HSS27008-WICEBTSERV_appB.pdf

RFP HSS 27 008 Appendix B

Appendix B

Scope of Work and Project Requirements

RFP HSS 27 008 Appendix B

Business Case Number – BC0003045

RFP HSS 27 008 Appendix B

APPENDIX B

DETAILED SCOPE OF WORK

Table of Contents

A. Minimum Requirements

B. Deliverable Protocols

C. Task Requirements

Task 1 - e-WIC Project Management

Task 2 - MIS Interface

Task 3 - e-WIC Systems Requirements

Task 4 - EBT Card and PIN Management

Task 5 - POS Transaction Processing

Task 6 - Reconciliation and Settlement

Task 7 - Administrative Terminal Functionality

Task 8 - Vendor Initiatives

RFP HSS 27 008 Appendix B

Task 9 - Vendor Certification

Task 10 -Testing

Task 11 - Customer Service

Task 12 – Training

Task 13 - Reports

Task 14 – Deliverables

Task 15 – Disaster Recovery

Task 16 – Security

Task 17 - Business Requirements

Task 18 - Performance Requirements

Task 19 – System Transition

Task 20 - System Enhancements and Planning Support

Task 21 – Online WIC Purchasing (Option)

Exhibit A – Current WOW/EBT Interface Control Document

(ICD)

RFP HSS 27 008 Appendix B

Exhibit B - Required Federal Clauses…………………………….…….. 66

Exhibit C– e-WIC Statistical Abstract

Exhibit D EBT Card Specifications

Exhibit E– Glossary

Exhibit F– Price Proposal Form

Exhibit G – Information Resource Management (IRM) Requirements

TABLE OF TABLES

Table 1: EBT Card PAN Layout

Table 2: EBT Card Track 2 Layout

RFP HSS 27 008 Appendix B

SCOPE OF WORK

A. Minimum Requirements

1. All Offerors must address all tasks listed below and adhere to all specified requirements.

Proposals for a new or significantly modified system must clearly state, in detail, how the proposed system meets each of the task requirements. In the case of minor (or

no) changes to the existing system, offerors should attest that the proposed system meets the specified requirement.

2. All Offerors must agree to provide e-WIC systems that conform to the most current (i.e. latest) version of industry and government standards, and government guidance, including (but not limited to) the following FNS documents:

a. WIC EBT Technical Implementation Guide (TIG);

b. WIC EBT Operating Rules;

c. Functional Requirements Document (FReD) for a Model WIC Information System; and

d. The Food and Nutrition Service (“FNS”) WIC Universal MIS-EBT Interface Specifications (WUMEI).

FNS guidance and standards, including the Operating Rules (Version 3.0), Technical Implementation Guide (TIG), WIC Universal MIS-EBT Interface standards (WUMEI) and links for various ANSI standards for an e-WIC system can be found at:

WIC Universal MIS EBT Interface (WUMEI)

RFP HSS 27 008 Appendix B

3. All Offerors must agree to comply with the most current (i.e. latest) version of The American National Standards Institute (ANSI) X9.93 standards, as specified by FNS, and agree that all software and automated data processing equipment ownership rights shall be as prescribed in Federal regulations and as further clarified or negotiated with the State.

4. Should a transition from the current vendor or system be proposed, the proposed and final (approved) work plan must incorporate the following schedule milestones:

a. The User Acceptance Test (UAT) must be scheduled no later than eight (8) months after contract execution; and

b. State cutover must be completed no later than 12 months after contract execution.

5. All transition effort, if any, as prescribed in Task 19 shall be at no cost to the State.

6. All Offerors must agree to notify the State about any system upgrades and modifications provided by the Offeror to other States or entities. Such notification must be provided within three (3) months of implementation of the modification/upgrade by the State or entity.

7. Exhibit G to this RFP includes Information Resource Management (IRM) requirements that will be incorporated into the final contract during contract negotiations. They are provided for information and consideration only at this time;

however, bidders should be aware that the following two items will be required:

a. State of Delaware Terms and Conditions Governing Cloud Services and Data Usage Agreement (RFP document - Appendix D – DTI Terms and Conditions)

b. Business Associate Agreement (RFP document - Appendix D)

RFP HSS 27 008 Appendix B

B. Deliverable Protocols

1. The format of all deliverables is defined in Task 14.

2. The Delaware Health and Social Service (DHSS), Information Resource Management Section (IRM) will be part of the deliverable review and approval process.

The IRM unit is responsible for providing DHSS divisions with direct programming support of automated systems, as well as consulting support and management of automated systems software, contractors and development projects.

IRM consists of:

• Applications Development,

• Technology Planning,

• Base Technology,

• Telecommunications, Security, and

• Help Desk support groups who participate in all phases of the project lifecycle as appropriate.

IRM will appoint a:

• Project Director with broad oversight authority for all project activities

• Technical Manager will be appointed and report to the Project Director for project-related activities.

The Contractor on this project will report to the Project Director. The Project Director will report to the Director of Information Resource Management and have a dotted line to DTI’s (Department of Technology Information) Director of Major Projects.

RFP HSS 27 008 Appendix B

C. Task Requirements

In its proposal, each Offeror shall clearly describe its ability to perform all the service tasks defined in the specific task. A comprehensive description of the proposed e-WIC system, or enhancements to the existing system, shall include the system configuration, all processing components, databases, interfaces, and participating entities. Deliverables (see Task 14) shall be provided for all new systems as well as for proposed enhancements to existing systems.

All tasks except Task 19 (System Transition) will be required, to a greater or lesser degree, depending on whether or not the contract is awarded to the incumbent. Upon award, the State and the successful contractor shall mutually agree to the extent required.

Task 1 - e-WIC Project Management

1.1 Project Kickoff Meeting

Within ten (10) days of the start of the contract, the Contractor will be expected to attend an on-site or virtual project kickoff meeting led by the State. The Contractor’s project manager and other key Contractor staff must participate in this meeting. The objectives of the meeting are to:

• Introduce the State’s Project Manager;

• Give the State an opportunity to provide the Contractor with all the information and materials relevant to the e-WIC project;

• Update the Contractor with the current status of the e-WIC project;

• Provide direction for the Contractor to begin its review of tasks, including any additional detail for the tasks and the timetable for the completion of those tasks;

RFP HSS 27 008 Appendix B

• Review the preliminary project work plan and schedule, establish the project communications structure and discuss the management of change orders;

• Discuss the required deliverables and schedule for submission of the deliverables, and confirm the acceptance criteria;

• Discuss the content and structure of weekly status calls and status reports; and

• Develop a schedule for joint application design (JAD) sessions, at which system requirements and design will be finalized.

1.2 Project Management Plan

The Contractor shall develop a comprehensive project management plan that illustrates how they will accomplish the work and meet the e-WIC project timeline. The management plan must include the Contractor’s approach to the following:

• Integration Management

• Time Management

• Scope Management

• Configuration Management

• Change Control

• Cost Management

• Quality Management

• Human Resource Management

• Communications Management

• Complaint and Dispute Resolution

• Risk Management

RFP HSS 27 008 Appendix B

• Vendor Management

• Training, and

• Status Reporting

1.3 Project Management Team

1.3.1 It is expected that the Project Management Plan will include a team comprised of a dedicated e-WIC project manager, who shall be responsible for carrying out all tasks required by this RFP, and the following key personnel, as necessary:

• Vendor manager

• Technical manager

• Operations manager

• Customer service/help desk manager

1.3.2 If one or more of the proposed personnel become unavailable for continuation of the work assignment, the Contractor shall replace said individual(s) with personnel of substantially equal ability and qualifications. However, any changes to designated personnel will require prior written approval of the State’s Project Manager. If the proposed replacement personnel are accepted, the changes in personnel shall be implemented without additional cost to the State.

1.4 Project Work Plan

1.4.1 As part of its proposal, each Offeror shall prepare a preliminary project work plan, observing the protocols and intervals specified in Task 14 of the RFP. The Contractor is expected to have the project

RFP HSS 27 008 Appendix B work plan for the kickoff meeting (See 1.1 above) for review and scheduling. It is expected that the project work plan will be updated and maintained throughout the life of the project. All updates must be approved by the State’s Project Manager.

1.4.2 The project work plan shall identify the following:

• Steps and associated timelines necessary for Contractor to complete each task and related deliverables in accordance with this RFP;

• Milestones to be achieved;

• Task dependencies;

• Critical path tasks;

• Contractor’s personnel resources to be assigned to each task;

and

• State personnel resource assignment needs.

The project workplan shall be provided and maintained in MS Project and .PDF formats.

Task 2 - MIS Interface

The Delaware WIC Program utilizes an automated management information system (MIS) to maintain the WIC client registry. The Delaware WIC MIS system, WIC-on-the-Web (WOW), is an internet-based system developed in partnership with the State of Maryland and the US Virgin Islands.

Voyatek LLC (formerly GCOM) is the WOW Operation and Maintenance O&M contractor and hosts the system on servers located in Maryland.

RFP HSS 27 008 Appendix B

The Delaware WOW system is compliant with the USDA FNS WIC Universal MIS EBT Interface (WUMEI) Specification version 2022 version, updated September 2024. Exhibit A reflects interface specifications between WOW and EBT.

The latest version of the WUMEI is at:

WIC Universal MIS EBT Interface (WUMEI)

It is the State’s preference not to have to make changes to the existing current interface. Offerors should, to the greatest degree possible, use the current interface, as described in Exhibit A.

Data elements to be transferred, file layouts, schedules, as well as discretionary functionality (i.e. Not-to-Exceed (NTE) calculations, etc.) will be determined during the system design sessions with the e-WIC Contractor, the State and the MIS Contractor.

2.1 Connectivity

The Contractor shall:

2.1.1 Establish high performance connectivity between the Contractor’s primary and back-up e-WIC systems, and WOW’s primary and back-up systems.

2.1.2 Provide all necessary hardware and software to ensure connectivity (this does not include provision of computers).

2.2 Interface

RFP HSS 27 008 Appendix B

2.2.1 Coordinate development, integration, and testing of the system interface with WOW;

2.2.2 Conform to the existing WOW configuration; modification of WOW to conform to the Contractor’s interface is not anticipated.

2.2.3 Assure the interface between the WOW and e-WIC systems

conforms to the FNS WIC Universal MIS-EBT Interface (WUMEI), at all times throughout the life of the project.

2.3 Data Exchange

2.3.1 Receive and transmit data between WOW and the e-WIC systems through real-time host-to-host communication and in batch file-transfer processes.

2.3.2 Have twenty-four (24) hour capability, seven (7) days per week, for data, file or record transmission.

2.3.3 Have a back-up procedure to transfer and accept files and records should the normal file and/or record transfer processes fail.

Task 3 - e-WIC Systems Requirements

RFP HSS 27 008 Appendix B

The Contractor is responsible for ensuring that the e-WIC systems meet the processing requirements and criteria established by USDA-FNS. In order of precedence, the Contractor shall process EBT transactions in compliance with:

a. Federal regulations, including WIC Regulations, 7 CFR Part 246;

b. USDA-FNS WIC policy memos and guidance;

c. WIC EBT Operating Rules; and

d. Prevailing industry technical and performance standards.

Offerors propose system configurations that are stable, have the flexibility to support changes in technology and in program requirements, and are not short-lived.

3.1 System Availability

3.1.1 The e-WIC systems, including the EBT host central computer, and any network or intermediate processing facilities under the control of the Contractor and/or its subcontractors, shall be available 99.9% of scheduled uptime, twenty-four (24) hours a day, seven (7) days per week. Scheduled uptime shall mean the time the application is available and accessible for transaction processing and excludes scheduled downtime for routine maintenance.

3.1.1.1 The Contractor shall notify the State of any unscheduled outage within 15 minutes of the occurrence.

3.1.2 The Contractor shall provide the State with an annual maintenance schedule. Scheduled maintenance is expected to occur during off-peak transaction periods. The Contractor shall also provide the State with a description of the maintenance and/or changes to be performed.

RFP HSS 27 008 Appendix B

3.1.3 The Contractor shall provide the State with a minimum of 30 calendar days advance notice for proposed downtime beyond the scheduled routine maintenance.

3.2 Approved Product List (APL)

3.2.1 The e-WIC systems shall receive and maintain the APL product information which contains the Universal Product Code (UPC), categories and subcategories, etc. from WOW on a scheduled and ad-hoc basis.

3.2.2 The e-WIC systems shall transmit the APL, including the current UPC’s and/or PLU’s, to authorized WIC vendors and third-party processors (TPP’s). The e-WIC system shall allow WIC vendors and TPP’s to automate the download of the APL or to request the APL on-demand. The e-WIC systems shall provide authorized users with viewing access to the APL (current and previous) source data. The e- WIC systems should have the ability for vendors and TPP’s to view APL files created by date. The APL file must conform to the latest version of the ANSI X9.93 V4 type 2 specifications.

3.2.3 To the extent possible, the Contractor shall provide tools to facilitate vendors’ handling and processing of APL files.

3.2.4 At present the State has sixteen (16) APL’s; however, the EBT system should be capable of accepting additional APL’s if required by the State. Each APL represents its own vendor peer group.

3.3 UPC/Price Look-Up Code (PLU) Data & Interfaces

The e-WIC systems shall:

RFP HSS 27 008 Appendix B

• Maintain food categories and subcategories used in benefit issuance and assigned to UPCs/PLUs for use in benefit redemption;

• Allow authorized users to update (add/modify/delete) the categories/subcategories using the e-WIC administrative systems as well as through batch files;

• Allow users to set, activate, and de-activate dates for specific categories/subcategories within the table; and

• Provide the ability to view and search the categories/subcategories database.

3.4 Intentionally left blank.

3.5 Not-To-Exceed (NTE) Amounts

3.5.1 The e-WIC systems will provide a mechanism and necessary data to enable the State to set the initial NTE for each UPC at the UPC or subcategory level for each APL (peer group). (The NTE shall be the bid-price agreed to by the State with each of their vendors). The e- WIC systems will allow the State the ability to determine which food items’ NTE will be set by UPC and which by subcategory, and the ability to change this determination at any time.

3.5.2 The e-WIC systems shall accept file transfers to update all/some of the NTE’s and also allow authorized users to adjust the NTE on an item basis. The e-WIC systems shall also provide automated and on-demand activation of new NTE amounts and allow authorized users to override calculated NTE’s deemed inappropriate by the State.

3.5.3 The e-WIC systems shall provide redemption data to enable the State to calculate the NTE amount based on the statewide redemption at the average sub-category level.

RFP HSS 27 008 Appendix B

3.5.4 The e-WIC systems shall maintain the NTE amounts and shall have the capability to automatically transmit NTE data to WOW at pre-determined time intervals. The e-WIC systems shall provide authorized users with viewing and download access to current and historical NTE prices.

3.6 Account Set-Up, Maintenance and Changes

This paragraph 3.6 addresses the interface messaging between WOW and the EBT system. Participant interface with the EBT system is addressed in Task 11 Customer Service.

The Contractor shall set up and maintain an online electronic household account for each WIC family.

3.6.1 Account Set-Up

3.6.1.1 The e-WIC systems shall accept a unique identifier (family ID) and associated demographics from WOW via a real-time, online messages. The e-WIC systems shall validate the uniqueness of the family ID and ensure there are no duplicate ID’s. The e-WIC systems shall validate the integrity of identifying data (e.g., name, date of birth, etc.).

If all data is validated, the e-WIC systems shall establish an e-WIC household account.

3.6.1.2 Specific identifying and demographic data elements, as needed, will be addressed during joint application design (JAD) sessions between the State and the Contractor.

RFP HSS 27 008 Appendix B

3.6.1.3 The e-WIC systems shall create a unique EBT account

number for use in identifying each EBT household account in the e-WIC systems.

3.6.1.4 The e-WIC systems shall maintain an EBT account

structure to ensure that:

a. benefit balances are accurately maintained;

b. benefits accessed by cardholders are drawn from the appropriate category/subcategory and

c. benefit accounts are not overdrawn.

The Contractor shall be liable for any benefits or funds drawn from an incorrect account, for overdrafts against EBT benefit accounts, for access to benefits prior to or after their availability dates, and for EBT host transaction processing errors.

3.6.2 Account Maintenance

3.6.2.1 The e-WIC systems must maintain an account for each

WIC household. The e-WIC systems shall not make changes or updates to account demographic data unless authorized by the State (via a WOW transmission) to do so.

3.6.2.2 The e-WIC systems shall classify as “pending” any new household EBT accounts without associated benefits and will maintain the account as pending until benefits are posted to the account. The e-WIC systems shall only post benefits to the account upon receipt of a benefit issuance record from WOW.

RFP HSS 27 008 Appendix B

3.6.2.3 The e-WIC systems shall provide the administrative

capability to search for pending accounts and shall generate periodic reports on pending accounts.

3.6.2.4 The e-WIC systems shall provide online functionality to delete a pending household account. In addition, the e- WIC systems shall automatically purge pending accounts based on parameters established by the State. The e-WIC systems shall also automatically purge pending cards associated with any pending accounts.

3.6.3 Account Changes

3.6.3.1 The e-WIC systems shall provide functionality to change household demographics through a real-time online message from WOW, upon validation of the family ID. If all data is validated, the e-WIC systems shall update the EBT database and return confirmation for the updates made to demographic data.

3.6.3.2 The e-WIC systems shall provide functionality to change the name and/or demographics of the primary cardholder through host-to-host communication or batch file transmission from WOW.

3.6.3.3 The e-WIC systems shall only close an account upon

notification from WOW.

3.7 Benefit Issuance

3.7.1 The e-WIC systems shall receive food and cash value WIC benefit issuance records from WOW and assign them to the designated

RFP HSS 27 008 Appendix B household account. Benefits will be aggregated at the household level and will indicate the household account number, the category/subcategory, quantity/size and benefit availability date(s).

3.7.2 The e-WIC systems shall be able to accept food and Cash Value Benefits (CVB) benefit issuance records from WOW, via host-to-host data transfer and batch file transmission, both real-time and on a predefined schedule.

3.7.3 The e-WIC system shall only accept and make available benefits received from WOW, or upon other written authorization received from the State. The Contractor shall not issue, and shall be liable for, any and all benefits issued of its own volition and/or not received from WOW.

3.8 Benefit Processing

3.8.1 The e-WIC systems shall validate issued benefits and link benefits to the appropriate household EBT account.

The e-WIC systems shall:

• Reject duplicate benefits;

• Accept current and future months’ benefits;

• Allow more than one issuance to a household for a single month;

• Validate that benefit issuance records are correct in content and format; and

• Validate that benefit dates are synchronized with existing household benefits.

RFP HSS 27 008 Appendix B

3.8.2 The e-WIC systems shall support a real-time, online request for the current balance including both current and future months’ benefits.

The e-WIC systems will return category/subcategory, food description, quantity, and benefit start and end dates by real-time, online message. The inquiry module shall be designed to allow authorized users to print a list of a household’s issued benefits.

3.9 Benefit Maintenance

3.9.1 The e-WIC systems shall maintain the WIC benefit account and account structure. WIC benefit account balances will be segregated by category/subcategory. When a cardholder transaction is conducted, the e-WIC systems shall ensure the transaction will occur using the appropriate category/subcategory. The e-WIC systems shall ensure benefit accounts are not overdrawn or over-issued.

3.10 Benefit Availability and Expiration

3.10.1 The e-WIC systems will manage benefits based on their availability date and time.

3.10.2 Benefits issued host-to-host for an initial certification shall be available to the household immediately upon receipt of the data by the e-WIC host.

3.10.3 Records received during the business day containing current month’s benefits must be processed and benefits made available immediately upon receipt. Future months’ benefits will be available to a household at 12:00 AM local time on the first day of their availability period.

RFP HSS 27 008 Appendix B

3.10.4 The e-WIC systems will ensure benefits are not redeemed prior to their availability date.

3.10.5 Benefits will expire at 11:59 PM local time on the last day of the benefit availability period.

3.10.6 The e-WIC systems will ensure that expired benefits are not redeemed after their expiration date and time. The systems shall also accommodate transactions, such as store-and-forward (SAF) purchases or adjustments, which may need to be applied to an expired benefit.

3.10.7 The e-WIC systems will expunge expired benefits from a household account after a pre-determined period of time to allow for SAF’s and adjustments to be applied. A record of expired benefits will be kept by the e-WIC systems and available in a reportable format.

3.11 Modification/Cancellation of Benefits

3.11.1 The e-WIC systems shall allow authorized users to modify and/or cancel current and future months’ available benefits using real-time, online messages from WOW.

3.12 Transaction History

3.12.1 Transaction history data must be maintained as required by State, FNS, Federal Reserve Board, and Federal law.

3.12.2 The e-WIC systems shall maintain and support online access to current account balances and a rolling three-year transaction history for each account.

RFP HSS 27 008 Appendix B

3.12.3 Data older than three (3) years may be archived but must be accessible to authorized entities as required. Archived data must be recoverable within 48 hours of a request from the State. Retrieval methods will be as agreed upon during the JAD sessions.

3.12.4 Data to be maintained as part of the transaction history shall include:

3.12.4.1 For Vendor Transactions:

• Primary Account Number (PAN);

• EBT account number;

• Household unique identifier (from WOW);

• WIC vendor and TPP identification numbers;

• Terminal identification number;

• Card swipe or key-entered transaction indicator;

• Transaction type (i.e. purchase, void, etc.);

• Category/Sub Category, UPC, cost, quantity and unit of measure;

• Transaction amount (including discounts and NTE adjustment details);

• Transaction date (local and host);

• Transaction time (local and host);

• Transaction results (approval code or denial reason);

• WIC vendor name and address; and

• Account balance after the transaction.

RFP HSS 27 008 Appendix B

3.12.4.2 For Clinic Transactions:

• PAN;

• Household unique identifier (from WOW);

• System user identifier;

• Clinic and local agency identification numbers;

• Transaction type (i.e. account set-up, benefit issuance/adjustment, etc.); and

• Transaction results (approval code or denial reason).

3.12.4.3 For e-WIC Administrative System Transactions:

• PAN;

• Household unique identifier (from WOW);

• System user identifier;

• Transaction type (including appropriate explanatory details); and

• System user identifier.

Task 4 - EBT Card and PIN Management

4.1 Card Management

4.1.1 The State does not intend to reissue or redesign the current EBT card under the contract resulting from this RFP.

RFP HSS 27 008 Appendix B

4.1.2 The Contractor shall produce and supply magnetic stripe cards, using the current design and specifications, for bulk distribution to the State Agency. See Exhibit D for technical EBT card specifications.

4.1.3 All initial e-WIC cards will be issued over-the-counter (OTC) by the clinics. The authorized clinic user shall enter the PAN of the card to be issued into the WOW system. That information will be transmitted online, real-time, to the e-WIC systems. The e-WIC systems shall link the PAN, online, and real-time to the household account.

4.1.4 At the present time, the State does not issue any proxy cards.

4.2 Card Replacement

4.2.1 The e-WIC systems must provide cardholders with the ability to report lost, stolen or damaged cards 24 hours per day, 7 days per week.

4.2.2 All replacement cards will be issued OTC at the clinic. The

Contractor shall not issue any replacement cards.

4.2.3 Prior to allowing a replacement card to be issued, the e-WIC systems shall validate that the previous card has been “statused” (deactivated) in the e-WIC system. If a previous card is still active, the e-WIC system will deactivate that card before issuing the new card to a specific cardholder.

4.2.4 The e-WIC systems shall return a daily file of all replacement cards issued by the clinics. Formats, schedule, etc. shall be determined during the JAD sessions.

RFP HSS 27 008 Appendix B

4.3 PIN Management

4.3.1 The e-WIC systems shall allow a cardholder to select and/or change their PIN at any time via the ARU or secure client web portal. The e- WIC systems shall provide functionality to positively identify a cardholder requesting an initial or changed PIN.

4.3.2 When a replacement card is issued, the cardholder’s existing PIN must be useable with the replacement card.

4.3.3 The State will not use PIN-select devices.

4.3.4 PIN security must meet the guidelines set forth in the most recent version of the WIC EBT Operating Rules and conform to industry standards.

4.4 Test Cards

4.4.1 The e-WIC systems shall support the issuance of cards (and the set-up and maintenance of associated accounts) to test WIC vendor systems, train WIC vendor staff and for the State or its designees to conduct compliance and monitoring activities at WIC vendor locations.

4.4.2 Specific parameters for account set-up and card issuance for testing and training purposes, including benefit issuance, settlement, etc.

shall be determined between the Contractor and the State during the JAD sessions.

RFP HSS 27 008 Appendix B

Task 5 - POS Transaction Processing

5.1 Transaction Handling

5.1.1 The Contractor shall receive, process, and authorize cardholder transactions from authorized WIC vendor POS devices in real time transactions. The Contractor shall ensure that cardholders access their WIC benefits only at POS terminals located in authorized WIC vendor locations.

5.1.2 The Contractor is prohibited from charging a fee to cardholders, TPP’s, exempt or direct-connect WIC vendors for any WIC transactions.

5.1.3 No minimum purchase amounts or quantities shall be required of the WIC cardholder. However, the maximum number of different food items, as identified by a unique UPC or PLU, that can be purchased in a transaction is 50 (due to message size limitations).

5.1.4 e-WIC transaction processing includes:

• Accepting transactions coming from an authorized transaction acquirer;

• Authorizing or denying transactions;

• Sending response messages back to the transaction acquirer authorizing or denying the transactions;

• Providing the data necessary to print a cardholder receipt with the account balance after the transaction; and

• Logging all transactions for subsequent settlement and reconciliation processing, transaction reporting, and for viewing through transaction history.

RFP HSS 27 008 Appendix B

5.2 Transaction Performance and Security

In processing EBT transactions, it is the responsibility of the Contractor to ensure that the e-WIC systems meet performance and technical standards and regulations defined below. Additional security may include authentication codes and check-sum digits, in combination with data encoded on the magnetic stripe such as the PIN offset, to ensure data security during transmission and processing of EBT transactions. Any of the network security measures may be utilized together or separately and may be applied at the terminal or central computer as indicated in the approved system design to ensure communications control.

5.2.1 The e-WIC systems shall permit no more than two (2) inaccurate EBT transactions for every 10,000 EBT transactions processed. The transactions to be included in measuring system accuracy shall include all transactions occurring at POS terminals and processed through the host computer, including any credits processed to EBT accounts.

5.2.2 The e-WIC system shall conform to WIC EBT Operating Rules for e- WIC regarding communications network security and, at a minimum, shall utilize the triple Data Encryption Standard (DES) algorithm to encrypt the PIN during EBT transactions from the point of entry. The PIN shall not be visible on the screen of the POS as it is being entered by a cardholder.

5.2.3 The e-WIC system shall perform the following validations to determine whether a cardholder’s transaction should be approved.

These checks must include determining whether:

• The vendor has a valid WIC vendor number;

• The PAN is valid, and the card is active;

RFP HSS 27 008 Appendix B

• The number of consecutive failed PIN attempts has not been exceeded;

• The PIN is verified as being entered correctly;

• The account is active; and

• The EBT account holds a sufficient balance in order to satisfy the transaction request.

5.3 Minimum Transaction Set

5.3.1 The e-WIC system shall process, at a minimum, the following WIC transaction types through the POS:

• Balance Inquiry;

• Food Purchase;

• Cash Voucher Benefit Purchase;

• Mixed Basket (not required for single-function equipment);

• Coupon and discount application;

• Reversal or Void;

• Store and Forward (not required for single-function equipment); and

• Key-entered transactions

5.3.2 Returns are not permitted via e-WIC. Any item return must be on a 1-1 basis and are performed outside the e-WIC system.

5.3.3 The receipt generated from any of the transactions listed in 5.3.1 above shall comply with the WIC EBT Operating Rules.

RFP HSS 27 008 Appendix B

5.3.4 Each e-WIC system shall provide TPP’s direct-connect vendors, and exempt vendors using State provided equipment with the data necessary to print the WIC receipt after a transaction has been conducted.

5.4 Transaction Types

5.4.1 Balance Inquiries

The e-WIC system shall support benefit balance inquiry capability on demand, either at the POS terminal in the checkout lane or at a separate card acceptance device. The receipt printed from this transaction should be able to be used by the cardholder as a shopping list of items still available for purchase; the receipt must include:

• Description of the category/subcategory;

• Available benefit balance, including category/subcategory balance;

• Unit of measure (quart, pound, ounce, etc.); and

• Expiration date of current benefits.

5.4.2 Food Purchases

5.4.2.1 Once a transaction is validated, the e-WIC systems shall transmit the benefit balance to the retail POS terminal that initiated the transaction, and perform the following validations/authorizations:

RFP HSS 27 008 Appendix B

• The POS will validate the food items scanned against the APL and the download available balance;

• The e-WIC systems shall authorize the food benefit purchases if the item’s UPC matches an eligible category/subcategory and there is sufficient balance (quantity) in the cardholder’s household benefit account; and

• The e-WIC systems will determine if item prices submitted in the purchase message are within the NTE threshold for the submitting vendor’s peer group. If the price exceeds the NTE, the e-WIC systems will reduce the total paid amount to the NTE amount.

5.4.2.2 Purchase Confirmation and Completion

Prior to completing a purchase (including CVB purchases) the e-WIC system shall afford the purchaser the opportunity to review the complete purchase and change/delete items. The confirmation shall be accomplished via a paper list or viewing on a terminal screen.

Once the purchase has been verified (with or without changes) the e-WIC systems shall:

• determine the transaction settlement amount based on the total requested amount for each item minus any discounts and NTE adjustments; and

• The e-WIC systems will return the new account balance to the retail system along with data on NTE adjustment and settlement amount.

RFP HSS 27 008 Appendix B

5.4.2.3 A split tender transaction---one in which an alternate method of payment is used to supplement the WIC benefit to complete the transaction—shall not be allowed for a food benefit purchase.

5.4.3 CVB (Cash Value Benefit) Purchases

5.4.3.1 The e-WIC systems shall allow cardholders to use their CVB to purchase any fruits and vegetables on the APL. In processing a CVB purchase transaction, the Contractor must adhere to the redemption rules for CVB benefit redemption as specified in the most recent version of the WIC EBT Operating Rules for online e-WIC.

5.4.3.2 The e-WIC systems shall support the capability of retail POS systems to perform split tender processing for CVB. If a WIC cardholder does not have an alternative method of payment for the balance of the purchase, the e-WIC systems shall allow the reversal or void of one or more CVB food items and the CVB amount for the item(s) will be restored to the e-WIC account.

5.4.4 Mixed Basket

Mixed basket refers to the ability of the WIC cardholder to purchase WIC and non-WIC items without separating the items into two separate transactions prior to checkout. Implementation of this functionality at any particular vendor is at the vendor’s option.

5.4.4.1 The e-WIC systems must support mixed-basket

functionality for integrated vendors.

RFP HSS 27 008 Appendix B

5.4.4.2 Benefits and funds shall be applied to mixed basket

purchases in the order of the most restrictive benefit account to the least restrictive benefit account or payment type. The order of precedence of payment for items shall be:

• WIC;

• Supplemental Nutrition Assistance Program

(“SNAP”);

• Temporary Assistance for Needy Families (“TANF”), and

• Other forms of payment.

5.4.4.3 The e-WIC systems shall provide the cardholder with the ability to confirm the WIC purchase quantities and amount prior to selection of additional methods of payment needed to complete the transaction.

5.4.5 Discounts and Coupons

5.4.5.1 The e-WIC systems shall allow discounts and coupons to be applied to WIC food and CVB purchases.

5.4.5.2 Such discounts and coupons shall be applied to the

purchase transaction prior to the cardholder accepting the WIC transaction.

5.4.5.3 The benefit of a quantity discount (e.g., buy one get one free) will be given to the WIC cardholder.

RFP HSS 27 008 Appendix B

5.4.5.4 The benefit of a price discount shall accrue to the State by reducing the total cost of the approved food item.

5.4.5.5 The Contractor’s systems shall follow the rules for

processing e-WIC transactions under different types of discount and coupon promotions as defined in the WIC EBT Operating Rules. Coupons and discounts shall be applied in the same order as the mixed basket.

5.4.5.6 The e-WIC systems shall accommodate store/loyalty

shopping cards as prescribed in the WIC EBT Operating Rules.

5.4.6 Reversals and Voids

5.4.6.1 The e-WIC systems shall allow the cancellation of the purchase of one or more WIC food items(s), a method of payment for WIC food items, or the entire transaction.

5.4.6.2 A void shall not be allowed to credit the WIC account if an item is returned. WIC item returns are item exchanges, on a one-for-one basis, conducted at the WIC vendor’s option and shall not result in an e-WIC transaction.

5.4.7 Store and Forward Transactions

5.4.7.1 A store and forward transaction is stored electronically with an encrypted PIN by a POS terminal operator when the POS terminal is unable to communicate with the EBT host. The transaction is later forwarded to the EBT host when communications are restored.

RFP HSS 27 008 Appendix B

5.4.7.2 Store and forward transactions may be conducted at the WIC vendor’s discretion and must be conducted in accordance with the WIC EBT Operating Rules.

5.4.7.3 Store and forward transactions shall be processed at the vendor’s risk.

5.4.7.4 Re-presentation to obtain the uncollected balance from current or future months' benefits is not allowed for store and forward transactions. The e-WIC systems shall prevent the use of store and forward as a way of accessing the cardholder’s future month’s benefits.

5.4.8 Key-Entered Transactions

5.4.8.1 Transactions may be key-entered at times when a card

presented by a cardholder is damaged and/or the POS device is unable to read the magnetic stripe accurately.

The e-WIC systems shall accept and process EBT transactions in which the PAN has been manually entered (key-entered) into the POS device. The EBT card must be present for a WIC vendor to conduct a key-entered transaction.

5.4.8.2 The validation of the cardholder’s PIN is still required on key-entered transactions. If a PIN pad is defective or if, for other reasons, a PIN does not accompany the transaction to the EBT host for processing, the e-WIC systems shall deny the transaction.

5.4.8.3 The Contractor shall adopt security measures to prevent cardholder and WIC vendor abuse/misuse of the key-entry feature.

RFP HSS 27 008 Appendix B

5.4.8.4 The Contractor must be able to selectively disable or deny the capability of stand-beside POS equipment from completing key-entered transactions.

5.4.8.5 The Contractor shall track key-entered transactions by WIC vendor, including the WIC vendor address, device (terminal) number or ID number, date and time, WIC vendor number and card number.

5.5 Transaction Denials

If any one of the validations described in paragraph 5.4.2.1 above is not met, the e-WIC system shall deny the transaction. If the transaction is denied, the systems must return a message to the WIC vendor indicating the reason for denial (e.g., invalid PAN, invalid PIN, insufficient benefits, etc.).

5.5.1 Invalid Foods

The e-WIC systems shall decline a food item for a WIC purchase if:

• It is not an authorized WIC category/subcategory;

• It is not a category/subcategory or size authorized in the WIC household account;

• It is not in the provided APL; or

• Sufficient quantities of the category/subcategory are not available in the WIC household account.

5.5.2 Invalid PIN

RFP HSS 27 008 Appendix B

The e-WIC systems must deny transactions if the PIN is entered incorrectly. The PIN shall be locked/unlocked as described below, based on the number of consecutive incorrect PIN entries:

• After four (4) consecutive incorrect PIN attempts in one day, or as otherwise specified by the State, the card shall be temporarily blocked until midnight local time on the day the last failed PIN attempt occurred, or until an on-demand release request is made through the ARU or through e-WIC administrative system;

• The PIN block shall be removed, the invalid PIN counter re-set to zero, and current PIN re-activated at 12:01AM local time on the day after the fourth invalid PIN attempt;

• The number of invalid PIN attempts shall be configurable in the e-WIC systems; the State reserves the right to change the number of invalid PIN attempts allowed in one day.

5.6 Adjustments and Disputes

5.6.1 Adjustments

“Adjustments” are defined as corrections to errors that result from the system malfunctions during transaction processing. Generally, adjustments are to resolve system errors and out-of-balance situations, during settlement.

5.6.1.1 System malfunctions can occur at any point in the process but generally happen at:

• The POS device;

RFP HSS 27 008 Appendix B

• The vendor’s host computer;

• The routing of the transaction to the database; or

• The EBT host system.

5.6.1.2 Adjustments made by the e-WIC systems must be in

compliance with the WIC EBT Operating Rules.

Adjustments to correct system errors may result in debits (adverse action) or credits to participant benefits and may impact the daily settlement.

5.6.1.3 The Contractor may process adjustments that result in a credit to a participant’s account without any prior notice to the State or the participant.

5.6.1.4 The Contractor shall report and receive approval from the State prior to processing any adjustment which would result in a debit to a participant’s account.

5.6.2 Disputes

A “dispute” arises when one (or more) party to a transaction (typically, a participant or vendor) has or may incur a financial loss resulting from the transaction. Unlike system errors (adjustments), disputes usually address items such as over/under payment, rejected transactions, benefit availability, etc.

5.6.2.1 The Contractor shall investigate and resolve all disputes in accordance with the WIC EBT Operating Rules, including the timeframes and with the documentation specified therein.

RFP HSS 27 008 Appendix B

5.6.2.2 The Contractor shall incorporate dispute rules (as defined in the WIC EBT Operating Rules and approved by the State) in all WIC Vendor Agreements, and Acquirer and Third-Party Processor Agreements.

5.6.2.3 The Contractor shall advise the State about valid vendor disputes prior to adjusting any settlement.

Task 6 - Reconciliation and Settlement

The Contractor shall be responsible for the execution of e-WIC settlement and reconciliation activities. Settlement and reconciliation shall be conducted in accordance with Federal regulations as updated throughout the life of the Contract and the most recent version of the WIC EBT Operating Rules.

The e-WIC systems shall operate on a 24-hour processing cycle. At a designated cutoff time each day, the Contractor shall close out the current processing day and commence the next processing day.

6.1 Reconciliation

6.1.1 The Contractor shall follow FNS guidelines on e-WIC reconciliation.

Daily reconciliations shall include:

• Household account daily beginning category/subcategory balance, purchases, and net category/subcategory ending balance;

• Household net redemptions in dollar value to acquirer settlement values;

• Total funds entering, existing, and remaining in the system each day;

RFP HSS 27 008 Appendix B

• Total net change in outstanding system wide obligations and the sum of the net change in obligations outstanding for all government funding agencies;

• The net settlement value of participant account adjustments with the sum of the net settlement value of adjustments settled to WIC vendors and acquirers;

• The net settlement value of all transactions to the sum of the net settlement values for all clinics; and

• Net redemptions in dollar value versus the daily suspended transactions in dollar value that overlap daily ACH cut-off times and the current daily activity in dollar value.

6.1.2 The Contractor shall determine the total amount of money necessary to reimburse its accounts for the total credits due to EBT acquirers.

The information generated during system cutoff and balance processing shall be used by the Contractor to prepare the daily settlement files.

6.1.3 The Contractor shall specify procedures for maintaining audit trails throughout the reconciliation and settlement processes.

6.1.4 Prior to making any change in reconciliation reports, processes or data displays, etc., the Contractor must provide 90 calendar days advance notice to the State, afford the State an opportunity to review and approve or reject changes prior to implementation.

6.1.5 The Contractor shall develop procedures and reports that will enable the State to maintain (and streamline) its reconciliation process.

6.1.6 The Contractor shall provide initial reconciliation training to designated State staff as part of State training prior to operations.

RFP HSS 27 008 Appendix B

6.1.7 The training shall be updated as needed during the course of the Contract to reflect changes to the reconciliation reports, processes or data displays.

6.2 Settlement

In fulfilling its settlement responsibilities, the Contractor shall:

6.2.1 Be responsible for initiating settlement of funds to WIC vendors and TPP’s, directly or through financial networks, financial institutions or other payment intermediaries.

6.2.2 Reimburse vendors for the sale of approved food item purchases at either the lower of the requested food item price or the NTE.

6.2.3 Settle to the first entity downstream, if an acquirer or TPP exists between the e-WIC systems and the WIC vendor.

6.2.4 Own and reconcile a zero-balance clearing account used for daily settlement.

6.2.5 Advise the State of funds to be transferred each day. The Contractor and the State will agree on processes to move funds to facilitate settlement. Currently, the EBT processor debits the State’s account to secure funds for settlement.

6.2.6 Deposit funds into the zero-balance clearing account for the settlement of EBT transactions.

RFP HSS 27 008 Appendix B

6.2.7 Make payments to WIC vendors, acquirers and TPP’s for approved, cleared transactions within two processing days of the settlement date of the transaction.

6.3 Rejected Payments

For any rejected payments, the Contractor shall:

6.3.1 Research all ACH transactions that are rejected due to inaccurate account information or closed accounts, and, when possible, correct the information and resend the payment to the proper account.

6.3.2 Return to the State any funds that cannot be settled within 90 calendar days of the initial ACH.

6.3.3 Provide the following information for each unsettled payment returned to the State:

• Transfer type;

• Total amount;

• Attempted settlement date(s);

• WIC vendor/acquirer/TPP name;

• WIC vendor number; and

• Bank account number (including the American Banking Association bank number).

6.3.4 Provide any additional data elements required when FNS issues written procedures to address unsettled funds.

RFP HSS 27 008 Appendix B

Task 7 - Administrative Terminal Functionality

While normal interface with the e-WIC systems will be through WOW, the Contractor shall provide the administrative functions defined below to the State, and to FNS to enable direct access to the e-WIC systems.

The administrative functionality must be capable of running on the State’s existing hardware and work stations.

7.1 Administrative Terminal Design

7.1.1 The Contractor shall provide administrative access to the e-WIC systems to State personnel, specified clinic supervisors, and to those Federal agencies at Headquarters and in field offices designated by the State.

7.1.2 The Contractor shall provide e-WIC administrative system or host-to-host software and communication protocols for State staff and clinics.

7.1.3 To support administrative access, the Contractor shall ensure data must be encrypted in transit and at rest. This interface shall provide authorized users with a windows Graphic User Interface (GUI) environment that includes drop down screens and point and click capabilities.

7.1.3.1 While bidders may propose alternative methods of access support, the alternative method must support all other requirements of this RFP.

7.1.4 The Contractor shall assure that the Admin Terminal systems include multi-level access controls to ensure that only authorized

RFP HSS 27 008 Appendix B individuals can process administrative transactions or access cardholder account information through the e-WIC administrative systems.

7.2 User Profiles

7.2.1 The Contractor shall provide role-based access security for administrative access whereby user profiles are established based upon the specific administrative functions the user requires to perform his/her respective job.

7.2.2 Each administrative user, whether employed by the State, clinic, or FNS, will be assigned specific role functionality.

7.2.3 The State will define the roles for their respective systems with the assistance of the Contractor. The Contractor will not assign any individual to a role without the expressed approval of the State.

7.3 Program Level Administrative Functions

7.3.1 The Contractor shall provide the administrative functions defined below. It is anticipated that any these functions may be used when access through WOW is unavailable:

• Create e-WIC accounts;

• Update or correct EBT account information,…