WIC EBT Feasibility Study and Cost‐Benefit Analysis

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Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis 10 V 1.2 August 20, 2008 Evaluation Criteria Criteria Weight By Meeting This Criterion: Proven Record With EBT The State’s and retailers risks are reduced. This 5 indicates that the processor has experience in providing EBT services, including processing, retailer management and help desk support. Provides Body of Knowledge for Policies and The State will have the advantages of lessons learned, Procedures 3 policies that will need to be established, and procedures applicable to the alternative. Provides Stability for On-going Operations 5 The State will be provided with the greatest stability for budget and operations. Able to Increase WIC Accuracy and Accountability 3 The State will realize greater accuracy and accountability for WIC transactions. Increases Retailers’ Ability to Comply With Program Policies 3 Retailers will have a greater ability to comply with program policies and procedures. Minimizes On-going Operations Costs 5 The State will be better able to manage the cost of ongoing operations. Provides Uninterrupted Service to WIC Clients or Retailers 5 The State and retailers will be better able to minimize disruptions to WIC clients. Investment in Retailer Hardware/Software 3 The State will be better able to minimize investments in retailer hardware and software. Ability to Adapt to Change in Technology The State will be better able to minimize the risk of 4 changes in technology or system changes required to adapt to State and federal program changes. System and Data Security 4 The State will be able to minimize data and security risks. Able to Meet the Schedule Established for SAM 5 The State will be able to minimize the risk of meeting schedules established for SAM implementation. Within this section, these criteria have been applied against each of the WIC alternatives. Together with a cost analysis and a risk analysis the scores obtained as a result of this evaluation have been used to rank the alternatives analyzed for this study.
Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis 4. ALTERNATIVES ANALYSIS This section contains descriptions of each of the three alternatives and descriptions as to how they meet the evaluation criteria. 4.1 E-WIC ALTERNATIVES 4.1.1 ALTERNATIVE 1: ON-LINE, OUTSOURCED In an outsourced environment, the full range of e-WIC services is provided by an EBT service provider, often with the assistance of subcontractors. The core functional components of an EBT system that are also applicable in the e-WIC environment include: • Host Processing System (Authorization Platform) • Retailer Management • Card Production • Help Desk Support for Staff, Retailers and Clients The processor’s e-WIC host system interfaces with the WIC MIS to support the exchange of data necessary to create and manage a client’s card account and to authorize a client’s access to specific benefits. The host system provides client card management, transaction processing, card history, and transaction history and reporting. In an on-line environment, the system provides the authorization for a transaction at the retailer’s POS. Once each night the system initiates the draw down from the State’s designated financial institution and settles funds to retailer accounts. In an outsourced environment, the host system is maintained at the contractor’s site with a back-up system at an alternative location. State and local staff are provided appropriate access levels to the host system, with the screens necessary to conduct e- WIC activities. JPMorgan EFS and ACS have deployed this alternative in limited areas. CDP, Inc. has indicated that they may provide outsourced services using the software they are currently developing for Kentucky. E-WIC can be conducted with stand-beside POS terminals or terminals that are integrated with the retailer’s ECR system. A stand-beside POS configuration includes the EBT-only POS terminal, PIN pad, receipt printer and a Universal Product Code (UPC) scanner. Core differences between the stand-beside and integrated POS include: Factor Stand-Beside System Integrated System Installation and Training EBT Contractor is responsible for installation and training. Installation includes in-lane installation of the WIC POS configuration to include the wiring required for communication to the host system. These activities are a disruption to store activities and facilities. 11 V 1.2 August 20, 2008 The retailer or its ECR contractor is responsible for installation and training. Footprint Additional equipment in-lane. The same terminal is used for e-WIC as for the store’s debit and credit transactions. No appreciable impact on the footprint in-lane.
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WIC EBT Feasibility Study and Cost‐Benefit Analysis

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