22 SNAP EBT Transition- Sole Source

This is a sole source procurement by the Illinois Department of Human Services (DHS) for the continuation of Electronic Benefit Transfer (EBT) services with the current vendor, Conduent State & Local Solutions, Inc., as the state transitions to a newly awarded EBT vendor, FIS. The current Conduent contract expires on April 18, 2022, but the transition to FIS is not expected to be completed until September 30, 2022. Therefore, DHS is requesting a sole source contract with Conduent for up to 6 months, from April 19, 2022 to September 30, 2022, at an estimated value of $10,340,000. This will ensure there is no lapse in critical EBT services, including Supplemental Nutrition Assistance Payments (SNAP) and Temporary Assistance for Needy Families (TANF) benefits, for vulnerable Illinois residents. The pricing for the sole source contract with Conduent reflects a small increase from the current rate but is considered fair and reasonable given the short-term nature of the agreement. Failure to approve this sole source would result in the discontinuation of SNAP and TANF benefits and potential federal sanctions for the state.

The sole source justification cites Conduent's 10-year history as the incumbent EBT provider and its existing systems as the key factors supporting this determination. There are no set-aside designations or restrictions on the types of organizations that can respond, as this is a sole source award. Conduent is the only vendor being considered for this contract, and the state's existing infrastructure and technology with Conduent requires integration during the transition period.