IFB # 420 - Payment Processing Services

The California Department of Child Support Services (DCSS) has issued Invitation for Bids (IFB #420) for comprehensive payment processing services targeting child support payments through a statewide network of kiosks, mobile applications, and web platforms. The procurement seeks a contractor capable of accepting diverse payment methods including cash, checks, credit, and debit cards across approximately 92 current kiosk locations and 45 correctional facilities throughout California. Key procurement dates include the IFB release on February 13, 2025, with written questions due by February 19, 2025, bid submissions due February 27, 2025, and a public bid opening scheduled for March 3, 2025. The contract term is structured for three years (May 1, 2025 through April 30, 2028) with an optional one-year extension. Bidders must propose a flat transaction fee not exceeding $2.00, applicable to all payment types and remaining firm throughout the contract period. Anticipated annual transaction volumes range between 225,000-250,000 transactions, though this volume is not guaranteed. Evaluation criteria will likely include pricing, service capabilities, technology infrastructure, and ability to meet comprehensive payment processing requirements across multiple platforms and locations.

The solicitation includes specific set-aside and preference opportunities for small businesses, with a maximum combined preference of 15% allocated to Small Business (5%) and Disabled Veteran Business Enterprise (up to 5%) designations. Contractors must demonstrate compliance with robust insurance requirements, including workers' compensation, commercial general liability ($1M per occurrence, $2M aggregate), and commercial automobile liability ($1M). The procurement allows contractors to separately charge users merchant fees, including interchange charges and service fees for credit/debit transactions. While no incumbent vendor is explicitly mentioned, the detailed specifications suggest an existing technological infrastructure that requires seamless integration with new payment processing systems. Though no specific budget range is provided, the transaction volume and fee structure suggest a potential annual contract value correlating with the estimated 225,000-250,000 annual transactions. Interested vendors must carefully review all specifications, meet technical requirements, and demonstrate capability to provide comprehensive, statewide payment processing services for child support payments.