Kiosk Payment Services IFB #261

The California Department of Child Support Services (DCSS) is issuing Invitation for Bid (IFB #261) to procure Kiosk Payment Services for Local Child Support Agencies (LCSAs) across the state. The procurement seeks a payment service provider to install and operate approximately 75 free-standing payment kiosks at 51 LCSA offices and potential additional locations like courthouses. These kiosks will accept multiple payment types including cash, checks, credit cards, and debit cards for child support payments. Key deliverables include kiosks capable of processing transactions with a maximum user fee of $2.00 per transaction, with DCSS separately paying a monthly maintenance and operations fee for each kiosk. Bidders must possess a Money Transmitter License or proof of exemption and provide three customer references demonstrating experience with large kiosk payment networks. The procurement timeline includes written questions due by March 28, 2016, with bid submissions originally due April 6, 2016 (later extended to April 15, 2016 at 2:00 PM PT). The intended contract term is two years, from May 16, 2016 through May 15, 2018, with a tentative agreement start date of June 1, 2016.

While no specific Disabled Veteran Business Enterprise (DVBE) participation goal is mandated, a DVBE incentive program is included offering 1-5% incentives based on participation levels. Historical transaction data indicates significant payment volume, with 397,831 credit/debit card payments totaling $145.4 million from October 2014-September 2015, and 349,093 checks worth $129,297,047 processed in federal fiscal year 2014/2015. Two pilot kiosks are currently operational in Marin and Napa counties using TouchPay as the vendor. The contractor will be reimbursed for actual merchant fees and interchange charges associated with credit/debit card payments, with DCSS absorbing these expenses. Vendors can offer different kiosk models based on location payment volume and may include additional services like advertising on overhead monitors, bill pay, and ATM capabilities, subject to DCSS/LCSA approval. The payment structure includes a flat fee per transaction (not to exceed $2.00) paid by users, plus a monthly maintenance and operation fee paid by DCSS. While specific budget ranges are not explicitly stated, the substantial transaction volumes suggest a potentially lucrative contract opportunity for qualified payment service providers.