EBT_4_RFP_Package__052626-_POST.pdf

Request for Proposal for EBT Services

OTSI EBT RFP #74050233

California Health and Human Services Agency Office of Technology and Solutions Integration

Electronic Benefit Transfer (EBT) Project

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Office of Technology and Solutions Integration (OTSI) California Electronic Benefit Transfer (EBT)

Table of Contents Section 1: Introduction Section 2: Rules Governing Competition Section 3: Current Environment Section 4: Proposed Services Section 5: Administrative Requirements Section 6: Bidder Qualifications, Staff Qualifications, and Narrative Questions Section 7: Cost Proposal Section 8: Proposal Format Section 9: Proposal Evaluation Appendix A: EBT Services Contract Tech 213 Exhibit A: Statement of Work Attachment 1: Terms and Conditions Attachment 2: Business Requirements Exhibit B: Cost Worksheets Exhibit C: Deliverable Specification Document Exhibit D: IT General Provisions-Cloud-DGS-PD-4021ITGP-Revised 02/20/2025 Exhibit E: Sample Work Authorization Appendix B: Abbreviations, Acronyms, and Symbols Appendix C: Waivers to Federal Regulations Appendix D: Deliverable Specifications Appendix E: Forms and Attachments Appendix F: Cost Worksheets

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Section 1: Introduction

Office of Technology and Solutions Integration

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1 Introduction

1.1 Purpose of this Request for Proposal

1.2 Background

1.3 Food and Cash and SUN Bucks EBT Services

1.4 WIC EBT Services

1.5 Contract Term

1.6 Cal eProcure

1.7 Scope of the RFP and Bidder Admonishment

1.7.1 Solicitation Steps

1.7.1.1 Intent to Bid

1.7.1.2 Accessing the Bidders’ Library

1.7.1.3 Process for Questions and Answers/Requests for Changes

1.7.1.4 CDT eVAQ Approval Process

1.7.1.5 Proposal Submission

1.7.1.6 Evaluation and Invitation to Negotiations

1.7.2 Negotiations

1.7.3 Best and Final Offer (BAFO)

1.8 RFP Format

1.9 Other Forms and Attachments

1.10 Availability

1.11 Procurement Officers and Contact Information

1.12 Key Action Dates

1.13 Americans with Disabilities Act

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1 Introduction

1.1 Purpose of this Request for Proposal

The purpose of OTSI EBT RFP #74050233 (hereinafter referred to as the RFP) is to solicit proposals from qualified vendors (Bidders) to provide EBT services to the State.

The description of acronyms used in this RFP can be found in the glossary.

The CDSS is responsible for the State’s Food and Cash (including SUN Bucks) programs, and the CDPH administers the WIC program. As the program sponsors, the CDSS and CDPH develop and manage policy and provide program direction to the OTSI, which will hold the contract resulting from this RFP and staffs the California EBT Project. The OTSI provides information technology and project management expertise and is responsible for the acquisition, implementation, transition, contract management, and day-to-day operations of California’s EBT services.

The use of “shall,” “must,” or “will” (except to indicate simple futurity) in the RFP indicates a requirement or condition that is mandatory.

The use of “should” or “may” in the RFP indicates desirable requirements or conditions but are non-mandatory in nature.

1.2 Background

The initial statewide implementation of EBT services for Food and Cash assistance benefits was completed in 2005. In March 2008, California entered its second EBT services contract with Xerox State & Local Solutions, Inc. The OTSI conducted a third procurement in 2015, and the resulting contract for the EBT services was awarded to FIS and fully executed in June 2016.

The California EBT Project completed the transition of Food and Cash EBT services to FIS in June 2018, and WIC EBT services were fully implemented in April 2020. The EBT Project began full M&O in April 2020. In May 2022, California exercised the three (3), one (1)-year extensions of the current EBT services contract through June 2026. In June 2023, the State added two (2) additional optional years to the current contract and exercised one (1) of those options, extending the contract to June 2027. The State is currently in year ten (10) of an eleven (11) year contract.

The State does not own or operate its California EBT system and associated EBT-related services (such as the 24/7 cardholder and retailer call centers, card production and mailings services, equipment deployment, etc.). Instead, the State, like most other states in the nation, procures and contracts for EBT services. The new contractor must continue to adapt its EBT system and other services as required to support California program policies.

1.3 Food and Cash and SUN Bucks EBT Services

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The EBT Project automates card issuance and delivery, redemption, settlement, and reconciliation of California’s Food and Cash program benefits. Each month, the California EBT system provides millions of recipients with electronic access to Food and Cash benefits at POS terminals and ATMs.

Refer to Exhibit A: Statement of Work – Attachment 1: Terms and Conditions, Section

5.2.1 for a listing of all the current Food and Cash programs available on the “Golden State Advantage”. The existing technology for the “Golden State Advantage” card uses Chip EMV and Tap Pay (Chip EMV/Tap) enabled cards.

California administers its food and cash public assistance programs through its 58 counties using a single eligibility system known as CalSAWS which determines eligibility, calculates benefits, and provides integrated case management. The EBT system interfaces with the CalSAWS and the 58 counties. California also uses an independent method of performing daily and monthly reconciliation of EBT financial data at the State level and at the county level. Under a separate contract, the OTSI maintains a system called the SARS to perform this reconciliation. While SARS receives settlement files from the EBT system, it is a standalone system that does not interface with the EBT system.

California’s Summer EBT program, known as SUN Bucks, is administered by the CDSS using a program branded magnetic stripe-only EBT card to provide cardholders access to their SUN Bucks food benefits. Currently, SUN Bucks eligibility data is compiled by CDSS and uploaded into the EBT system by the EBT Contractor to support card issuance and benefit disbursement.

1.4 WIC EBT Services

The WIC program is authorized by the Child Nutrition Act of 1966 and the Healthy, Hunger-Free Kids Act of 2010 (Title 42, United States Code, section 1786). California WIC program services are administered by the CDPH. California’s WIC program provides nutrition services and food assistance for pregnant, breastfeeding, and non-breastfeeding individuals, infants, and children up to their fifth birthday when family income is at or below 185 percent of the federal poverty level. California WIC program services include nutrition education, breastfeeding support, assistance with finding health care and other community services, and WIC EBT for specific nutritious foods that are redeemable using the California WIC card at approximately 3,800 WIC EBT Retailers and approximately 1,200 WIC EBT farmers and farmers markets throughout California.

Additionally, CDPH authorizes a limited number of retail food outlets in Arizona, Nevada, and Oregon to accept the California WIC card.

In California, the WIC program provides services through 83 Local Agencies consisting of local health departments, community-based organizations, federally qualified health centers, and university organizations. Each month, almost one million women, infants, and children are served at more than 500 WIC sites throughout the state.

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California’s WIC program uses a separate WIC card to provide WIC participants access to their WIC food benefits. The technology for the WIC card uses magnetic stripe only enabled cards. Additionally, a QR code on the magnetic stripe WIC card allows participants the ability to use their WIC CVB benefits at authorized farmers and farmers' markets by scanning the QR code to process purchases.

The WIC EBT subsystem is responsible for the accurate redemption and settlement of millions of dollars in government benefit authorizations. The WIC EBT subsystem interfaces with California’s WIC MIS, called WIC WISE, using the WIC universal interface, WUMEI. WIC benefit issuance and case management for participants and vendors is administered via the WIC WISE MIS.

1.5 Contract Term

Please refer Appendix A: EBT Services Contract: Exhibit A: Statement of Work – Attachment 1: Terms and Conditions, Section 3 for the contract term.

1.6 Cal eProcure

The State uses an online procurement system known as Cal eProcure to communicate with prospective bidders and suppliers. Information and ongoing communications for this RFP will be posted by the State on the Cal eProcure website, www.caleprocure.com.

1.7 Scope of the RFP and Bidder Admonishment

This solicitation, the evaluation of responses, and the award of any resultant Contract shall be made in conformance with the provisions set forth in Public Contract Code (PCC) 6611 as they relate to the procurement of IT goods and services in the State of California. PCC section 6611 provides the authority to use a competitive negotiation process when the State’s business needs or the purpose of a procurement or contract is known, but negotiation is necessary to ensure that the State is receiving the best value or the most cost-efficient goods, services, information technology, and telecommunications.

This solicitation will be executed by the CDT OSTP following an approach that includes the steps discussed below. This approach is designed to increase the likelihood that final proposals will be responsive to the State’s requirements.

1.7.1 Solicitation Steps

This solicitation involves multiple steps, including the following:

1.7.1.1 Intent to Bid

Bidders that want to participate in this RFP may send an email indicating their intent to bid, by the date specified in RFP Section 1.12, Key Action Dates, to the Procurement

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Officers. The email should include the Bidder’s name and contact information (including email) where the Procurement Officers should send RFP-related correspondence.

It shall be Bidder’s responsibility to immediately notify the Procurement Officers in writing regarding any revision to the contact person. The State shall not be responsible for proposal correspondence not received by the Bidder if the Bidder fails to notify the State, in writing, about any change pertaining to its designated contact person.

1.7.1.2 Accessing the Bidders’ Library

The State will make available a Bidders’ Library containing reference documentation Bidders may review and use to prepare their proposals.

A Bidder may request access to the Bidders’ Library at any time. To obtain a user ID and password to the Bidders’ Library, Bidders must sign and submit the Confidentiality Statement and the Bidders’ Library Access Authorization Form (available in Appendix E, Forms and Attachments, Forms #4 and #5) to the Procurement Officers listed in Section 1.11, Procurement Officers and Contact Information. It is the Bidder’s responsibility to provide the required documentation to obtain the user ID and password for access to the Bidders’ Library. The Bidder must identify a Bidders’ Library single point of contact with that person’s e-mail address, street address, and phone number. The user ID and password will be e-mailed back to a single company contact within three (3) business days after receipt of the Intent to Bid.

Bidders are encouraged to review the information in the Bidders’ Library to gain a thorough understanding of California EBT services and the business and technical environment of the State. The Bidders’ Library contains the document titled, “EBT 4 Bidders’ Library Index and Links,” which provides an overview of the contents of the Bidders’ Library. The State will provide updated information to the Bidders’ Library during the solicitation to ensure the latest documents are available to the Bidders. It is each Bidder’s responsibility to check for updates to the Bidders’ Library. Bidders are not allowed to share or provide information from the Bidders’ Library to anyone outside of the Bidder’s firm. Items in the Bidders’ Library may be updated at any time without issuance of an addendum to this RFP. In addition, items in the Bidders’ Library may be moved to an alternate project repository after execution of the Contract.

1.7.1.3 Process for Questions and Answers/Requests for Changes

Bidders will have the opportunity to ask questions and request changes to the RFP, including the draft Contract. Bidders asking questions or requesting changes must use the Template for Question Submittal (available in Appendix E, Forms and Attachments Form #1) and submit via to the Procurement Officers listed in Section 1.11 by the deadlines identified in Section 1.12, Key Action Dates. The email’s subject line must state: “OTSI EBT RFP #74050233.” Question and answer sets will be provided to all Bidders without identifying the submitters. At the sole discretion of the State, questions may be paraphrased by the State for clarity.

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Only questions submitted in writing and answered in writing by the Procurement Officers shall be binding and official.

If a Bidder desires clarification or further information on the content of the RFP, but whose questions relate to the proprietary aspect of its proposal and disclosure exposes its proposal to other Bidders, the question may be submitted using the same process as above with the notation, “CONFIDENTIAL.” The Bidder must explain why the question is sensitive in nature. If the State concurs that the disclosure of the question or answer would expose the proprietary nature of the proposal, the question will be answered, and both the question and answer will be kept in confidence. If the State does not concur with the proprietary aspect of the question, the Bidder will be notified and may withdraw the question. If the question is not withdrawn, the question and response will not be confidentially maintained.

1.7.1.4 CDT eVAQ Approval Process

Prior to proposal submission, Bidders must have an OSTP-approved eVAQ in order to submit a proposal. Refer to RFP Section 5 for more information.

1.7.1.5 Proposal Submission

The proposal must be submitted by the deadline and include all mandatory components. Bidders must follow the process in RFP Section 8.2 to get access to the filing sharing site for proposal submission.

1.7.1.6 Evaluation and Invitation to Negotiations

The State evaluation team will review and score each proposal in accordance with the evaluation methodology outlined in the RFP. The State will notify Bidders of the results and invite successful Bidders to participate in negotiations.

1.7.2 Negotiations

Negotiations provide the State and each invited Bidder with the opportunity to discuss elements of a Bidder's proposal to ensure the State is receiving the best value. Prior to negotiations, the State will provide Bidders with a list of topics to be discussed during the negotiation sessions. Logistical requirements regarding the negotiation sessions will be communicated to Bidders via email from the Procurement Officers. Participation in negotiations does not guarantee contract award and does not obligate the State to proceed with any Bidder.

1.7.3 Best and Final Offer (BAFO)

After negotiations, the State may, in its sole discretion, request Bidders submit a BAFO.

Exact BAFO requirements and evaluation criteria will be provided to Bidders prior to the BAFO submittal deadline. The BAFO provides a final opportunity for Bidders to submit a final revised proposal reflecting their best pricing, technical solutions, and other terms.

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1.8 RFP Format

This RFP consists of nine (9) sections and six (6) appendices. The RFP sections are:

1. Section 1: Introduction – This section provides information about the purpose, background, and format of this RFP;

2. Section 2: Rules Governing Competition – This section provides instructions with which the Bidder must comply;

3. Section 3: Current System – This section provides information on how California currently provides EBT services, as well as a description of the existing infrastructure;

4. Section 4: Proposed Services – This section describes the EBT services the State is procuring in this RFP, as well as certain options that the State may choose to exercise in the future;

5. Section 5: Administrative Requirements – This section defines the administrative requirements of this RFP;

6. Section 6: Bidder Qualifications, Staff Qualifications and Narrative Questions – This section defines the qualification requirements for the Bidder and its proposed staff, and includes the narrative questions for the Bidder to address in its proposal;

7. Section 7: Cost Proposal – This section contains instructions on how the Bidder’s cost data is to be presented on the EBT Cost Worksheets (available in Appendix F, Cost Worksheets);

8. Section 8: Proposal Format – This section provides the mandatory format with which the Bidder’s proposal must comply; and

9. Section 9: Proposal Evaluation – This section explains how the State will evaluate the Bidder’s proposal. It contains information on the areas that will be scored, how scoring is performed for each of those areas, and how the final score is computed.

The appendices are:

1. Appendix A: EBT Services Contract;

2. Appendix B: Abbreviations, Acronyms and Symbols;

3. Appendix C: Waivers to Federal Regulations;

4. Appendix D: Deliverable Specification;

5. Appendix E: Forms and Attachments; and

6. Appendix F: Cost Worksheets.

1.9 Other Forms and Attachments

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The following attachments (available in Appendix E, Forms and Attachments) are used for purposes of facilitating the RFP process:

1. Template for Question Submittal (Form #1). This template shall be used by the Bidder to submit questions regarding this RFP;

2. Request for RFP Changes Submittal (Form #2). This form shall be used by the Bidder to submit requests for changes to this RFP;

3. Proposal Submission Checklist (Form #3). This attachment references items to be submitted as part of the final proposal submission but is not guaranteed to include all necessary items;

4. Confidentiality Statement (Form #4): This form shall be used by the Bidder to agree to the State’s confidentiality practices; and

5. Bidders’ Library Access Authorization Form (Form #5): This form shall be used by the Bidder to request access to the Bidders’ Library.

1.10 Availability

The selected EBT contractor, as a result of this solicitation, must meet the requirements of this RFP and be fully available to start work on the contract execution date noted in Section 1.12, Key Action Dates.

1.11 Procurement Officers and Contact Information

The Procurement Officer is the State’s authorized representative regarding this procurement.

Bidders are directed to communicate with the Procurement Officer to submit questions, deliver proposals, and submit all other formal correspondence regarding this procurement. All inquiries should be sent electronically, unless otherwise specified in this RFP, to:

Leanne Nguyen, Procurement Officer (Primary) Phone: (916) 898-4625 E-mail: leanne.nguyen@state.ca.gov

Tien Le, Procurement Officer (Secondary) Phone: (916) 260-9806 E-mail: Tien.Le@state.ca.gov

1.12 Key Action Dates

Table 1.1, Key Action Dates, contains important dates and times associated with this RFP by which the actions must be taken or completed.

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Table 1.1, Key Action Dates

# Key Action (Activity) Date/Time1

A Release of Pre-Solicitation May 26, 2026

B Last day to submit written feedback regarding the Pre-Solicitation

June 19, 2026

1 Release RFP. October 2, 2026

2 Last day to submit Intent to Bid and signed Confidentiality Statement (Form #5).

November 2, 2026

3 Last day to submit eVAQ application to CDT OSTP. November 9, 2026

4 Last day to obtain approval of the CDT eVAQ application

November 23, 2026

5 Last day to submit written questions (Form #1) and request changes to RFP requirements (Form #2).

November 24, 2026, by 5:00 p.m.

Pacific Time (PT)

6 Last day to request access to the filing sharing site for proposal submission.

December 4, 2026, by 12:00 p.m. (PT)

7 State response to written questions for clarification and/or requests to change RFP requirements.

December 10, 2026, by 5:00 p.m. (PT)

8 Bidder proposal submission date. December 18, 2026, by 3:00 p.m. (PT)

9 Conduct confidential negotiation discussions. January 20, 2027, to February 3, 2027

10 Bidder BAFO submission date. February 19, 2027, by 3:00 p.m. (PT)

11 Contract award. May 19, 2027

1 All dates after the final Bidder proposal submission date are approximate and may be adjusted without issuing an addendum.

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1.13 Americans with Disabilities Act

To comply with the nondiscrimination requirements of the ADA, it is the policy of the State to make every effort to ensure that its programs, activities, and services are available to all persons, including persons with disabilities.

For persons with a disability needing reasonable accommodations to participate in the solicitation process, or for persons having questions regarding reasonable accommodations of the solicitation process, contact the Procurement Officers identified in Section 1.11, Procurement Officers and Contact Information. Persons with a disability needing a reasonable accommodation may also contact the State at the California Relay Service Telephone numbers listed below.

To ensure the State can meet the reasonable accommodation need(s) of a person with a disability, it is best that the Procurement Officers receive the request for reasonable accommodations at least ten (10) business days before the scheduled event (e.g., meeting, conference, workshop, etc.) or deadline for solicitation documents.

The California Relay Service Telephone Numbers are:

Voice: (800) 735-2922 or (888) 877-5379

Text Telephone (TTY): (800) 735-2929 or (888) 877-5378

Speech to Speech: (800) 854-7784

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Section 2: Rules Governing Competition

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Section 2: Rules Governing Competition

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2 Rules Governing Competition

2.1 General Guidance

2.2 Irrevocable Offer

2.3 Solicitation Documents

2.4 Examination of the Work

2.5 Addenda

2.6 Exclusion for Conflict of Interest

2.7 Confidentiality

2.8 Disposition of Proposals

2.9 Bidders’ Costs

2.10 Oral Communications by the State

2.11 Financial Stability

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2 Rules Governing Competition This section contains general information and instructions regarding the RFP.

2.1 General Guidance

To minimize the risk of submitting a noncompliant proposal, the Bidder should do the following:

1. Carefully read the entire RFP;

2. Submit questions in a timely manner;

3. Submit all required responses by the required dates and times;

4. Abide by all instructions, procedures, and requirements of the RFP;

5. Exclude additional terms, conditional statements, assumptions, or exception language within proposals; and

6. Carefully review the RFP requirements prior to submission of a proposal to ensure nothing has been overlooked.

2.2 Irrevocable Offer

A Bidder’s final proposal is an irrevocable offer for one hundred eighty (180) calendar days following the scheduled date to submit a final proposal, as noted in RFP Section 1.12, Key Action Dates. A Bidder may extend the offer in the event of a delay of Contract award.

2.3 Solicitation Documents

This RFP includes the State's requirements, instructions prescribing the format and content of proposals, and the Contract to be executed between the State and successful Bidder.

If a Bidder discovers any ambiguity, conflict, discrepancy, omission, or other error in this RFP, the Bidder shall immediately notify the Procurement Officers identified in RFP Section 1.11, Procurement Officers and Contact Information, of such error in writing and request clarification or modification of the RFP.

If the RFP contains an error known to the Bidder, or an error that reasonably should have been known, the Bidder shall submit a proposal at its own risk. If the Bidder fails to notify the State of the error prior to the proposal due date, and is awarded the Contract, the Bidder shall not be entitled to additional compensation or time by reason of the error or its later correction.

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2.4 Examination of the Work

The Bidder should carefully examine the entire solicitation document and any addenda thereto, and all related materials and data referenced in the RFP or otherwise available to the Bidder and should become fully aware of the nature and location of the work and the conditions to be encountered in performing the work.

2.5 Addenda

The State may modify the RFP at any time prior to the proposal due date by issuance of an addendum to all Bidders; however, the State reserves the right to issue additional addenda during negotiations. Addenda will be numbered consecutively.

Should questions arise from an addendum, the Bidders will be allowed to submit written questions regarding the addendum. The due dates for the questions will be specified in the addendum.

2.6 Exclusion for Conflict of Interest

No consultant shall be paid out of State funds for developing recommendations on the acquisition of information technology (IT) products or services or assisting in the preparation of the project approval lifecycle documents (stages 2, 3, or 4) or a feasibility study, while in effect, if that consultant is to be a source of such acquisition or could otherwise directly and/or materially benefit from State adoption of such recommendations or the course of action recommended in the project approved lifecycle document (stages 2, 3, or 4) or feasibility study. Further, no consultant shall be paid out of State funds for developing recommendations on the disposal of State surplus IT products, if that consultant would directly and/or materially benefit from State adoption of such recommendations.

A consultant shall not be eligible to serve as the prime contractor or subcontractor pursuant to this RFP if the contractor/subcontractor is currently providing Independent Verification and Validation (IV&V) services to the State concerning EBT.

2.7 Confidentiality

After the Notification of Award for this Solicitation is released, Bidder proposals may become public despite any markings that the materials are “confidential,” “proprietary,” or “trade secret.” In addition, such markings on Bidder proposals may result in the proposal being excluded from consideration for Contract Award.

If the State receives a Public Records Act (PRA) request, the State will make an independent assessment of whether the records are exempt from disclosure. The State will notify the Bidder prior to releasing records marked as “confidential,” “proprietary,” or “trade secret,” and provide the Bidder with a reasonable opportunity to explain its position or obtain a court order protecting the material from disclosure.

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Both the State and the Bidders shall maintain the confidentiality of all working papers and discussions with the State to the extent permitted by law.

Any disclosure of confidential information by the Bidder is a basis for rejecting the Bidder’s proposal and ruling the Bidder ineligible to further participate. Any disclosure of confidential information by a State employee is a basis for disciplinary action, including dismissal from State employment, as provided by Government Code Section 19570 et seq. Total confidentiality is paramount; it cannot be over emphasized.

2.8 Disposition of Proposals

All documents submitted in response to this RFP will become the property of the State of California and are subject to the PRA, California Government Code § 7920.000 et seq., the California Evidence Code, and other applicable state and federal laws, despite any markings indicating the documents are proprietary or confidential.

2.9 Bidders’ Costs

Costs for developing proposals are the responsibility entirely of the Bidder and shall not be chargeable to the State.

2.10 Oral Communications by the State

Oral communications by State officers and employees concerning this RFP shall not be binding on the State and shall in no way excuse the Bidder of any obligations set forth in this RFP.

2.11 Financial Stability

Prior to Contract Award, the State must be assured that the Bidder has the ability to successfully perform under the Contract. This includes, but is not limited to, having the required personnel and sufficient financial resources and experience in similar endeavors. If, during the evaluation process, the State has questions or concerns about a Bidder's ability to perform under the Contract, the State may request the Bidder provide information to address the State's questions or concerns. If such information is requested, the Bidder will be notified and provided five (5) State business days to submit the information requested in writing to the Procurement Officers. Examples of the type of information requested may include the Bidder's annual reports and current audited balance sheets. Failure to provide the requested information by the State's deadline may result in the Bidder being disqualified from further participation in RFP activities.

In order to minimize the potential risk of default due to financial issues, the State also reserves the right to request such financial documentation as described above throughout the life of the awarded Contract term.

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Section 3: Current Environment

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3 Current Environment

3.1 Food and Cash (including SUN Bucks) Programs

3.1.1 Food and Cash Programs

3.1.2 SUN Bucks Food Program

3.2 WIC Benefits

3.3 California EBT Services Structure

3.3.1 Office of Technology and Solutions Integration

3.3.2 California Department of Social Services

3.3.2.1 County Social Services Agencies

3.3.2.2 California Statewide Automated Welfare System Consortium

3.3.3 California Department of Public Health

3.3.3.1 WIC Local Agencies

3.3.3.2 WIC MIS Contractor

3.3.4 Lines of Communication

3.4 Food and Cash EBT Services

3.4.1 Food and Cash EBT Host System

3.4.2 Interfaces

3.4.2.1 Host-to-Host

3.4.2.2 Batch

3.4.2.3 REST API

3.4.2.4 SUN Bucks File Drop

3.4.3 Food and Cash Administrative Application

3.4.4 EBT Mobile Application and Cardholder Website

3.4.5 Data Warehouse

3.4.6 California Statewide Automated Welfare System

3.4.7 Statewide Automated Reconciliation System

3.4.8 EBT Card and PIN Issuance

3.4.9 Benefit Issuance

3.4.10 Account Aging and Benefit Expungement

3.4.11 Commercial Environment

3.4.12 Cash Access

3.4.13 Customer Service

3.4.14 Dispute Resolution

3.4.15 Settlement and Reconciliation

3.4.16 Disaster Services

3.4.17 Fraud Tools

3.4.18 Food and Cash EBT Retailer ARU and Call Center

3.5 WIC EBT Services

3.5.1 WIC WISE

3.5.2 WIC EBT Host System

3.5.3 WIC EBT Farmer Solution

3.5.4 Current Benefit Issuance Process

3.5.5 Retailer Community

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3.5.6 Settlement

3.5.7 Customer Service

3.5.8 WIC UAT Testing Tools

3.5.9 WIC EBT Retailer ARU and Call Center

3.6 EBT Shared Services

3.6.1 EBT Operations

3.6.2 Retailer Website

3.6.3 Ticket Management Application

3.7 Summary Overview of EBT 3 Services

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3 Current Environment This section presents an overview of EBT services in the State and the current EBT system. It includes a discussion of the organization and structure of EBT in the State, a services overview, a description of the commercial environment, and a summary of State operations.

California does not own or operate its California EBT system. Rather, the State purchases EBT Services. It is the responsibility of the new EBT Contractor to customize its existing services to support California’s needs as defined in Exhibit A: Statement of Work – Attachment 2: Business Requirements.

3.1 Food and Cash (including SUN Bucks) Programs

The CDSS administers federal and state social services programs, including the food and cash, and SUN Bucks benefit programs that are issued under the current California EBT services contract. The CDSS provides State-level oversight and policy development for these programs. CDSS administers SUN Bucks; however, the administration of food and cash programs is county based. Each of the 58 counties is responsible for running its social services programs and issuing food and cash benefits through the CalSAWS. Each county may also utilize the EBT administrative application to issue benefits for county programs with permission from CDSS, including the General Assistance (GA)/General Relief (GR) program. The general processes and policies are the same in each county; however, there are substantial differences between the counties in organizational structure; number of office locations; operational processes and policies; and, to a lesser degree, programs and services offered.

3.1.1 Food and Cash Programs

Currently, approximately 5.5 million Californians receive monthly food and/or cash benefits that are issued via the EBT system. This figure does not include those recipients of cash assistance who elect to receive their cash benefits via direct deposit, warrant, or by other means if allowed by a county.

Also on a monthly basis, county social services agencies statewide issue over $1.1 billion in food benefits and $400 million in cash benefits. California EBT cardholders have over 70,000 locations where they may access food and/or cash benefits, including 26,500 USDA FNS-authorized retailers for food benefits, as well as 31,500 ATMs and 11,957 retailer locations for cash benefits. The counties also have the option to issue public assistance cash benefits via direct deposit.

A list of current food and cash programs is available Statement of Work – Attachment 1:

Terms and Conditions, Section 5.2.1.

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A detailed list of all food and cash program benefit types supported as of the release date for this solicitation can be found in the “Food and Cash Interface Document” in the bidders’ library.

3.1.2 SUN Bucks Food Program

California’s Summer EBT program, known as SUN Bucks, is administered by the CDSS. SUN Bucks is a program that helps families with school-age children buy groceries during the summer months when children might not have access to school meals. A federal law, called the Consolidated Appropriations Act passed in December 2022, created Summer EBT across the country. California passed a law in July 2023 to join the program. The CDSS is the lead agency implementing the program, in partnership with the California Department of Education.

California SUN Bucks cardholders redeem their food benefits at the same food retailer locations as the California Golden State Advantage cardholders. In 2024, families utilized over 4.3 million SUN Bucks cards, totaling over $499 million in food purchases.

3.2 WIC Benefits

The California WIC program services are administered by the CDPH. WIC benefits are redeemable using the California WIC card at WIC EBT retail food outlets (known as WIC EBT retailers) and WIC EBT farmers at WIC EBT farmers’ markets throughout California. Additionally, the CDPH authorizes a limited number of retail food outlets in Arizona, Nevada, and Oregon to accept the California WIC card.

In California, the WIC program provides services through 83 Local Agencies consisting of local health departments, community-based organizations, federally qualified health centers, and university organizations. Local Agency functions include enrolling and certifying individuals into the program; assessing nutritional risk and needs; providing nutrition education and breastfeeding support; referring to other assistance programs;

and, most relevant for this contract, issuing prescribed food benefits.

The CDPH administers the WIC program at the state-level and contracts with Local Agencies to provide services to WIC participants. Each Local Agency provides direct services at the local level, those services include issuing WIC food benefits through the WIC Wise, also referred to as the MIS.

Each month, almost 1 million women, infants, and children are served at approximately 500 WIC sites throughout the state. Food benefits are redeemed at roughly 3,800 authorized stores, and with 800 authorized farmers, at 375 authorized farmers’ markets.

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3.3 California EBT Services Structure

3.3.1 Office of Technology and Solutions Integration

The OTSI serves as the project management entity for California EBT services. The OTSI manages the current EBT contractor and the current California EBT services contract. The OTSI oversees day-to-day operations of California EBT services; provides contract management and EBT expertise; and coordinates EBT-related communications with federal, state, and county stakeholders. In addition, the OTSI oversees the development, testing, implementation, transition, and acceptance of all system changes, and reviews and accepts all contractor deliverables.

The OTSI reviews and recommends improvements and changes to the California EBT system and EBT processes. The current CCB meets on a quarterly basis and includes representatives from the CDSS, CDPH, county social services agencies, the CalSAWS JPA, and other key stakeholders (such as representatives from the County Welfare Directors Association). The new EBT Contractor will also participate in CCB meetings.

3.3.2 California Department of Social Services

The CDSS serves as the California food and cash, and SUN Bucks EBT program sponsor. As such, the CDSS provides policy direction for the food and cash, and SUN Bucks programs, and as-needed legal support and works in partnership with the OTSI to ensure project success. Additionally, CDSS administers the SUN Bucks program and compiles SUN Bucks eligibility data, transferring files to the EBT contractor for upload to the EBT system in support of card issuance and benefit disbursement. CDSS representatives participate in EBT Project meetings and workgroups, including weekly meetings with the OTSI to discuss project status.

3.3.2.1 County Social Services Agencies

The 58 county social services agencies conduct food and cash benefit issuance and are the primary users of the food and cash EBT administrative application and equipment.

As such, the current EBT contractor receives direct inquiries from counties related to the EBT system and administrative equipment, as well as requests for cardstock and related materials.

3.3.2.2 California Statewide Automated Welfare System Consortium The CalSAWS JPA is a consortium of 58 counties that supports the CalSAWS. The CalSAWS is the single eligibility system administered by the counties in partnership with the CalSAWS JPA. The CalSAWS determines eligibility, calculates benefits, and provides integrated case management for California’s food and cash programs.

The current EBT contractor works with CalSAWS staff to test and implement changes to the EBT system that affect county eligibility system operations and vice versa. The

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3.3.3 California Department of Public Health

The CDPH serves as the California WIC EBT program sponsor. As such, the CDPH provides policy direction for the WIC program and as-needed legal support and works in partnership with the OTSI to ensure project success. The CDPH Women, Infants, and Children Division staff serve as WIC program subject matter experts, recommend system enhancements and modifications, and participate in system User Acceptance Testing. Ancillary divisions within CDPH provide project support, (i.e., ITSD, Office of Legal Services, CDPH Project Management Office). CDPH representatives participate in EBT Project meetings and workgroups, including regular, agreed-upon meetings with the OTSI to discuss project status.

3.3.3.1 WIC Local Agencies

The CDPH contracts with Local Agencies to provide services to WIC participants. These agencies consist of local health departments, community-based organizations, federally qualified health centers, and university organizations. Currently, WIC Local Agencies issue WIC benefits on the WIC EBT card to provide WIC participants access to WIC food benefits via a pre-printed magstripe WIC EBT card.

3.3.3.2 WIC MIS Contractor

WIC WISE is the single eligibility system administered by the CDPH in partnership with the 83 Local Agencies to determine eligibility, issuance of benefits, and provide integrated case management for California’s WIC program. WIC WISE also provides management for state WIC EBT retailer/WIC EBT farmer operations, WIC food benefit issuance, and other programmatic operational needs.

The current EBT contractor works with the WIC MIS contractor to test and implement changes to the WIC EBT system that affect State and Local Agency operations and WIC vendor operations. The current EBT contractor receives direct inquiries from the WIC MIS contractor related to the EBT system, telecommunications, and interfaces.

3.3.4 Lines of Communication

The following organizational chart presents the general lines of communication between OTSI and its key EBT business partners.

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Figure 3.1, California EBT Communication Organization

The formal relationship lies between the State and the current EBT contractor. The dotted lines from the current EBT contractor represent its interaction with external partners that support the issuance of benefits for the different programs.

3.4 Food and Cash EBT Services

This section presents information on the food and cash programs, existing benefit issuance processes, current system, settlement, and retailer community.

3.4.1 Food and Cash EBT Host System

The California food and cash EBT system is hosted by the current EBT contractor at primary and backup data centers. The food and cash EBT host system captures and maintains cardholder demographic and benefits data. It supports online transaction processing; administrative application functionality; file acceptance and transfer; and reporting. All system activity is tracked on a county-by-county basis, and all reports are created and generated on a county-by-county basis. There are also State-level reports for statewide reporting and data analysis. County users access county-specific reports using the reports module of the EBT administration application and using the SARS.

Statewide reports are also transmitted to SARS.

EBT cases are independently managed by each county. EBT case numbers and benefit grant identification numbers are assigned by CalSAWS. Each case number begins with the county code of the county that “owns” the case to ensure the case number is unique within the EBT system. Card issuance, changes to cardholder data, and benefit issuance can only be performed by a worker within the “owning” county. The current EBT system also has additional counties (County 70, 71, and 80) that are used by the CDSS to issue cards and food benefits to support special programs, including program integrity-related investigations and SUN Bucks.

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3.4.2 Interfaces

There are currently redundant network connections at the CalSAWS and at the county and state data centers that provide access to the food and cash EBT host system. All 58 counties interface directly with the food and cash EBT host system.

The CalSAWS interfaces with the EBT system in two (2) ways:

a) Host-to-host messages; and

b) Batch files.

Counties use the EBT network connections to access a browser-based EBT administrative application. In addition, card printers at local county offices interface with the EBT system using web services. The EBT system does not transmit any batch files or reports to any individual county system.

SUN Bucks interface files are currently transferred between the CDSS and current EBT contractor via a secure file drop process.

Detailed information on the current host-to-host and batch, and file drop interfaces and what is expected as a result of this solicitation is provided in the Food and Cash EBT Interface Document in the Bidders’ Library.

3.4.2.1 Host-to-Host

The host-to-host interface works in conjunction with the batch interface for case/cardholder demographic data and benefit data maintenance. It is used primarily for inquiry transactions, case/cardholder management, card issuance, and expedited or immediate need benefit issuance.

The host-to-host interface refers to transaction data sent to and processed by the food and cash EBT host system directly from CalSAWS in an online, real-time environment.

Data is processed in a request/response message format with data originating from the actions of an authorized eligibility system user.

The host-to-host transactions can be broken into five (5) categories:

a) Inquiry transactions – Case, cardholder, card, and benefit and account history;

b) Demographic maintenance – Addition and modification of cardholder data;

c) Benefit maintenance – Addition and/or cancellation of benefits;

d) Card maintenance – Issuance and re-issuance of a card and changing card status; and

e) Miscellaneous updates – Includes benefit repayments and unlocking of PINs.

The host-to-host connection between the CalSAWS and the food and cash EBT host system is a TCP/IP socket connection. The current EBT contractor uses a standard IP addressing convention for traffic flowing between the EBT system and the CalSAWS.

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3.4.2.2 Batch

The batch interface is used by the CalSAWS for routine case/cardholder maintenance and benefit issuance, and for issuance of ongoing monthly benefits. The CalSAWS sends and receives separate batch files for each county. The CalSAWS sends daily demographic and benefit files as well as monthly benefit files to the food and cash EBT host system. Accordingly, the CalSAWS receives daily demographic and benefit return files as well as monthly return files from the food and cash EBT host system.

Batch files can be broken into four (4) categories:

a) Demographic and Benefit Data Files – Batch files generated by the CalSAWS to add and update cardholder demographic information; reactivate food and cash EBT accounts; and issue and void EBT benefit grants;

b) Demographic and Benefit Return Files – For each demographic and benefit file received, the food and cash EBT host system transmits a return file to CalSAWS, with header information (only when an entire file is accepted), and individual records and associated error codes when records are rejected;

c) End-of-day Files – Following the end of each settlement day (2:59:59 p.m. PT), the food and cash EBT host system transmits end-of-day files to the CalSAWS.

End-of-day files include records of financial and non-financial transactions, account aging, grant expungement, and adjustment request activity. Separate end-of-day files are generated for each county; and

d) Report Files – The EBT host system transmits daily, monthly, and quarterly reports to the SARS in formatted text, CSV, and PDF formats.

3.4.2.3 REST API

The CalSAWS-operated statewide portal called BenefitsCal provides cardholders with their EBT data from the food and cash EBT host system via a REST API.

Cardholders leverage APIs to integrate EBT system account information. The REST API is constructed for cardholder operations in self-service platforms.

API messages consist of request and response messages:

a) Cardholder Search - The Cardholder Search request and response provides a list of cardholders matching given search criteria. BenefitsCal searches by the

SUID;

b) Cardholder Demographic Request - The Get Demographic request and response returns cardholder demographic information to BenefitsCal for a provided cardholder ID;

c) Cardholder Balance Request - The Get Balance Summary request and response returns a cardholder’s available balances to BenefitsCal; and

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d) Cardholder Transaction Summary - The Get Transaction Summary request and response returns cardholder transaction information to BenefitsCal. The request contains specifics for start date and end date.

3.4.2.4 SUN Bucks File Drop

The CDSS currently transfers files to and from the current EBT contractor in support of the SUN Bucks program as eligibility for this program is not…