ACS Inks $69M CA HHS Deal

April 23, 2008

Affiliated Computer Services will provide electronic benefit transfer services to the California Health and Human Services Agency under a seven-year, $69 million contract, with an additional three one-year options available.

Electronic benefit transfer (EBT) allows recipients to receive their benefits electronically through the use of a debit card. This increases convenience and security for recipients while reducing costs for taxpayers. California clients use the Golden State Advantage card to receive benefits from food stamp and cash benefit programs.

ACS will provide comprehensive EBT services in support of the state, including transaction processing, data center services, training of state staff, reconciliation and settlement, and reporting. ACS will also support California families who receive food stamps and/or cash aid by providing an automated call center response unit, as well as live customer service support.

"A hallmark of ACS is our ability to improve access to government services through technology," said Lynn Blodgett, ACS president and chief executive officer. "The state's EBT program is one of the largest in the nation and is critical to the well-being of Californians. We'll apply our deep expertise and capabilities to enable these individuals and families to receive the services and benefits they need."

ACS will work closely with the state and the counties to design, develop, and test the system in time for a 2009 implementation.

"We conducted a tough and competitive procurement. ACS came in prepared to compete and playing to win, and it showed," said Carlos Ramos, director of the California Office of Systems Integration. "ACS' proposal will save taxpayers $21.6 million annually and at the same time improve services to benefit recipients. Through the new 24/7 web site, benefit recipients will have greater access to information that's crucial to their daily lives. This is a step forward in helping fulfill Governor Schwarzenegger's vision of improving Californians' access to government services."

EBT services assist about 900,000 California households where members receive benefits from food stamps programs (federal and California Food Assistance Program) and/or cash benefits programs, such as California Work Opportunity and Responsibility to Kids (CalWORKs), Refugee Cash Assistance, General Assistance/General Relief, Cash Assistance Program for Immigrants, and Restaurant Meals Program. Recipients may access benefits by using their Golden State Advantage card at more than 83,000 locations. These include Food and Nutrition Service-authorized retailers, automated teller machines, and retailer locations for cash benefits.