind, and Disabled (AABD)

Aid to the Blind (AB)

Aid to the Needy Disabled (AND)

Aid to the Totally and Permanently Disables (APTD)

Child Care

Child Support

Child Welfare and Subsidized Adoption

Consolidated Emergency Assistance Program (CEAP)

Employment and Training (E&T)

First to Work

General Assistance

Home Care Allowance (HCA)

LEAP (LIHEAP)

Old Age Assistance

Old Age Pension (OAP)

Refugee Assistance

Repatriate

State Food Assistance Program (FAP)

State Supplemental Payments (SSP)

Temporary Assistance to Other Needy Families (TAONF)

Training Related Expense (TRE)

Utility Reimbursement

3.4 EBT Program Profile

The WSEA States and territory, consisting of Alaska, Arizona, Colorado, Guam, Hawaii, Idaho, Nebraska, Washington, and Wyoming, are joining to jointly procure EBT services. This section provides information on the current participating states.

3.4.1 State EBT Profiles

Currently there are nine WSEA members consisting of eight state members and the Territory of Guam. The following table provides the benefit types that will be disbursed through the EBT services being procured in this RFP.

Table 4: WSEA Programs by State

Following are high level profiles of WSEA States’ EBT operations. These profiles are provided for information purposes. They represent a snapshot at a point in time and are subject to change. Upon contract award, a single point of contact for each State shall be named. Profiles of the States’ WIC Programs are provided for Alaska, Hawaii, and Idaho, the three WSEA States procuring WIC EBT services through this acquisition.

3.4.2 Alaska

The Alaska Department of Health and Social Services (DHSS) delivers Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) benefits via the QUEST Card. Adult Public Assistance (APA) and Senior Benefits, as well as some TANF benefits, are delivered via direct deposit. Alaska is planning to offer APA and Senior Benefits on the Quest Card. Local office staff provides direct deposit enrollment forms to clients. The completed forms are forwarded to the EBT office in Juneau, which manages direct deposit enrollment and account maintenance in the Eligibility Information System (EIS).

3.4.2.1 Current Operating Environment

Division of Public Assistance (DPA) services are delivered through 18 local offices around the state. The local office staff members are responsible for client eligibility determination, authorization of benefits, entry of client EBT data on the host-to-host interface between EIS and the EBT Processor and providing basic client EBT training.

The DPA System Operations Unit, located in Anchorage, produces, and mails all EBT cards. No cards are issued or replaced at local offices. However, Alaska may decide to move to over the counter (OTC) issuance at some point during the term of the EBT contract. The cards and accompanying client training materials are distributed by mail. PINs are generated and mailed by the current EBT Contractor only upon request by the client. Clients normally select, activate, and change their PIN by phone using the EBT Contractor’s Integrated Voice Response (IVR) system.

Unstable electrical and telecommunications service and delays associated with satellite links, offer special challenges in some remote rural areas of Alaska. Although EBT typically runs smoothly, special care must be taken to configure point-of-sale terminals with special settings, priority phone numbers, and signal wait times, for EBT to be viable. Inoperable equipment makes SNAP transactions difficult and may make cash unavailable for all recipients in the village.

3.4.2.2 High Level Technical Environment

The State of Alaska Data Center, located in Juneau, Alaska, is connected to the current EBT Processor’s data center in Milwaukee, Wisconsin. The two host systems utilize TCP-IP and Connect Direct software to facilitate file transmission. All file transmissions from the Alaska Data Center are validated by a daily return report from the EBT Processor.

DPA benefits are transmitted to the current EBT Processor from the DPA EIS via two possible routes. The first is a direct host-to-host interface between the EIS and the current EBT Processor. DPA staff has incorporated the appropriate administrative function screens from the EBT Processor within EIS to allow an on-line exchange and update of client data. The second method is via batch file. The current process provides for daily and monthly batch updates from the EIS.

3.4.2.3 Alaska WIC Program

The Alaska WIC Program is administered under the Department of Health and Social Services (DHSS). In Federal Fiscal Year 2020, the Alaska WIC program served an average of 15,234 participants per month. Participants receive up to three months of benefits, which they can redeem for specific food items at approximately 170 WIC-authorized vendors statewide.

Currently, Alaska issues benefits and eWIC cards through its WIC management information system (MIS), SPIRIT (Successful Partners in Reaching Innovative Technologies), a web-enabled system housed in the State’s Juneau data center and accessible to grantees via internet service secured through local internet service providers. There are rural areas in Alaska where there is not a WIC approved vendor to purchase WIC food items from. For these areas, the WIC program provides benefits through the internet under contract with an online vendor to provide the internet shopping and benefit delivery service.

3.4.3 Arizona

The Arizona Department of Economic Security (AZDES) is charged with the management and administration of various types of human and social services to Arizona residents. Within the AZDES, the Division of Benefits and Medical Eligibility (DBME) is responsible for the SNAP, and cash assistance programs.

3.4.3.1 Current Operating Environment

The AZDES distributes SNAP benefits, Temporary Assistance to Needy Families (TANF) cash assistance, Refugee Assistance (RA) and JOBS Training Related Expenses (TRE) via the Arizona Quest EBT card. AZDES staff is responsible for determining benefit authorizations and assisting clients with questions regarding benefit eligibility and general training on the use of the Arizona QUEST card. Local office staffs also assist benefit recipients in interpreting transaction histories, and card re-issuance.

3.4.3.2 High Level Technical Environment

All client benefit authorizations are generated by the AZDES AZTECS system and sent to the EBT Contractor’s host system by either on-line, real time transactions, or through batch file. The AZDES AZTECS generates both daily and monthly batch authorization files. Benefits for TANF, RA, and TRE may be issued via the Arizona QUEST card. Childcare payments are deposited directly into the providers’ checking account via ACH direct deposit. All SNAP benefits are issued via the Arizona QUEST card.

The AZDES host data centers, located in Phoenix, Arizona, are connected to the EBT Contractor’s host data center and backup sites via a redundant leased T-1 data line. The host systems utilize TCP-IP and SFTP FIPS-2 software to facilitate file transmission.

3.4.4 Colorado

Colorado Electronic Benefits Transfer Services (CO/EBTS) distributes SNAP, public assistance benefits and cash payments for services electronically, utilizing the Colorado Quest Card and/or ACH direct deposit for eligible clients and service providers. Payments delivered through CO/EBTS include SNAP, Temporary Assistance to Needy Families (TANF), Old Age Pension (OAP), Aid to the Needy Disabled (AND), Aid to the Blind (AB), Home Care Allowance (HCA), Low Income Energy Assistance Program (LIEAP), Colorado Child Care Assistance Program (CCCAP), and Child Welfare, Children Youth Families (CYF), Out Of Home Placement (OOH), Case Services (CS), Core Services Program (CSP), and Department of Local Affairs (DOLA/Division of Housing (DOH) utility reimbursement. State and federal benefits are transmitted from CDHS’s automated program systems through CO/EBTS to the EBT contractor for subsequent deposit to client/provider bank accounts or branded debit card accounts.

3.4.4.1 Current Operating Environment

The Colorado Department of Human Services (CDHS) is state supervised and county administered. County offices are responsible for client eligibility determination and payments for service providers within each of the state’s 64 county offices. County staff data enter program information into the applicable system for which payment information is then transmitted to the state’s data center where processes occur to transmit the payment information to the EBT Contractor.

County staff have access to the EBT contractors web administration system to support card holders based on user access roles defined by the State. County staff issue both new and replacement over the counter EBT cards to clients. In addition, clients may request issuance of a card and PIN by mail by calling the EBT Contractor’s Customer Service line. Counties provide client training during eligibility and/or card issuance and participate when needed with problem resolution. Counties provide ACH direct deposit enrollment forms for clients and providers as needed. ACH enrollment forms are submitted to the State EBT office for entry into the EBT Contractor’s system. County staff have access to the EBT Contractor’s Web Administration system to support card issuance and PIN selection.

3.4.4.2 High Level Technical Environment

Demographic and benefit data originate in local county offices through one or more different application systems as follows: Colorado Benefits Management System (CBMS) produces SNAP, TANF, OAP, AND, and AB. The Low-income Energy Assistance Program (LEAP) system produces benefit and demographic files for the LEAP program. The Utility Reimbursement program also sends files directly to the EBT system. The “Trails” Child Welfare Eligibility and Services produces benefit and demographic files for clients and service providers that receive child welfare payments. The CHATS system is used for childcare services and service providers.

The system applications produce benefit and demographic data files on a regularly scheduled basis for transmission to the County Financial Management System (CFMS). This application manages all financial transactions for CDHS; maintains CDHS’s financial statements; provides standard and ad hoc reports to county and CDHS staff; transmits financial information to the Colorado Resource Engine (CORE), which maintains financial, budgeting, accounting and reporting functionality for the state; and formats demographic and benefit data for transmission to CO/EBTS. The demographic and benefit files are processed through CO/EBTS and transmitted via Direct: Connect to the EBT Contractor for EBT processing. The EBT Contractor also provides a no cost branded debit card for Colorado’s cash clients.

3.4.5 Guam

The Department of Public Health and Social Services (DPHSS) is an executive line agency within the Government of Guam (GovGuam), and the umbrella agency which administers a full range of health, social and environmental services. DPHSS is comprised of four main Divisions: Public Health, Senior Citizens, Environmental Health, and Public Welfare. Services are provided out of three facilities located in the northern, central, and southern areas of the Territory of Guam. Additional services are provided at various satellite clinics and offices throughout the island.

Within the DPHSS, the Division of Public Welfare (DPW), Bureau of Economic Security (BES) is responsible for the following programs:

· Food Stamps (FS)

· Old Age Assistance (OAA)

· Aid to the Blind (AB)

· Temporary Assistance to Needy Families (TANF) cash assistance

· Aid to the Totally and Permanently Disabled (APTD)

· General Assistance (GA)

· Medicaid and the Medically Indigent Program (MIP).

3.4.5.1 Current Operating Environment

BES is comprised of four (4) sections:

· Certification

· Program Management

· Issuance

· Administration The Certification Section is responsible for eligibility determination and processing of benefits for applicants requesting food stamps, cash, or medical assistance. Certification activities are provided out of three public health facilities in the northern, central, and southern areas of the island. All other BES activities and services are provided at the main DPHSS office located in the village of Mangilao.

All activities related to card issuance take place in all the three public health facilities. Guam does not mail cards or PINs. The Issuance Section issues and replaces all EBT cards over the counter using the EBT Contractor’s Administrative Terminal functions. Issuance staff provides training brochures and one-to-one training at time of issuance.

3.4.5.2 High-Level Technical Environment

Currently, all client benefit authorizations are generated by Guam’s Public Health Program (PHPRO) system and sent to the EBT Contractor’s host through batch files during the business week. PHPRO generates both daily and monthly batch authorization files. The daily batch files are extracted, transmitted, and processed that same evening. The monthly batch files, however, are extracted one night but then transmitted and processed the following evening.

Batch files, both demographic and benefit, are transmitted to the EBT Contractor via Connect: Direct for processing. The response files received from the EBT Contractor are processed by a scheduled post program. If a demographic and/or benefit reject exists, then an alert will be generated for Issuance personnel to address. The rejected record(s) will be prepped to be sent out the following business day for processing.

3.4.6 Hawaii

The Hawaii Department of Human Services (HIDHS) is an agency of the Executive Branch of the State of Hawaii. The mission of the HIDHS is to direct resources toward protecting and helping those least able to care for themselves, and to provide services designed towards achieving self-sufficiency for clients as quickly as possible. HIDHS is committed to maintain a high level of quality, efficiency, and effectiveness in services.

The HIDHS Benefit, Employment and Support Services Division (BESSD) administers the following programs via EBT:

· SNAP

· Cash assistance Program

· Temporary Aid to Needy Families (TANF)

· Temporary Assistance to Other Needy Families (TAONF)

· General Assistance (GA)

· Aid to the Aged, Blind, and Disabled (AABD)

· Child Care (CC)

· Repatriate (RP)

· First-To-Work (FTW)

· Employment and Training (E&T)

3.4.6.1 Current Operating Environment

SNAP and cash benefit determination is done statewide at various locations. SNAP and direct assistance eligibility determinations are handled by the state eligibility units. Support services are determined at either state First-to-Work program offices or contracted work program and childcare subsidy offices. All benefits are transacted electronically as either a daily or monthly transaction on one of two eligibility systems. Clientele work with offices servicing their specific census tract. All offices are located on each of the major islands with the exception of Kaho’olawe and Ni’ihau.

The EBT office serves as the liaison between all eligibility and program staff and the contracted EBT Processor to handle all problems including reporting, monitoring, and resolving. Additionally, all other contract details including contract development and execution, monthly invoicing, report collection, and other related items are handled by the EBT office in conjunction with the fiscal management offices.

3.4.6.2 High Level Technical Environment

The HIDHS utilizes two eligibility systems. The first is the Hawaii Automated Welfare Information (HAWI) system. HAWI assists workers in determining eligibility, benefit level and allows authorization of federal and state funded Financial Assistance and SNAP benefits.

The second is the Hawaii Automated Network of Assistance (HANA) system. HANA is an on-line, interactive, and fully integrated case management system that allows for the selection of candidates from the client pool, intake, assessment, and employment planning for recipient families who require support services related to securing and maintaining…