RFP Document.pdf

UPDATED MAY 21, 2025 1

STATE OF SOUTH DAKOTA

(Office of Family Nutrition Services [OFNS] – Women, Infants, & Children Program [WIC]

Department of Health [DOH])

South Dakota WIC Electronic Benefits Transfer (EBT) Services

PROPOSALS ARE DUE NO LATER THAN November 6, 2025

RFP #: 26-0904004-0001 STATE POC: Office of Family Nutrition Services – WIC Program

EMAIL: SDWICRFP@state.sd.us

READ CAREFULLY

FIRM NAME: AUTHORIZED SIGNATURE:

ADDRESS: TYPE OR PRINT NAME:

CITY/STATE: TELEPHONE NO:

ZIP (9 DIGITS): FAX NO:

E-MAIL:

PRIMARY CONTACT INFORMATION

CONTACT NAME:

TELEPHONE NO:

FAX NO: E-MAIL:

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1 GENERAL INFORMATION

1.1 BUREAU OF INFORMATION & TECHNOLOGY (BIT) STANDARD CONTRACT

TERMS AND CONDITIONS

Any contract or agreement resulting from this RFP will include the State of South Dakota’s (the “State”) standard I/T contract terms listed in Appendix A, along with any additional contract terms as negotiated by the parties. As part of the negotiation process the contract terms listed in Appendix A may be altered or deleted. The offeror must indicate in its response any issues it has with specific contract terms. If the offeror does not indicate that there are any issues with any contract terms, then the State will assume those terms are acceptable to the offeror. There is also a list of technical questions, Security and Vendor Questions which is attached as Appendix G, the offeror must complete. These questions may be used in the proposal evaluation. It is preferred that the offeror’s response to these questions is provided as a separate document from the RFP response. The file name must be “(Your Name) Hosted Security and Vendor Questions Response”. This document cannot be a scanned document but must be an original. If the offeror elects to make the Security and Vendor Questions part of its response, the questions must be clearly indicated in the proposal’s Table of Contents. A single numbering system must be used throughout the proposal.

1.2 FOOD AND NUTRITION SERVICE WIC FEDERAL PROCUREMENT CLAUSES

Any contract or agreement resulting from this RFP will include the Food and Nutrition

Service WIC federal procurement clauses listed in Appendix B - FNS-WIC Federal Procurement Clauses. If the offeror does not indicate that there are any issues with any contract terms, then the State will assume those terms are acceptable to the offeror

1.3 CONFLICT OF INTEREST DISCLOSURE

Offerors must disclose any potential conflict of interest in connection with a Proposal. A conflict of interest may include, but is not limited to, access to any non-public information regarding the RFP or the subject matter of the RFP by the Offeror, or any of the Offeror’s employees, contractors, or agents, including any individual who may have had access to non-public information in a prior capacity before entering into a relationship with Offeror.

No individual or entity engaged by the State to prepare this RFP or that has otherwise had prior access to the solicitation or to sensitive information related to this procurement process (including, but not limited to the requirements, statement of work, or evaluation criteria), will be eligible to submit or participate in a Proposal in response to this RFP.

If the State determines that a conflict of interest exists, the State, in its sole discretion, may reject any Proposal or cancel the award of a contract. In the event the Awarded Offeror was aware of any conflict of interest prior to the award of the contract and failed to disclose the conflict to the State, the State may terminate the contract for cause.

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The provisions of this section regarding disclosure of conflicts of interest to the State must be included in any subcontracts in connection with performance of the work. The language included in any subcontract must preserve the State’s rights to disclosure of conflicts of interest and to termination of the contract on the basis of any unacceptable conflict or failure to disclosure any conflict.

Additionally, Pursuant to SDCL 5-18A-17 to 5-18A-17.6, no Department of Health (DOH) employee who approves, awards, or administers a contract with the state involving the expenditure of public funds or the sale or lease of state property, may have an interest in a contract which is within the scope of the employee's official duties. Specifically, these laws apply to state officers and employees who:

• Approve, award, or administer a contract;

• Recommend the approval or award of a contract;

• Supervise persons who approve, award, or administer a contract;

• Former state officers and employees for a period of one year after they leave state employment.

A state employee who suspects the existence of a conflict of interest, fraud, or theft shall report the matter immediately to any of the following:

• The employee's immediate supervisor;

• The Attorney General's office; or

• The Department of Legislative Audit.

To determine if a conflict of interest exists with the contract being recommended, employees must complete the Bureau of Human Resources and Administration (BHRA) Conflict of Interest Waiver Matrix. If a conflict of interest is found, the BHRA Conflict of Interest Waiver Instructions and Form must be completed and submitted to the appropriate Division Director. Both forms are available on the BHRA website at https://bhr.sd.gov/policies-forms/forms/#empforms.

1.4 PURPOSE OF REQUEST FOR PROPOSAL (RFP)

The South Dakota Department of Health (DOH) is issuing a Request For Proposal (RFP) to establish a contract (or contracts) through competitive negotiations with one, or more, qualified Electronic Benefit Transfer (EBT) Contractor(s) for the re-procurement of EBT Services for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

The State’s WIC EBT Contract for EBT Services expires on September 30, 2026. Our objective is to transition or convert to the resulting Contractor’s EBT system by October 1, 2026.

This RFP seeks to ensure the resulting Contract supports the State’s needs to support EBT services for WIC participants and achieves the best combination of quality, service, price, and any other key components outlined below.

https://bhr.sd.gov/policies-forms/forms/#empforms

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1.2.1 Background:

June 2025

Participant Data Figures Number of WIC Participants (June 2025) 13,765 Number of WIC Families (June 2025) 8,955 Average Number of Participants/Family (June 2025) 1.54 Number eWIC Cards Issued Monthly (Average July 2024 – June 2025) 377

Number of Compliance Accounts 14 Average Number of eWIC Cards Replaced Monthly 190

Local Agency/Clinic Data Figures Number of Local Agencies 13 Number of Clinic Locations 62 Number of PIN Selection Devices Deployed Statewide 50

Vendor Data Figures Number of WIC Vendors 160

Commissary 1 Convenience Stores 6 Pharmacy 1 Independent Stores 109 Regional Chain Stores 22 National Chain Stores 3 Mass Merchandisers 18 Single-Function Devices 16

Term / Acronym Definition ACH Automated Clearing House ANSI American National Standards Institute APL Authorized Product List BAFO Best and Final Offer BIT Bureau of Information and Technology CDP Custom Data Processing CFR Code of Federal Regulation CMS Centers for Medicare and Medicaid Services CPCM Cost Per Case Month CSA Customer Service Agent CVB Cash Value Benefits DFDD Detailed Functional Design Document

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DOB Date of Birth DOH Department of Health DTSD Detailed Technical Specifications Document EBA Electronic Benefit Account EBT Electronic Benefits Transfer ECR Electronic Cash Register EFT Electronic Funds Transfer eWIC EBT for the delivery of WIC benefits eWIC Services eWIC services is used throughout this RFP and includes the system responsible for benefit transactions, account management, customer services, vendor enablement services, and data storage and management.

eWIC System eWIC system is used throughout this RFP and refers to the system responsible for storing account information and benefits and processing transactions.

FAQ Frequently Asked Questions FEIN Federal Employer Identification Number FIS Fidelity Information Services FNS Food and Nutrition Service HIPAA Health Insurance Portability and Accountability Act ICD Interface Control Document ID Identification IECR Integrated Electronic Cash Register IFPS International Federation of Produce Standards IIN Issuer Identification Number IRS Internal Revenue Service ISO International Organization for Standardization ITIL IT Service Management detailed practices IVR Interactive Voice Response IV&V Independent Verification and Validation MIS Management Information System MS Microsoft Office Product M&E Maintenance and Enhancement NACHA National Automated Clearing House Association NTE Not-to-Exceed NIST National Institute of Standards and Technology OFNS Office of Family Nutrition Services OIG Office of Inspector General PAN Primary Account Number PCI-DSS Payment Card Industry Data Security Standard PCU Purchasing and Contracts Unit

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PII Personally Identifying Information PIN Personal Identification Number PLU Price Look-Up PMP Project Management Professional POS Point-of-Sale QA Quality Assurance QRG Quick Reference Guide RBAC Role Based Access Control RFP Request for Proposals SOC1 Service Organization Controls 1 SOC2 Service Organization Controls 2 S-SDLC Secure System Development Lifecycle TIG Technical Implementation Guide TPP Third-Party Processors TTY Teletypewriter UAT User Acceptance Testing UPC Universal Product Codes US United States USDA United States Department of Agriculture VAR Value Added Reseller WCAG Web Content Accessibility Guidelines WIC Supplemental Nutrition Program for Women, Infants and Children WUMEI WIC Universal MIS-EBT Interface

1.2.2 Goals and Objectives:

This RFP seeks to ensure the resulting Contract supports the State’s needs to support EBT services for WIC participants and achieves the best combination of quality, service, price, and any other key components outlined below.

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1.2.3 Project Phases

The project should consist of the following phases. The Offeror should document in their response the activities that will occur during these phases.

• Initiation

• Planning and Management

• Development

• Contract Transition and System Conversion

• Equipment & Supplies Provisioning for both UAT and Go Live

• Testing

• Training

• Implementation

• Transition to Support and Maintenance

1.5 ISSUING OFFICE AND RFP REFERENCE NUMBER

The Office of Family Nutrition Services is the issuing office for this document and all subsequent addenda relating to it, on behalf of the State of South Dakota, Department of Health. The reference number for the transaction is RFP#24-0904004-025. This number must be referred to on all proposals, correspondence, and documentation relating to the RFP.

1.6 LETTER OF INTENT

All interested offerors must submit a Letter of Intent to respond to this RFP.

The letter of intent must be received by the Office of Family Nutrition Services no later than August 29,2025. Be sure to reference the RFP number in your letter.

The Letter of Intent must be submitted to Office of Family Nutrition Services, South Dakota Department of Health via email at SDWICRFP@state.sd.us. Please place the following in the subject line of your email: “Letter of Intent for RFP #: 26-0904004- 0001”.

1.7 SCHEDULE OF ACTIVITIES (SUBJECT TO CHANGE)

RFP Publication August 8, 2025 Letter of Intent to Respond Due (required) August 29, 2025 Deadline for Submission of Written Questions August 29, 2025 Responses to offeror Questions September 19, 2025 Offeror Proposal Due November 6, 2025 Discussions / Tech Review December 1 – 12, 2025 Proposal Revisions (if required) January 9, 2026 Anticipated Award Decision/Contract Negotiation January 30, 2026

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1.8 SUBMITTING YOUR PROPOSAL

All proposals must be completed and received by the Office of Family Nutrition Services by the date and time indicated in the Schedule of Activities.

Submission Method:

All proposals must be submitted via Secure File Transfer Protocol (SFTP). Proposals submitted through email, physical mail, physical delivery, or other electronic methods will not be accepted.

SFTP Access Credentials

The Letter of Intent to Respond should include a request for SFTP credentials along with a contact person to receive credentials.

File Format:

Proposals must be submitted in PDF format. Any additional supporting documents are allowed to be submitted in PDF, DOCX or XLSX unless otherwise specified.

Submission Deadline:

All files must be fully uploaded to the designated SFTP server by 11:59 Central Standard Time on November 6, 2025. Late submissions will be disqualified.

Offerors are encouraged to test their connection to the SFTP server will in advance of the submission deadline to avoid any last-minute technical issues. Please reach out to sdwicrfp@state.sd.us when you are ready to test.

Confirmation of Receipt:

Once the proposal is successfully uploaded, bidders should notify sdwicrfp@state.sd.us with the file name(s) and timestamp of submission.

A confirmation email will be sent once we have confirmed your files have been successfully uploaded. Should you not receive confirmation within 8 hours, please contact Carrie Tschetter immediately at sdwicrfp@state.sd.us or by calling 605.773.3990.

For any technical difficulties related to SFTP submission, contact sdwicrfp@state.sd.us

Security and Confidentiality:

The SFTP server is configured to ensure secure and confidential transmission of documents.

All proposals must be signed, in ink, by an officer of the offeror, legally authorized to bind the offeror to the proposal and sealed in the form. Proposals that are not properly signed may be rejected.

No proposal shall be accepted from, or no contract or purchase order shall be awarded mailto:sdwicrfp@state.sd.us mailto:sdwicrfp@state.sd.us mailto:sdwicrfp@state.sd.us

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to any person, firm or corporation that is in arrears upon any obligations to the State of South Dakota, or that otherwise may be deemed irresponsible or unreliable by the State of South Dakota.

1.9 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND

VOLUNTARY EXCLUSION – LOWER TIER COVERED TRANSACTIONS

By signing and submitting this proposal, the offeror certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation, by any Federal department or agency, from transactions involving the use of Federal funds. Where the offeror is unable to certify to any of the statements in this certification, the offeror shall attach an explanation to its offer.

1.10 NON-DISCRIMINATION STATEMENT

The State of South Dakota requires that all contractors, vendors, and suppliers doing business with any State agency, department, or institution, provide a statement of non-discrimination. By signing and submitting their proposal, the offeror certifies they do not discriminate in their employment practices with regard to race, color, creed, religion, age, sex, ancestry, national origin, or disability.

1.11 RESTRICTION OF BOYCOTT OF ISRAEL

For contractors, vendors, suppliers, or subcontractors with five (5) or more employees who enter into a contract with the State of South Dakota that involves the expenditure of one hundred thousand dollars ($100,000) or more, by submitting a response to this solicitation or agreeing to contract with the State, the bidder or offeror certifies and agrees that the following information is correct:

The bidder or offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, has not refused to transact business activities, has not terminated business activities, and has not taken other similar actions intended to limit its commercial relations, related to the subject matter of the bid or offer, with a person or entity on the basis of Israeli national origin, or residence or incorporation in Israel or its territories, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or offeror on this project and terminate any contract awarded based on the bid or response. The successful bidder or offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.12 CERTIFICATION RELATING TO PROHIBITED ENTITY

For contractors, vendors, suppliers, or subcontractors who enter into a contract with the State of South Dakota by submitting a response to this solicitation or agreeing to contract with the State, the bidder or offeror certifies and agrees that the following

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information is correct:

The bidder or offeror, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, is not a prohibited entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by South Dakota Codified Law § 5-18A. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or offeror on this project and terminate any contract awarded based on the bid or response. The successful bidder or offeror further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination and would be cause to suspend and debar a business under SDCL § 5-18D-12.

1.13 CERTIFICATION OF NO STATE LEGISLATOR INTEREST

The bidder or offeror (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to any agreement entered into as a result of this RFP. By signing an agreement pursuant to this RFP, the bidder or offeror certifies that the Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

1.14 MODIFICATION OR WITHDRAWAL OF PROPOSALS

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

No oral, telephonic, telegraphic or facsimile responses or modifications to informal, formal bids, or Request for Proposals will be considered.

1.15 OFFEROR INQUIRIES

All written questions should be sent to: SDWICRFP@state.sd.us. Only emailed questions will be accepted.

Each offeror may submit questions via email concerning this RFP to obtain clarification of requirements. No questions will be accepted after the date and time indicated in the above schedule of activities. Email questions to the email address listed above with the subject line “RFP#24-0904004-025”. The questions and their answers will be sent to all offerors that submitted Letters of Intent, submitted questions, or requested the questions and answers via email before the proposal submittal date and will be sent by the date and time indicated in the above calendar of events. Offeror may not rely on any other statements, either of a written or oral nature, that alter any specification or other mailto:SDWICRFP@state.sd.us

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term or condition of this RFP that have not originated from the SD RFP Project Contact.

Offerors will be notified in the same manner as indicated above regarding any modifications to this RFP.

1.16 PROPRIETARY INFORMATION

The proposal of the successful offeror(s) becomes public information. Proprietary information can be protected under limited circumstances such as client lists and non-public financial statements. An entire proposal may not be marked as proprietary.

Offerors must clearly identify in the Executive Summary and mark in the body of the proposal any specific proprietary information they are requesting to be protected. The Executive Summary must contain specific justification explaining why the information is to be protected. Proposals may be reviewed and evaluated by any person at the discretion of the State. All materials submitted become the property of the State of South Dakota and may be returned only at the State's option.

1.17 LENGTH OF CONTRACT

The contract will be for a period of five (5) years with the possibility of two, one-year extensions.

1.18 GOVERNING LAW

This RFP will be governed by and construed in accordance with the laws of the State of South Dakota. Any lawsuit pertaining to or affecting this RFP will be venued in Circuit Court, Sixth Judicial Circuit, Hughes County, South Dakota.

1.19 SITE VISIT

If site visits are required, they will be scheduled before the submission of the proposal.

Site visits will be made at the offeror’s expense.

1.20 PRESENTATIONS/DEMONSTRATIONS

At the State’s discretion, the State may require a presentation or demonstration by an offeror to clarify a proposal. However, the State may award a contract based on the initial proposals received without a presentation or demonstration by the offeror. If presentations or demonstrations are required, they will be scheduled after the submission of proposals. Presentations and demonstrations will be made at the offeror’s expense.

1.21 DISCUSSIONS

At the State’s discretion, the offeror may or may not be invited to have discussions with the State. The discussions can be before or after the RFP has been submitted.

Discussions will be made at the offeror’s expense

1.22 TECHNICAL REVIEW

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At the State’s discretion, the State may require a technical review of the offeror based on the offeror’s proposal and response to the Security and Vendor Questionnaire.

1.23 NEGOTIATIONS

This process is a Request for Proposal/Competitive Negotiation process. Each proposal shall be evaluated, and each respondent shall be available for negotiation meetings at the State’s request. The State reserves the right to negotiate on any component of every proposal submitted. From the time the proposals are submitted until the formal award of a contract, each proposal is considered a working document and as such, will be kept confidential. The negotiation discussions will also be held as confidential until such time as the award is completed.

2 STANDARD CONTRACT TERMS AND CONDITIONS

Any contract or agreement resulting from this RFP will include the State’s standard terms and conditions as listed below, along with any additional terms and conditions as negotiated by the parties:

2.1 The Contractor will perform the deliverables outlined in the RFP and those services described in the eWIS Function and Service Requirements (Scope of Work), attached hereto as Appendix C – eWIC Function and Service Requirements.

2.2 The Contractor’s services under this Agreement will start on to be determined, and end five years from the start of the contract, unless terminated sooner pursuant to the terms of the Agreement.

2.3 The Contractor will not use State equipment, supplies, or facilities. The Contractor will provide the State with its Employer Identification Number, Federal Tax Identification Number, or Social Security Number upon execution of this Agreement.

2.4 The State will make payment for services upon satisfactory completion of the services. The

TOTAL CONTRACT AMOUNT is an amount not to exceed $ . The State will not pay Contractor's expenses as a separate item. Payment will be made pursuant to itemized invoices submitted with a signed state voucher. Payment will be made consistent with SDCL chapter 5-26.

2.5 The Contractor agrees to indemnify the State of South Dakota, its officers, agents, and employees, from and against all claims or proceedings for actions, suits, damages, liabilities, other losses or equitable relief that may arise at least in part as a result of an act or omission in performing services under this Agreement. The Contractor will defend the State of South Dakota, its officers, agents, and employees against any claim, including any claim, action, suit, or other proceeding related to the claim. The Contractor’s obligation to indemnify includes the payment of attorney fees and other costs of defense. In defending the State of South Dakota, its officers, agents, and employees, the Contractor will engage other professionals, subject to the written

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approval of the State which will not be unreasonably withheld. Notwithstanding the foregoing, the State may, in its sole discretion and at the expense of the Contractor, engage attorneys and other professionals to defend the State of South Dakota, its officers, agents, and employees, or to assist the Contractor in the defense. This section does not require the Contractor to be responsible for or defend against claims or proceedings for damages, liabilities, losses, or equitable relief arising solely from errors or omissions of the State, its officers, agents, or employees.

2.6 The Contractor, at all times during the term of this Agreement, will obtain and maintain in force insurance coverage of the types and with the limits as follows:

A. Commercial General Liability Insurance:

The Contractor will maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1 million for each occurrence. If such insurance contains a general aggregate limit, it will apply separately to this Agreement or be no less than two times the occurrence limit. The insurance policy will name the State of South Dakota, its officers and employees, as additional insureds, but liability coverage is limited to claims not barred by sovereign immunity. The State of South Dakota, its officers and employees do not hereby waive sovereign immunity for discretionary conduct as provided by law.

B. Professional Liability Insurance or Miscellaneous Professional Liability Insurance:

The Contractor agrees to procure and maintain professional liability insurance or miscellaneous professional liability insurance with a limit not less than $1 million.

C. Business Automobile Liability Insurance:

The Contractor will maintain business automobile liability insurance or equivalent form with a limit of not less than $1 million for each accident. Such insurance will include coverage for owned, hired, and non-owned vehicles.

D. Workers’ Compensation Insurance:

The Contractor will procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota or federal law.

Before beginning work under this Agreement, Contractor will furnish the State with properly executed Certificates of Insurance which will clearly evidence all insurance required in this Agreement. In the event a substantial change in insurance, issuance of a new policy, cancellation, or nonrenewal of the policy, the Contractor agrees to provide immediate notice to the State and provide a new certificate of insurance showing continuous coverage in the amounts required. Contractor will furnish copies of insurance policies if requested by the State.

2.7 While performing services under this Agreement, the Contractor is an independent contractor and not an officer, agent, or employee of the State of South Dakota.

2.8 The Contractor agrees to report to the State any event encountered in the course of performance of this Agreement which results in injury to the person or property of third parties, or which may otherwise subject Contractor or the State to liability. The

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Contractor will report any such event to the State immediately upon discovery.

The Contractor's obligation under this section will only be to report the occurrence of any event to the State and to make any other report provided for by their duties or applicable law. The Contractor’s obligation to report will not require disclosure of any information subject to privilege or confidentiality under law (e.g., attorney-client communications).

Reporting to the State under this section will not excuse or satisfy any obligation of the Contractor to report any event to law enforcement or other entities under the requirements of any applicable law.

2.9 This Agreement may be terminated by either party hereto upon thirty (30) days’ written notice. In the event the Contractor breaches any of the terms or conditions of this Agreement, this Agreement may be terminated by the State at any time with or without notice. If termination for a breach is affected by the State, any payments due to the Contractor at the time of termination may be adjusted to cover any additional costs to the State because of the Contractor's breach. Upon termination the State may take over the work and may award another party an agreement to complete the work under this Agreement. If after the State terminates for a breach by the Contractor it is determined that the Contractor was not at fault, then the Contractor will be paid for eligible services rendered and expenses incurred up to the date of termination.

2.10 This Agreement depends upon the continued availability of appropriated funds and expenditure authority from the Legislature for this purpose. If for any reason the Legislature fails to appropriate funds or grant expenditure authority, or funds become unavailable by operation of law or federal funds reductions, this Agreement will be terminated by the State upon five (5) business days’ written notice. The Contractor agrees that termination for any of these reasons is not a default by the State nor does it give rise to a claim against the State or any officer, agent, or employee of the State, and the Contractor waives any claim against the same.

2.11 This Agreement may not be assigned without the express prior written consent of the State.

This Agreement may not be amended except in writing, which writing will be expressly identified as a part of this Agreement and be signed by an authorized representative of each of the parties to this Agreement.

2.12 This Agreement will be governed by and construed in accordance with the laws of the

State of South Dakota, without regard to any conflicts of law principles, decisional law, or statutory provision which would require or permit the application of another jurisdiction’s substantive law. Venue for any lawsuit pertaining to or affecting this Agreement will be in Circuit Court, Sixth Judicial Circuit, Hughes County, South Dakota.

2.13 The Contractor will comply with all federal, tribal, state, and local laws, regulations, ordinances, guidelines, permits, requirements, and other standards applicable to providing services pursuant to this Agreement, and will be solely responsible for obtaining current information on such requirements. Nothing herein will constitute a waiver by the State to any defense to jurisdiction nor will anything under this Agreement constitute an acknowledgement by the State that any tribe has or exercises any jurisdiction over this Agreement or the parties.

2.14 The Contractor may not use subcontractors to perform the services described in this

Agreement without the express prior written consent of the State. The Contractor will

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include provisions in its subcontracts requiring its subcontractors to comply with the applicable provisions of this Agreement, to indemnify the State, and to provide insurance coverage for the benefit of the State in a manner consistent with this Agreement. The Contractor will cause its subcontractors, agents, and employees to comply, with applicable federal, tribal, state, and local laws, regulations, ordinances, guidelines, permits, and other standards and will adopt such review and inspection procedures as are necessary to assure such compliance. The State, at its option, may require the vetting of any subcontractors. The Contractor will assist in the vetting process.

2.15 The State reserves the right to reject any person from performing services under this

Agreement who the State believe would be detrimental to the services, presents insufficient skills, presents inappropriate behavior or is considered by the State to be a security risk.

2.16 The Contractor hereby acknowledges and agrees that all reports, plans, specifications, technical data, miscellaneous drawings, software system programs and documentation, procedures, or files, operating instructions and procedures, source code(s) and documentation, including those necessary to upgrade and maintain the software program, and all information contained therein provided to the State by the Contractor in connection with its performance of services under this Agreement will belong to and is the property of the State and will not be used in any way by the Contractor without the written consent of the State. Papers, reports, forms, software programs, source code(s), and other material which are a part of the work under this Agreement will not be copyrighted without written approval of the State.

2.17 The Contractor certifies that neither Contractor nor its principals are presently debarred, suspended, proposed for debarment or suspension, or declared ineligible from participating in transactions by the federal government or any state or local government department or agency. Contractor further agrees that it will immediately notify the State if during the term of this Agreement Contractor or its principals become subject to debarment, suspension, or ineligibility from participating in transactions by the federal government, or by any state or local government department or agency.

2.18 By signing this Agreement, the Contractor certifies and agrees that is has not refused to transact business activities, have not terminated business activities, and have not taken other similar actions intended to limit its commercial relations, related to the subject matter of this Agreement, with a person or entity that is either the State of Israel, or a company doing business in or with Israel or authorized by, licensed by, or organized under the laws of the State of Israel to do business, or doing business in the State of Israel, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to terminate this Agreement.

During the term of this Agreement, if the Contractor no longer complies with this certification, the Contractor agrees to provide immediate written notice to the State and agrees such noncompliance may be grounds for termination of this Agreement.

2.19 Pursuant to South Dakota Codified Law § 5-18A, by entering into this Agreement with the State of South Dakota, the Contractor certifies and warrants that the Contractor is not a prohibited entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, UPDATED MAY 21, 2025 16 or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by South Dakota Codified Law § 5-18A.

The Contractor agrees that if this certification is false, the State may terminate this Agreement with no further liability to the State. The Contractor further agrees to provide immediate written notice to the State if during the term of the contract it no longer complies with this certification, and the Contractor agrees such noncompliance may be grounds for contract termination and would be cause to suspend and debar a business under SDCL § 5-18D-12.

2.20 The Contractor (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to this Agreement. By signing this Agreement, the Contractor certifies that this Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

2.21 Any notice or other communication required under this Agreement will be in writing and sent to the address set forth above. Notices will be given by and to on behalf of the State, and by and to , on behalf of the Contractor, or such authorized designees as either party may from time to time designate in writing. Notices or communications to or between the parties will be deemed to have been delivered when mailed by first class mail, provided that notice of default or termination will be sent by registered or certified mail, or, if personally delivered, when received by such party.

2.22 In the event that any court of competent jurisdiction will hold any provision of this

Agreement unenforceable or invalid, such holding will not invalidate or render unenforceable any other provision of this Agreement.

2.23 All other prior discussions, communications, and representations concerning the subject matter of this Agreement are superseded by the terms of this Agreement, and except as specifically provided in this Agreement, this Agreement constitutes the entire agreement with respect to the subject matter.

2.24 The waiver by either party of a breach or violation of any provisions of this Agreement will not operate as, or be construed to be, a waiver of any subsequent breach of the same or other provision of this Agreement.

2.25 Nothing in this Agreement is intended to constitute a waiver of sovereign immunity by or on behalf of the State of South Dakota, its agencies, officers, or employees.

2.26 Neither party will disclose the contents of the Agreement except as required by applicable law or as necessary to carry out the terms of the Agreement or to enforce that party’s rights under this Agreement. The Contractor acknowledges that the State of South Dakota and its agencies are public entities and thus are bound by South Dakota open meetings and open records laws. It is therefore not a breach of this Agreement for the State to take any action that the State reasonably believes is necessary to comply with the South Dakota open records or open meetings laws, including, without limitation, posting this Agreement on the website pursuant to SDCL § 1-27-46.

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3 SCOPE OF WORK

All business technical and functional requirements have been defined in Appendix C:

eWIC Function and Service Requirements. The Offeror shall respond to the requirements provided in Appendix C: eWIC Function and Service Requirements. The requirements have been provided in a table format with columns that provide the requirements and columns that shall be used for the Offeror’s response.

The following describes each column and how they are to be used in the response.

• Requirement Number: Specific number associated with each requirement

• Function/Service: Description of the service or function

• Required, Preferred, Optional: Identifies which functions/services are required, preferred, or optional.

o Required functions/services are items that must be provided by all

Offerors and are included in the cost per case month (CPCM).

o Preferred functions/services are nice-to-have features that the State would like to have but are not required to be provided by the Offeror.

These items are included in the CPCM.

o Optional functions/services are items that the State may exercise during the contract period. Offerors must provide a response to all optional requirements and must be able to provide any of the optional functions/services. Costs for optional functions/services are priced separately and not included in the CPCM price.

• Offer Complies: Yes or No: Offerors shall provide a response to each requirement in this column.

o Yes: Indicates that this function/service exists in their offering, and they agree to provide it under this contract.

o No: Indicates that the Offeror is unable to provide this function/service.

o Any “No” response to a Required or Optional requirement may result in disqualification.

• Comments: Offerors shall provide any comments related to the requirement or their response. This is an optional field and does not need to be completed for each requirement. If a function or service does not currently exist in the offering, Offeror shall note in this field if the service or function will be developed and provided under this contract.

The Offeror shall provide a response and optional comment for each requirement in the document provided in Appendix C: eWIC Function and Service Requirements to be included in the Offeror’s proposal submission.

In addition, the Offeror shall provide a written response to the following specific service and system areas:

System Development and Maintenance

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Describe the following:

• The Offeror’s approach to system development and maintenance

• The Offeror’s approach to collaborating with the MIS Maintenance and

Enhancements (M&E) Contractor in interface development or modifications

System Testing Describe the following:

• The Offeror’s approach to testing system changes

• The Offeror’s approach to collaborating with state testers for user acceptance testing

• The Offeror’s approach to performance testing

• The Offeror’s approach to failover testing

Managing Environments

• The Offeror’s approach to managing multiple environments (production, test, training, etc.)

• The Offeror’s approach to refreshing and maintaining data in test and training environments

• The Offeror’s approach to separating and securing South Dakota data if the solution is multi-tenant

System Up-Time and ReliabilityProvide down-time statistics for the eWIC host processing system hosted by the Offeror for the last three (3) years

• Total number of outages for each year

• Percentage of down-time for each year

• Average down-time per outage

• The Offeror’s failover processes

• How the Offeror’s eWIC host system is designed to avoid system down-time

• How the Offeror manages downstream outages (Third Party Processors [TPPs], Networks, etc.)

• Mitigation strategies used to avoid down-time

• Procedures for communicating with the State Agency and vendors when outages occur

Vendor Management Describe the following

• The Offeror’s approach to vendor assistance and customer service

• The stand-beside point of sale (POS) device and features

• The Offeror’s approach to management and support of stand-beside devices

• How communications are managed between the State, WIC vendors and the

Offeror

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• The Offeror’s approach to managing and conducting Retailer Certification’s with the State, vendor, and TPP

• The Offeror’s approach to handling systems that were certified by another eWIC Services Provider

• The Offeror’s approach to APL management (monitoring how often vendors are downloading the APL)

Settlement and Reconciliation Process

• The Offeror’s approach to daily settlement and reconciliation

• The Offeror’s approach to managing and tracking retailer, Third Party Processor

(TPP), eWIC Service Provider, and State Agency initiated account adjustments

Cardholder Mobile Application Describe the following:

• The Offeror’s approach to interfacing with our current:

o Vendor Mobile Application as outlined in Appendix C – eWIC Function and Service Requirements.

o Client Mobile Application as outlined in Appendix C – eWIC Function and

Service Requirements.

Contract Transition/System Conversion Describe the following:

• Offeror’s approach to completing contract transition/system conversion prior to the current eWIC Service Provider contract end date. The maximum timeframe has been estimated to be six (6) months from contract execution to contract transition/system conversion.

• How the Offeror will ensure a smooth transition with minimal disruptions to WIC authorized vendors to include the approach for deploying stand-beside point-of-sale (POS) terminals.

• How the Offeror will ensure a smooth transition with minimal disruptions to WIC stakeholders to include approaches to card replacement and a seamless transition of customer service operations (IVR, portals, and live agents).

Project/Account Management Offeror shall provide an overview of the project management approach and methodologies proposed for this project including:

• The Proposal shall describe the method and frequency of communication between the eWIC Service Provider’s Project/Account Manager and the State for status updates, potential or actual problems, key milestones, and dependent task activities.

• The Proposal shall include a description of the management structure ensuring adequate oversight and executive direction for the Project/Account Manager. In this regard, the Offeror shall identify the corporate officer(s) to be contacted should major problems arise during the performance of the Contract.

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Training

• Offeror’s approach to training users.

Proposed Hardware The Offeror shall provide the make, model, and any additional narrative that may be relevant for all hardware proposed. If at any time during the contract the Offeror expects to change the hardware provided to the State, the State must receive at least 90 days notice.

• Single function Stand-beside device

• Wireless stand-beside device

• PIN select device

• Mag stripe card reader

Disaster Recovery Support & Contingency Planning The Offeror shall provide a high-level description of their disaster recovery support and services.

Responses shall also address how their proposed solution handles pandemics and other emergency situations, including contingency plans, staffing flexibility, and communication strategies to ensure service continuity and resilience during unforeseen circumstances.

Security Requirements

The Offeror must detail how the Proposal complies with security requirements in the areas listed below. The Offeror must be prepared to provide evidence in connection with any aspect of this answer upon request from the State. Any exceptions to the security requirements should be identified with an explanation of how Offeror are compensating for not meeting the requirement.

If the Offeror’s proposed solution requires any data to be stored off-site (including data “in the cloud”) describe how the data is stored in federally compliant data centers residing within the continental Unites States of America and follows HIPAA standards.

• Security Requirements as outlined in Section 14 and 17 of Appendix C – eWIC Function and Service Requirements and in the contract clauses included in Appendix A.

• SD Bureau of Information and Telecommunications Information Technology Security Policy – Attached as Appendix A

• Health Information Portability and Accountability Act (HIPAA)

• IRS Publication 1075

• Payment Card Industry Data Security Standard (PCI-DSS)

• CMS Minimum Acceptable Risk Standards for Exchanges

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3.1 Hosting and Data Access Requirements

The contract doubles as an agreement for the State to own the data tables and is able to manipulate data, run reports as needed, pull code tables, access raw data, and develop dashboards as needed through Microsoft Power BI, ESRI, Tableau, and associated platforms.

3.2 Single Sign-On Requirements

If the offeror’s proposal includes a deliverable with a login component, the proposal must describe how the deliverable will integrate with the State’s standard identity management service single sign-on (SSO).

The State’s SSO supports the industry standard OAuth 2.0 protocol. This identity management will handle password recovery and multi-factor authentication (MFA). MFA is required for all application Administrators and may be required for other users. The State’s SSO requirement and links to Microsoft’s official documentation can be found at https://www.sd.gov/bit?id=bit_standards_single_sign_on.

If the offeror is not able to fulfill this identity management standard, they will be excluded from the list.

3.3 Onboarding/Provisioning Users

The offeror must describe how new users are onboarded/provisioned in the system using an external identity provider and provide an Identity/SSO/Login Design Document.

3.4 Interfaces and Integration

The offeror must describe how the system can adapt to business necessary interfaces using widely adopted open APIs and standards. Additionally, the State expects that the offeror will make available/expose software services and publish documentation for those software services that would enable third party developers to interface other business applications. A detailed description of system capability must be included in the proposal.

3.5 Solution Diagram

The offeror must provide a solution diagram providing specific details of how the entire solution will meet the requirements of the RFP. This will include integration with the State’s infrastructure, existing systems that will integrate with the proposed solution, how data would flow between systems, the technology stack of the solution including any dependencies, and include, but not be limited to, user…