WIC EBT Feasibility Study and Cost‐Benefit Analysis

Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis
6. PROPOSED SYSTEM
The State has conducted this assessment to determine the e-WIC alternative that best meets the
current and specific needs of WIC Services, its clients, and its retailer stakeholders. To reach
this determination, the elements in the table below have been considered, using a straightforward
numerical ranking. Numbers from 1 to 3, 1 being the lowest (bottom rank) designation and 3 the
highest (top rank), are assigned to indicate the alternative’s rank in each area of assessment. All
e-WIC alternatives were perceived to have the benefits of assisting in meeting the State’s strategic
goals for the e-WIC program and providing other benefits such as reduction in errors at the retailers
and increasing the dignity, privacy and security of WIC clients.
Alternative Costs Benefits
(Evaluation
31 V 1.2 August 20, 2008
Criteria)
Risks Total
Score
On-line, Outsourced Solution 1 3 2 6
On-line, In-house Solution 3 1 1 5
Off-line, In-house Solution 2 2 3 7
Each of these alternatives is a viable e-WIC solution. Based on the analysis, the following core
conclusions have been made:
• By outsourcing processing, the State will manage one contract and use the services of an
EBT service provider with experience in processing, retailer management, and client and
retailer help desk and support.
• Outsourcing has a much higher cost of operations. If the State determines it has the
resources and capabilities to host the system in-house, then it will realize significant
savings over outsourcing in its annual operating costs and will eventually realize a cost
savings over the paper-based system.
• On-line in-house is less costly than off-line in-house, primarily due the cost of smart
cards. However, the State has placed importance on its ability to implement e-WIC
concurrent with SAM. There is a risk in that the on-line system may not be ready to port
from Kentucky to Virginia with enough time to integrate and modify the system.
If the State determines that it has sufficient resources to host the system in-house, and that cost
and ability to meet the SAM schedule are its highest priorities, then the off-line, in-house
solution meets these requirements.
6.1 IMPACTS OF E-WIC
Many of the impacts of e-WIC have been discussed throughout this document. This section
summarizes the impacts of the off-line, in-house e-WIC solution on the WIC Services Program.