Office of Technology and Solutions Integration (OTSI) California Electronic Benefit Transfer (EBT)

The California Department of Technology, Office of Statewide Technology Procurement (OSTP), is soliciting proposals on behalf of the Office of Technology and Solutions Integration (OTSI) within the California Health and Human Services Agency for comprehensive Electronic Benefit Transfer (EBT) services under RFP 74050233, with proposals due December 14, 2026 at 2:00 p.m. Pacific Time. The procurement supports Food and Cash assistance benefits (including SUN Bucks) administered by the California Department of Social Services and WIC benefits administered by the California Department of Public Health.

The scope encompasses card issuance and delivery, benefit redemption and settlement, 24/7 cardholder and retailer call centers, card production and mailing, equipment deployment, and system maintenance serving approximately 5.5 million Food and Cash cardholders monthly and nearly 1 million WIC participants. Bidders must obtain OSTP eVAQ approval by the proposal deadline and demonstrate financial stability. The State reserves the right to request audited financial documentation prior to award and throughout the contract term.

The current contractor, Fidelity Information Services (FIS), has operated the system since June 2016 and is in year eleven of a twelve-year contract ending June 2028. The existing infrastructure includes interfaces to the California Statewide Automated Welfare System (CalSAWS) serving all 58 counties, connections to WIC WISE eligibility systems, redundant data centers, and commercial relationships with over 70,000 food and cash access locations and approximately 3,800 WIC vendors. Monthly benefit volumes exceed $1.5 billion combined.

Transition-in costs are capped at $7 million for Food and Cash EBT and $2 million for WIC EBT. Transition-out costs may not exceed $3 million. The transition-in period spans June 2027 through June 2028. Cost proposals use differentiated cost-per-case-month rates by benefit type and card technology (Chip EMV/Tap or Magstripe-Only), with separate pricing for SUN Bucks configurations and specified labor rates. Questions are due September 21, 2026, with state responses by October 5. Intent to Bid is due November 16, 2026. The State will conduct confidential negotiations and Best and Final Offer discussions by February 8, 2027, with contract award anticipated by May 25, 2027.