GOVERNMENT OF THE DISTRICT OF COLUMBIA Office of the Chief Financial Officer

Office of the Chief Financial Officer Office of Management & Administration Office of Contracts

TO: Kristi C. Whitfield, Director Department of Small and Local Business Development

FROM: Drakus Wiggins, Contracting Officer Office of the Chief Financial Officer, Office of Contracts

DATE: October 15, 2019

SUBJECT: Request for Waiver of the Subcontracting Requirement of D.C. Code § 2-218.46 for Solicitation No. CFOPD-20-R-008 for WIC EBT Processing Services

The Office of the Chief Financial Officer (OCFO), Office of Contracts requests a waiver of the small business enterprise and certified business enterprise (CBE) subcontracting requirement as defined by D.C. Code § 2-218.46 for the subject solicitation.

The OCFO has a need for a contractor to provide electronic benefits transfer (EBT) processing services for the District’s Special Supplemental Nutrition Program for Women, Infants and Children (WIC) program administered by the D.C. Department of Health (DOH).

The resultant contract will have a one-year base period, with four, one-year option periods. The estimated value of the base period is $531,503.

The contract will be fully funded by U.S. Department of Agriculture (USDA) federal grant funds. Federal regulation, 2 CFR § 416.1(b), prohibits the application of State-imposed (including the District of Columbia) geographic preferences to procurements that use federal grant funds to administer USDA entitlement programs (Exhibit A). The Certified Business Enterprise (CBE) programs administered by the D.C. Department of Small and Local Business Development are clearly a geographic preference for District-based businesses, which are prohibited by the aforementioned federal regulation, thus precludes the application of the District of Columbia’s subcontracting requirements, D.C. Code § 2-218.46, to the subject solicitation.

The OCFO conducted market research. The USDA provides a list of third-party processor options to obtain EBT equipment and services (Exhibit B). The third-party processors’ EBT processing systems are a proprietary, computer software technology system and contains no axillary services which may be subcontracted. (Exhibit C) Request for Waiver of the Subcontracting Requirement Solicitation No. CFOPD-20-R-008 Page 2 of 2

The OCFO accessed the DSLBD database; however, no NIGP code exists for “EBT” or “electronic benefits transfer” and none of the third-party processor provided on the USDA list are a CBE.

Therefore, based on the federal regulation and there being insufficient market capacity for the services that comprise the project and the lack of capacity leaves the contractor commercially incapable of achieving the subcontracting requirements at a project level, a waiver of the CBE subcontracting requirement is requested for the subject solicitation.

Enclosed: Exhibits A – C Draft Solicitation

______1100 4th Street, SW ♦ Suite E610 ♦ Washington, D.C. 20024 ♦ 202-442-7012 12/27/2018 2 CFR 416.1 - Special Procurement Provisions. EXHIBIT A

~~~~ GOVGOVREGS.C'OM.RE·G·_ S u>

U.S. CODE OF FEDERAL REGULATIONS

Regulations most recently checked for updates: Dec 21, 2018

All Titles (/regulations/) > Title 2 (/regulations/title2) > Chapter IV (/regulations/title2_chapteriV) >Part 416- GENERAL PROGRAM ADMINISTRATIVE REGULATIONS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS (/regulations/title2_chapteriV_part416)

1±1 View all text of Part 416 [§ 416.1 - § 416.1] (/regulations/expand/title2_chapteriV_part416_section416.1)

§ 416.1 - Special Procurement Provisions.

(a) In order to ensure objective contractor performance and eliminate unfair competitive advantage, a prospective contractor that develops or drafts specifications, requirements, statements of work, invitations for bids, request for proposals, contract term and conditions or other documents for use by a State in conducting a procurement under the USDA entitlement programs specified in 2 CFR 200.101 (/regulations/2/200.1 01 )(e)(4) through (6) shall be excluded from competing for such procurements. Such prospective contractors are ineligible for contract awards resulting from such procurements regardless of the procurement method used. However, prospective contractors may provide States with specification information related to a State procurement under the USDA entitlement programs specified in 2 CFR 200.1 01 (/regulations/2/200.1 01 )(e)(4) through (6) and still compete for the procurement if the State, and not the prospective contractor, develops or drafts the specifications, requirements, statements of work, invitations for bid, and/or requests for proposals used to conduct the procurement.

(b) Procurements by States under USDA entitlement programs specified in 2 CFR 200.1 01 (/regulations/2/200.1 01)(e)(4) through (6) shall be conducted in a manner that prohibits the use of statutorily or administratively imposed in-State or local geographic preferences except as provided for in 2 CFR 200.319 (/regulations/2/200.319)(b).

Download the GovRegs app! (/apps.html) https://www.govregs.com/regulations/title2_chapteriV_ part416_section416.1 1/2 12/27/2018 2 CFR 416.1 - Special Procurement Provisions. EXHIBIT A <;=#, 2016 GovReg,:_ l About (/about.html) I Disclaimer (/disclaimer.html) I Privacy (/privacy.html) Ul GOVREGS u> , If (tittps:¢.6twiltteoeom/GovRegs) f (https://www. facebook.com/GovRe~s J

Download the GovRegs app! (/apps.html) https://www.govregs.com/regulations/title2_chapteriV_ part416_section416.1 212 EXHIBIT B SNAP EBT Third Party Processor (TPP) List and Guidance to Retailers

Updated as of November 27, 2018

The list below provides Third Party Processor options for SNAP-authorized retailers who may not know where to obtain EBT equipment and services. All SNAP- authorized retailers, except those exempted below, must pay for their own EBT equipment and services and should arrange for lease or purchase of EBT equipment and services as soon as they can, in order to ensure future participation in SNAP.

EXCEPTIONS: Eligible farmers’ markets, direct-marketing farmers, military commissaries, non- profit food buying cooperatives, group living arrangements, treatment centers, and prepared meal services (other than for-profit restaurants participating in State-option restaurant programs) may continue to qualify for free EBT equipment and services until further notice.

The list of Third Party Processors below is not all inclusive and may be updated as FNS becomes aware of additional companies that provide this service1. FNS does not endorse any one company over the other; you are NOT required to select from one of the companies below.

FNS has not researched the performance, business practices, reputation or ethics of the companies included on this list, and cannot be held responsible for any unauthorized charges, errors, disputes, misleading information or other problems that result from selection of one of these TPPs. SNAP-authorized retailers need to conduct their own research and due diligence when selecting a TPP and should review the cost of leasing or purchasing equipment and services to make the best choice for their business. The attachment to this document provides some recommendations and guidance to retailers on what issues to consider when selecting a TPP.

Need manual voucher forms for use during system outages? Go to https://www.goebt.com/product- category/vouchers/.

Third Party Processor Number Banctek Solutions Inc. 800-610-6664 ext 2007 Bank of America Merchant Services 855-833-3614 Bankcard Services 800-520-4488 Big Sky Commerce, Inc. 866-327-0611 Blackstone Merchant Services, Inc. 305-718-6555 Card Machine Outlet 800-980-0950

1 If you are a third party processor that wishes to be added to this list please contact FNS at [email protected] EXHIBIT B Third Party Processor Number Clearent 866-205-4721 Cobalt Payments, Inc. 877-444-2559 Credit Card Terminal.com 877-295-6789 Fidelity Payment Services 855-794-7348 First Capital Payments 877-509-7450 FIS Global 800-894-0050 GETVMS.COM 888-902-6202 Global Processing Systems 866-823-1960 goEBT.com 800-277-5165 HiTech Merchant Services 888-388-0186 Ignite Payments 800-298-4344 Integrity Payment Systems 888-477-4510 North American Bancard 866-481-4604 OKMerchant Payment Solutions 718-972-2577 Payment Logistics Limited 888-572-9564 ext 1426 Priority Payment Systems West 855-410-1465 S W Merchant Services Group 866-477-8088 Smart Money EPS 888-808-0086 Total Merchant Services 800-823-2712 ext 235 TSYS Merchant Solutions 800-354-3988 EXHIBIT B Third Party Processor Number Turnkey Processing LLC 800-722-3390 Vantiv 866-622-2880 Volt Merchant Solutions LLC 877-232-8503 WorldPay 800-200-5965 EXHIBIT B What to Consider When Selecting a TPP for Paid Equipment and Services

1. Compare Deals from Several Companies • We recommend talking to at least three • Compare services, contract requirements, pricing and reputation • Then select the company that represents the best deal for your business

2. Services • Decide on what you need: Credit, debit and EBT, or just EBT (SNAP and/or Cash)? • Some companies just provide EBT terminals, others provide EBT but only as an add-on to credit/debit card services • If you already have a credit/debit terminal, ask your current service provider if they can add EBT – that may be the best deal for you, but first make sure they really understand EBT operations. Do/will they:  Support SNAP refunds?  Understand the use of vouchers and have a process to clear them so you can get paid?  Understand that EBT does not require Payment Card Industry (PCI) or EuroPay MasterCard VISA (EMV) compliance for terminals?  Continue to support swiping cards to read data from the magnetic stripes? • If you want to take credit/debit, then it makes sense to use the same terminal for EBT – look for a full service provider • If you are only interested in accepting EBT, find out if they offer EBT-only services • Do you want to buy or lease equipment – if you buy you will still have to pay monthly fees for processing but it may be cheaper in the end. If you lease you may be in a better position to upgrade equipment if technology or security requirements change. • Are you also a WIC-authorized vendor? Contact your WIC State Agency regarding your current or future WIC EBT options

3. Contract Requirements and Services • Ask about:  Length of contract – what is the minimum and maximum available – how does that affect pricing?  Does it renew automatically?  Are there penalties for early termination? If so, how much?  How much advance notice is required for no-penalty termination?  Who is responsible for equipment repair? You or the terminal provider?  How are service fees paid? . Direct debit from retailer’s bank account? Daily or monthly? . Billed and pay by check?  What, if any, insurance is required?  Who pays for shipping fees to return or replace equipment?  How soon is replacement equipment guaranteed to arrive?  Does the company provide manual voucher forms for use during system outages and disasters? If so, what do they cost?  Are any of the following important to you? If so ask. . 24 X 7 customer assistance? . Seasonal downtime – is there a reduced cost for out of season periods?

EXHIBIT B

4. Cost • Find out about all costs – some companies charge extra for certain services • Up front and other one-time fees – for cost comparison purposes these should be averaged over the life of the proposed contract; we recommend using three years for month to month contracts  Equipment purchase  Application processing fee  Initial set-up or activation fee • Transaction fees – most companies charge a fee for every transaction  Credit and debit card fees are the most expensive because the card issuers pass interchange fees back to the merchant  EBT cards, by law, have no interchange fees and, therefore, should be much lower in cost  Many companies offer tiered pricing – the more transactions you do, the lower the cost, for example, 15 cents for first 100 transactions, 13 cents for next 400, 10 cents for anything over 500  Some companies do not charge EBT transaction fees but have a higher monthly rate, or require that you accept credit/debit instead • Monthly fees – these may be combined into a single monthly fee or may be charged separately; make sure you identify the cost of each  Equipment lease  Equipment maintenance  Processing costs  Direct deposit fees  Monthly statement  Customer service and technical support  Online access to transaction data • Other ongoing fees - processors are not required to pass these costs onto merchants but some do; ask if these are charged  PCI compliance fee – applies only to credit/debit and should not be charged for EBT-only terminals  IRS reporting  Other “hidden” fees • To compare pricing from different companies:  The following example applies only to EBT expenses. Commercial (non-SNAP) credit and debit card transactions also include interchange fees, which represent a percentage of the total amount charged by the customer. Those would also have to be factored in to get an accurate value  Determine your average monthly transaction numbers (based on past experience or estimates)  Multiply that estimate by the transaction fee or tiered fees, e.g. using the earlier example and estimate of 650 transactions per month 100 transactions at 15 cents each $15.00 400 transactions at 13 cents each $52.00 150 transactions 10 cents each $15.00  Itemize all monthly charges, e.g. Equipment lease and maintenance $12.00 Processing, customer service, and direct deposit $15.00 Monthly statement $ 2.00

EXHIBIT B

 Average out monthly value of all other charges, e.g. Set-up fee ($120 for 24-month contract) $ 5.00 Annual PCI fee ($30 per year) $ 2.50  Add up total monthly cost $118.50  Repeat for each terminal provider and compare

5. Company Performance and Reputation • This is often difficult to judge and requires some research on your part • Here are a number of websites that can be used – click on the link and enter the company’s name in the search box

Online reviews and ratings of terminal providers taking into account sales and marketing tactics, contract terms, customer service, complaints, privacy of online information and other factors http://www.merchantmaverick.com/ http://www.cardpaymentoptions.com/

Consumer complaint sites (many such sites exist and can be found by online search – the following include complaints about terminal service providers) http://www.complaintsboard.com/ http://www.ripoffreport.com/ http://www.bbb.org/BBB-Locator/

6. Other Important Information • Do not believe any terminal provider that insists that EBT must be PCI- or EMV-compliant. These requirements only apply to commercial credit and debit, not EBT • Until you decide which company you want to contract with for EBT services, do not provide any of the following information:  Your tax identification number (Employer Identification Number or Social Security Number)  Your bank account number, including scans or photocopies of one of your checks The above items will be required for the final contract, but you should only give them to a valid company representative who you recognize. Never provide them to unsolicited callers. • Once you select a new terminal service provider and they install their new terminal, do not allow them to remove your existing equipment  In most cases (unless you purchased the hardware yourself) this terminal belongs to your previous service provider  You are still responsible for the return of the equipment to your previous provider as soon as you contract with a new company for EBT services  Your contract with the previous provider may include financial penalties for failure to return the equipment  They may automatically debit your account for the cost of the terminal if you do not return it to them

EXHIBIT C

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Fidelity Payment Services is a registered ISO of Wells Fargo Bank, NA, Concord, CA, and US Bank Minneapolis, MN. Copyright 2019 Fidelity Payment Services. Fidelity Payment Services is an Elavon Payments Partner & Registered MSP/ISO of Elavon, Inc. Georgia [a wholly owned subsidiary of U.S. Bancorp, Minneapolis, MN] DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services

Page 1 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services SECTION B

CONTRACT TYPE, SUPPLIES OR SERVICES AND PRICE

B.1 GENERAL INFORMATION

B.1.1 The District of Columbia Office of the Chief Financial Officer, Office of Contracts, on behalf of the Office of Finance and Treasury (the “District”) is seeking a contractor to provide Electronic Benefits Transfer (EBT) services for the Special Supplemental Nutrition Program for Women, Infant and Children (WIC) managed by the DC Health (formerly known as Department of Health (DOH)); an agency also referred herein as the District.

B.2 CONTRACT TYPE

B.2.1 The District contemplates award of a requirements contract with firm, fixed price and cost reimbursement components.

B.3 ALL-INCLUSIVE PRICING

B.3.1 The stated Price per Unit for each Contract Line Item Number (CLIN) shall be fixed, inclusive of all of the Contractor’s direct cost, indirect cost, and profit; including travel, material, and delivery costs. The price shall include all cost associated with the services described in and required by the Contract. The Total Price shall represent the price ceiling, fixed fee, or not to exceed amount of the Contract.

B.3.2 Section 750 of the Consolidated Appropriations Act of 2018 (H.R. 1625) applies to the Contract, which prohibits the Contractor and its subcontractor or Affiliates from charging routing and switching fees for intra- or interstate transactions. [Christi, Amelia FYI - EC. 750. Beginning on the date of enactment of this Act through fiscal year 2019, notwithstanding any other provision of law, any fee issued by the State’s Electronic Benefit Transfer contractor and subcontractors, including Affiliates of the contractor or subcontractor, related to the switching or routing of benefits for Department of Agriculture domestic food assistance programs shall be prohibited: Provided, That for purposes of this provision, the term “switching” means the routing of an intrastate or interstate transaction that consists of transmitting the details of a transaction electronically recorded through the use of an electronic benefit transfer card in one State to the issuer of the card that may be in the same or different State.

B.4 PRICING SCHEDULES

B.4.1 The Contractor’s pricing shall reflect all system components, hardware, software, interfaces, cards, reporting capabilities, professional services and any other services

Page 2 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services necessary to meet the Contract requirements. The District shall incur no additional fees not including the Contract Price Schedule.

B.4.2 Payphone Calls: For the Base Period of the contract and the option periods, if exercised, the District will reimburse the Contractor the lower of the FCC default rate or the actual cost for client calls to the Contractor’s EBT helpdesk from payphones billed by payphone service providers. The not-to-exceed amount of payphone calls for the Base Period is $1,000 and will remain $1,000 for each option period thereafter, if exercised.

B.4.3

B.4.4 The District will purchase its requirements for core EBT services included herein from the Contractor. The core EBT services constitute the services and equipment necessary to be provided by the Contractor for the Contractor to comply with the requirements of the Contract, whereby those services and equipment are not otherwise itemized and priced in the Contract. The estimated quantities, to derive the not to exceed amounts stated herein, reflect the best estimates available. The estimate shall not be construed as a representation that the estimated quantity will be required, or that conditions affecting requirements will be stable. The estimated quantities shall not be construed to limit the quantities which may be required from the Contractor by the District or to relieve the Contractor of its obligation to fill all such requirements. Services shall be performed during the term of the contract.

B.5 BASE PERIOD PRICING

B.5.0.1 Unless identified otherwise, the Contractor’s pricing for the Base Period Price Schedules shall apply for the duration of the Contract’s Base Period (four years) in accordance with Section F of the Contract.

B.5.0.2 The Contractor shall provide implementation, transition, and conversion costs to be paid by the District up front and not included in the Cost per Case Month (CPCM) in the Schedule for eWIC.

B.5.1

B.5.1 SCHEDULE 1.3: WIC EBT TRANSITION AND CONVERSION PRICING

B.5.1.1 The Contractor shall state its firm, fixed Total Price for WIC EBT Transition and Conversion Pricing. The price shall include all cost associated with the services described in and required by the Contract. The Total Price shall represent the price ceiling, fixed fee, or not to exceed amount.

B.5.1.2 Schedule 1.3 – Price Table

CLIN Item Description

Page 3 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Total Price WIC EBT Transition and Conversion 100 Pricing $

B.5.1.2 The Contractor shall provide a price breakdown proportionately based on the progress of completion of the major milestones/deliverables of the Contractor’s Project Work Plan to perform the services for WIC EBT Transition and Conversion Pricing. Each price breakdown item shall represent a CLIN.

B.5.1.4 The SCHEDULE 1.3: WIC EBT TRANSITION AND CONVERSION PRICING shall be firm, fixed for the Base Period of the Contract, and Option Periods, if exercised, in the event the service occurs in an Option Period of the Contract.

B.5.2 SCHEDULE 1.4: COST PER CASE MONTH

B.5.2.1 The Contractor shall state its Cost per Case Month (CPCM) prices based on the standard CPCM tiered pricing approach for core EBT services. Each price shall represent the unit price per case. The core service requirements include all EBT service requirements as specified in the Contract, excluding Transition and Conversion and Optional Services and Supplies pricing. All on-going costs not identified separately shall be included in the CPCM.

B.5.2.2 The Contractor’s price per CPCM shall be on the total number of Active Cases for the District for the billing month and the specified case volume tier. Active Cases are those for which a benefit authorization has been posted and made available during the billing month. A “case” is defined as a single household unit receiving benefits through a single client EBT account. The District shall not incur inactive case charges for cases that have had no benefit authorization activity (credits) posted and made available during the billing month. Monthly benefits posted prior to the end of the month shall not constitute a billable case until the benefit has been made available to the client (e.g., availability date of the benefit has been reached). Active case counts shall be the total unduplicated case count on the Contractor’s EBT system for the billing month.

B.5.2.3 The CPCM pricing provided by the Contractor shall be fixed for the life of the contract, including any option periods, if exercised. The Contractor shall honor the tiers within the CPCM pricing schedule to cover fluctuations in the case volumes.

B.5.2.4 The WIC CPCM pricing shall begin at 0 – 5000 active case counts per billing month.

B.5.2.5 Schedule 1.4 – Price Table

Active Cases WIC CPCM per Billing Month 0-5,000

Page 4 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 5,001-10,000 10,001-15,000 15,001-20,000 20,001-25,000 25,001-30,000 30,001-40,000

B.5.2.6 The Base Period not-to-exceed amount for Cost per Case Month is $5,000,000. If exercised, each Option Period not-to-exceed amount for Cost per Case Month is $2,500,000.

B.5.3 SCHEDULE 1.5: POS HARDWARE PRICING

B.5.31 The Contractor shall provide a price schedule of its per unit purchase or lease price, and indicate as such, for wired point-of-sale (POS) terminal hardware. The Contractor shall specify the brand, model and the technical specifications for the offered hardware. The hardware price shall be all-inclusive, to include shipping costs, installation, and training support. The Contractor shall provide a price schedule for its maintenance fee, if any. The specified hardware may be purchased at the option of the District. The District’s estimated quantity of units is up to 5 during POS terminal hardware during implementation and up to 19 wired for the Base Period. However, there are no guarantees of minimum or maximum purchase or lease quantities. The Estimated Total Price for POS hardware (unit price x estimated units) shall represent the not to exceed amount.

B.5.4 SCHEDULE 1.6: INCREMENTAL CPCM OPTIONAL SERVICES

B.5.41 The Contractor shall provide a price schedule for Incremental CPCM Optional Services that reduce the costs of EBT services to the District or provide increased service (service that exceeds the minimum service requirements specified in the Contract) to the District or its EBT clients. As part of this pricing schedule, the Contractor has the opportunity to identify cost reduction factors and optional service offerings that would produce cost savings or enhance service.

B.5.4.2 All cost savings shall be expressed in terms of reduction to the Contractor’s baseline CPCM price for core EBT services, while service enhancements shall be reflected in terms of an increase to the Contractor’s baseline CPCM for core EBT services.

B.5.4.3 The Contractor’s Incremental CPCM Optional Services price schedule shall identify: 1) The Optional Service with approach description, 2) The Section(s)/requirement(s) specified in the Contract impacted by the Optional Service, and 3) Incremental CPCM Increase (+) or Decrease (-) to baseline CPCM price.

B.5.4.4 The services to be included on the Contractor’s price schedule for Incremental CPCM Optional Services shall include, but are not limited to:

Page 5 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 1) Accepting client calls to live Customer Service Representatives (CSR) to 8:00 a.m. to 6:00 p.m. Eastern Time each business day, except for reporting lost or stolen EBT cards, which will continue to be 24/7 2) On-line transaction history for 90, 120, 180 days 3) On shore customer service center 4) Interpretive Services for CSR support for up to two languages in addition to English, and Spanish such as Amharic, French, etc. 5) The District prints training materials supplied by the Contractor

B.5.5 SCHEDULE 1.7: FEE FOR SERVICE AND COST PER UNIT – OPTIONAL SERVICES AND SUPPLIES

B.5.5.1 The Contractor shall provide a price schedule for Fee for Service and Cost per Unit – Optional Services and Supplies. This price schedule shall be for services and supplies not provided as Incremental CPCM Optional Services; however, may enhance the core EBT services.

B.5.5.2 The Contractor’s Fee for Service and Cost per Unit Optional Services and Supplies price schedule shall identify: 1) The Optional Services and Supplies with description, 2) The Section(s)/requirement(s), if any, specified in the Contract impacted by the Optional Services and Supplies, and 3) The unit price of the services or supplies.

B.5.5.3 The services to be included on this price schedule shall include, but are not limited to: 1) Fee Schedule for ad-hoc report requests 2) Fee Schedule for ad-hoc IT Enhancement requests 3) Optional EBT fee for services 4) Optional disaster vault card with pre-assigned PIN stock (tiered pricing) 5) Optional financial remedies 6) Drop shipping of cards to a District specified location for localized disasters (per drop shipment)

B.6 OPTION PERIOD 1 PRICING

B.6.0.1 Unless identified otherwise, the Contractor’s pricing for the Option Period 1 Price Schedules shall apply for the duration of the Contract’s Option Period 1 (two years) in accordance with Section F of the Contract.

B.6.1 SCHEDULE 2.1: POS HARDWARE PRICING

B.6.1.1 The Contractor shall provide a price schedule of its per unit purchase or lease price, and indicate as such, for wired point-of-sale (POS) terminal hardware. The Contractor shall specify the brand, model and the technical specifications for the offered hardware. The hardware price shall be all-inclusive, to include shipping costs, installation, and training support. The Contractor shall provide a price schedule for its maintenance fee, if any. The

Page 6 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services specified hardware may be purchased at the option of the District. The District’s estimated quantity of units is up to 19 wired POS terminal hardware for the Option Period, if exercised. However, there are no guarantees of minimum or maximum purchase or lease quantities. The Estimated Total Price for POS hardware (unit price x estimated units) shall represent the not to exceed amount.

B.6.2 SCHEDULE 2.2: INCREMENTAL CPCM OPTIONAL SERVICES

B.6.2.1 The Contractor shall provide a price schedule for Incremental CPCM Optional Services that reduce the costs of EBT services to the District or provide increased service (service that exceeds the minimum service requirements specified in the Contract) to the District or its EBT clients. As part of this pricing schedule, the Contractor has the opportunity to identify cost reduction factors and optional service offerings that would produce cost savings or enhance service.

B.6.2.2 All cost savings shall be expressed in terms of reduction to the Contractor’s baseline CPCM price for core EBT services, while service enhancements shall be reflected in terms of an increase to the Contractor’s baseline CPCM for core EBT services.

B.6.2.3 The Contractor’s Incremental CPCM Optional Services price schedule shall identify: 1) The Optional Service with approach description, 2) The Section(s)/requirement(s) specified in the Contract impacted by the Optional Service, and 3) Incremental CPCM Increase (+) or Decrease (-) to baseline CPCM price.

B.6.2.4 The services to be included on the Contractor’s price schedule for Incremental CPCM Optional Services shall include, but are not limited to: 1) Accepting client calls to live Customer Service Representatives (CSR) to 8:00 a.m. to 6:00 p.m. Eastern Time each business day, except for reporting lost or stolen EBT cards, which will continue to be 7x24 2) On-line transaction history for 90, 120, 180 days 3) On shore customer service center 4) Interpretive Services for CSR support for up to two languages in addition to English, Spanish such as Amharic or French.

B.6.3 SCHEDULE 2.3: FEE FOR SERVICE AND COST PER UNIT – OPTIONAL SERVICES AND SUPPLIES

B.6.3.1 The Contractor shall provide a price schedule for Fee for Service and Cost per Unit Optional Services and Supplies. This price schedule shall be for services and supplies not provided as Incremental CPCM Optional Services; however, may enhance the core EBT services.

B.6.3.2 The Contractor’s Fee for Service and Cost per Unit Optional Services and Supplies price schedule shall identify: 1) The Optional Services and Supplies with description,

Page 7 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 2) The Section(s)/requirement(s), if any, specified in the Contract impacted by the Optional Services and Supplies, and 3) The unit price of the services or supplies.

B.6.3.3 The services to be included on this price schedule shall include, but are not limited to: 1) Fee Schedule for ad-hoc report requests 2) Fee Schedule for ad-hoc IT Enhancement requests 3) Optional EBT fee for services 4) Optional disaster vault card with pre-assigned PIN stock (tiered pricing) 5) Optional financial remedies 6) Drop shipping of cards to a District specified location for localized disasters (per drop shipment)

B.6.3.4 ATM Transactions: Clients receiving cash benefits shall be provided with two (2) free cash withdrawals per month per case before the Contractor can assess a transaction fee. These transactions will be occurring at ATMs. The Contractor shall define in this price schedule the per-transaction fee that will be assessed to the client after the two free transactions have been performed. However, the maximum fee that can be charged to clients is capped at $.85 per successful ATM cash withdrawal transaction.

B.7 OPTION PERIOD 2 PRICING

B.7.0.1 Unless identified otherwise, the Contractor’s pricing for the Option Period 2 Price Schedules shall apply for the duration of the Contract’s Option Period 2 (two years) in accordance with Section F of the Contract.

B.7.1 SCHEDULE 3.1: POS HARDWARE PRICING

B.7.1.1 The Contractor shall provide a price schedule of its per unit purchase or lease price, and indicate as such, for wired and wireless point-of-sale (POS) terminal hardware. The Contractor shall specify the brand, model and the technical specifications for the offered hardware. The hardware price shall be all-inclusive, to include shipping costs, installation, and training support. The Contractor shall provide a price schedule for its maintenance fee, if any. The specified hardware may be purchased at the option of the District. The District’s estimated quantity of units up to 15 wired POS terminal hardware for the Option Period, if exercised. However, there are no guarantees of minimum or maximum purchase or lease quantities. The Estimated Total Price for POS hardware shall represent the not to exceed amount.

B.7.2 SCHEDULE 3.2: INCREMENTAL CPCM OPTIONAL SERVICES

B.7.2.1 The Contractor shall provide a price schedule for Incremental CPCM Optional Services that reduce the costs of EBT services to the District or provide increased service (service that exceeds the minimum service requirements specified in the Contract) to the District or its EBT clients. As part of this pricing schedule, the Contractor has the opportunity to

Page 8 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services identify cost reduction factors and optional service offerings that would produce cost savings or enhance service.

B.7.2.2 All cost savings shall be expressed in terms of reduction to the Contractor’s baseline CPCM price for core EBT services, while service enhancements shall be reflected in terms of an increase to the Contractor’s baseline CPCM for core EBT services.

B.7.2.3 The Contractor’s Incremental CPCM Optional Services price schedule shall identify: 1) The Optional Service with approach description, 2) The Section(s)/requirement(s) specified in the Contract impacted by the Optional Service, and 3) Incremental CPCM Increase (+) or Decrease (-) to baseline CPCM price.

B.7.2.4 The services to be included on the Contractor’s price schedule for Incremental CPCM Optional Services shall include, but are not limited to: 1) Accepting client calls to live Customer Service Representatives (CSR) to 8:00 a.m. to 6:00 p.m. Eastern Time each business day, except for reporting lost or stolen EBT cards, which will continue to be 7x24 2) On-line transaction history for 90, 120, 180 days 3) On shore customer service center 4) Interpretive Services for CSR support for up to two languages in addition to English, Spanish, such as Amharic or French. , Vietnamese, and Chinese/Mandarin 5) The District prints training materials supplied by the Contractor

B.7.3 SCHEDULE 3.3: FEE FOR SERVICE AND COST PER UNIT – OPTIONAL SERVICES AND SUPPLIES

B.7.3.1 The Contractor shall provide a price schedule for Fee for Service and Cost per Unit Optional Services and Supplies. This price schedule shall be for services and supplies not provided as Incremental CPCM Optional Services; however, may enhance the core EBT services.

B.7.3.2 The Contractor’s Fee for Service and Cost per Unit Optional Services and Supplies price schedule shall identify: 1) The Optional Services and Supplies with description, 2) The Section(s)/requirement(s), if any, specified in the Contract impacted by the Optional Services and Supplies, and 3) The unit price of the services or supplies.

B.7.3.3 The services to be included on this price schedule shall include, but are not limited to: 1) Fee Schedule for ad-hoc report requests 2) Fee Schedule for ad-hoc IT Enhancement requests 3) Optional EBT fee for services 4) Optional disaster vault card with pre-assigned PIN stock (tiered pricing) 5) Optional financial remedies

Page 9 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 6) Drop shipping of cards to a District specified location for localized disasters (per drop shipment)

Page 10 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services SECTION C

STATEMENT OF WORK

C.1 WIC PROGRAM INTRODUCTION

C.1.1 The District of Columbia plans to expand the EBT contract to include eWIC. The Contractor shall support the District in pursuit of additional State and Federal Program Benefits. The Contractor's contract pricing shall apply to any future cases as a result of additional program benefits. The District may add eWIC functionality during the contract term, below is an outline of the WIC program and its requirements, including eWIC. The Contractor’s system shall employ online technology (magnetic stripe eWIC card). WIC EBT services must be practical, affordable and compatible within the context of the District’s food assistance and WIC Program environments. The WIC program reserves the right to include a chip and PIN (using EMV® specifications and processes) or near field communication option at a later date should circumstances allow.

C.1.2 The Contractor shall perform services and requirements associated with Sections C.26 – C.42, and corresponding provisions in Section B, upon proper authorization.

C.1.2 WIC Program

C.1.2.1 Background

WIC is the Special Supplemental Nutrition Program for Women, Infants and Children funded by the United States Department of Agriculture (USDA) Food and Nutrition Services (FNS). The mission of the WIC Program is to improve the health and nutritional status of women, infants, and children during critical times of growth and development. The Government of the District of Columbia, DC Health, Community Health Administration, Nutrition and Physical Fitness Bureau, DC WIC Program administers the Special Supplemental Nutrition Program for Women, Infants, and Children (DC WIC) for WIC participants.

C.1.2.2 The Special Supplemental Nutrition Program for Women, Infant and Children (WIC) provides nutritious supplemental foods, breastfeeding promotion and support, health care referrals, and nutrition education for pregnant, breastfeeding, and non-breastfeeding postpartum women, infants and children up to age five who are determined to be at nutritional risk and meet income guidelines (185% of poverty). The WIC Program is funded by USDA, governed by Federal Regulations contained in the Federal Register 7 CFR Part 246, and is generally administered by state governments, Indian Tribal organizations, US Territories or the District of Columbia. Eligibility in the program is based upon four criteria: categorical eligibility, nutritional risk, income, and residence in a specified geographic area.

Page 11 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services

C.1.2.3 As of 2017, to accomplish these federally mandated objectives, WIC services and breastfeeding promotion and support are provided at 15 local WIC sites which are currently administered by four (4) local health agencies and/or local hospitals. Local agencies determine the eligibility of WIC applicants, deliver nutrition education and referrals, and issue WIC checks to participants for the purchase of specific food products. WIC participants can redeem their checks at local authorized grocery stores. There are 47 grocery authorized stores in the Greater Washington DC area. Thirty stores are in DC and 10 stores in Maryland. There are six independent pharmacies in DC and one home delivery pharmacy in Maryland. Out of the 40 stores, 36 are chain stores 29 of which include a store pharmacy (6 of these stores with integrated pharmacies are located in Maryland), three are independent stores and one is a commissary. The chain stores include the following: Safeway, Giant, Shoppers, Harris Teeter and Walmart. The independent pharmacies are all CVS. All but one independent store is integrated. The one small independent store will need to be equipped with a single-function POS device according to the formula provided in the WIC EBT Rule. A graphic depicting DC WIC-authorized vendor is illustrated below.

Graph 1: DC WIC-Authorized Vendors by Number of Sites

C.1.2.4 During FY2018, DC WIC recorded 15,097 aggregated unduplicated enrolled WIC households, with an average of 25,695 enrollees accounting for an average of 1.7 WIC enrollees per household. Over the last 5 years this household ratio has been stable ranging from 1.76 to 1.7 active WIC enrollees per household while the number of households has been steadily declining over the last 5 years following the national trend of declining WIC enrollment. Enrollment data capture all WIC clients who are in an active certification period during a given month or at least one month during a given year.

Page 12 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services

Table 1: FY Aggregated Unduplicated WIC Enrollment/Household Data FY Total # Total # WIC of of H HH Enrollees Size 1 2012 31122 18282 1.76 2 2013 29937 17583 1.78 3 2014 28549 16844 1.74 4 2015 28927 16953 1.58 5 2016 28304 16462 1.57

FY Total # of Total Avg WIC HH Enrollees # of Size HH 2012 31,122 18,282 1.76 2013 29,937 17,583 1.78 2014 28,549 16,844 1.74 2015 28,927 16,953 1.58 2016 28,304 16,462 1.57 2017 27,378 15,917 1.72 2018 25,695 15,097 1.7

The following table provides banking data for WIC for fiscal years FY 2014 to 2018. The annual benefit distribution for WIC during FY2018 is about ten (10) and a half million dollars, as can be drawn from the below table.

Table 2: DC WIC Checks and CVC Checks Processing Processed Rejected Rejected ACH ACH Paid Month Processed Amt Paid Cnt Paid Amt Cnt Cnt Amt Txns Amt Oct-17 31,449 $927,977.94 29,381 $862,993.74 2,068 $64,984.20 62 $8,135.33 Nov-17 32,070 $935,235.48 30,249 $877,321.75 1,821 $57,913.73 56 $4,957.38 Dec-17 27,588 $827,506.45 26,341 $787,448.90 1,247 $40,057.55 73 $9,525.99 Jan-18 35,408 $1,042,534.34 32,347 $942,780.54 3,061 $99,753.80 59 $6,128.37 Feb-18 28,024 $825,673.81 26,673 $780,941.72 1,351 $44,732.09 57 $6,445.36 Mar-18 30,719 $916,424.86 28,922 $862,338.81 1,797 $54,086.05 70 $7,979.85 Apr-18 29,310 $869,136.61 28,124 $835,140.28 1,186 $33,996.33 52 $5,037.01 May-18 31,037 $910,781.74 29,611 $868,269.42 1,426 $42,512.32 54 $5,888.37 Jun-18 28,836 $836,475.56 27,315 $793,730.34 1,521 $42,745.22 69 $8,202.18 Jul-18 29,019 $837,042.32 26,219 $751,868.74 2,800 $85,173.58 56 $5,244.93 Aug-18 32,541 $935,701.93 30,978 $894,147.33 1,563 $41,554.60 72 $5,917.56 Sep-18 25,674 $742,805.98 24,291 $703,926.97 1,383 $38,879.01 55 $5,721.32 $9,960,908. $646,388.4 FY 2018 361,675 $10,607,297.02 340,451 54 21,224 8 735 $79,183.65 Oct-16 33189 $935,946.64 31,332 $884,329.06 1857 $51,617.58 32 $4,493.85 Nov-16 33441 $953,386.75 31,414 $892,767.16 2027 $60,619.59 24 $4,899.28

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Dec-16 33286 967,234 31,514 $913,757.86 1772 $53,475.74 42 $5,481.39 Jan-17 35977 1,017,987 33,908 $960,493.46 2069 $57,493.55 24 $3,594.65 Feb-17 30608 877,034 29,227 $842,162.30 1381 $34,872.02 24 $3,307.31 Mar-17 34135 991,598 32,577 $947,740.70 1558 $43,857.73 65 $8,046.05 Apr-17 29065 838,602 27,364 $789,981.45 1701 $48,620.69 52 $4,561.28 May-17 32168 932,542 30,177 $877,401.54 1991 $55,140.47 57 $5,248.16 Jun-17 34760 $992,619.27 32,625 $933,986.73 2135 $58,632.54 69 $7,041.16 Jul-17 31775 $907,047.88 29,230 $835,778.59 2545 $71,269.29 58 $8,119.91 Aug-17 34920 $1,011,930.21 32,025 $927,121.31 2,895 $84,808.90 58 $6,685.06 Sep-17 29597 $852,529.14 27,878 $804,894.46 1,719 $47,634.68 73 $7,153.04 $10,610,414 $668,042.7 FY 2017 392,921 $11,278,457.40 369,271 .62 23,650 8 578 $68,631.14 Oct-15 36,529 $1,021,186.84 35,412 $989,491.19 1,117 $31,695.65 0 $0.00 Nov-15 32,530 $911,692.62 31,562 $879,471.23 968 $32,221.39 0 $0.00 $1,036,587. Dec-15 38,461 $1,068,908.11 37,385 1,076 $32,320.84 0 $0.00 27 Jan-16 33,743 $929,354.24 32,752 $898,088.77 991 $31,265.47 0 $0.00 Feb-16 34,059 $956,204.75 32,714 $915,068.89 1,345 $41,135.86 0 $0.00 $1,019,486. Mar-16 38,128 $1,074,247.66 36,457 1,671 $54,761.16 0 $0.00 50 Apr-16 33,666 $957,287.02 32,074 $907,952.95 1,592 $49,334.07 0 $0.00 May-16 34,335 $966,672.24 32,915 $919,080.03 1,420 $47,592.21 24 $3,763.79 $1,010,030. Jun-16 38,577 $1,067,404.16 36,691 1,886 $57,373.64 25 $4,252.73 52 Jul-16 33,986 $952,901.35 32,800 $914,688.45 1,186 $38,212.90 41 $7,973.18 $1,016,755. Aug-16 37,114 $1,044,610.73 36,130 984 $27,855.45 30 $5,442.18 28 Sep-16 34,227 $970,580.80 33,214 $941,060.15 1,013 $29,520.65 38 $5,605.12 $11,447,761 $473,289.2 FY 2016 425,355 $11,921,050.52 410,106 .23 15,249 9 158 $27,037.00 $1,072,688. Oct-14 40,189 $1,101,723.66 39,079 1,110 $29,035.60 0 $0.00 06 Nov-14 31,163 $861,531.34 30,354 $838,441.33 809 $23,090.01 0 $0.00 $1,092,145. Dec-14 40,871 $1,125,819.38 39,657 1,214 $33,674.13 0 $0.00 25 $1,026,210. Jan-15 40,945 $1,078,871.67 38,830 2,115 $52,660.77 0 $0.00 90 Feb-15 31,336 $827,219.01 30,182 $797,114.33 1,154 $30,104.68 0 $0.00 Mar-15 39,100 $1,027,872.88 37,485 $985,935.56 1,615 $41,937.32 0 $0.00 $1,019,167. Apr-15 39,089 $1,054,966.67 37,928 1,161 $35,799.13 0 $0.00 54 May-15 32,957 $897,327.95 31,930 $870,088.48 1,027 $27,239.47 0 $0.00 $1,011,473. Jun-15 38,477 $1,057,496.54 37,063 1,414 $46,023.46 0 $0.00 08 $1,028,897. Jul-15 39,050 $1,075,161.33 37,413 1,637 $46,263.37 0 $0.00 96 Aug-15 35,293 $986,199.64 34,224 $955,688.01 1,069 $30,511.63 0 $0.00 Sep-15 35,017 $982,424.40 34,052 $950,626.39 965 $31,798.01 0 $0.00 $428,19 11,648,476. $15,290. $428,137.5 FY2015 443,487 12,076,614.47 $0.00 7.00 89 00 8 0

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$1,186,500. Oct-13 44,089 $1,242,823.24 42,306 1,783 $56,323.10 0 $0.00 14 Nov-13 34,330 $969,276.77 32,990 $928,240.19 1,340 $41,036.58 0 $0.00 $1,027,395. Dec-13 38,074 $1,074,220.55 36,525 1,549 $46,825.26 0 $0.00 29 $1,099,893. Jan-14 40,978 $1,141,808.20 39,660 1,318 $41,914.58 0 $0.00 62 Feb-14 32,210 $912,086.32 31,325 $886,233.18 885 $25,853.14 0 $0.00 Mar-14 34,065 $963,146.38 33,256 $938,776.73 809 $24,369.65 0 $0.00 $1,071,174. Apr-14 39,397 $1,094,467.93 38,519 878 $23,293.64 0 $0.00 29 May-14 37,033 $1,031,356.87 35,831 $999,470.76 1,202 $31,886.11 0 $0.00 Jun-14 35,504 $974,827.18 34,371 $944,814.32 1,133 $30,012.86 0 $0.00 $1,077,627. Jul-14 40,262 $1,106,059.78 39,221 1,041 $28,432.17 0 $0.00 61 Aug-14 37,287 $1,015,863.41 36,121 $985,085.64 1,166 $30,777.77 0 $0.00 Sep-14 35,919 $993,818.97 34,898 $966,499.42 1,021 $27,319.55 0 $0.00 $12,111,711 $408,044.4 FY 2014 449,148 $12,519,755.60 435,023 14,125 0 $0.00 .19 1

C.1.3 WIC Electronic Benefits Transfer (EBT) Requirements

C.1.3.1 A federal mandate for all Special Supplemental Nutrition Program for Women, Infants and Children (WIC) State Agencies exists to become EBT (eWIC) compliant by October 1, 2020.

C.1.3.2 It is currently the policy of the USDA Food and Nutrition Service (FNS) that all Management Information Systems (MIS) and EBT planning be completed in accordance with Handbook 901 prior to consideration for approval. By FNS requirement, all MIS must be developed with Universal Interface capabilities which are technology neutral. The most current FNS Handbook 901 is located at https://www.fns.usda.gov/apd/fns-handbook-901-v2-advance-planning- documents. The WIC interface to the District’s MIS will be defined, once the Contractor for the selected District replacement MIS, namely the Health and Nutrition Delivery System (HANDS) system is secured. WIC benefit authorization records shall be conducted through on-line, real-time, host-to-host interfaces.

C.1.3.3 More information regarding the EBT interface is available by referencing the UNIVERSAL MIS – EBT INTERFACE SPECIFICATION (March 2015) document on the USDA website. This document standardizes the functional requirements for the Universal Interface between the WIC Management Information Systems (WIC MIS) and the WIC Electronic Benefit Transfer systems (WIC EBT system) used in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

Page 15 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.1.4 Status of DC WIC

C.1.4.1 Currently, WIC is operating a paper food instrument delivery system. DC WIC completed an EBT Feasibility and Cost Analysis Study in 2012/13 which demonstrated a need for a more modern system prior to implementation of eWIC. Pursuant to this finding, DC WIC completed a MIS Feasibility and Alternative Analysis Study in Jan 2017 and has since been in the planning phase of implementing an eWIC ready MIS system. DC WIC will acquire a MIS Transfer and Implementation (T & I) services at a date to be determined. DC WIC will implement the Health and Nutrition Delivery System (HANDS) MIS system developed by CMA which is currently in use by AZ who formed a consortium with American Samoa, Commonwealth of the Northern Mariana Islands, Guam, and Navajo Nation.

C.1.4.2 The Contractor shall coordinate with the selected WIC MIS contractor to align key milestones and critical path project activities and ensure a successful MIS/eWIC pilot and rollout. The MIS/eWIC kick-off is projected to be held at the end of April 2019. The pilot is anticipated in September 2020 with statewide rollout to be determined.

C.1.5 WIC EBT Program Qualifications and Experience

C.1.5.1 The Contractor and its key personnel shall have relevant experience and a proven record of success in similar engagements.

C.1.6 WIC Business Requirements

C.1.6.1 The Contractor shall comply with the Business Requirements specified in this Contract. Individual WIC benefits will be aggregated at the household level. The DC WIC Program intends to offer the eWIC card, one per household, in addition to the proxy cards requirement of Section C.32.3.4.4.5.

C.1.7 WIC Benefits

C.1.7.1 The Contractor shall be required to implement systems and services that maintain the integrity of WIC benefits. WIC benefits are in the form of a food prescription. WIC benefits are only accessible at authorized WIC vendor locations in DC and Maryland that have a vendor agreement with the specific DC WIC Program.

C.1.8 WIC Transaction Interchange Specifications

C.1.8.1 The Contractor shall be responsible for the authorization of cardholder-initiated WIC transactions. Messaging formats must comply with ANSI X9.93-2008, Specifications for WIC or a later version if it is in production at AZ WIC and/or has been thoroughly tested with HANDS as well as the Common Specification outlined in the FNS Technical Implementation Guide (TIG) and the Operating

Page 16 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Rules Women, Infants and Children (WIC) Electronic Benefits Transfer (EBT). The Contractor shall comply with all updates to ANSI X9.93-2008 Specifications for WIC at no additional cost to DC WIC. Interchange specifications must be approved by the DC WIC Program and FNS prior to use.

C.1.9 WIC Interoperability

C.1.9.1 The Contractor shall be required to support interoperability to the extent required. Some of the DC WIC vendors are authorized in the State of Maryland and must comply with all District rules. The interoperability standards associated with SNAP and cash benefits do not apply to WIC.

C.1.9.2 A WIC participant may only redeem benefits prescribed on the WIC food prescription, including types and quantities of specific food items. WIC EBT authorizes purchases through Category/Sub-Category Codes, Units of Measure, Universal Product Codes (UPC) and Price Look Up (PLU) Codes. WIC approved Category/Sub-Category, Units of Measure, UPC and PLU codes are specific to DC and any bordering State with DC WIC authorized vendors. Food prescriptions for WIC participants are intended for use by that participant within a specified period. The DC WIC Authorized Product List (APL) which must conform to ANSI X9.93 V4 Type 2 (or most recent versions), specifies the authorized products for DC and varies from State to State. MD WIC food retail vendors are required to support multiple APL files from any approved bordering geographic state agency. WIC benefits may not be accessed at ATM terminals and may not be commingled with either cash or SNAP benefits in the EBT account.

C.1.9.3 The Contractor shall be required to support the Cash Value Checks (CVC) program in accordance with the most recent WIC EBT Operating Rules and the Technical Implementation Guide (TIG).

C.1.10 WIC Deliverables and Documentation

C.1.10.1 The Contractor shall be required to include WIC program requirements for all deliverables and documentation specified in the Contract upon proper authorization for WIC services.

C.2 System Design, Key Assumptions, and Identification of Project Documents

C.2.1 EBT System Design and Requirements Overview

C.2.2 The WIC Program in the District of Columbia is contracting for products and services of the Contractor to provide all functionality, technical capabilities, and operational features of an eWIC processing system as defined in this Contract. C.2.3 The Contractor’s WIC EBT system shall be in compliance with FNS’s most current WIC-EBT policy memoranda and must comply with the most recent WIC EBT Operating Rules and the Technical Implementation Guide (TIG). It must be an

Page 17 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services industry standard application primarily relying on the commercial networks and available commercial POS terminals. C.2.4 The Contractor’s system shall also adhere to FNS Universal Interface requirements supporting WIC MIS and EBT integration in the DC WIC Program. The Contractor shall provide a comprehensive overview of its EBT system solution which shall clearly identify all of the components and information flows described in Figure 1. In addition, the comprehensive overview shall describe (with appropriate diagrams and/or other supporting illustrations such as an EBT Responsibilities diagram) the technical components and configuration supporting EBT host processing, third-party processor services, back-up and fail-over systems, proposed network communication links, and other major components of the proposed system including: 1. WIC Cardholder: The person authorized to use a household’s WIC EBT card. 2. WIC Vendor and Retail Locations: The authorized WIC vendor (aka “retailer”) and its individual store locations that provide authorized WIC food items and maintain the necessary equipment and systems to process WIC EBT purchase transactions. WIC Vendor retail store locations will use designated point-of-sales (POS) systems (hardware and software) which may operate in an integrated cash register (ICR) environment or as separate stand-beside card acceptor devices. Store locations may use their own Acquirer services and may either be directly connected to the EBT system host or connected through a gateway. 3. Acquirer: A processing entity or electronic service that captures transaction information from the WIC Vendor and sends information to the EBT Card Issuer Processor or a Third-Party Processor established to provide transaction management services. The Acquirer provides a single- entry point into the payment network for all tender types and supports single daily settlement service for all tender types. The Acquirer maintains a robust network connection with the EBT Host or Gateway and may provide services for network monitoring, quality control, and transmission problem resolution. 4. Card Issuer: The DC WIC Program and its Local Agencies that issue WIC EBT cards and managed card services for WIC participants. 5. EBT Host Processor: The system and services used by the DC WIC Program (or a contracted Third Party) for electronic benefit account management, card issuance and management, WIC purchase and settlement transactions, and other EBT operational and management functions.

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6. Third Party Processor (TPP): Any separate party/service providing designated EBT transaction processing and management services supporting the EBT Host Processor or Acquirers. 7. Gateway: A service established by the contractor (possibly using a TPP) which processes transaction information from retail store locations or their Acquirer services for transfer to the EBT system host. 8. Financial Institutions: Banks used by the Card Issuer and WIC Vendors to make and receive payments for settled WIC transactions.

C.2.4.1 Key Assumptions Impacting EBT System Implementation

C.2.4.2 The Contractor shall consider several key factors unique to the District. These include, but are not limited to the following: 1. The EBT system will use an online card environment for benefit issuance. WIC participant purchase transactions may at some point require interface or integration with other card-based programs and initiatives in the District. 2. The WIC Program staff have stated their desire to remain on a rolling benefit period. 3. The Program plans to employ the use of an abbreviated pilot implementation period of 60 days for the eWIC ready HANDS system.

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4. Two small independent WIC vendors will require stand-beside POS equipment. This may result in the presence of multiple stand-beside devices in one lane (3 or more incl. SNAP terminal) and hence equipment ‘real-estate’ issues. 5. The DC WIC Program’s small size and limited budget require for provision of a more granular budget presentation. The District will make decisions regarding selective services as with an “a-la-carte” service option according to the Price Schedule of the Contract. 6. The District currently makes payments to Local Agencies based upon Actual Participation, this is to say, when each household member receives benefits, individually. This will require a creative solution with a new EBT system that is based on aggregated household benefits.

C.2.5 Project Documents for Contractor’s Reference

C.2.5.1 The documents and sources identified in Table 3 are important references to be consulted by the Contractor for Contract performance.

Table 3: Important Documents for Reference

Title 1 Document Access

Categor y 1. 1. USDA-FNS Functional Requirements for a Model WIC FNS: https://fns- Information System (aka-“Fred”, ST prod.azureedge.net/sites/default/files/apd/FReD- version 2.0, 11/2008) including v2.0-Final.pdf Appendix E (2009)

2. Operating Rules for WIC EBT FNS: (current version, PDF, 09-2014) ST https://www.fns.usda.gov/sites/default/files/wic/ WIC-EBT-Operating-Rules-September-2014.pdf 3. WIC EBT Technical Implementation FNS: https://fns- prod.azureedge.net/sites/default/files/wic/WICEB Guide 2018 Version (PDF, 02 28 18) ST TTechnicalImplementationGuide2018.pdf

4. WIC Universal MIS-EBT Interface provides a model and requirements FNS: https://fns- for EBT integration with a WIC MIS - ST prod.azureedge.net/sites/default/files/WICUniver (most recent, March 2015) salMISEBTInterfaceSpecification.pdf

5. Electronic Benefits Transfer (EBT) Systems Testing Guidelines for the FNS: Special Supplemental Nutrition https://www.fns.usda.gov/sites/default/files/WIC_ Program for Women, Infants, and EBT_Testing_Guidelines_060402%5B1%5D.pdf Children (WIC) (June 2002)

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6. National Automated Clearing House Association (NACHA) Search for: Operating Rules and ST NACHA: http://www.achrulesonline.org Guidelines

7. NUPC Database & Creating the APL & FNS National UPC Database Login ST FNS: https://snp.fns.usda.gov/nupc/login

8. WIC EBT Final Rule: Special FNS: Supplemental Nutrition Program for https://www.federalregister.gov/documents/2016/ Women, Infants and Children (WIC): 03/01/2016-04261/special-supplemental- Implementation of Electronic LG nutrition-program-for-women-infants-and- Benefit Transfer-Related Provisions children-wic-implementation-of of Public Law 111-29 (PDF) https://www.gpo.gov/fdsys/pkg/FR-2016- (most recent, 03/01/2016) 03-01/pdf/2016-04261.pdf FNS: https://www.fns.usda.gov/sso/fns- handbook-901-v2-advance-planning-documents 9. FNS Handbook 901 v.2.3 (most (PDF): https://fns- recent, January 2019) BI prod.azureedge.net/sites/default/files/resource- files/FNS_HB901_v2.3_Internet_Ready_Format. pdf

10. Guide to the Project Management th PMI: http://www.pmi.org/PMBOK-Guide-and- Body of Knowledge (PMBOK), 4 ST Edition Standards.aspx

11. Technical standards from ANSI (ANSI X9.93 -2008 or 2014) Part 1 Messages, and Part 2 (as https://webstore.ansi.org/standards/ascx9/ansix99 appropriate, 2008 or 2014)), NIST, ST 3set See also specific standards references in ISO and other standards bodies. Contract sections.

1 Categories include: BI=Background Information about DC WIC Program, LG=legal or regulatory requirement for which compliance is mandatory, ST=Technical or administrative standards, practices, or guidelines which shall be followed by the Contractor

C.3 RESERVED

C.3.1 Project Services and Deliverables

C.3.1.1 The Contractor shall provide a Project Work Plan for WIC EBT that includes a detailed schedule with task descriptions for completing each deliverable, a timeline for completing each task, involved parties, and people responsible for completing each task. The schedule shall be submitted in sufficient detail to allow the evaluators full visibility into the planned activities, responsibilities, and

Page 21 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services dependencies. The schedule shall include project milestones and be developed utilizing MS Project. The submission shall include a description of any known risk areas and the contractor’s approach to mitigating the identified risks. C.3.1.2 The Contractor shall provide project Deliverables and Documentation for the DC WIC Program as identified in the Contract. A summary of the main project deliverables and services that shall be provided by the Contractor include: 1. WIC EBT software and implementation services which comply with appropriate FNS requirements and DC WIC Program specifications as stated in this Section. 2. Identification of and support in: acquisition, certification, and deployment of WIC Vendor (retailer) POS equipment and software which complies with FNS standards and is fully integrated with the EBT host system. 3. Services to develop, fully implement and certify a working interface between the EBT system and DC’s WIC MIS. This deliverable includes the following documentation: the WIC HANDS Interface Specification (ICD) document with accompanying WIC HANDS Interface Test Scripts. Additionally, a Settlement and Reconciliation Manual is required as well. 4. Identified user and technical documentation not mentioned as part of individual deliverables including the following documents: a. System Guide b. DFDD c. DTSD d. Quality Assurance and Risk Management Plan e. System Life Cycle Test Plan f. System Security Plan g. Reports Manual h. Data Warehouse product document(s) (if available) i. Operations Manual 5. Services for EBT system training and provision of associated training documents and tools including a training plan 6. Population and creation of the Program APL captured from DC WIC’s existing UPC Database. 7. Integration and testing with WIC Program vendor systems for both integrated and stand beside WIC vendors. This deliverable includes a Vendor Enablement and Certification Assessment as well as a Vendor Enablement and Certification Plan. In addition, an Integrated Vendor Interface Specifications Document with accompanying Integrated Vendor Interface Specifications Scripts is required to fulfill this deliverable 8. Services in setting up and executing User Acceptance Testing (UAT) and pilot testing culminating in approval by the DC WIC Program and FNS. This deliverable includes the UAT Plan and UAT Scripts. 9. Population of initial data into the EBT system which the EBT system requires for operation including WIC Program administrative data, WIC Vendor and store location data inclusive of the vendors’ APL, WIC participant benefit account data, banking information, participant and household demographic data, and EBT system user account information.

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10. Services and support for full District-wide deployment and full system operation including planning for a full rollback out of EBT, if required. This deliverable includes a Business Continuity Plan. 11. Project plan documents and ongoing project management, reporting, and communications through the implementation and deployment process. This deliverable includes the following documentation: Project Status Reports, Project Management Plan, Project Schedule/ Work Plan and Implementation Plan (includes Pilot Plan)

C.3.1.3 It is the intention of the DC WIC Program to employ the Contractor to provide ongoing, hosted EBT services and support after successful pilot testing and District- wide deployment.

C.3.1.4 All document deliverables (work plans, reports, technical and user documentation, etc.) shall be provided in electronic format as identified (Microsoft Word, Excel, or PDF) with an opportunity for DC WIC to review and comment followed by revisions by the Contractor.

C.3.1.5 The Contractor may recommend the use of new and innovative technologies that will provide improved service and/or operational cost savings to the District. The introduction of these technologies may occur at any time during the project following formal approval by the District. Examples of such innovative technologies include, but are not limited to: 1. Creative and helpful use of Web services 2. Web based points of interaction with WIC clients and WIC vendors offering improved experience and/or management 3. Innovative implementation or operational strategies 4. Improvements for clinic flow and local agency Program management 5. Strategies for pairing down or minimizing the physical impact of stand- beside retailer equipment 6. Enhanced card and POS technologies 7. Detection and prevention of fraud 8. Effective and flexible tools for data analysis 9. Efficient and user-friendly tools for query and report generation

C.3.2 Project Management and Reporting Requirements

C.3.2.1 The Contractor shall sufficiently manage, organize and staff WIC EBT implementation and operations throughout all phases of the project.

C.3.2.2 The Contractor shall provide a plan to project management, specific work plans to be provided, project management reports, and the timing of these deliverables. The Contractor shall indicate their responsibility for updating plans through the course of the projects and communicating these to project participants.

C.3.2.3 At a minimum, the following project management requirements will need to be adhered to by the Contractor and provided by the Contractor:

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A. Adherence to project planning and management practices of the Project Management Institute (PMI) as described in the PMI Guide to the Project Management Body of Knowledge (PMBOK). In particular, project management shall follow practices defined for the nine PM “knowledge areas”. B. Risk management processes intended to keep the project on track and employ effective risk response strategies should problems occur. C. Quality control and quality assurance including internal testing and verification by the Contractor’s team and by the DC project team. The Contractor shall cooperate with any Quality Assurance (QA), Project Managers (PMs), Business Analysts (BAs), or the District’s Quality Assurance contractor utilized for this project. D. An overall project work plan and schedule and a kick-off meeting with project participants to clarify and adjust project objectives, deliverables, roles, and timing. E. Work plan covering implementation and operation of system security and system/database administration. F. Work plan(s) addressing the detailed preparation for and execution of the formal User Acceptance Testing (UAT) and Pilot Project. G. Work plan for WIC vendor certification, coordination, and deployment. H. Work plan for training different stakeholder groups including: a) DC WIC Program office management and staff, b) local WIC agency personnel, c) DC WIC Program technical support personnel, d) WIC-Authorized vendors. I. Work plan covering the details of operational, District-wide deployment. J. Other individual work plans, as needed, that address specific implementation and deployment details. K. Weekly written status reports that describe accomplished work and status for all project tasks including interface specification and development, testing, training, security assessment and transition to operations, upcoming activities, and milestones, and project issues and risks that must be addressed.

L. Quarterly progress reports with a “project to date” summary of accomplishments and project status. M. Ongoing project management meetings, conference calls, and other proposed reports. N. Suggested presence at DC WIC during the project management tasks as determined by the District, at least for the kickoff meeting, as part of providing UAT training, at least one week for UAT testing and the End-to- End test and preferably for onsite POS installations

C.4 Compliance with Key Standards, Operational Specifications, and FNS Requirements

C.4.1 The Contractor’s system shall be compliant with and adhere to the following standards and specifications required by the FNS:

Page 24 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 1. Universal Product Code (UPC) Database Interface using the FNS National UPC Database format which includes an update maintenance process with EBT system integration that ensures up-to-date proper category/subcategory codes for all food items on the DC WIC Program Approved Product List (APL).

2. Technical Standards governing specifications for network communications, data transfer, card format, etc. including (refer also to Table 3): 1. ANSI X9.93 Part 1 Messages, and Part 2 Files (as appropriate) standard message and batch formats for electronic transaction processing with formats conforming to those currently in use by other state WIC Programs approved by the FNS (either 2008 or 2014 version). 2. ANSI X9.93 V4 type 2 specifications for Approved Product List 3. MIS-EBT System interface specifications (see WIC Universal MIS-EBT Interface) 4. Technical specifications for EBT transaction processing as described in the ‘WIC EBT Technical Implementation Guide’ FNS document. 5. ISO standards for card format and features adhering to applicable ISO 718x and 781x standards.

3. Functional Requirements and Operating Rules including full compliance with requirements in FNS documents, FReD 2.0 (including appendices) and WIC EBT Operating Rules (current version, 09/2014)), or most recent version of the same.

4. Standards and Guidelines of the DC Office of the State Chief Technology Officer (OCTO) OCTO has established a number of general standards and guidelines for IT system development and operations. Applicable OCTO standards and guidelines address Web standards, User interface standards, and security guidelines and may be accessed online: 1. https://octo.dc.gov/service/it-standards 2. https://octo.dc.gov/page/information-security

5. DC WIC Program Spelling, Formatting, and Punctuation Standards: The Contractor shall adhere to the spelling and punctuation rule that will be enforced by the selected WIC MIS for all system displays, reporting, and data entries unless deviation from these rules is approved by the DC WIC Program. Required operational standards and specifications, to which the Contractor’s system and services shall adhere, are described in the cited FNS documents.

C.5 WIC Vendor System Specifications, Participation, and Implementation Support

C.5.1 The Contractor shall be responsible for providing and managing EBT system services and operations for District of Columbia users and stakeholders—including WIC

Page 25 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Program office and WIC Vendors corporate management and retail store locations. The Contractor’s primary roles and responsibilities include: 1. Providing every WIC Vendor with the opportunity to participate with eWIC. 2. Signing and maintaining appropriate agreements for services and operational responsibilities with WIC vendors that use a direct connection to the EBT system host or with Third-party Processors (TPP). See Section C.7.5.3 for more information. 3. Assist with certifying and de-certifying POS systems and TPPs. 4. Ensuring that the participating WIC vendors understand their responsibilities with regard to operating rules and operations of the EBT system. 5. Installing, maintaining and otherwise supporting selected stand-beside POS equipment as necessary in accordance with USDA-FNS WIC EBT Final Rule (Special Supplemental Nutrition Program for Women, Infants and Children (WIC): Implementation of the Electronic Benefit Transfer-Related Provisions of Public Law 111-296). 6. Allowing dial-up and direct connect communications between the WIC vendor’s stand-beside terminal or integrated system to the EBT system. 7. Providing help desk services to WIC vendors and WIC Program users for resolving issues/problems on Contractor supplied stand-beside POS equipment in addition to helping to resolve settlement and dispute questions and issues.

C.6.1 WIC and Contractor Responsibilities

C.6.1.1 The Contractor shall be responsible for WIC vendor participation in EBT system in shared engagement with the DC WIC Program. This effort must be carried out in such a manner as to ensure retailer readiness for the pilot and rollout areas so that there are an adequate number of access points for cardholders in their communities. The Contractor, with support from the DC WIC Program, shall strive for 100% participation and readiness of authorized WIC vendors for the pilot and each rollout area. The District has a very limited number of vendors on the program and will strive to not lose any.

C.6.1.2 The Contractor shall participate in the DC WIC Program-initiated WIC vendor meetings or conference calls and provide training as defined in the contract. The DC WIC Program and USDA-FNS will determine if access to WIC benefits, relating to vendor access inside the Districts urban areas, is adequate - prior to authorizing the pilot or implementation of EBT system

C.6.1.3 The Contractor shall take the necessary steps to provide access to the EBT system for those existing and new WIC vendors who choose to use or acquire their own equipment and, hence becoming integrated vendors. Alternatively, the Contractor shall supply and maintain single-function stand-beside POS equipment to all WIC vendors who do not choose to use their own equipment. The District will lease the Contractor provided POS Stand-beside as part of a monthly purchase and ongoing support contract in accordance with Section B, Price Schedule of the Contract. The Contractor shall be responsible for retrieving stand-beside POS terminals from

Page 26 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services vendors who have been terminated by the DC WIC Program or from WIC vendors who have elected to move to integrated systems as well as otherwise managing issues of inventory and issuance of POS devices to the WIC Vendors. As of 2018, DC WIC has one small independent WIC vendor that will need to be equipped with single- or multiple (if shared with SNAP EBT) function POS terminals.

C.6.1.4 New WIC vendors shall be supported by the Contractor to become either an integrated or stand-beside operating DC WIC authorized vendor during the duration of the Contract.

C.6.1.5 One small independent WIC vendor will require a stand-beside device using the equipment formula described in the WIC Implementation of Electronic Benefit Transfer-Related Provisions. All WIC vendors will require training to support this transition. DC WIC’s vendor manager will act as the primary point of contact for all WIC vendor inquiries during this process, referring and escalating issues as necessary.

C.6.1.6 The Contractor shall ensure that specific information, such as WIC vendor EBT contacts and EBT system WIC vendor locations, is available upon the DC WIC Program’s request to provide verification of adequate access. During implementation, the Contractor shall provide weekly reports, as part of the weekly status report, detailing the number of WIC vendors for which the Contractor has signed agreements, and the percent of WIC vendors with signed agreements in relationship to the total number of WIC vendors. Following implementation, these reports must be provided on a quarterly basis.

C.6.2 Service Requirements

C.6.2.1 The Contractor shall comply with the WIC vendor and TPP service level and performance requirements.

C.6.3 WIC Vendor, Third-Party Processor, and Acquirer Relationships

C.6.3.1 The Contractor shall enter into agreements to deploy and install/otherwise support all aspects of stand-beside POS equipment pursuant to this Contract and to act as TPPs to all WIC vendors who accept contractor-deployed POS terminal services. For those WIC vendors who choose to use or modify their existing equipment and either acquire the services of a TPP or serve as their own acquirer (including any retailers who opt to make a direct connection), the agreement shall be to provide access to the EBT system by the TPP, direct connect WIC vendors that self-process, or any other acquirer. TPPs are responsible for training their EBT WIC vendors and for providing required EBT system signage. All EBT system signage must be approved by the DC WIC Program before it is produced.

C.6.3.2 TPP and WIC vendor agreements will be between the Contractor and the WIC vendor or TPPs directly. The DC WIC Program will not be a party to WIC vendor/TPP agreements. However, the terms must be approved by the WIC

Page 27 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Program before being provided to the WIC vendors. Any subsequent changes to terms will need to be approved by the WIC Program and FNS before being provided to retailers. The agreements shall describe the terms and conditions regarding the arrangements for use of the POS equipment and the operating procedures and rules. At a minimum, the agreements must include language that requires: 1. Compliance with the DC WIC Program regulations. 2. Compliance with USDA-FNS Operating Rules for EBT system. 3. Compliance with ANSI X9.58-2007, X9.93-2008 or 2014, ISO 8583 and ISO 9510. 4. Compliance with X9.93 USDA-FNS Technical Implementation Guide (TIG) for online EBT systems as defined by USDA-FNS. 5. Assurance that there will be no charge to WIC authorized vendors for authorization and settlement processing by the EBT system contractor for EBT transactions. 6. Assurance that only authorized WIC vendors may perform WIC transactions. 7. Assurance that TPPs/Acquirers must provide a list of WIC vendors under contract to them that accept the EBT system card within the District and surrounding states that accept DC WIC participants.

C.6.3.3 WIC vendor and TPP agreement language shall be reviewed and approved by the DC WIC Program and USDA-FNS.

C.6.4 WIC Vendor Web Portal

C.6.4.1 The Contractor shall provide a retailer web portal at least two (2) weeks prior to the Pilot Test. The Contractor shall provide cardholders and retailers separate inquiry tools/functions. Through this secure website, the Contractor shall provide transaction inquiry and retailer settlement history information directed to retailers 24/7, 365 days a year, except for scheduled downtime. Refer to Section C.34.1.6 in regard to the cardholder web portal.

C.6.4.2 The Contractor shall include in the secured web administrative terminal site: • Access for designated State and Federal (USDA FNS & OIG) staff. • Site functionality and access controls. • Time for DC WIC to review and approve the web site including all portals before the Contractor allows public access. • Internet links to the DC WIC Program’s health services web sites, and Federal agency sites that provide general and WIC related information as well as general WIC EBT information.

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C.6.6 Stand-Beside Device Specifications

C.6.6.1 The Contractor shall provide stand-beside POS equipment to those WIC vendors who choose not to use a commercial entity, such as a TPP, and to self-process transactions or whose systems are not certified for EBT system when EBT system is implemented in their area. WIC vendors shall be provided with stand-beside POS equipment in accordance with WIC EBT Operating Rules. C.6.6.2 The DC WIC Program will provide data to the Contractor about the WIC vendors’ cash register changes as necessary, and the Contractor shall, within 60 days or sooner, adjust the number of terminals accordingly.

C.6.6.3 The Contractor shall meet Federal regulations by ensuring POS terminal deployment standards.

C.6.6.4 The Contractor’s deployed stand-beside POS equipment shall meet the operational requirements of the Contractor’s EBT system and support the full EBT system transaction set. All POS equipment deployed by the Contractor must comply with the following: 1. DC WIC Program regulations 2. USDA-FNS Operating Rules for EBT system 3. ANSI X9.58-2007, X9.93-2008 or 2014, ISO 8583 and ISO 9510ANSI X9.93 4. USDA-FNS Technical Implementation Guide (TIG) for online EBT systems as defined by USDA-FNS

C.6.6.5 After implementation, replacement of a stand-beside equipment shall be deployed overnight within one to three business days.

C.6.6.6 The Contractor’s EBT system shall be industry standard and meet specified performance standards in the areas of system processing speeds, system availability and reliability, system security, system ease-of-use, minimum card and terminal requirements, performance bonding, and the minimum transaction set. All POS equipment deployed by the Contractor must adhere to all standards which govern EBT WIC transactions.

C.6.6.7 POS equipment deployed by the Contractor must include a device to scan UPCs and allow for input of PLUs, or their pricing as determined by an outside system (in the event of a limited stand-beside system lacking a scale peripheral). At the request of the WIC vendor the POS equipment shall include a separate PIN pad. The Contractor shall ensure that POS equipment deployed to stand-beside WIC vendors is adaptable or upgradeable for future needs. At a minimum, stand-beside POS equipment shall support: 1. Both single and multi-checkout lane usage. 2. Both high speed and dial-up for phone connections.

Page 29 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 3. The full transaction set except store and forward. 4. Download and storage of APLs. 5. Price memory function (WIC vendors shall have the option of turning this function off). 6. Entry of multiple discounts on a single transaction. 7. Allow the cash value benefits (CVB) to be mapped to a single generic code. 8. Support split tender for CVB. 9. Fully validate the purchase transaction locally before sending to the EBT system. 10. Reverse transactions based on a specified time out period. 11. Provide a receipt that meets the requirements of the USDA-FNS Operating Rules for EBT system. 12. Provide lane, clerk and WIC vendor store total reporting. 13. Support reconciliation with the EBT system. 14. Process SNAP EBT transactions in accordance with existing business rules if WIC and SNAP are provided on one piece of equipment. 15. Remain conformed to any/all governing standards over EBT WIC. 16. Include maintenance of application and equipment.

C.6.6.8 During the EBT roll-out, the cost of all supplies associated with the stand-beside, single function or WIC only POS equipment such as the cost of paper tape, ink or any other consumables associated with the devices is the responsibility of the DC WIC. After statewide roll-out of EBT, DC WIC will only be responsible for the ongoing costs of single function equipment or WIC only equipment if the store is determined by DC WIC to be necessary for participant access and stores will be responsible for transaction fees after eWIC implementation is complete.

C.6.7 Integrated Cash Register Systems

C.6.7.1 The Contractor shall identify integrated cash register (ICR) systems, and their suppliers, which are fully compatible with the Contractor’s EBT system and which support all functional requirements defined in this contract as well as WIC vendor requirements for general purchase transactions and tender types. The Contractor will work with integrators to support their selection and acquisition of these ICR systems. Further, the Contractor shall provide testing environments, and support in: a) ICR certification testing, b) Set-up and configuration for UAT and pilot testing, and c) District-wide operational deployment. The Contractor shall propose specific roles and activities for ICR identification, testing and certification, and support to WIC vendors and ICR system suppliers. The EBT system Contractor shall keep DC WIC informed during this process.

C.6.7.2 WIC vendors will be responsible for the cost of these ICR systems and they, and the ICR provider will have main responsibility for installation, configuration, and ongoing support and maintenance.

Page 30 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.6.8 WIC Transactions

C.6.8.1 The Contractor’s EBT system shall have controls in place to ensure that direct connect WIC vendor transactions occur only at entities that have valid agreements with the Contractor in concert with the DC WIC Program. For all WIC transactions, the Contractor must validate that the transactions originated at a District-authorized WIC vendor location. The contractor must maintain an up to date awareness of authorization status for all authorized WIC vendors. The contractor must be able to accept online, real-time or daily batch transmissions from the DC WIC MIS to obtain updates of the files used to validate WIC vendors, and have a process in place to ensure that all records are properly posted. The Contractor’s EBT system must verify that the DC WIC Program’s WIC vendor identification submitted as part of the transaction is for a DC-authorized WIC vendor prior to completing the transaction and assumes liability if transactions are completed against invalid WIC vendors. The moment a DC WIC authorized vendor has been terminated by SNAP, WIC vendor transactions to the contractor should no longer be accepted.

C.6.9 WIC Vendor Test Cards

C.6.9.1 The Contractor’s EBT system shall issue EBT test cards and make test accounts available to WIC vendors for the purpose of testing their EBT POS system(s), and others as required, prior to going live. The DC WIC Program shall authorize that the test card account be loaded with limited food and monetary value, to be determined by the DC WIC Program, however depending upon WIC vendor solution, this account may not transact actual Program funds. WIC vendors shall be instructed to conduct an offsetting (i.e., reversal, void) transaction to ensure that there is no monetary impact on settlement balances, for any transactions which attempt to “settle”, for payment from the District during testing. WIC vendor test cards and accounts shall not be subject to aging, as is germane to WIC Program operations benefits periods, certifications, etc. The contractor is responsible for managing EBT test cards issued to WIC vendors. The DC WIC Program should be privy of any WIC vendor test results, upon request.

C.7 WIC Vendor and TPP Support

C.7.1 The Contractor developed ‘Integrated WIC Vendor Interface Specification’ document provides WIC vendors, their designated agents (e.g., corporate headquarters), retail system developers, and third party processors (TPPs) the detailed information needed for them to integrate the Contractor’s EBT system as a tender type in their electronic cash register systems and/or payment networks. The document defines and documents the messages and files that are exchanged between the retail point-of-sale and/or payment network with the EBT system host System. It shall contain all of the necessary to modify their systems and successfully test their systems for WIC EBT certification. The specifications shall follow the technical standards that are currently being defined by the USDA-FNS EBT system standards workgroup. Once approved by the DC WIC Program, this document is also required to be reviewed and approved by USDA-FNS prior to

Page 31 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services submitting it to the vendors. C.30.2 The Contractor shall provide applicable WIC vendors and TPPs (acquirers) with the interface specifications, within 60 calendar days of the start of the contract. The interface specifications will provide the information and data that would support WIC vendor and TPP terminal drivers’ interface with the EBT system and enable these entities to conduct EBT system transactions. Newly authorized WIC vendors who choose to employ a TPP to drive their terminals or elect to drive their own terminals, shall have access to the EBT system within a 30 day period after the receipt of the DC WIC Program’s authorization notice or a mutually agreed upon time to allow for any of the DC WIC Program-required functional certification. The contractor shall make all reasonable efforts to obtain certification for WIC vendors and TPPs that enter into direct connect arrangements with the contractor.

C.8 WIC Vendor Support and Customer Service

C.8.1 The contractor shall provide a WIC vendor Customer Service Center (CSC) support and program information via a toll-free number, at least 8:00am to 10:00pm and a web portal with chat functionality 24 hours, 7 days per week. WIC vendor support shall include support for all authorized WIC vendors including those using ICR and stand-beside POS systems. Basic types of support and customer service shall include a) response to questions on system functionality, b) problem resolution on POS system operations or individual transactions, c) EBT card malfunctions, d) host or TPP downtime or network failures, and other standard support services. The Contractor shall submit a Customer Service Manual that shall be used by the live customer service representatives when responding to calls from WIC vendors.

C.8.2 The DC WIC Program is interested in alternative levels or methods of support (including a Web-based portal) that may positively affect support/customer service costs and service quality and ultimately impact long-term costs of the EBT overall system for the District. The Contractor’s may provide the Contracting Officer's Technical Representative (COTR) different support/customer service alternatives and provide associated costs and may implement such alternative subsequent to formal approval by the Contracting Officer.

C.9 EBT SYSTEM FUNCTIONAL AND OPERATIONAL REQUIREMENTS

C.9.1 UPC Database, APL, and NTE Management

C.9.1.1 Category/Subcategory Maintenance

C.9.1.1.1 The Contractor’s EBT system shall maintain food categories and subcategories. Categories/subcategories are used in benefit issuance and assigned to individual UPCs/PLUs, within the Program’s APL for use in benefit redemption. The EBT system shall allow authorized WIC Program users to update (add/modify/delete) the categories/subcategories using the EBT administrative system as well as through a file upload negotiated between the MIS and Processor system(s).

Page 32 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Additionally, the EBT system should allow authorized WIC Program users to set, activate, and de-activate dates for specific categories/subcategories within the table. The EBT system shall provide the ability to view and search the categories/subcategories database. With an operational National UPC Database (NUPC), the system should provide the capability to download category/subcategory additions and updates. The EBT system shall provide a daily file, the WIC Category Sub-Category file, to the DC WIC MIS with updates to category/subcategory list which the DC WIC MIS will use for assignment and issuance of benefits in accordance with EBT standards, policies, and procedures. However, without an operational NUPC, the contractor shall provide a method for maintenance of the same, by appropriate users or connection to the MIS as appropriate.

C.9.1.1.2 In case the MIS system offers the ability to add/modify/delete categories/subcategories of categories/subcategories, it will be acceptable that this functionality be established in the EBT system via message-based communication or through a daily batch file

C.9.1.2 UPC and PLU Data

C.9.1.2.1 The Contractor’s EBT system shall maintain the state-created UPC/PLU data. UPCs/PLUs identify the DC WIC Program’s approved food items and are used as part of the WIC benefit redemption item approval messaging process. The EBT system shall allow authorized users to update (add/modify/delete) the UPCs/PLUs using the EBT administrative system as well as through a file upload. Additionally, the EBT system shall consume messages/files with activate and de-activate dates to allow users to set, activate, and de-activate dates for specific UPCs/PLUs within the table. The EBT system shall provide the ability to view and search the UPC/PLU database. When the NUPC is operational and providing the capability to download UPC/PLU additions and updates, the EBT system shall interface with the NUPC to obtain UPC/PLU data. The Contractor's eWIC system shall accept the initial UPC/PLU data inclusive of their associated WIC (Sub) Categories file generated by the MIS system as well as subsequent files containing only changes and/or additions to the MIS UPC/PLU data and their associated WIC (Sub) Categories file. These changes shall be accepted by the eWIC system via message- based communication or through a daily batch file. Further, the EBT system contractor shall provide the District information that describe the process of how the addition of formulas, not currently provided by the National UPC Database subcategory listing will be affected by the WIC Program. In case the MIS system offers this UPC/PLU update capacity, it will be acceptable that this functionality be established in the EBT system via messages/files from the MIS system.

C.9.1.3 National UPC Database (NUPC)

C.9.1.3.1 The Contractor’s EBT system shall maintain an interface with the NUPC database (once established and approved by USDA-FNS) that will work to automate the

Page 33 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services receipt of applicable category/subcategory, UPC/PLU data as they are added to, modified, or deleted from the NUPC. The EBT system shall automate the transmission of locally entered or uploaded UPC/PLU data to the NUPC database and remain compatible with any future features and functions of the NUPC database as they are developed, tested, and approved for use.

C.9.1.4 Not-to-Exceed (NTE) Amounts

C.9.1.4.1 The Contractor’s EBT system shall provide a mechanism to set the initial NTE for each UPC at the UPC, broadband, or subcategory level including those set by the Unit of Measure (UOM) within varying levels category/subcategory. The EBT system shall allow DC WIC Program the ability to determine which food items’ (Not-to-Exceed) NTE will be set by UPC and which by subcategory including other potential areas of application of the NTE, and shall provide the ability to change this determination at any time, as needed by the WIC Program to remain compliant with federal rules and standards in addition to business/other demands of the Program as determined by the Program. The determination of whether to use the UPC or subcategory level, including any other level or application, will be based on an assessment of whether there are sufficient redemptions of individual UPCs by peer group, to be able to set a reasonable NTE at the UPC level. However, this should remain a configurable option and at the DC WIC Program’s immediate discretion. In case the MIS system offers ability to set the initial NTE for each UPC at each of the above-mentioned levels, it will be acceptable that this functionality be established in the EBT system via messages/files from the MIS system.

C.9.1.4.2 NTEs shall be calculated by taking the average items’ (or category as appropriate for the item and as currently configured by the District), requested price (shelf price) submitted as part of the redemption message for a designated period of time and applying a number of standard deviations to that average (configurable by the District). Authorized users shall have the ability to adjust the number of standard deviations used and the total time span leveraged in calculating the NTE, price. The EBT system shall support the ability to select different standard deviations among and between peer group, by subcategory, and by UPC at the DC WIC Program discretion as a configurable option.

C.9.1.4.3 The Contractor’s EBT system shall use actual retailer redemption data to calculate the NTE amount by peer group and Program-wide at the sub-category level (unless specified at the category level by the District WIC Program). The EBT system shall perform this calculation automatically at time intervals specified by DC WIC Program and also on-demand, as needed by the District. The EBT system shall also provide automated and on-demand activation of new NTE amounts and allow authorized users to override calculated NTEs deemed inappropriate by DC WIC Program while maintaining an audit trail of all adjustments providing user in addition to time/day information for all changes. The EBT system shall maintain the NTE amounts and shall have the capability to automatically transmit NTE data

Page 34 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services to DC WIC Program’s MIS at time intervals specified by DC WIC Program. The EBT system shall provide authorized users with viewing and download access to current and historical NTE prices.

C.9.1.4.4 The EBT system shall have the ability to handle “lowest cost” foods, if the District WIC Program determines at some future point to make such a change. This means certain brands of certain foods (i.e. milk, cheese, cereal etc.) will be designated the only authorized food in a particular sub-category, and purchases shall be restricted by the system to these.

C.9.1.5 WIC Vendor Access to APL

C.9.1.5.1 The Contractor’s EBT system shall transmit the DC WIC Program APL, including the current UPCs and/or PLUs to authorized WIC vendors and TPPs on a daily basis or as specified by the SLAs. The EBT system shall allow WIC vendors and TPPs to automate the download of the APL or to request the APL on-demand. The EBT system shall provide the DC WIC Program authorized users with viewing access to the APL (current and previous) source data either directly or via interface to the DC WIC Program MIS. The EBT system shall have the ability for WIC vendors and TPPs to view APL files created by the system by date. The APL file must conform to the ANSI X9.93 V4 type 2, files specifications, or most recent version, as appropriate.

C.9.2 Account Set-up and Benefit Authorization

C.9.2.1 The Contractor’s EBT system shall provide the systems and services required to allow the DC WIC to set-up WIC accounts and authorize WIC benefits. The contractor shall be prepared to provide a solution that is consistent with FNS national guidance on the interface between the WIC Management Information System (MIS) and the EBT system (for more details see below Section on WIC Administrative Functionality/WIC MIS Integration).

C.9.2.2 A final agreement on the format and account set-up, benefit authorization, and messaging file formats shall be reached during detailed system tailoring discussions. DC WIC will retain benefit issuance on a rolling month basis (e.g., 14th through the 13th of the following month) rather than a calendar month. Benefits may be redeemed only during the benefit prescription availability dates. Benefit prescriptions may be issued for multiple months (up to 3 months) at a time.

C.9.2.3 Create a Household Account C.9.2.3.1 The Contractor’s EBT system shall accept a unique household identifier household ID and associated demographics from the DC WIC Program MIS, via real-time, online message, in accordance with the Universal Interface and/or other appropriate standards governing WIC EBT operations and interoperability. The EBT system shall validate the uniqueness of the household ID identifier and ensure there are no

Page 35 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services duplicate household IDs. The EBT system shall validate the integrity of identifying data (e.g., full name, date of birth, etc.). If all data is validated, the EBT system shall establish an EBT household account (EBA). The EBT solution shall reject a transaction from the MIS if it were to establish a duplicate HH account. The EBT system shall provide an alert report of all instances of attempted duplicate HH accounts.

C.9.2.3.2 DC WIC Program does not collect nor will it transmit Social Security Numbers or other identifying data. Specific identifying and demographic data elements will be addressed during Joint Application Design (JAD) sessions between DC WIC Program, as appropriate, and the contractor. To minimize changes to the DC WIC Program MIS, the contractor shall use the existing data formats for the exchange of data unless otherwise stipulated by DC WIC Program.

C.9.2.4 Account Number C.9.2.4.1 The Contractor’s EBT system shall create a unique EBT account number for use in identifying each EBT household account in the EBT system. The Contractor must provide its approach for the development of the EBT account number and indicate how it will be used within the EBT system to identify household accounts. C.9.2.5 Account Structure C.9.2.5.1 The Contractor’s EBT system shall maintain an EBT account structure to ensure that:

1. Benefit balances are accurately maintained and updated as new benefits of members of a household are added and removed from the account. 2. Benefits accessed by cardholders are drawn from the appropriate benefit account. 3. Benefits accessed by cardholders are drawn from the appropriate category/subcategory. 4. Benefit accounts are not overdrawn or over issued, i.e., benefits cannot be decremented in an amount greater than the balance available on the account and that all transactions are managed in accordance with applicable standards.

C.9.2.5.2 The Contractor shall be liable for any benefits or funds drawn from an incorrect account or program, for overdrafts against EBT benefit accounts including allowing access to program benefits prior to or after their availability date, and for EBT host transaction processing errors. In the future, other programs may include the Farm Direct Nutrition Program (FDNP) or Summer EBT Nutrition Program, etc. DC WIC Program has the right to modify account structure requirements in response to changes in DC WIC Program or Federal program regulations as well as to remain in compliance with industry standards deemed to have control over EBT WIC Operations.

Page 36 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.9.2.6 Maintain a Household Account C.9.2.6.1 The Contractor’s EBT system shall maintain an account for each WIC household. The EBT system shall not make changes or updates to account demographic data unless authorized by DC WIC Program to do so.

C.9.2.7 Account Changes C.9.2.7.1 The Contractor’s EBT system shall provide functionality to change household demographics through a real-time online message from the DC WIC Program WIC MIS household ID. The EBT system shall validate the new household ID and/or new demographics. If all data is validated, the EBT system shall update the EBT database. The EBT system may be required to return a confirmation for updates to demographic data in accordance with Universal Interface and/or other governing standards over EBT WIC operations.

C.9.2.8 Primary Cardholder C.9.2.8.1 The Contractor’s EBT system shall provide functionality to change the name and/or demographics of the primary cardholder through host-to-host communication or batch file transmission from the DC WIC Program MIS.

C.9.2.9 Open Accounts C.9.2.9.1 The Contractor’s EBT system shall maintain all EBT accounts open unless DC WIC Program directs the contractor to close an account.

C.9. 2.10 Issue Household Benefits C.9.2.10.1 The Contractor’s EBT system shall receive WIC benefits from the DC WIC MIS by real-time, online messages, aggregated at the household level, and assign them to the appropriate household account. This will be done through an on-line interface (host-to-host or batch file transmission) in accordance with the Universal Interface and all governing standards over EBT WIC.

C.9.2.11 Accept Benefit Issuance Records C.9.2.11.1 The Contractor’s EBT system shall be able to accept benefit issuance (food and CVB) from the DC WIC Program MIS, in a host-to-host data transfer and in a batch file transmission. Benefit issuance from the DC WIC Program MIS will be aggregated at the household level and will indicate the household account number, the category/subcategory, quantity, size, and benefit availability date(s). The EBT account is the record kept and maintained by the EBT system for each category/subcategory that the household receives.

C.9.2.11.2 The Contractor’s EBT system shall validate issued benefits and link benefits to the appropriate household EBT account. Benefit validation shall: 1. Reject duplicate benefit issuance. 2. Accept current and future months’ benefits.

Page 37 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 3. Allow more than one issuance to a household for a single month. 4. Validate that benefit issuance records are correct in content and format. 5. Validate that benefit dates are synchronized (cycle adjusted) with existing household benefits.

C.9.2.12 Balance Inquiry C.9.2.12.1 The Contractor’s EBT system shall support a real-time, online request for the current balance including both current and future months’ benefits. The EBT system shall return category/subcategory, food description, quantity, and benefit start and end dates by real-time, online message. This shall provide the DC WIC Program MIS users with the capability to print a list of a household’s issued benefits.

C.9.2.13 Maintain Household Benefits C.9.2.13.1 The Contractor’s EBT system shall maintain household benefit accounts.

C.9.2.14 Maintain Benefit Account C.9.2.14.1 The Contractor’s EBT system shall maintain the WIC benefit account and account structure. WIC benefit account balances will be accurate and segregated by category/subcategory. When a cardholder transaction is conducted, the EBT system shall ensure the transaction will occur using the appropriate category/subcategory. The EBT system shall ensure benefit accounts are not overdrawn or over-issued or under-issued.

C.9.2.15 Modify Currently Available Benefits C.9.2.15.1 The Contractor’s EBT system shall allow authorized users to modify currently available benefits using real-time, online messages from the DC WIC Program MIS. The process begins by requesting the current balance from the EBT system. The EBT system shall return the balance for the current month. Once the modification is determined by the user, the DC WIC Program MIS will submit an online request(s) to credit and/or debit the account balance.

C.9.2.16 Modify Future Months’ Benefits C.9.2.16.1 The Contractor’s EBT system shall allow authorized users to modify future months’ benefits using real-time, online messages from the DC WIC MIS. The process begins by requesting the future balance from the EBT system. The EBT system shall return the balance for the future month. Once the modification is determined by the user, the DC WIC Program MIS will submit an online request(s) to credit and/or debit the account balance.

C.9.2.17 Void Current & Future Months’ Benefits C.9.2.17.1 The Contractor’s EBT system shall allow authorized users to void future months’ benefits in real-time online messaging from the DC WIC Program MIS. During a

Page 38 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services real-time session, the DC WIC Program MIS will submit a void request including the benefit ID for the benefit that is to be voided. The EBT system shall validate the transaction. Once validated, the EBT system shall void future months’ benefits in the EBT database.

C.9.2.18 Cancel Future Month’s Benefits C.9.2.18.1 The Contractor’s EBT system shall allow authorized users to cancel future months’ benefits using real-time, on-line messages from the DC WIC Program MIS. This would occur in cases of change in eligibility, foster care, or fraud. During a real- time session, the DC WIC Program MIS will submit a cancel request including the benefit ID for the benefit that is to be canceled. The EBT system shall validate the transaction. Once validated, the EBT system shall cancel future months’ benefits in the EBT database.

C.9.2.19 Benefit Availability C.9.2.19.1 The Contractor’s EBT system shall manage benefits based on their availability date and time (first day and last day of use (FDTU/LDTU)). If during the initial certification benefits are issued real-time (online) or host-to-host, then the current month’s benefits shall be available to the household immediately upon data or file receipt (this is the first day of use). Batch records received during the day containing current month’s benefits must be processed and benefits made available within one (1) hour of receipt. Future months’ benefits shall be available to a household at 12:00 AM Eastern Time on the first day of their availability period. The system shall accommodate standard and daylight times. The EBT system shall ensure benefits may not be redeemed prior to their availability date. C.9.2.20 Benefit Expiration C.9.2.20.1 The EBT system benefits shall expire at 11:59:59 PM Eastern Time on their last day of use (the end of their availability period). The EBT system shall ensure that expired benefits may not be redeemed after their expiration date and time. However, there may be cases where transactions, such as store-and-forward (SAF) purchase or adjustments need to be applied to an expired benefit. A record of expired benefits shall be kept by the EBT system and available in a reportable format. The EBT system shall expunge expired benefits from a household account after a determined period of time to allow for SAFs and adjustments to be applied as determined by standards, outside the District, governing over EBT’s policy in WIC Agencies.

C.9.2.21 Maintain Transaction History C.9.2.21.1 The Contractor shall provide the DC WIC Program with online access through EBT administrative system functionality for a minimum of three (3) years. Transaction history data shall be maintained as required by State, USDA-FNS, Federal Reserve Board, and Federal law. At a minimum, the Contractor shall be required to maintain and provide online access to current account balances and a rolling three-year

Page 39 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services transaction history for each account. Access to data older than three (3) years may be archived but shall be accessible to authorized entities as required for investigative and auditing purposes. The Contractor shall be required to maintain archived data for an additional three (3) years. Archived data shall be recoverable within 48 hours of the DC WIC Program’s request.

C.9.2.21.2 The Contractor shall explain: 1. Their approach for maintaining and providing access to current account balances and a rolling three (3) years transaction history. 2. Their capabilities for providing online access to current account balances and transaction history data. 3. Their approach for providing access to data older than three (3) years for investigative, auditing or research purposes.

C.9.2.21.3 At the expiration or termination of the Contract, the Contractor shall transfer the most recent three (3) years of transaction data and the three (3) years of archived data, to an entity specified by DC WIC Program, in a format acceptable to DC WIC Program and the Contractor.

C.9.2.21.4 The Contractor shall also ensure accuracy and readability of such information at the new location. At a minimum, data within the transaction history shall include:

1. Retail Transactions: 1. Primary Account Number (PAN (card number). 2. EBT account number. 3. Household unique identifier (from the WIC MIS). 4. System user identifier (for card and/or benefit issuance or benefit modifications). 5. WIC vendor and TPP identification numbers. 6. Terminal identification number. 7. Transaction type. 8. Transaction details, including Cat/Sub Cat, UPC, quantity, and unit of measure. 9. Transaction amount (including discounts and NTE adjustment details). 10. Transaction date (local and host). 11. Transaction time (local and host). 12. Transaction results (approval code or denial reason). 13. WIC vendor name and address. 14. Account balance after the transaction. 15. WIC vendor and TPP ACH transaction history. 2. Local Agency Transactions: 1. PAN (card number). 2. EBT account number. 3. Household unique identifier (from the DC WIC Program MIS).

Page 40 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 4. System user identifier (for card and/or benefit issuance or benefit modifications). 5. Local agency and local agency identification numbers. 6. Transaction type such as account set-up, card issuance/replacement, and benefit issuance/adjustment (with benefit amount details). 7. Transaction results (approval code or denial reason) 3. EBT Administrative System Transactions: 1. PAN (card number). 2. EBT account number. 3. Household unique identifier (from the DC WIC Program MIS). 4. System user identifier (for card and/or benefit issuance or benefit modifications.) 5. Transaction type (if benefits are affected details shall be provided). 6. System user.

C.9.3 EBT Card Specifications and Management

C.9.3.1 EBT Cards C.9.3.1.2 EBT Card Design C.9.3.1.2.1 The Contractor shall work with DC WIC Program to develop an EBT card design specific to the DC WIC Program. The card shall not have EBT contractor branding. DC WIC Program will have authorship or prior approval authority of the card design and of information printed on the card. Card samples shall also be submitted to and approved by DC WIC Program prior to sending the card to production. The Contractor shall have capabilities to design and manufacture the EBT cards. Card security features incorporated into the card design are not required by DC WIC Program. The front of the card shall have the following features: 1. Graphics approved by DC WIC Program using a four-color printing process. The Primary Account Number (PAN) shall be embossed, laser engraved, indent printed or hot stamped on the front of the card, using contrasting color for readability. The reverse of the card shall be printed in a contrasting color (one color printing) and have the following features: − High coercivity magnetic stripe. − Other printed information as specified by DC WIC Program C.9.3.2 – C.32.3.4.1.2 RESERVED C.9.3.4.1.3 High Coercivity Magnetic Stripe C.9.3.4.1.3.1 All EBT cards shall have a high-coercive magnetic stripe. The Contractor shall indicate the minimum coercivity level and oersted rating (measurement of magnetic intensity) of the magnetic stripe applied to the EBT cards and receive approval by the WIC Program before purchasing the card stock.

Page 41 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.9.3.4.1.4 Track 2 Format C.9.3.4.1.4.1 Track 2 of the EBT magnetic stripe shall be encoded in accordance with ISO 7811, 7812, and 7813. The maximum character count in Track 2 shall not exceed 40 characters, including all control characters. The expected layout of Track 2 for the EBT cards is shown in Table 4.

Table 4: EBT Card Track 2 Layout Field Field Name Field No. Length 1 Start Sentinel 1 2 Primary Account Number 16-19 3 Field Separator 1 4 Expiration Date 4 (4912) 5 Service Code 3 (120) 6 PIN Offset 4 7 Card Authorization Value 3 8 Discretionary Data 2 9 Longitudinal Redundancy 1 Check

C.9.3.4.1.4.2 The Contractor shall provide EBT cards with non-expiring expiration date of “4912” encoded on Track 2 and a Service Code field encoded with a value of 120. Cards will also have an encoded Card Authorization Value.

C.9.3.4.1.5 Primary Account Number (PAN) C.9.3.4.1.5.1 The PAN is a 16-digit numeric field that provides the means of identifying the person to whom the card was issued. The Contractor shall issue EBT cards containing a 16-digit PAN that utilizes DC WIC Program’s Bank Identification Number/Issuer Identification Number (BIN/IIN). The Contractor shall generate the PAN for new EBT cards. This PAN shall not duplicate any Contractor’s card numbers already in use. The layout of the PAN shall be as shown in Table 5.

Table 5: PAN Layout Position Length Description

Page 42 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services

1 1-6 6 BIN/IIN (either State Agency or test card) 2 7-9 3 Discretionary 3 10-15 6 Client Identification 4 16 1 Check Digit

C.9.3.4.1.5.2 The discretionary field is a three-digit number that may be used by the Contractor with State approval. The 7th and/or 8th digits of the EBT card may be used to identify the DC WIC Program within the IIN (with USDA-FNS approval) or to identify a card for use in testing or training. The customer identification number is a six-digit number that uniquely identifies the cardholder to the card that is issued.

C.9.3.4.1.5.3 The IIN is an eight-digit number encoded on the magnetic stripe that begins immediately after the start sentinel. The DC WIC Program has obtained an IIN from ANSI and will provide it to the contractor to be used only to provide access to the specified government eWIC benefits. The IIN will be different from the SNAP EBT card’s current BIN/IIN. At the end of the contract period, the IIN will revert back to DC WIC Program. The IIN will comply with ISO 7813.

C.9.3.4.1.6 Non-Discrimination Language C.9.3.4.1.6.1 The Contractor shall print on the card a statement of nondiscrimination which reads as follows: ‘‘USDA is an equal opportunity provider and employer.’’ In lieu of printing the required information on the EBT card, DC WIC Program may elect to place the nondiscrimination statement on the card sleeve.

C.9.3.4.2 Card Sleeve C.9.3.4.2.1 The Contractor shall produce/provide a card sleeve to accompany EBT cards. The card sleeve shall be produced from a rugged material, such as Tyvek or Mylar, to endure normal wear and tear in the use of the EBT card. The card sleeve shall contain a separate pocket so that a cardholder will be able to store transaction receipt(s) with the card.

C.9.3.4.3 Card Distribution and Inventory Controls C.9.3.4.3.1 The Contractor shall deliver EBT cards to designated local agency in blocks of sequentially numbered cards, to support over-the-counter (OTC) card issuance. DC WIC Program maintains the right to change designated locations for receipt of card shipments over the life of the contract. The Contactor shall track cards and link them to their distribution point via the card numbers. The Contractor shall provide the DC WIC Program with an automated tracking tool or report to enable DC WIC Program and local agency to manage their card inventory. The tracking tool shall allow the DC WIC Program to establish thresholds (reorder points) by location and alert authorized users that a threshold has been reached. The EBT system shall allow authorized users to reorder card stock through the inventory tool.

Page 43 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Additionally, the tool shall provide reporting to assist in physical inventory counts and audits.

C.9.3.4.3.2 The Contractor shall secure card distribution to designated locations and secure its card management, inventory, and issuance control capabilities. Card inventory is to be provided by the contractor quarterly or as needed, upon receiving a card stock order from DC WIC Program or local agency using the following minimum- security processes: 1. Card boxes are to be shipped with a numbering system and accompanying inventory list in hard copy and electronic format that will indicate card numbering sequences, so that the contents of the box may be ascertained without inspection/opening the box. 2. Cards are to be packaged in bundles, not to exceed 400 cards per bundle. 3. Each sleeve shall be labeled with the card number sequence it contains and be sealed with security tape to identify unauthorized access. 4. Sleeves should be packed in cartons in numeric sequence, i.e., from lowest sequence number in lowest carton number to highest sequence number in highest carton number. 5. Sleeves are to be shipped in cartons that contain no more than six thousand card sleeves to facilitate handling, storage, and distribution by DC WIC Program. (Less than six card sleeves are allowed if the card order does not have sufficient quantities to fill a carton.). 6. Cartons should be sealed with security tape to identify unauthorized access. 7. Cartons should not be labeled in a manner that reveals their contents, but should be labeled with their sequence: “1 of 20”, “2 of 20”, and so on. 8. A single flat file should be produced, formatted to display the destination of each card numbered sequence mailed for the quarterly card inventory report.

C.9.3.4.3.3 At its discretion, DC WIC Program may elect to track cards and card inventory through the DC WIC Program MIS. Such decision will be made jointly between DC WIC Program and the contractor in coordination with the WIC MIS contractor during joint design sessions (JAD).

C.9.3.4.4 Card and PIN Management C.9.3.4.4.1 The Contractor shall be required to provide the necessary data, processes, tools, equipment, and supplies to meet the card and PIN issuance requirements as specified in the Card’s and PIN section of this Contract.

C.9.3.4.4.2 The Contractor shall also be required to provide the capability to monitor, control, and manage the card inventory and distribution processes.

Page 44 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.9.3.4.4.3 By FNS regulation, WIC cards and PINs must be available and active immediately upon WIC client certification. The contractor shall have a card issuance methodology to support this requirement. Cardholders may be required to respond to security questions prior to selecting or changing their PIN via the ARU or through on-line access. The Contractor shall be required to accurately link the card number (PAN) and PIN to the appropriate cardholder’s household account(s) and transmit the card number to the DC WIC Program MIS at DC WIC’s discretion. The EBT system shall support the ability to allow as well as cancel one (1) alternative cardholder (proxies) to a household’s EBT account.

C.9.3.4.4.4 Over-the-Counter Card Issuance C.9.3.4.4.4.1 The primary method for issuing and replacing EBT cards will be over-the-counter (OTC) at local agency as described in Section EBT Card Issuance of the Contract. The EBT system shall allow authorized users to issue cards OTC. The EBT system shall link the primary cardholder and card number (PAN), online, real-time to the household account and, at DC WIC Program’s discretion, transmit the card number to the DC WIC Program MIS.

C.9.3.4.4.5 Proxy Cards C.9.3.4.4.5.1 The EBT system shall support the ability to issue one alternative cardholder (s proxy) to a household’s EBT account. The EBT system shall link the proxy cardholder data and card number (PAN) to the household account. The EBT system shall allow the cancellation of a proxy card at the primary cardholder’s request via automated distribution system, live customer service and/or cardholder web portal, with or without live chat or alternatively at the local agency.

C.9.3.4.4.6 Test, Training, Educational and Compliance Buys C.9.3.4.4.6.1 The EBT system shall support the issuance of cards (and therefore the set-up and maintenance of associated accounts) to test WIC vendor systems, train WIC vendor staff and for DC WIC Program or its designees to conduct compliance checks at WIC vendor locations. The EBT system shall identify cards issued for training, testing, or compliance or educational buys. When cards are used for testing, or compliance or educational buys, any change in card account balances or any settlement to WIC vendors or acquirers shall be identified as a test, compliance, or educational transaction in system reports and must also be included in daily reconciliation reports. Test cards may have limited food items and/or funds issued to the card account. Such limits will be defined during design sessions between DC WIC Program and the Contractor.

C.9.3.4.4.7 Replacement Card Issuance C.9.3.4.4.7.1 The EBT system shall provide online functionality to update the status of an EBT card. The EBT system shall provide online functionality to replace an EBT card assigned to a cardholder (primary or proxy). Prior to allowing a replacement card to be issued, the EBT system shall validate that the status of the previous card has

Page 45 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services been changed (deactivated) in the EBT system. If a previous card is still active, the EBT system shall deactivate that card before issuing the new card to a specific cardholder. If a replacement card is issued, the cardholder’s existing PIN shall be useable with the replacement card, at the choice of the WIC cardholder.

C.9.3.4.4.7.2 The Contractor shall also support the issuance of new and/or replacement WIC- EBT cards by mail (within two business day of reporting a lost, stolen, or damaged card), provided the mailing process is consistent with WIC program rules’ Initial PIN selection as well as the PIN change toll-free EBT Customer Service Automated Response Unit (ARU) call process.

C.9.3.4.4.7.3 The EBT system shall provide cardholders with the ability to report lost, stolen, or damaged cards 24 hours per day, 7 days per week.

C.9.3.4.4.7.4 The Contractor shall also be capable of supporting WIC card replacement fees if required, cross-agency family or case IDs, as well as ownership of the demographics and agency-specific account set-up records.

C.9.3.4.4.7.5 The Contractor shall notify the DC WIC Program if and when a WIC participant or household requests more than three (3) replacement cards during the course of eligibility. Replacement cards for lost, stolen, or damaged cards shall be issued by mail to the WIC participant.

C.9.3.4.4.8 Card History C.9.3.4.4.8.1 The EBT system shall maintain a history of cards assigned to households and cardholders. The EBT system shall provide online functionality to allow an authorized system user (DC WIC or local agency) to view the history of all EBT cards that have been assigned to a household, including providing a count. The EBT system shall provide the ability to navigate between the card history, the transaction history, and account information. The system shall also provide a sort function that would allow to view household members who have been reissued cards <1, 2, >3 and issue alerts based upon specified criteria, including more than one card replacement per quarter and or more than 3 card replacements per certification period.

C.9.3.4.4.9 Local Agency Hardware (PIN pads, e-signature pads, and card swipe readers) C.9.3.4.4.9.1 The Contractor shall provide PIN pads, e-signature pads are we getting the e-signature pads from eWIC or MIS Contractor? and magnetic card swipe readers at designated locations to support card issuance and record search at WIC local agency. The WIC Program estimates that a total of 70 PIN pads, e-signature pads, and card swipe readers will be required for the 17 WIC service sites.

C.9.3.4.5.1 Card Issuance by Mail C.9.3.4.5.1.1 As an option, the Contractor may be required to issue replacement cards and deliver such cards through the mail. If this option is selected by DC WIC Program, then

Page 46 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services the Contractor shall issue replacement cards by mail within two business days of a cardholder reporting a lost, stolen, or damaged card. Card mailers will include instructions on optional PIN change. As these are replacement cards only, PIN issuance via mail is not envisioned by DC WIC Program.

C.9.3.4.5.2 PIN Selection C.9.3.4.5.2.1 The EBT system shall support the cardholder’s selection of a private PIN. The EBT contractor’s PIN security must meet the guidelines set forth in the most recent version of the USDA-FNS Operating Rules for EBT. DC WIC Program requires that cardholders have the ability to select a PIN at local agency using a PIN selection terminal or remotely via a toll-free automated system or via web portal, if a secure PIN selection solution is available via the web. Cardholders must be allowed to select or change their PINs at any time. The EBT system shall provide functionality to positively identify a cardholder requesting a PIN change and flag card holders that have changed their PIN multiple times.

C.9.3.4.5.3 PIN Selection Terminals

C.9.3.4.5.3.1 The Contractor shall be required to provide PIN selection terminals and any associated peripherals or supplies to DC WIC Program. PIN selection terminals must meet industry and security standards. The terminal shall have a PIN pad consistent with current industry standards for hardware encryption as defined in ISO 9564. The Contractor shall be required to ship replacement PIN selection terminals via overnight express within 48 hours of receiving the request for a replacement. DC WIC Program prefers to have a DC WIC-designated employee process password changes and set-up new system users for PIN selection terminals. However, if EBT contractor intervention is required, the contractor shall reset PIN selection device user IDs and passwords immediately and shall provide a user ID and password for new users within (2) two business days. The exact number of required PIN selection devices is to be determined.

C.9.4 EBT Purchase Transaction, Account Management, Settlement and, Reconciliation Processing C.9.4.1 To the maximum extent possible, DC seeks to use the existing commercial transaction processing infrastructure for the transmission and processing of WIC EBT transactions.

C.9.4.2 The Contactor’s system (eWIC system) shall have the capability to receive, process, and authorize cardholder transactions from WIC vendor POS devices in real time transactions. The Contractor shall ensure that cardholders’ access their WIC benefits only at POS terminals located at DC WIC authorized vendor locations. EBT transaction processing requirements include:

Page 47 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services

1. Accepting transactions coming from an authorized transaction acquirer. 2. Authorizing or denying transactions. 3. Sending response messages back to the transaction acquirer authorizing or denying cardholder transactions. 4. Providing the data necessary to print a cardholder receipt with the account balance after the transaction (the card number shall be truncated on the receipt). 5. Logging the authorized/denied transactions for subsequent settlement and reconciliation processing, transaction reporting, and for viewing through transaction history.

C.9.4.3 In processing EBT transactions, it is the responsibility of the Contractor to ensure that the EBT system meets performance and technical standards and regulations in the areas of: 1. System processing speeds 2. Availability and reliability 3. Security 4. Ease-of-use 5. Minimum card requirements 6. Performance 7. Minimum transaction set

C.9.4.4 Minimum Transaction Set

C.9.4.4.1 The eWIC system shall process, at a minimum, the following WIC transaction types through the POS: 1. Benefit Inquiry 2. Purchase 3. Reversal or Void 4. Store and Forward

C.9.4.4.2 The Contractor is prohibited from charging a fee to cardholders, TPPs or direct- connect WIC vendors for any WIC transaction. The Contractor shall provide the TPP, integrated WIC vendor system or the stand-beside POS equipment with the data necessary to print the WIC receipt after a transaction has been conducted, showing the account balance to the cardholder. The EBT card number (PAN) shall be truncated on the receipt. Receipts shall meet the requirements of the USDA-FNS Operating Rules for e-WIC.

C.9.4.5 Transaction Validation

C.9.4.5.1 The eWIC system shall go through a series of validation checks to determine whether a cardholder’s transaction should be approved. These checks should include determining whether:

Page 48 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 1. The WIC vendor has a valid WIC vendor number from the DC WIC program 2. The card number (PAN) is valid and the card is active 3. The number of consecutive failed PIN attempts has not been exceeded 4. The PIN is verified as being entered correctly 5. The account is active 6. The EBT account holds a sufficient balance in order to satisfy the transaction request

C.9.4.6 Declined Transactions

C.9.4.6.1 If any one of the conditions listed above is not met, the Contractor shall deny the transaction. If the transaction is denied, the system shall return a message to the WIC vendor indicating the reason for denial (e.g., invalid PAN, invalid PIN, insufficient benefits, etc.). The Contractor shall provide the DC WIC Program with a summary report of denied transactions.

C.9.4.7 Declined Food Items

C.9.4.7.1 The eWIC system shall decline a food item for a WIC purchase if it is not an authorized WIC category/subcategory or size authorized in the WIC household account, if it is not in the provided most current APL, or if sufficient quantities of the category/subcategory are not available in the WIC household account.

C.9.4.8 Invalid PIN Attempts

C.9.4.8.1 The Contractor system shall deny transactions if the PIN is input incorrectly. After four (4) consecutive invalid PIN attempts in one day, or as specified by the DC WIC Program, the card shall be temporarily blocked until midnight local time on the day the last failed PIN attempt occurred or an on-demand request through the Automated Response Unit (ARU) or through the EBT administrative system to release the PIN lock. The number of invalid PIN attempts shall be configurable in the EBT system. The DC WIC Program reserves the right to change the number of invalid PIN attempts allowed in one day.

C.9.4.9 Invalid Card Read – Key Entered Transactions

C.9.4.9.1 Transactions may be key entered at times when a card presented by a cardholder is damaged and/or the POS device is unable to read the magnetic stripe accurately. The contractor shall accept and process EBT transactions where the card number (PAN) has been manually entered (key-entered) into the POS device. The EBT card must be present for a WIC vendor to conduct a key-entered transaction. The validation of the cardholder’s PIN is still required on key-entered transactions. If a PIN pad is defective or for other reasons a PIN does not accompany the transaction to the EBT host for processing, the contractor shall deny the transaction.

Page 49 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.9.4.9.2 The Contractor shall adopt other security measures to prevent cardholder and WIC vendor abuse/misuse of the key-entry feature. The Contractor shall ensure that the PAN printed on the transaction receipt is truncated. The Contractor shall be able to selectively disable or deny the capability of stand-beside POS equipment from completing key-entered transactions, if there is likelihood that a transaction is fraudulent. Finally, the Contractor shall track key-entered transactions by WIC vendor, WIC vendor address, device (terminal) number or ID number, date and time, WIC vendor number and card number. The contractor shall have procedures for responding to cardholder reports of malfunctioning or defective equipment at WIC vendor sites, including stand-beside POS terminals and WIC vendor-owned terminals. This key-entered transaction report should be made available to the WIC Program upon request.

C.9.5 Encryption

C.9.5.1 The Contractor shall comply with USDA-FNS Operating Rules for e-WIC regarding communications network security and, at a minimum, shall utilize the triple Data Encryption Standard (DES) algorithm to encrypt the PIN during EBT transactions from the point of entry. The PIN shall not be visible on the screen as it is being entered by a cardholder. Other security may include authentication codes and check-sum digits, in combination with data encoded on the magnetic stripe such as the PIN offset, to ensure data security during transmission and processing of EBT transactions. Any of the network security measures may be utilized together or separately and may be applied at the terminal or central computer as indicated in the approved system design to ensure communications control. The Contractor shall have an encryption approach and other security measures used to secure EBT transactions.

C.9.6 Benefit Balance Inquiry

C.9.6.1 The eWIC system shall support benefit balance inquiry capability on demand, either in the checkout lane or at a separate card acceptance device so that the WIC cardholder may check the household’s available benefit balance. The receipt printed from this transaction may be used by the cardholder as a shopping list. The shopping list will include: 1. Description of the category/subcategory. 2. Available benefit balance, including category/subcategory balance. 3. Unit of measure (quart, pound, ounce, etc.) 4. Date of benefit expiration.

C.9.7 Purchase Transaction

C.9.7.1 No minimum purchase amounts or quantities shall be required of the WIC cardholder.

Page 50 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.9.7.2 Food Benefit Purchases

C.9.7.2.1 Once a transaction is validated, the eWIC system shall transmit the benefit balance to the retail POS that initiated the transaction. The POS will validate the food items scanned against the APL and the downloaded balance. Once the POS transmits the purchase transaction, the eWIC system shall authorize electronic food benefit purchases if the item’s UPC matches an eligible category/subcategory and the quantity in the cardholder’s household benefit account. The eWIC system will determine if item prices submitted in the purchase message are within the NTE threshold for the submitting WIC vendor’s peer group. If the price exceeds the NTE, the eWIC system will adjust the total paid amount for the transaction. At the conclusion of the purchase transaction, the eWIC system will determine the transaction settlement amount based on the total requested amount for each item minus any discounts and NTE adjustments. The eWIC system will return the new account balance to the retail system along with data on NTE adjustment and settlement amount. In processing a food benefit purchase transaction, the contractor must adhere to the redemption rules for non-CVB benefit redemption as specified in the most recent version of the USDA-FNS Operating Rules for online e-WIC. A split tender transaction is not allowed for a food benefit purchase.C.32.7.3 CVB Purchases

C.9.7.3.1 Once a transaction is validated, the eWIC system shall allow cardholders to use their CVB to purchase any fruit and vegetable on the APL. In processing a CVB purchase transaction, the Contractor must adhere to the redemption rules for CVB benefit redemption as specified in the most recent version of the USDA-FNS Operating Rules for online eWIC.

C.9.7.4 Split Tender

C.9.7.4.1 The eWIC system shall support the capability for retail POS to perform split tender processing for CVB. Split tender allows a WIC participant the option to use other benefit types (such as SNAP or TANF) as an alternative method of payment of balances exceeding the value of their CVB. If they have no other benefits available, they may also opt to pay the remaining balance using cash or other legal tender (debit, credit). If a WIC cardholder does not have an alternative method of payment for the balance of the purchase, the eWIC system shall allow the reversal or void of one or more CVB food items and the CVB amount for the item(s) will be restored to the EBT account.

C.9.7.5 Mixed Basket

C.9.7.5.1 A mixed basket refers to the ability of the WIC cardholder to purchase WIC and non-WIC items without separating the items into two separate transactions prior to checkout. The WIC vendor’s system, at the WIC authorized vendor’s option, shall support the capability of integrated WIC vendor systems to perform mixed basket transactions. Benefits and funds shall be applied to mixed basket purchases in the order of the most restrictive benefit account to the least restrictive benefit account

Page 51 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services or payment type, with WIC being the most restrictive benefit. When needed for processing the transaction, the order of precedence of payment for items shall be: WIC, SNAP, TANF and then other forms of payment. The vendor shall provide the cardholder with the ability to confirm the WIC purchase quantities and amount prior to selection of additional methods of payment needed to complete the transaction. The eWIC system shall allow the WIC cardholder to remove food items identified as part of the WIC purchase confirmation from being paid with WIC benefits. The eWIC system must provide the opportunity for confirmation before final payment.

C.9.7.6 Discounts and Coupons

C.9.7.6.1 The eWIC system shall allow discounts and coupons to be applied to WIC food and CVB purchases. Such discounts and coupons shall be applied to the purchase transaction prior to the cardholder accepting the WIC transaction. The benefit of a quantity discount (e.g., buy one get one free) will be given to the WIC cardholder. The benefit of a price discount shall accrue to the DC WIC Program by reducing the total cost of the approved food item. The WIC vendor system shall follow the rules for processing EBT transactions under different types of discount and coupon promotions as defined in the USDA-FNS Operating Rules for e-WIC. Coupons and discounts shall be applied in the same order as the mixed basket. The Contractor shall work with the DC WIC Program to establish specific business rules concerning discounts and coupons, as applicable.

C.9.7.7 Self-Checkout

C.9.7.7.1 The DC WIC Program will permit self-checkout at unattended integrated POS locations. The contractor shall support system testing for WIC vendors who request self-checkout functionality for WIC cardholders.

C.9.7.8 Reversals and Voids

C.9.7.8.1 The eWIC system shall allow the cancellation of the purchase of one or more WIC food item(s), a method of payment for WIC food items, or the entire transaction. A void shall not be allowed to credit the WIC account if an item is returned. WIC item returns are item exchanges conducted at the WIC vendor’s option and shall not result in an EBT transaction.

C.9.7.9 Store and Forward Transactions

C.9.7.9.1 A store and forward transaction is stored electronically with an encrypted PIN by a POS terminal operator when the POS terminal operator is unable to communicate with the EBT host. The transaction is later forwarded to the EBT host when communications are restored. Store and forward transactions may be conducted at the WIC vendor’s discretion and must be conducted in accordance with the USDA- FNS Operating Rules for e-WIC. With store and forward, a WIC vendor may store e-WIC transactions for forwarding to the contractor at a future time, provided the

Page 52 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services WIC vendor’s equipment is capable of storing a cardholder’s encrypted PIN. EBT store and forward transactions shall be processed at the WIC vendor’s risk. Re- presentation to obtain the uncollected balance from current or future months' benefits shall not be allowed for store and forward transactions. The contractor’s system shall prevent the use of store and forward as a way of accessing the cardholder’s future month’s benefits.

C.9.8 Special Medical Formula Transactions

C.9.8.1 The DC WIC Program provides special medical formulas to participants by home delivery and WIC approved pharmacies. The Contractor shall include an EBT solution for this function that is easy for clinic staff to implement.

C.9.9 Account Adjustments

C.9.9.1 If the DC WIC Program so directs, the Contractor shall make adjustments to a household’s account. These adjustments are non-settling adjustments (e.g., money is not moved) that only affect the liability maintained on the account. The Contractor shall be able to accept and process these adjustment transactions initiated by the DC WIC Program through the e-WIC administrative system application (online, real-time) without impacting the daily settlement.

C.9.9.2 The second type of adjustment is one that may be initiated by the contractor to resolve system errors and out-of-balances. Adjustments made by the contractor must be in compliance with Federal regulations. Adjustments to correct system errors may result in debits (adverse action) or credits to participant benefits and may impact the daily settlement. After investigation of system error incidents, adjustments that result in a credit or a debit to a participant’s account may not??? be conducted by the Contractor without prior notice to the DC WIC Program or the participant. The Contractor shall contact State staff with information about valid WIC vendor disputes prior to adjusting any settlement. Expected timeframes are: 1. WIC vendor-initiated adjustments must be acted upon no later than ten (10) business days from the original date of error. 2. The time apportionment is allotted as six (6) business days for the WIC vendor/acquirer and four (4) business days for the contractor to report, approve or deny and process a correction request. 3. Disputes between the WIC vendor and the DC WIC Program/selected EBT system contractor shall be fully resolved within 45 calendar days of the dispute being submitted by the WIC vendor. 4. A dispute shall be reported by the WIC participant to the DC WIC Program within the same benefit period. Benefits shall not be adjusted if the dispute is reported beyond the benefit end date. 5. The WIC vendor shall provide receipts or other Documentation within ten (10) business days from the receipt of the notification of a dispute.

Page 53 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 6. The DC WIC Program shall research and provide a response within ten (10) business days of the receipt of the WIC Vendor Documentation. C.9.9.3 Dispute Documentation Required: 1. Transaction receipt (for cardholder) or transaction log record (WIC Vendor) 2. Date and time of transaction 3. Card Number (PAN) 4. WIC Vendor ID 5. Details i.e. UPC/PLUs, system trace audit number

C.9.9.3.1 The Contractor shall be required to work with the DC WIC Program to develop appropriate adjustment system solutions and procedures. The Contractor’s response must demonstrate capability to provide the necessary systems and administrative capability to support both settling and non-settling adjustments.

C.9.9.3.2 Dispute resolution addresses conditions where one or more parties to a WIC transaction have or may incur a financial loss. The Contractor shall follow dispute resolution processes as defined in Section 14 of the most recent version of the Operating Rules for e-WIC. In addition, dispute resolution rules must be included in the contractor’s WIC vendor and TPP agreements.

C.10 Settlement and Reconciliation

C.10.01 The Contractor shall be responsible for the execution of EBT settlement and reconciliation activities. EBT settlement and reconciliation shall be conducted in accordance with current and future Federal regulations as updated throughout the life of the contract and the most recent version of the USDA-FNS Operating Rules for e-WIC.

C.10.0.2 The Contractor's host system shall operate on a 24-hour processing cycle. At a designated cutoff time each day, the Contractor shall close out the current processing day and commence the next processing day. To support the settlement function, the Contractor or its designated financial agent must have an originating and receiving membership in the national automated clearing house (ACH) network. In order to promote the acceptance of EBT transactions, the contractor shall be required to provide evidence of its or its designated financial agent’s ability to fulfill the settlement obligations specified in this Contract and shall comply with applicable Operating Rules concerning a contractor’s ability to meet its settlement obligations. Evidence may be in the form of financial statements, bonds, guarantees or other assurances.

C.10.0.3 The contractor shall be required to develop procedures and reports that will enable the DC WIC Program to streamline its reconciliation and settlement verification process.

Page 54 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.10.1 Reconciliation

C.10.1.1 The Contractor shall designate a standard daily cutoff time for EBT transaction processing. The 24-hour period between the cutoff time on day one and day two constitutes the EBT processing day. The specified cutoff time shall allow the contractor sufficient time to originate ACH payments for next day settlement. The contractor shall maintain ledger accounts at the household, category/subcategory and clinic levels. Subsequent to cutoff, the account shall be balanced and reconciled. The Contractor shall compute the end of day net position or balance by category/subcategory. For each account, the end of day net position is equal to: Opening balance + credits - debits = End of day balance

C.10.1.2 The Contractor shall also balance the account as a whole to ensure that the change in the net position in the sum of household accounts is correct.

C.10.1.3 The Contractor shall follow USDA-FNS guidance on EBT reconciliation. At a minimum, the Contractor shall provide their procedures for reconciling: 1. Household account daily beginning category/subcategory balance and net category/subcategory purchase versus the ending balance. 2. Household net redemptions in dollar value versus acquirer settlement values. 3. Total funds entering, exiting, and remaining in the system each day. 4. Total net change in system wide obligations outstanding to the sum of the net change in obligations outstanding for all government funding agencies. 5. The net settlement value of all transactions to the sum of the net settlement values for all program types (if additional programs are added), WIC Program and CVB. 6. The net settlement value of participant account adjustments to the sum of the net settlement value of adjustments settled to WIC vendors and acquirers. 7. The net settlement value of all transactions to the sum of the net settlement values for all clinics. 8. Net redemptions in dollar value versus the daily suspense transactions in dollar value that overlap daily ACH cut-off times plus the current daily activity in dollar value.

C.10.1.4 As part of system balancing and reconciliation, the contractor shall determine the total amount of funds necessary to reimburse its accounts for the total credits due to EBT acquirers. The information generated during system cutoff and balance processing shall be used by the contractor to prepare the daily settlement files. The contractor shall specify procedures for maintaining audit trails throughout the reconciliation and settlement processes.

Page 55 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.10.1.5 Settlement

C.10.1.5.1 The Contractor shall be responsible for initiating next business day settlement of funds to WIC vendors and TPPs, directly or through financial networks, financial institutions or other payment intermediaries.

C.10.1.5.2 Benefit Settlement C.10.1.5.2.1 The Contractor shall own and reconcile a clearing account used for daily settlement. The WIC vendor shall be reimbursed for the sale of an approved food item purchase at either the requested food item price or the NTE price, whichever is lower. The contractor shall notify the DC WIC Program of funds to be transferred that day. The contractor shall create an ACH transaction to move funds from the DC WIC Program’s bank to facilitate settlement to applicable WIC vendor, acquirer, and TPP accounts.

C.10.1.5.2.2 Funds should be deposited into a zero-balance clearing account maintained by the contractor for the settlement of EBT transactions. At a minimum, WIC vendors and TPPs shall receive payment for approved, cleared transactions within two processing days of the settlement date of the transaction. If an acquirer or TPP exists between the eWIC system and the WIC vendor, then the Contractor shall settle to the first entity downstream. Payments transmitted to the WIC vendor’s settlement bank shall be reconciled to the settlement bank’s report of payments submitted to the Federal Reserve for the DC WIC Program.

C.10.1.5.3 Rejected Acquirer, TPP or WIC Vendor ACH Settlement C.10.1.5.3.1 ACH transactions that are rejected due to inaccurate account information or closed accounts, shall be researched by the contractor and, when possible, corrected and re-sent to the WIC vendor, TPP or acquirer account. The contractor must return to the DC WIC Program any funds that could not be settled to the WIC vendor, acquirer, or TPP within 90 calendar days of the initial ACH. If the responsibility for stand-beside POS terminal acquiring is subcontracted, the subcontractor must also return any rejected settlement funds to the DC WIC Program within 90 days.

C.10.1.5.3.2 At a minimum, the Contractor shall provide the following information for each unsettled payment returned to the DC WIC Program: transfer type, total amount, attempted settlement date(s), WIC vendor/acquirer/TPP name, WIC vendor number, and bank account number (including the American Banking Association bank number). Additional data elements may be required when USDA-FNS issues written procedures to address unsettled funds.

C.10.2 WIC EBT Data Files and Standard Reports

C.10.2.1 The Contractor shall accommodate the informational needs of the DC WIC Program and USDA-FNS in its provided reports. The Contractor is therefore required to provide comprehensive reporting. The DC WIC Program is interested in a cost-effective combination of administrative functionality, electronic data

Page 56 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services files, standard reports, and ad hoc reporting capabilities, which are available separately and/or via web services (or other exchange) in the DC WIC Program MIS. Files shall be consistent with the requirements of the WIC Universal MIS – EBT Interface Specification dated March 2015 and subsequent updates. Reports shall be provided in a format acceptable to the DC WIC Program and in a timely manner regardless of generation time of day. C.10.2.2 To support the WIC reporting requirements, the Contractor shall be required to meet, at a minimum, the reporting requirements outlined in the WIC Functional Requirements Document for a Model WIC Information System with EBT (FRED- E), Version 2008 2.0, Section 3.12 - Reporting, September 2008 or the most recent version of this document. The Contractor shall be required to provide all reports in FRED-E, Version 2008 2.0, Section 3.12, Exhibit 3-13. WIC State agencies shall comply with all reporting requirements specified in 7 CFR Part 246. WIC reports shall, at a minimum include financial, program, system performance, statistical, administrative function security, and customer service statistics reports. The WIC reports shall include data on card issuance, data on benefit issuance, redemption and expirations by category, subcategory, UPC, unit of measure (ounces, pounds, etc.), quantity, cost, discounts, and NTE adjustments. The reporting system shall produce WIC information at the State, clinic and/or geo-admin levels (i.e., Quadrant, Ward) as designated by the State. In applicable reports and where an item price exceeds the NTE price, reports shall include information on item price requested and item price paid. Reports need to be downloadable in accepted Microsoft software and other industry standards such as Excel, comma-delimited file format, etc. to ensure that reported data is manipulable. PDF reports are only acceptable if accompanied by additional database file formats.

C.10.2.3 Standard queries built for any other State’s WIC program shall be made available to the DC WIC Program as a standard query. The contractor shall provide the DC WIC Program with any custom reports created for other WIC State Agencies at no cost to the DC WIC Program. DC WIC shall have the right to ask for up to 4 ad- hoc query reports per month and if less than 4 queries are requested for a given month, then the number of non-executed queries will be added to the next month’s available number of queries. This will help ensure that during months where there is a need for a higher volume of queries due to implemented change management items, etc. the total number of available cumulative queries shall be executed.

C.10.2.4 Activity Data Files (Batch)

C.10.2.4.1 The contractor shall provide a comprehensive set of activity files to the DC WIC Program reflecting all transactions or account actions that affect EBT system account balances or account status. Daily activity files and standard reports are described in C.25.3 Account Activity Reports.

C.10.2.4.2 The DC WIC Program shall have approval rights over all standard reports and data files being provided by the Contractor. Minor requested changes in the layout of

Page 57 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services the reports shall not be labelled as a change management item by the EBT system Contractor.

C.10.2.4.3 Activity Daily Files (Batch) C.10.2.4.3.1 The Contractor shall provide daily batch files to be used by the DC WIC Program to reconcile and balance and audit the EBT system processing and other operations by the DC WIC Program.

C.10.2.4.4 Daily Benefit Issuance and Redemption File C.10.2.4.4.1 The contractor shall provide a comprehensive set of daily account activity data files reflecting all transactions or account actions initiated by the DC WIC Program’s MIS, the EBT system’s administrative system, and retail systems during an EBT processing day, initiated on behalf of the DC WIC Program by the contractor (i.e., account expungements), or initiated by cardholders. The file shall provide detail on every transaction that impacts an EBT account balance. The file shall include the items and amount of the transaction (i.e., account action), type of transaction (including but not limited to issuance, benefit redemptions, expungements, adjustments, voids, reversals, unapplied transactions, and any other transaction types), date and time (local and host) of transaction, NTE transactions and who originated the transaction. This file should be available to the DC WIC Program MIS as well as in a standalone format.

C.10.2.4.5 Benefit Expirations and Expungements File C.10.2.4.5.1 The contractor shall provide a daily file containing data on all benefits that have expired or have been expunged by the system. The file shall include detail on the benefit category/subcategory, quantity remaining and date of the action. This file should be available to the DC WIC Program’s MIS as well as in a standalone format.

C.10.2.4.6 Daily Interface Benefit Reconciliation File C.10.2.4.6.1 The contractor shall provide a daily file containing information for each WIC MIS initiated Add or Update Benefits transaction that was accepted and approved by the EBT system during the prior 24-hour period. The WIC MIS uses this information to match against its record of successful Add or Update Benefits transactions initiated by the WIC MIS during the same period. Data shall include benefit begin/end dates, benefit ID, category/subcategory, quantity, local agency and local agency ID, service site and service site ID, date, time, and household ID. This file should be available to the DC WIC Program MIS as well as in a standalone format.

C.10.2.4.7 Benefit Month Data File C.10.2.4.7.1 The contractor shall provide a daily file that contains the data necessary for a final point of reconciliation of all benefit activity for a given Benefit month against the WIC financial accounting for that month as documented in the FNS-798 report. This accounting will occur at the close out of a benefit month when all benefits

Page 58 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services issued for that month have either been redeemed or have expired. Accounting would occur no less than one month after the last day of the reporting month. However, additional time may be needed to allow for adjustments and other late closing transactions to post to the system, up to 60 days after closing out. Each individual household receiving benefits during that month is included. This file should be available to the DC WIC Program MIS as well as in a standalone format.

C.10.2.4.8 WIC Category Sub-Category C.10.2.4.8.1 The contractor shall provide a daily file that contains all category/subcategory updates to include activation and de-activation dates and unit of measure. The contractor will work with the DC WIC Program to determine if the file will contain only updates or the full list of categories/subcategories. This file should be available to the DC WIC Program MIS as well as in a standalone format.

C.10.2.5 Banking Data Files (Batch)

C.10.2.5.1 The contractor must submit on a daily basis, the total settlement amount for transactions processed prior to the settlement cut-off time of the previous day, no later than 9:00 am Eastern standard time (EST) (either standard or daylight, whichever is applicable). Settlements for Friday, Saturday, and holidays are to be submitted the next business day by 9:00 am EST. The Contractor must send this information in via online communication to the DC WIC Program. The banking data files shall conform to the National Automated Clearing House Association (NACHA) to initiate ACH payments to WIC vendors as defined in the current version of the WIC EBT Universal MIS/EBT Interface document. The information that must be included in these files at the time of daily submission at a minimum is as follows: 1. Date 2. Dollar amount of cleared presentments (debits) 3. Dollar amount of credits (debit reversals and deposits received) 4. Total daily funding amount (cleared presentments minus debit reversals)

5. Funding amount to date starting with the first date of the current FY. (Christi, this would be a helpful addition. We asked CSC if they were able to add this info to the current banking file, but this would result in a costly change management item, so we abandoned this idea).

C.10.2.5.2 This file should be available to the DC WIC Program MIS as well as in a standalone format.

Page 59 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.10.2.6 Standard Reports

C.10.2.6.1 The contractor shall be responsible for producing periodic (daily, weekly, monthly, quarterly and yearly as appropriate) standard reports for transmission to the DC WIC Program. Standard reports provided to the DC WIC Program electronically shall use standard ANSI carriage controls for controlling the formatting of reports being printed. Standard reporting requirements are further described below. The types of standard reports that will be required are described generally in Table 6. The Contractor shall provide standard reports already designed and available through its EBT system and services for customization of the existing reports or design/development of new ones. The Contractor is encouraged to identify additional reports, not identified in Table 6, which may be useful to the DC WIC Program. The standard reports need to be downloadable in accepted Microsoft software and other industry standards such as Excel, comma-delimited file format, etc. to ensure that reported data is manipulable. PDF reports are only acceptable if accompanied by additional database file formats.

Table A6: Description of Standard Reports Report Types Description Financial Reports 1. Monthly Activity The contractor also should provide a report with the 10 most popular WIC – Benefit categorical redeemed WIC items incl. up to 5 sub categorical items as well Redemption Reports as the 10 least popular WIC categorical redeemed WIC items incl. up to 5 sub categorical items. The contractor also shall supply an Invalid Card Read Report (see also A- 52). 2. Monthly The WIC EBT System contractor shall provide a monthly summary of Transaction Profile POS transactions by transaction type including purchase, reversals, voids Report balance inquiry, adjustments (add/deletes), etc. The WIC EBT System contractor shall also provide a monthly breakdown of POS transactions by stand-beside POS device and by benefit type if other benefits such as SNAP are supported. Such report may be used to support invoicing to other agencies sharing stand-beside POS equipment with the DC WIC Program. This file should be available to the Districts MIS as well as in standalone format. 3. Daily and The WIC EBT System contractor shall provide daily and monthly terminal Monthly Activity – summary reports that show all transactions resulting in funds being moved Terminal Activity (i.e., settled) to a WIC vendor or TPP. The reports shall list at a minimum Summary Reports the transaction type, amount, transaction and settlement dates, WIC vendor and terminal identifier, and benefits affected. The reports shall provide settlement totals for each entity for which funds are to be moved, as well as suspense totals, if any, for transactions that will not be settled until the next processing day. Suspense totals for transactions not settled during the current business day shall be reported by individual benefit types and

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Report Types Description rolled up into the program types. This file should be available to the Districts MIS as well as in standalone format. 4.Settlement and The WIC EBT System contractor shall provide a daily Settlement and Clearing Reports Clearing Report. This report shall provide at a summary level the total funds that settled for the processing day. This report shall balance to the totals from the terminal activity reports. This file should be available to the Districts MIS as well as in standalone format. In addition, the WIC EBT System contractor shall also be required to develop procedures and reports that will enable the DC WIC Program to streamline its State reconciliation and settlement verification process. A comprehensive daily electronic report that reconciles all benefit transactions back to the original issuance is required. This report will include benefit issuances, benefits pending, net benefit redemptions, benefits in suspense, expirations, expungements, adjustments (add/deletes), voids, reversals, unapplied transactions, any other transactions that affect settlement, and the resulting settlement amounts. This file should be available to the Districts MIS as well as in standalone format. 5.Vendor Activity The WIC EBT System contractor shall provide a daily WIC Vendor Summary Report Activity Summary Report. This report provides a summary of all WIC vendor transaction activity for the EBT system as a total for the DC WIC Program on each calendar day. The total settlement minus previous suspense plus current suspense results in the Daily Activity. This report shall present the Database activity for applicable areas such as adjustments, voids, and reversals, which shall total and agree to the Daily Activity. This file should be available to the Districts MIS as well as in standalone format. 6.Reconciliation The WIC EBT System contractor shall provide a Reconciliation Report. Report This report shall provide a proof of reconciliation. This report shall reflect program totals beginning with the current settlement, reduced by the previous suspense, increased by the current suspense to arrive at the daily activity. This file should be available to the Districts MIS as well as in standalone format. 7.Adjustment Audit The WIC EBT System contractor shall provide a daily Adjustment Transaction Detail Transaction Detail Report. This report shall reflect all adjustment Report transactions (such as an error in the EBT system or a protest to a transaction) to a cardholder’s account within each reporting day. This report is broken down by WIC vendor/TPP within the DC WIC Program. This file should be available to the Districts MIS as well as in standalone format. 8.ACH Activity – The WIC EBT System contractor shall provide a daily ACH Activity by Stand-beside WIC Stand-beside WIC Vendor Report. This report shall identify all stand- Vendor Report beside WIC vendor deposits for each business day. This report can be used

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Report Types Description by the DC WIC Program to review or research deposit amounts made to each Stand-Beside WIC vendor. This report shall reflect the WIC vendor deposits showing financial institution and bank account number. This file should be available to the Districts MIS as well as in standalone format. 9.ACH Activity – The WIC EBT System contractor shall provide a daily ACH Activity, Rejected WIC Rejected WIC Vendor Settlement Report. At a minimum, the WIC EBT Vendor ACH System contractor shall provide the following information for each Settlement Report unsettled payment returned to the DC WIC Program: transfer type, total amount, attempted settlement date(s), WIC vendor/TPP name, WIC vendor number, and bank account number (including the ABA bank number). Additional data elements may be required if USDA-FNS issues written procedures to address unsettled funds. This file should be available to the Districts MIS as well as in standalone format. 10.Billing Reports The WIC EBT System contractor shall provide the DC WIC Program in an electronic format detailed reports substantiating the monthly billing for EBT services. The billing reports shall include detail information to allow the DC WIC Program to validate the bill for EBT services. This file should be available to the Districts MIS as well as in standalone format. 11.Not-to-Exceed The WIC EBT System contractor shall provide the DC WIC Program with Reports a report that indicates all food items purchased whose initial request for payment equaled, or came within a configurable percentage of the NTE amount and all food items purchased whose initial request for payment exceeded the NTE amount. The report shall indicate all transaction details, including family ID, card number (PAN), date and time of transaction, WIC vendor ID, terminal ID, requested amount and approved NTE amount. This file should be available to the Districts MIS as well as in standalone format. Program Reports 12.Administrative The WIC EBT System contractor shall provide a daily Administrative Activity Report Action Report that lists all administrative actions attempted and completed either by the system or users logged onto the WIC EBT System. The report shall identify the transaction type and the EBT account affected. Administrative actions include but are not limited to: account set-up, benefit issuances or updates, updates to cardholder demographic, family, or account data (e.g., name or address), account status changes, card or PIN issuance, and NTE or UPC updates. This file should be available to the WIC MIS as well as in standalone format. 13.Invalid Card The WIC EBT System contractor shall provide a monthly report that lists Attempts Reports all transaction attempts using an invalid card. The report shall include cardholder name, family ID, WIC vendor ID, WIC vendor name and location, terminal ID, date and time. This file should be available to the Districts MIS as well as in standalone format.

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Report Types Description 14.Card Mailer Date The WIC EBT System contractor shall provide to the DC WIC Program a Reports daily report showing when new and replacement cards prepared by the card manufacturer were delivered to the U. S. Postal Service. The report should include the card number (PAN); date and time the information was received by the WIC EBT System processor about the need for a new/replacement card; the date and time of delivery to the U.S. Postal Service. (This file should be available to the WIC MIS as well as in standalone format). 15.Administrative The WIC EBT System contractor shall provide a daily report of all benefit Benefit Issuance issuances that are added to the WIC EBT System through the Reports administrative functionality. This audit report shall include at a minimum the benefit details and the User ID of the staff member using the administrative functionality to issue the benefit. This file should be available to the Districts MIS as well as in standalone format. 16.Benefit WIC benefits are generally available for a period of one month and may Expiration Reports be issued at any time during the month. The WIC EBT System contractor shall provide a monthly and annual report of households who did not access any of their benefits during their availability period (loss of all benefits) and of households that did not access some of their benefits during their availability period (partial loss of benefits). The report should indicate these groups separately and provide a summary total of all benefits lost. Within the separate groupings, the report shall indicate primary cardholder name, family ID, local agency and clinic, category/subcategory and quantity. This file should be available to the Districts MIS as well as in standalone format. 17.Card The WIC EBT System contractor shall provide audit and statistical reports Issuance/Re- of cards being issued and/or re-issued to cardholders at the local agency Issuance Reports and clinic level and by the WIC EBT System contractor. Audit reports shall provide detail data by card issued, such as reason for issuance (i.e., initial issuance or replacement for lost/stolen card). Statistical reports shall provide data needed to manage the WIC EBT System program, such as the card reissue rate, the reasons for re-issuance, etc. The WIC EBT System contractor shall suggest the statistical reports that will best help the DC WIC Program manage the card issuance process during system review sessions. This file should be available to the Districts MIS as well as in standalone format.

18.Card Status The WIC EBT System contractor shall provide daily reports detailing all Reports cards’ statuses (incl. deactivated) as well as a summary of cards’ status for each status reason. This file should be available to the Districts MIS as well as in standalone format.

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Report Types Description 19.Lost, Stolen or The WIC EBT System contractor shall provide a daily report detailing all Damaged Card cards reported as lost, stolen or damaged. The report shall include card Reports number or PAN, cardholder name, local agency and clinic, date card reported, reason (lost, stolen or damaged), and total number of cards that have been issued to the cardholder. This file should be available to the Districts MIS as well as in standalone format. 20.Transaction The WIC EBT System contractor shall provide a monthly statistical report Denial Summary that provides the number and percentage of cardholder-initiated Reports transactions denied and the reason for the denials (i.e., insufficient benefits, invalid PIN, etc.). This file should be available to the Districts MIS as well as in standalone format. 21.Invalid PIN The WIC EBT System contractor shall provide a monthly report of Attempts cardholders that have conducted four (4) invalid PIN transactions within a 24-hour processing day during the month. The report shall provide cardholder name, card number, family ID, local agency and clinic, WIC vendor name, WIC vendor location, WIC vendor ID, terminal ID, date and time and the cardholder’s telephone number. Note that the number of invalid PIN attempts is parameter driven and may be changed at the DC WIC Program’s discretion. This file should be available to the Districts MIS as well as in standalone format. 22.Fraud Detection The WIC EBT System contractor shall provide a set of fraud reports that Reports shall help the DC WIC Program manage and detect fraud. To prevent internal fraud, the WIC EBT System contractor shall also develop a process and provide a report to systematically identify cards that are being issued by a user and being sent to their address. Fraud detection reports shall include high-risk WIC vendor reporting. The Contractor should provide a description of what information would be contained in these reports. This file should be available to the Districts MIS as well as in standalone format. 23.Manual Card The WIC EBT System contractor shall provide a monthly report by clinic, Entry Reports – listing the cards that were manually entered and not swiped. The report Local agency and shall list the card number, family ID, date of manual entry, and clinic staff local agency ID, and indicate whether the card is for the primary cardholder or for a proxy (will we have a proxy cards issued?). This file should be available to the Districts MIS as well as in standalone format. 24.Manual Card The WIC EBT System contractor shall provide a monthly report by Entry Reports – applicable terminal, listing the card numbers (PANs) that were manually WIC Vendor entered rather than swiped. The report shall list the card number, WIC vendor ID, terminal ID, clerk ID, transaction date and time, transaction type, rejection code, and the transaction amount. This file should be available to the Districts MIS as well as in standalone format.

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Report Types Description 25.WIC Vendor During the operations phase, the WIC EBT System contractor shall Contract Status provide a quarterly report that provides information on the status of Report contracts with WIC vendors. The WIC EBT System contractor shall be required to work with the DC WIC Program to develop the report that should include, but not be limited to information on new WIC vendors, new contracts sent, contracts active including timeframe, i.e., active for 23 months and contracts expired or closed, including time frame, i.e., terminated after 23 months. This file should be available to the Districts MIS as well as in standalone format. System Performance Reports 26.System Response The WIC EBT System contractor shall provide monthly reports Time Reports summarizing EBT host response times within pre-established tiers for WIC EBT System administrative system transactions. The reports shall include: 1) average daily response indicating the number of transactions for the day, the average transaction response time for the day and the number of transactions completed within 1, 2, 3 and greater than 3 seconds for the day. 2) by hour of the day, the number of transactions completed in 1, 2, 3 and over 3 seconds. The reports shall be used to monitor the WIC EBT System contractor’s compliance with host response times. This file should be available to the Districts MIS as well as in standalone format. The WIC EBT System contractor shall also provide monthly reports providing response times for administrative screens, card issuance and PIN selection devices. This file should be available to the Districts MIS as well as in standalone format. 27.Scheduled The WIC EBT System contractor shall issue a monthly report providing System the system maintenance schedule for a rolling six (6) month period. This Maintenance file should be available to the Districts MIS as well as in standalone Reports format. 28.Host System The WIC EBT System contractor shall provide a monthly report Availability Reports summarizing EBT host system availability. The report shall detail all instances of host system down time, including the reason and duration of down time and whether the down time was scheduled or unscheduled. The report shall be used to monitor the WIC EBT System contractor’s compliance with host system availability requirements. This file should be available to the Districts MIS as well as in standalone format. 29.EBT System The WIC EBT System contractor shall provide a monthly report Availability Reports summarizing availability of the entire WIC EBT System, to include any services provided by the WIC EBT System contractor or any subcontractors, including but not limited to, the central computer, network, debit switch, intermediate processing facilities and gateway (if applicable). The report shall detail all instances of down time, including the reason, duration of down time and whether the down time was scheduled or unscheduled. The report shall be used to monitor the WIC

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Report Types Description EBT System contractor’s compliance with WIC EBT System availability requirements. This file should be available to the Districts MIS as well as in standalone format. 30.Non-System The WIC EBT System contractor shall be required to provide a reporting Performance mechanism to keep the DC WIC Program apprised of WIC EBT System Reports contractor performance on non-system performance standards. Non- system performance standards include but are not limited to: • Inaccurate transactions • Customer/WIC vendor answered calls response times • PIN selection and stand-beside POS and each card reader equipment replacement times • Response times for user setup/password changes for PIN selection devices • Card mailing standards reports • Posting and availability of benefits times • Valid WIC vendor disputes resolution times This file should be available to the Districts MIS as well as in standalone format. Statistical Reports 31.Stand-Beside The WIC EBT System contractor shall provide a report detailing the WIC Vendor number, type and value of transactions performed at each EBT system Terminal Monthly contractor-provided stand-beside POS terminal. This file should be Utilization Reports available to the Districts MIS as well as in standalone format. Transaction The WIC EBT System contractor shall provide a monthly report providing Statistics Reports a summary of transactions by time of day and day of month. The purpose of the report is to show the peak processing times for the WIC EBT System. This file should be available to the Districts MIS as well as in standalone format. 32.Management The WIC EBT System contractor shall provide a monthly summary report Statistics Reports of transaction activity on the WIC EBT System at the State and local WIC agency and clinic level. Statistics provided should include, at a minimum, transactions performed by transaction type, the number of active accounts on the system, number of active cards on the system, and the number of cards issued and the number of cards replaced during the month. This file should be available to the Districts MIS as well as in standalone format. 33.Account Activity The Contractor shall provide monthly reports containing a statistical Summary Reports summary of account (household) activity at the State and local WIC agency and clinic level. The report should include, at a minimum, the following information by household: average number of HH members per card, total and average number of purchase transactions, and average number of voids, average number of balance inquiries, average number of

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Report Types Description card replacements, and average number of PIN resets. This file should be available to the Districts MIS as well as in standalone format. Administrative Function Security Reports 34.Access The WIC EBT System contractor shall provide a monthly report do we Definition Reports need a monthly report or will a quarterly be sufficient? detailing each authorized WIC EBT System administrative system user with the ability to access State or clinic EBT data or conduct administrative transactions. The report must include the status of the individual (active, inactive, new user, revoked due to failed attempts, etc.). The report shall also detail the level of access afforded the user through the EBT Administrative functions. The report shall include the DC WIC Program, local WIC agency and clinic profiles and the valid functions within each profile. This file should be available to the Districts MIS as well as in standalone format. 35.Failed Log-on The WIC EBT System contractor shall provide by State, clinic and user Reports ID, a daily report of users failing in their attempt to logon to the WIC EBT System. This file should be available to the Districts MIS as well as in standalone format. Users with high failed log-on events should be retrained in log-on processes during the month of occurrence. This training can be done over the phone, in a web-based conference format, etc. 36.User Session The WIC EBT System contractor shall provide a daily audit report by user Activity Reports ID of all actions taken by the user on the WIC EBT System through the administrative functionality. This file should be available to the Districts MIS as well as in standalone format. 37.Card Issuance The WIC EBT System contractor shall provide a daily report by user ID, Reports local agency and clinic, of all EBT cards issued at the clinic and by the State via the WIC EBT System administrative system for the previous day. State issuance includes cards issued for compliance buys, training and testing, and education buys and should be so noted on the report. This file should be available to the Districts MIS as well as in standalone format. Customer Service Statistics Reports 38.Monthly The WIC EBT System contractor shall provide customer service support Customer Service calls Statistics Report. This monthly report shall provide a summary of (CSC) Statistics the number of calls received by the CSC by reason (lost or stolen card, Reports balance inquiry, transaction history, etc.) for both automated handling and support calls (if applicable). Daily statistics regarding the call center performance (i.e., number of calls, number of rings before answered, number of abandoned calls, number of busy signals received, and language) shall be collected and reported. This file should be available to the Districts MIS as well as in standalone format. This file should be available to the Districts MIS as well as in standalone format.

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Report Types Description 39.Monthly WIC The WIC EBT System contractor shall provide a WIC Vendor support Vendor Call Center calls Statistics Report. This monthly report shall provide a summary of Statistics Reports the number of calls received by the WIC Vendor Help Desk by reason (voice authorization, terminal problems, settlement questions, etc.) for both automated handling and calls. Statistics regarding WIC vendor help tickets, including number of tickets opened, tickets closed, and reason for ticket, shall be provided. Daily statistics regarding the help desk performance (i.e., number of calls, number of rings before answered, number of abandoned calls, number of busy signals received) shall be collected and reported. This file should be available to the Districts MIS as well as in standalone format. 40.Monthly The WIC EBT System contractor shall provide a monthly report Cardholder and summarizing website activity including inquiries and transactions WIC Vendor Web conducted by cardholders and WIC vendors. This file should be available Portal Statistics to the Districts MIS as well as in standalone format. Reports 41.Monthly Top 50 The WIC EBT System contractor shall provide a monthly report Cardholder Callers identifying the 50 cardholders making the most calls to the Support Calls. Reports The DC WIC Program shall have the ability to change the number of callers for this report as necessary. This file should be available to the Districts MIS as well as in standalone format. This cardholder callers’ report shall include the name of the cardholder, cardholders’ telephone number and e-mail at a minimum and the cardholder ID. 42.Monthly Top 10 The WIC EBT System contractor shall provide a monthly report WIC Vendor Calls identifying the 10 WIC vendors making the most calls to the support Reports center. The DC WIC Program shall have the ability to change the number of callers for this report as necessary. This file should be available to the Districts MIS as well as in standalone format. 43.Notice of Change The WIC EBT System contractor shall be required to provide a quarterly Orders Reports report to the DC WIC Program identifying change orders/new functionality processed for other WIC EBT System customer States. This is to notify the DC WIC Program of any custom reports created for other WIC state agencies that the DC WIC Program may want to receive. This file should be available to the Districts MIS as well as in standalone format.

C.10.2.7 Ad-Hoc Reporting Capability

C.10.2.7.1 The contractor shall provide the DC WIC Program with robust user-initiated ad- hoc reporting capability. The contractor shall have either a web-based reporting application, an online reporting application, or a commercial off the shelf (COTS)

Page 68 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services reporting package such as Crystal Reports. The Contractor shall provide ad hoc reporting capability and training on the ad hoc reporting capability, to the DC WIC Program. The Contractor shall also provide MIS interaction and connectivity (whether Web services or otherwise). Multiple output options shall include PDF and MS Excel.

C.10.2.7.2 The ad hoc reporting capability must provide access to three rolling years of transaction history data. The contractor shall provide parameter-driven access to permit, at a minimum, data inquiry, sorting and extraction capability as follows: 1. By household account, summary credit, debit, and current balance information. 2. By household account, detail information on all food and CVB transactions for a specified period of time, listing information such as date, time, location, category/subcategory, size, quantity and amount and all transactions. 3. By household account, detail information on all transactions for a specific WIC vendor or POS terminal. 4. By household account, EBT card status, card issuance, and card replacement history including account balances at time of replacement and summary statistics on card replacements over specified time periods. 5. By WIC vendor or peer group, detail information on all food and CVB transactions for a specified period of time, listing such information as: account numbers, dates, times, locations, terminals, and amounts. 6. By WIC vendor, detail information on all transactions for a particular account. 7. By transaction sequence number.

C.10.2.7.3 Due to changing and evolving business needs, the report formats and data requirements of the DC WIC Program and the Federal Program agencies are subject to change. A comprehensive Ad-hoc Reporting Tool will accommodate evolving reporting requirements. The contractor shall be required to support these changing reporting needs. The Contractor should also ensure that a complete data dictionary exists that lists all of the parameters for all of the data fields that are available in the ad-hoc reporting tool.

C.10.3 System Help and Error Messages

C.10.3.1 The Contractor’s EBT system shall have clear and comprehensive features providing context-sensitive help and error messages for users. Interactive help messages (using tooltips or other method) shall provide easily accessible descriptions for users explaining required data entry or navigation guidance for system interface elements for which there may be confusion. In addition, the EBT system shall have an easily accessible, on-line user help reference which provides an index and keyword-based search. In cases where there is the possibility of a user or system error during use of the system, there shall be clear error messages that describe the error and how it should be best resolved.

Page 69 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.11 CARDHOLDER AND WIC USER SUPPORT

C.11.1 Cardholder Services

C.11.1.1 RESERVED

C.11.1.2 The contractor shall provide a cardholder support center (CSC) with cardholder customer service requirements as specified in the Customer Service section of this Contract. For reporting purposes, the contractor shall provide automated handling and eWIC call center activity data. The contractor must provide TTY (Teletypewriter) capability to cardholders with hearing disabilities.

C.11.1.3 The Contractor may recommend for consideration any other transaction and/or use of an automated service approach as well as an alternative approach to cardholder customer service representatives (CSR) which would represent an effective and economical application of this technology and realize cost savings to the DC WIC Program. Such consideration may be implemented subsequently to written approval by the Contracting Officer.

C.11.1.4 Cardholder ARU Functional Requirements

C.11.1.4.1 The automated handling shall support the following customer service functions in English and Spanish. At a minimum, cardholder automated handling functions shall include: 1. Report a Lost/Stolen/Damaged Card: The caller’s identity must be confirmed prior to disabling the card. Prior to replacing a card, the cardholder’s address must be confirmed unless otherwise designated by the DC WIC Program. Procedures for changing the status of a proxy card may differ. 2. Current Balance Inquiry: “Current Balance” shall provide real-time account balance information. 3. Benefit Expiration Date: Callers selecting this option shall be given the date current benefits will expire. 4. PIN Selection or PIN Change: Cardholders shall have the option of selecting or changing their PIN via a single call to the ARU. 5. Exceeding PIN attempts: Cardholders shall have the option of unlocking their account and/or selecting a new PIN, if their card has been blocked when exceeding the maximum PIN attempts. 6. Transaction History: Provide the dates of the last three (3) transactions, either issuance or purchase.

C.11.1.4.2 The DC WIC Program shall review and approve the transaction flow and content of all automated handling messages, prompts, and customer service scripts, as appropriate. The contractor shall provide documentation and scripts to the DC WIC

Page 70 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services Program with a minimum of 60 calendar days prior to their implementation. The contractor shall not change approved automated messages, scripts, or menu functions without prior written approval of the DC WIC Program.

C.11.1.4.3 The Contractor is encouraged to recommend for consideration any other transactions and/or uses of an automated service approach which would represent an effective and economical application of this technology. The Contractor shall provide an automated systems access control to ensure the security of cardholder account information.

C.11.1.5 Cardholder Customer Service Representatives

C.11.1.5.1 The contractor shall provide live customer service to its EBT system cardholders after first accessing the automated system(s). Required languages for live customer service will be English and Spanish. Live customer service is intended to resolve cardholder issues that cannot be resolved by the automated system, including requests for adjustments, and instructions to bypass automated support or speak to an operator upon request in addition to covering all ARU services as listed below and providing Cardholder Web Portal access and usage support. The contractor shall provide sufficient capacity to meet the contractual service standards for cardholder calls referred to an individual for live handling.

C.11.1.5.2 Functions shall include but are not limited to:

1. Report a Lost/Stolen/Damaged Card, Unauthorized Use of a Card or the Non-Receipt of a Card: The cardholder’s identity must be confirmed prior to disabling the card. Prior to replacing a card, the cardholder’s address must be confirmed unless otherwise designated by the DC WIC Program. Procedures for changing the status of a proxy card may differ. 2. Current Balance Inquiry: “Current Balance” shall provide real-time account balance information. 3. Transaction History: “Transaction History” shall provide the last three (3) transactions by benefit type, i.e., transaction number, item, size quantity or CVB amount, and date. 4. Benefit Expiration Date: Cardholders selecting this option shall be given the date current benefits will expire. 5. Support for Cardholder Web Portal: Support shall be provided for cardholders having trouble accessing or using the cardholder web portal. 6. All updates to account demographic information shall be initiated by the DC WIC Program and CSRs shall not accept or modify cardholder demographic information. 7. The contractor may provide alternative approaches to the CSR that will provide a cost savings to the DC WIC Program. Such consideration may be implemented subsequently to written approval by the Contracting Officer.

C.11.1.5.3 The live handling providing the above mentioned full range of cardholder customer service functions shall be available Monday through Friday from 8:00 AM to 5:30

Page 71 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services PM EST excluding the following holidays (Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas, and New Year’s Day).

C.11.1.5.4 In addition, the Contractor shall provide technical assistance 24 hours, 7 days per week for cardholders during the first-year post implementation. Services beyond the core hours are expected to be provided by ARU.

C.11.1.6 Cardholder Web Portal

C.11.1.6.1 The contractor shall provide a cardholder web portal. At a minimum, the functionality of the cardholder web portal shall be the same as the functionality for live customer service and automated processing including but not limited to: 1. Report a Lost/Stolen/Damaged Card, Unauthorized Use of a Card or the Non-Receipt of a Card: The caller’s identity must be confirmed prior to disabling the card. Prior to replacing a card, the cardholder’s address must be confirmed unless otherwise designated by the DC WIC Program. Procedures for changing the status of a proxy card may differ. 2. Current Balance Inquiry: “Current Balance” shall provide real-time account balance information. 3. Benefit Expiration Date: Cardholders selecting this option shall be given the date current benefits will expire. 4. PIN Selection or PIN Change: Cardholders shall have the option of selecting or changing their PIN. 5. Transaction History: “Transaction History” shall provide the last ten (10) transactions including WIC vendor information where the transactions took place, transaction number, category/subcategory, amount, and date. 6. Account History: “Account History” shall enable a cardholder to view and print a three (3) months statement of account history. 7. Support for Cardholder Web Portal: Support shall be provided for cardholders having trouble accessing or using the cardholder web portal. 8. Benefit access/service points: cardholders shall be able to view up-to-date information about WIC vendor locations where benefits may be accessed. 9. The DC WIC Program shall review and approve the web portal before the contractor allows public access. The cardholder web portal shall contain links to the DC WIC Program’s health services web sites and will also provide general EBT information. The Contractor is encouraged to recommend for consideration any other transactions and/or uses of the cardholder web portal which would represent an effective and economical application of this technology. The Contractor shall provide information that describe the functions that will be available through the cardholder web portal.

C.11.2 DC WIC Program and Local Agency User Support

C.11.2.1 The contractor shall provide DC WIC Program and local agency staff with assistance via a toll-free number. If the contractor provides access through its

Page 72 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services cardholder toll-free number, DC WIC Program and local agency staff members will be provided with a password so that the cardholder automated support can be bypassed and staff will be provided with immediate and appropriate assistance from a live support person. Technical assistance for DC WIC Program and local agency staff shall be available 7:30 AM through 5 PM local time, Monday through Friday, excluding State and Federal holidays. The contractor shall not place limits on the number of DC WIC Program and local agency staff members who have access to the EBT system live support.

C.12 EXTERNAL SYSTEM/DATABASE INTEGRATION AND POPULATION REQUIREMENTS

C.12.1 WIC MIS Integration

C.12.1.1 The contractor will establish high speed, high performance connectivity, or connectivity specified as required in JADs jointly between the contractor and the District, for data transfer between the EBT system and the DC WIC Program’s newly acquired MIS. To facilitate this, the contractor will coordinate development, integration, testing, pilot and rollout activities with the DC WIC Program, and during ongoing operations. The EBT system shall conform to the Universal Interface Specification being adopted by USDA-FNS for EBT-MIS data transfers. The contractor shall be required to establish high performance connectivity between the contractor’s primary and back-up EBT systems and the DC WIC Program primary and back-up systems, as available. The contractor shall be required to provide all necessary hardware and software to ensure connectivity (this does not include provision of computers). The Contractor’s services and hardware that will be provided shall ensure high performance connectivity between all sites.

C.12.1.2 Data may be transmitted between the DC WIC Program MIS and the EBT system through direct input into the system, through real-time host-to-host communication and in batch file-transfer processes. The EBT system shall be available 24 hours per day, seven days per week, for data, file or record transmission. The contractor shall be required to have a back-up procedure to transfer and accept files and records should the normal file and record transfer processes fail. The EBT system must be available to accept file and record transmissions within 60 minutes of being notified by the DC WIC Program that the contractor’s system was not available to accept a file or record transmission.

C.12.1.3 At the DC WIC Program’s discretion, the contractor shall transmit daily batch files to the DC WIC MIS that include local agency and retail transactions, UPC data, not-to-exceed (NTE) data, card holder/card management data, WIC vendor data and/or any other the DC WIC Program data held in the EBT system.

C.12.1.4 During the contract period, it may be necessary to make modifications to the DC WIC Program MIS system. The EBT system contractor shall accommodate

Page 73 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services changes to interface requirements resulting from modifications to the DC WIC Program MIS.

C.12.2 Integration/Interfaces with Other External Systems

The District is aware of advances in payment systems and card acceptance devices as well as programmatic changes that are occurring in benefit delivery, such as the WIC Shopper application administered by JPMA, summer WIC Program(s), and the OCTO DC One Card initiatives (see http://octo.dc.gov/page/dc-one-card).

C.13 EBT TRANSACTION PROCESSING REQUIREMENTS

C.13.0.1 To the maximum extent possible, the DC WIC Program seeks to use the existing commercial transaction processing infrastructure for the transmission and processing of WIC EBT System transactions. The EBT system contractor shall have the capability to receive, process and authorize cardholder transactions from WIC vendor POS devices as online transactions. The contractor shall ensure that cardholders access their WIC benefits only at POS terminals located in approved DC WIC vendor locations.

C.13.0.2 EBT transaction processing requirements shall include: 1. Accepting transactions coming from an authorized transaction acquirer 2. Authorizing or denying transactions 3. Sending response messages back to the transaction acquirer authorizing or denying cardholder transactions 4. Providing the data necessary to print a cardholder receipt with the account balance after the transaction (the card number shall be truncated on the receipt) 5. Logging the authorized/denied transactions for subsequent settlement and reconciliation processing, transaction reporting, and for viewing through transaction history.

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C.13.0.3 In processing EBT transactions, it is the responsibility of the contractor to ensure that the EBT system meets performance and technical standards and regulations in the areas of: 1. System processing speeds 2. Availability and reliability 3. Security 4. Ease-of-use 5. Minimum card requirements 6. Performance 7. Minimum transaction set

C.13.1 System Availability

C.13.1.1 The contractor’s EBT host system and supporting networks and TPPs shall be available at least 99.9% of scheduled uptime, 24 hours a day, seven (7) days per week, 365 days per year.

C.13.1.2 Scheduled downtime for maintenance activity should be kept to a minimum and should occur during early morning hours. The Contractor shall confirm, their compliance with this level of availability and provide additional elaboration, expected scheduled downtime, and inform the District of any potential exceptions to the system availability requirements. Also, 99.9% refers to each node, meaning that each connection is subject to the 99.9% uptime and not only the operation as a whole.

C.13.1.3 The DC WIC Program shall be notified in advance of scheduled downtime for routine maintenance, which is expected to occur during off-peak transaction periods (early morning). In addition, the contractor must provide the DC WIC Program with advance notification of any scheduled downtime outside of the time required for routine maintenance. Such downtime must be pre-arranged with and approved by the DC WIC Program. The contractor shall provide the DC WIC Program with an annual schedule developed with the DC WIC Program input and coordination, for maintenance downtime no later than December of the preceding calendar year. This annual schedule shall be reflected including necessary updates in the aforementioned “Schedule System Maintenance Reports”. The contractor shall provide the DC WIC Program with at least seven calendar days advance notice for scheduled downtime. At the discretion of the DC WIC Program, shorter notice may be approved dependent on the urgency of the situation.

C.13.2 Transaction Accuracy C.13.2.1 The EBT system host shall permit no more than two (2) inaccurate EBT transactions for every 50,000 EBT transactions processed. The transactions to be included in measuring system accuracy shall include: 1. All transactions occurring at POS terminals and processed through the host computer.

Page 75 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services 2. Credits/debits to EBT accounts.

C.13.2.2 The contractor shall resolve all errors in a prompt manner and in accordance with USDA-FNS guidance.

C.13.3 SYSTEM TESTING AND QUALITY CONTROL

C.13.3.1 Various types of EBT system testing, to be conducted by the Contractor throughout the implementation and deployment process, have the objective of delivering an operational system that meets all DC WIC Program and FNS technical and functional requirements with a high-level of quality which, as defined by the Institute of Electrical and Electronics Engineers (IEEE) is defined as: 1) the degree to which a system, component, or process meets specified requirements and

2) the degree to which a system, component, or process meets customer or user needs or expectations”

C.13.3.2 A practical elaboration on system quality to guide EBT system implementation is presented in Table 7. This briefly describes quality elements based on a quality classification defined in ISO/IEC Standards 9126 and 2505 (software product quality definition, requirements, and testing).

Table 7: Elements of Software/System Quality Software/System Quality Dimensions Explanation The software includes functional features that meet requirements and 1. Functionality/ products (software code, database design, interfaces, and documentation) Correctness are free from logical or technical errors that result in faults or results that do not conform to specifications. Addresses the robustness of the system including its availability, lack of 2. Reliability system crashes, or other problems which limit or impact effective use. 3. Efficiency/ How well the system performs with an emphasis on speed of processing and Performance response time for users. Software and hardware controls that protect the system from unauthorized 4. access or accidental corruption and which support monitoring and tracking Integrity/Security of access. Effectiveness of all system elements and products with which users will interact. This element addresses the design and efficiency of user interfaces, 5. Usability documentation, help tools, and other features that impact user’s ability to access and get needed results from the system.

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Software/System Quality Dimensions Explanation The overall structure and design of software and system components that 6. support on-going maintenance, upgrades, and changes over time (after Maintainability/ initial deployment). This has to do with good use of coding and design Flexibility conventions, technical documentation, and tracking tools used by developers. Ability of the software to be adapted and used in new environments or for 7. Portability/ code modules to be re-used in other applications. This addresses sound use Reusability of standards, documentation, database design conventions, and other design and development factors that facilitate portability and re-use.

C.13.3.3 The contractor shall provide system life cycle testing services for the duration of the contract. The life cycle system test approach requires that the EBT System, including any changes made to the EBT System during the contract period, shall be properly tested prior to being introduced into the production environment. The contractor shall be required to meet the USDA-FNS system testing requirements, including the User Acceptance Testing (UAT) requirements (see “Electronic Benefits Transfer (EBT) Systems Testing Guidelines for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)”). C.13.3.4 The contractor will be expected to provide problem resolution and escalation procedures that define the process by which the DC WIC Program will report system and operational problems to the contractor in acceptance testing and on- going operations, the process by which these problems will be resolved, and how the resolution will be reported back to the DC WIC Program.

C.13.3.5 System testing shall be performed on all components and functional areas of the EBT system and interfaces. Any deficiencies identified during system testing must be corrected and re-tested, as part of the existing contract. Both, the DC WIC Program and USDA-FNS must formally accept and approve the EBT System before the System is introduced into production and operations can begin. Refer to Section A.13.1 of the USDA-FNS Operating Rules for EBT system. The test scripts shall be developed by the contractor with input from the DC WIC Program and shall be reviewed by USDA-FNS and approved by the DC WIC Program. The scripts shall detail step-by-step instructions on the actual test and system functions to be demonstrated. Test scripts shall describe the desired system outcomes and test results. The contractor and the DC WIC Program shall jointly develop test data including the creation of test cardholders as necessary.

C.13.4 Test Schedule and Responsibilities

C.13.4.1 The Contractor shall propose an initial timing for system testing. This proposed timing will be reviewed and adjusted after project initiation with details incorporated into the project work plan to be prepared by the contractor. This initial

Page 77 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services schedule will identify key milestones associated with the types of testing described in the Contract. The Contractor shall align its testing schedule with the MIS Contractor to ensure a joint MIS/eWIC pilot and District-wide rollout.

C.13.4.2 The Contractor shall include an explanation of roles and responsibilities for testing activities by their staff and for participation in demonstrations, prototype evaluation, and quality assurance checks by the DC WIC Program, WIC Vendors, or other parties.

C.13.5 Unit Code Testing

C.13.5.1 Unit code testing occurs during the development process. It is used to test individual units (modules) of software code to verify its proper functioning and performance. The contractor will perform unit code testing, as appropriate, especially if new code is being written for the DC WIC Program or modification of existing code is provided by the contractor.

C.13.6 Integration and Functional Testing

C.13.6.1 The purpose of the functional and integration testing is to evaluate how well the system operates and meets FNS functional requirements and the needs of DC WIC Program users. This testing shall occur by the Contractor at key points throughout the development process and be largely completed prior to the User Acceptance Testing. This level of testing examines overall functionality of the entire system— its major application code modules and system components (as opposed to detailed unit code testing). This functional and integration testing should be based on the creation of an adequate number of test cases (predefined and ad hoc) and an evaluation of the results in comparison to expected results.

C.13. 7 Connectivity Testing

C.13.7.1 Connectivity testing shall be conducted between the DC WIC Program’s system, the DC WIC, and the contractor’s EBT System. This includes testing of all interfaces between the contractor’s primary and back-up systems and the DC WIC Program’s primary and back-up systems. The contractor shall be required to provide all necessary hardware and software to ensure connectivity.

C.13.8 Interface Testing

C.13.8.1 Interface testing is conducted to ensure that all files sent between the MIS system and contractor systems are properly received, accepted, and are accurately processed. Interface testing shall demonstrate rejection of duplicate files or records and correction of transmission errors.

Page 78 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.13.9 WIC MIS Integration Testing

C.13.9.1 The contractor will thoroughly test the EBT system-MIS integration to ensure that it works according to specifications. This testing will cover all batch and real-time information exchange between the two systems in an automated process. The testing will include realistic test scenarios simulating integration features that would occur in an operational setting.

C.13.10 Load Simulation Testing

C.13.10.1 At appropriate points during the development process and prior to pilot testing, the contractor will perform load simulation testing (aka “stress testing”) to verify that the EBT system can adequately cover predicted high volumes of store transactions without significant degradation of performance. This load testing will be carried out through a software tool that simulates actual store transactions (from multiple stores) at peak times.

C.13.11 Functional Demonstrations

C.13.11.1 Functional demonstrations shall be organized and conducted by the contractor at selected points during the EBT system development process (and prior to formal User Acceptance Testing). The purpose is to provide the DC WIC Program and USDA-FNS representatives the opportunity to review and observe planned EBT System operations. The functional demonstration is conducted to ensure the implementation is proceeding according to the expectations of the DC WIC Program and the contractor and to provide useful feedback for the EBT system contractor. The Contractor shall provide a schedule for functional demonstrations, general timing including frequencies, suggested participation by DC WIC Program personnel, and results of the testing captured and documented.

C.13.12 User Acceptance Testing

C.13.12.1 User Acceptance Testing (UAT) provides both the DC WIC Program and USDA- FNS the opportunity to test System functionality and ensure compliance with the System design requirements. During the formal test script portion of UAT, testing participants will follow detailed test scripts developed by the contractor and approved by the DC WIC Program. The ad hoc or "what if" portion of UAT provides the DC WIC Program and USDA-FNS the opportunity to include various transaction sets and sequences that were not included in the test scripts and to challenge System operations and design. The test environment, to the extent practical, should begin with a clean test database. It is anticipated that successful completion of the UAT may require multiple iterations. The Contractor will have appropriate staff on-site during any/all iteration(s) of the UAT to coordinate its execution and to validate the success of each test scenario. The EBT system vendor will provide processes and methods for recording and tracking all defects identified during this process and the subsequent resolution. The Contractor will define the

Page 79 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services process by which identified defects will be resolved and how the resolution will be reported back to the DC WIC Program.

C.14 RESERVED

C.14.1 Pilot Testing

C.14.1.1 The conditions for the DC WIC Program piloting of the eWIC-ready HANDS MIS will be detailed in the IAPD for a combined MIS/eWIC implementation that is still being developed. The IAPD will describe the general approach for preparation and execution of the pilot project which will follow FNS requirements and provide a basis for approval and initiation of District-wide HANDS eWIC deployment. The Contractor shall have primary responsibility for pilot preparation, testing, and reporting on results. Given the relatively small geographic area, number of local agencies, and store locations, the pilot project will be limited in scope and time. Testing sites will include two local agency sites and up to seven store locations. The Contractor shall work with the DC WIC Program and WIC vendors to prepare pilot test scenarios, organize, direct, and monitor pilot execution, and prepare post- pilot reports following FNS requirements. The pilot is estimated to take no longer than 30 days.

C.14.1.2 The pilot project will thoroughly test the following functions and features of the EBT system: 1. All points of integration with the WIC MIS. 2. Food benefit prescriptions and card issuance. 3. EBT card management (card issuance, invalidation or reactivation, card re-issuance). 4. Full range of purchase transactions at selected stores (based on pilot scenarios testing a wide range of purchase types), including split tender and mixed baskets, where applicable 5. Transfer and receipt of Approved Product List. 6. Host-based monitoring of purchase transactions and redemption. 7. Payment reconciliation and settlement. 8. Reporting.

C.14.2 ARU and Web Testing

C.14.2.1 The automated support and web System shall be tested to ensure the System properly accepts, processes, and transfers both WIC vendor and cardholder calls per the System requirements and within the specifications defined in Section 6.1 In addition to testing the automated and web system, the contractor, in coordination with the DC WIC Program, will be expected to develop cardholder training automated support scripts. The automated support scripts will document complete script, process flows, and decision points for calls made to the automated system.

Page 80 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services C.14.2.2 Similarly, the cardholder and WIC vendor web portals will be tested to ensure they meet the requirements. The contractor, in coordination with the DC WIC Program, will develop cardholder web-portal design that documents complete script, process flows, decision points, design, and content for helping cardholders determine benefits on-line and change PIN on-line.

C.14.2.3 Scripts will need to be created and tested in English and Spanish.

C.14.3 Contingency Testing

C.14.3.1 Contingency planning and testing ensures that essential (mission-critical) EBT operations will continue if normal operations are disrupted at either the contractor’s or the DC WIC Program’s primary site. The DC WIC Program requires the contractor to establish a “hot back-up” site, with full computer systems and complete or near-complete back-ups of user data, for continued operations in case of failure at the primary operations site. The contractor shall specify the amount of time (length of outage) expected for the transition from the primary to the back-up system. The contractor shall also specify the amount of time (length of outage) expected to move operations back to the primary System from the back up. The DC WIC Program also requires an escalation process that includes notification to the DC WIC Program-designated staff. Post-incident recovery procedures and responsibilities should also be required to facilitate the rapid restoration of normal operations at the primary site or, if necessary, at an alternate facility, following destruction, major damage or other significant interruptions of the primary site. During the operations phase, contingency testing should be conducted annually at the backup facility to ensure that back-up operation plans are adequate.

C.14.3.2 In case that system outages occur more than once per year, bi-annual System testing should take place by the Contractor. If multiple partial outages at selected WIC vendor or clinic sites occur, partial redundancy to selected WIC vendor sites will need to be established by the Contractor. More than one day long outages indicate the need for creating a redundancy network by the Contractor.

C.15 TRAINING SERVICES

C.15.1 Overview of Training Requirements and Contractor Responsibility

C.15.1.1 The contractor will have a lead role in preparing and conducting training for DC WIC Program personnel (DC WIC Program office users, local agency users, and technical support staff) and WIC vendors on all areas of system use and administration. Training will be competency based, hands on and interactive and may incorporate the train-the-trainer modality. It will be conducted using a variety of methods, aimed at meeting the needs of the adult learner with varying levels of education and cultural background. Table 8 provides an initial overview of training areas with information on expected timing, training source, and target groups. The Contractor will provide specific training services, approach (elaborating on or adding to the training areas in Table 8) and identify the types of training materials

Page 81 of 104 DRAFT RFP No. CFOPD-20-R-008 eWIC Processing Services that will be provided. In addition, the Contractor shall identify the proposed role of the DC WIC Program or other parties in preparation and execution of training sessions. C.15.1.2 The contractor shall also provide initial reconciliation training to designated DC WIC Program staff as part of DC WIC Program training prior to pilot operations. Thereafter, the contractor shall provide a full day, on-site refresher training class to designated DC WIC Program staff annually or as requested by the DC WIC Program. The training and the training materials shall be updated, as needed, during the course of the contract to reflect changes to the reconciliation reports, processes, or data displays.

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Table 8: Training Topics and Timing Training

Target Audience General Timing Source/Provider(s)

up

-

ncy Staff

wide System

-

Vendor Store Personnel

te WIC te WIC Program Personnel

house WIC house VendorWIC Personnel

-

Agency ManagementPersonnel Office State WIC Staff LocalAge Technical Staff/IT Contractor VendorWIC Management and IT Support WIC (store managers and cashiers) ParticipantsWIC During EBT Planning (already in progress) EBT System Developmentand Implementation VendorWIC System POS Acquisition and Set UAT and PilotTesting District Deployment Sta ConsultantWIC LocalAgency Staff EBT System Contractor System POS Vendor In Training Topics/Sessions Office State WIC & Local 1.General orientation about EBT system X X X X X X X X X goals, features, and impacts 2.Process, tools, and approach for internal X X X X X X X quality assurance check and testing 3.Operation of WIC vendor POS systems X X X X X X X X X X 4.Preparation for participation in UAT and X X X X X X X X X Pilot testing 5.EBT card issuance, benefit assignment, and X X X X X managing benefits 6.Account settlement and reconciliation X X X X X X procedures 7.New operating policies and procedures X X X X X X X X X 8.Technical monitoring and system X X X X X X administration 9.Process for handling user/WIC vendor X X X X X X X X X X requests and calls 10.Handling EBT transactions and X X X X X X X X X X participants at store 11.Participant card use and management X X X X

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C.15.2 Training Expectations & Materials C.15.2.1 The objective of the training services provided by the contractor is to ensure that all EBT system users and support personnel will be able to effectively utilize the functions of the EBT system. Training will be monitored by the DC WIC Program and regularly assessed to ensure the effectiveness of the trainers, the training materials, and the training approach. Assessments will verify whether: 1. Training is directly related to the applicable EBT system functions. 2. Trainees demonstrate the capability of performing their applicable EBT system functions at the completion of training. 3. Training and training materials provide content that is appropriate for the needs of the target stakeholder group and training provides an acceptable pace and encourages interactions. 4. Training is conducted at an appropriate time. This means training has to occur prior to a stakeholder using the system, but not so far in advance that training is forgotten prior to the stakeholder using the system. 5. Training covers the DC WIC specific system functionality of the EBT system functions.

C.15.2.2 The contractor shall modify training materials or training approaches that are determined to be ineffective. In addition, the contractor will be required to replace trainers that do not meet the DC WIC Program’s training standards.

C.15.2.3 Training Materials

C.15.2.3.1 At the election of the DC WIC Program, the contractor shall provide effective WIC program, clinic, participant and retailer (vendor) training materials specific to the DC WIC program and the needs of the target stakeholder group. The contractor shall provide appropriate written and digital training materials in the following formats:

• written training material for eWIC recipients at the fifth-grade reading level and in compliance with FNS and WIC regulations and prepared in English and Spanish • an eLearning training video for the purpose of training customers (DO WE WANT TO ASK FOR THIS?) • online training materials and curricula.

C.15.2.4 WIC Client Training Materials

C.15.2.4.1 Although the contractor shall not be responsible for direct WIC participant training, the contractor shall be required to work with the DC WIC Program staff to define its WIC training content. Training content may include but is not limited to: 1. WIC EBT transaction types including purchases and balance inquiries; 2. Printing a shopping list; 3. Use of the EBT Card at the point-of-sale; 4. Use and safeguarding of the card and PIN;

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5. Card replacement and PIN change methods and procedures; 6. Guidance on reporting problems with the card or use and reporting a lost or stolen EBT card; 7. Use of the transaction receipt to track remaining WIC benefits; 8. Use of the cardholder website, URL and website functions including toll free number to call if the cardholder is having a problem accessing the website; 9. Customer service functions, including the toll-free Customer Service help desk number; and 10. Written and digital WIC participant training materials may be required in English and Spanish.

C.15.2.5 WIC Retailer Training Materials

C.15.2.5.1 WIC Vendor training may be provided using written materials in conjunction with EBT- only/stand-beside POS terminals provided to WIC vendors via mail or overnight delivery. However, if upon receipt of EBT-only/Stand-beside POS equipment, a WIC vendor requests additional training or assistance, the contractor shall provide such assistance through the WIC vendor customer service center or onsite training. For WIC vendors with integrated systems, the contractor shall provide train the trainer training if requested by the WIC vendor.

C.15.2.5.2 Retail store employees, including both EBT-only retailers equipped with EBT- only/Stand-beside devices and retailers with integrated systems, shall be trained in system operations prior to implementation. Such training shall include the provision of appropriate written and program specific materials. These materials shall be provided in hard copy and at the request of the retailer in electronic format.

C.15.2.6 WIC Retailer training materials shall include:

1. The State’s Authorized WIC Product List including options for mapping of Price Look Up (PLU) codes for the implementation of the Cash Value Check program; 2. Processing WIC transactions; 3. WIC Vendor Customer Service operations and functions including a toll-free number; 4. Use of the WIC vendor web portal, URL and website functions including toll free number to call if the retailer is having a problem accessing the website; 5. Use of the ARU; 6. POS terminal operations and procedures for WIC vendors receiving EBT- only/Stand-beside terminals; and 7. Retailer training materials shall be provided in English.

C.15.2.7 WIC State and Clinic Training Materials

The contractor shall provide written DC WIC Program and clinic staff training materials to the DC WIC Program’s as needed or when requested by the DC WIC Program. The

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DC WIC Program and clinic staff training materials shall cover EBT system functionality as it applies to the job functions of DC WIC Program and clinic workers.

C.16 SYSTEM OPERATIONS, ADMINISTRATION, MONITORING, SECURITY, AND DISASTER RECOVERY

C.16.1 Administrative Functionality

C.16.1.1 The contractor shall provide EBT system administrative system access to State personnel and Federal agencies as designated by the DC WIC Program and arrange for such access when the DC WIC Program’s EBT system is implemented. The administrative functionality must be capable of running on the DC WIC Program’s existing hardware including workstation computers as well as in the Oracle Gen2 environment. USDA-FNS also requires administrative software access and support as necessary for field and regional offices and other designated Federal agencies. The Contractor must detail its approach to support the requirement to supply the DC WIC Program and USDA-FNS offices with EBT system administrative system functionality.

C.16.1.2 The contractor shall provide EBT system administrative system or host-to-host software and communication protocols to the DC WIC Program (state staff) and local agency. Administrative access shall include multi-level access controls to ensure that only authorized individuals can process administrative transactions or access cardholder account information through EBT system administrative systems.

C.16.1.3 To support administrative access, the contractor shall provide a browser-based administrative application utilizing TCP/IP as the communications protocol. This interface shall provide authorized users with a window/Graphic User Interface (GUI) environment that includes pull down screens and point-and-click capabilities. The Contractor shall specify to the District the hardware and software that is necessary for the District to support the administrative function.

C.16.1.4 User Security Profiles C.16.1.4.1 The contractor shall provide role-based access security for administrative access whereby user profiles are established based upon the specific administrative functions the user requires to perform his/her respective job. Each administrative user, whether employed by the DC WIC Program, local agencies, or USDA-FNS, will be assigned a specific role. The DC WIC Program will define the roles with the assistance of the contractor. The number of required roles shall be parameter driven and will be specified by the DC WIC Program. The DC WIC Program’s designated security personnel shall have the capability to set up newly authorized State and Local Agency employees, change user passwords, and manage roles for the card issuance system. Role definitions should identify users that have access rights to the WIC MIS and, as part of the WIC MIS integration work, the EBT system contractor will implement a single sign-on feature so that EBT users (with appropriate rights) are validated as users on the WIC MIS.

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C.16.1.5 State Office Administrative Functions C.16.1.5.1 The Contractor shall describe their administrative functionality in terms of navigation and data presentation, including screenshots. At a minimum, the transaction set that shall be supported through the EBT administrative functionality at the DC WIC Program level includes: 1. EBT Account Set-up: In addition to batch processes, the contractor shall also provide State and clinic staff with the capability to create WIC accounts through administrative functionality. 2. EBT System Accounts Set Up: This will be used primarily in emergencies, and for creation of test cards, store training cards, and compliance buy and educational buy cards, including fraud investigation. 3. EBT Account Maintenance: Appropriate State or clinic staff shall have the capability to view, update or correct EBT account information. Appropriate staff shall also have the capability to deactivate an account and re-activate an account. 4. Benefit Authorization: Appropriate State or clinic staff shall have the capability to add WIC benefit prescription authorizations through the administrative terminal. This will be used primarily in emergencies and for creation of test cards, store training cards, and compliance buy and educational buy cards, including fraud investigation. 5. Pending Benefit, Card and Account Purge: Appropriate State or clinic staff shall have the capability to purge benefit prescriptions prior to the benefit availability date, pending accounts and pending cards. 6. Modify Benefit Prescription and Make Adjustment Payment: Appropriate State or clinic staff shall have the capability to modify a WIC client‘s benefit prescription and make an adjustment payment to a WIC vendor via ACH. 7. Card Status Change: Appropriate State staff shall have the capability to deactivate, to issue or replace cardholder, proxy, test, training, and compliance/educational buy cards. Staff shall have the ability to purge pending cards. 8. PIN Selection and Edits: Appropriate State staff shall have the capability to select, change and unlock PINs. 9. Search: Appropriate State staff shall have the capability to search by name, State ID or case number, PAN, or EBT account number to access and view account, benefit food prescription detail, WIC vendor information, or online transaction history for a minimum of three years. Staff shall also be able to search for a PAN or cardholder demographics to identify pending or active cards, demographics or benefits for which no account has been established. 10. Retrieval of On-line and Archived Data:

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The contractor shall be required to provide administrative access to on-line and archived data via administrative terminals or systems. Historical data should be available online for a minimum of three years and another three years via the archive 11. Issue test cards and make test accounts available: The contractor shall provide these services to WIC vendors and DC WIC Program staff for the purpose of testing their EBT POS and others systems as required prior to going live or training staff, training WIC vendor staff or conducting compliance checks. 12. ACH Payment: Appropriate State staff shall be able to make an adjustment payment to a WIC vendor via ACH. 13. NTE Management: Appropriate State staff shall view current and historic NTEs, set NTE start and stop dates, and adjust NTEs calculated by the EBT system using standard deviations based on weighted average. 14. APL/UPC Management: Appropriate State staff shall view APL, categories, subcategories and UPCs, add local UPCs and associated data to the list with start dates, and apply stop (end) dates to UPCs. 15. Report Management: Appropriate State staff shall access and view system reports and export into the DC WIC Program designated format. 16. Password Management: Appropriate State staff shall be able to change passwords.

C.16.1.6 DC WIC Program and Local Agency Administrative Functions C.16.1.6.1 The Contractor shall perform administrative functionality in terms of navigation and data presentation, including screenshots. At a minimum, the transaction set supported through the EBT administrative functionality at the DC WIC Program and local agency levels shall include:

C.16.1.7 Viewing EBT Household Account Information

C.16.1.7.1 Online functionality to allow users to view EBT household account information: 1. Provide search functionality to locate a household account. Provide screen navigation between the account screen, the transaction history screen, and the card history screen for that account. 2. Provide the history of account activity to include credits, debits, card changes and PIN changes and PIN unlock information 3. Provide the ability to query one type of account activity history at a time, including issuance, credit, debit, card change, and PIN change transactions. 4. Provide the ability to display current benefit balances and future (pending) benefit issuances. 5. The ability to set a date parameter on queries.

C.16.1.8 Conducting Summary Queries

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C.16.1.8.1 The Contractor shall provide the ability to set a date parameter on queries. The Contractor shall allow users to conduct summary queries into redemption activity and the ability to print and export data, into Microsoft database compatible products or as a comma-delimited file resulting from a summary query: 1. By household 2. By card number 3. By WIC vendor

C.16.1.9 Conducting Summary Queries

C.16.1.9.1 The Contractor shall provide the capability to navigate between queries, including the following: 1. From account status query 2. Between WIC vendor and household queries 3. From summary to detail and from detail to summary 4. From reconciliation to exception reports.

C.16.2 Security

C.16.2.1 The contractor shall be responsible for the implementation and maintenance of a comprehensive security program for the EBT system and operations. This program shall include the administrative, physical, technical, and systems controls that will be implemented to meet the security requirements of the EBT system. It is the expectation of the DC WIC Program that the system of internal controls used to manage risks to the EBT system and operations will be based on electronic funds transfer (EFT) industry standards.

C.16.2.2 The contractor and all subcontractors shall ensure that an appropriate level of security is established and maintained in connection with the EBT services provided pursuant to the Contract. The contractor shall process information that has been designated sensitive but unclassified. Sensitive but unclassified information is any information which the loss, misuse or unauthorized access to or modification of could adversely affect the national interest of the conduct of Federal programs, or the privacy to which individuals are entitled under Section 552a of Title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an act of Congress to be kept secret in the interest of national defense or foreign policy.

C.16.2.3 The Contractor shall provide the following Documentation: 1. Security Management work plan. 2. Detailed Logical Security Design document - Document that describes (in detail) the security architecture of the system and the selected physical, administrative, and technical controls and safeguards. The document includes complete descriptions of the controls, why they were selected, and why they are effective.

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3. Security Testing Plan - A plan that describes how the security controls will be tested to provide assurance that they work as they are designed to do.

C.16.2.4 Control and Security Requirements C.16.2.4.1 The security controls used by the contractor and/or any subcontractor(s) in the performance of services required under this Contract shall be specified to the District. It is the expectation of the DC WIC Program that the contractor will rely on EFT industry standards and conventions in ensuring a secure EBT environment. The Contractor shall provide a plan for system security and control measures, addressing the items in this subsection, which are already in place, or will be put in place prior to pilot testing, at all facilities that will house DC WIC data or process transactions.

C.16.2.4.2 Facilities Physical Security C.16.2.4.2.1 The contractor shall utilize physical security and access control systems to limit access to any facilities or terminals used to process cards, process data or house any sensitive data to those authorized personnel and authorized visitors. The control systems shall have the capability to detect and report attempted unauthorized entries into the facility.

C.16.2.4.2.2 The contractor shall regulate access to primary and back-up data centers in such a way that the flow of all persons can be monitored and controlled.

C.16.2.4.2.3 The following minimum physical security protection measures shall be implemented to deny unauthorized access to, manipulation, and/or sabotage of the EBT data processing and telecommunications facilities. The Contractor shall provide its plan of approach to control physical access to operational facilities. At a minimum, the following access control measures shall be provided: 1. Entrance Security – The EBT data processing and telecommunications facilities shall be secured 24 hours per day, 7 days a week. The entrance(s) to the facilities shall provide for controlled entry and be secure against forced entry. 2. Locks – The facilities shall be locked at all times when authorized personnel are not present. 3. Cipher or Proximity/Swipe Card Type Devices – May be used during duty hours to control entry into a facility. During non-duty hours, the cipher lock shall not be used as a sole locking device. 4. Personnel Access Controls – Access to operational sites shall be controlled and limited to authorized personnel. Employee access to controlled areas within the operational site shall be controlled by electronic access or other comparable procedures. 5. Data Storage Security – All data on portable media, including but not limited to, magnetic tapes, diskettes, CDs, removable disk packs, USB flash drive, paper listings and microfiche shall be in secure access controlled storage areas with access limited to authorized personnel, when not being used by computer operations.

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6. Fire Protection and Suppression – The primary and back-up processing sites as well as the tape storage areas shall be equipped with fire detection and suppression systems that detect and suppress fire in the incipient stage. C.16.2.4.2.4 Any additional access control measures provided by the Contractor may be specified by the Contractor. C.16.2.4.3 EBT System Security C.16.2.4.3.1 The contractor shall ensure the security of the EBT system and all of the system components. The Contractor shall provide systematic and procedural controls. At a minimum, the following controls shall be implemented: 1. Control and Security of EBT Card PINs – The Contractor shall ensure that access to all PINs, whether assigned or selected are strictly controlled. The contractor is responsible for ensuring the confidentiality of the PIN during generation, issuance, storage and verification. The EBT system shall support PIN encryption. Applicable specifications and standards will be complied with including the USDA-FNS Operating Rules for EBT system and ISO 9564 for PIN security and management 2. Communications Access Controls – The Contractor shall provide for communications software to control access to the EBT system. Communications monitoring tools and procedures shall ensure that access to the EBT system is strictly controlled and appropriately monitored and logged. 3. User Identification and Authentication – All personnel must be properly identified and authenticated prior to gaining access to the system through a user account and password login process (with additional login security controls if appropriate). The EBT system must include features which: a) prevents display of PINs, b) Controls access by user based on specific privileges defining level of access and allowable operations, c) maintain security The system shall require unique identification from each user to access the system. The system must not allow the display of the PIN on an administrative terminal or PC monitor. Access to the databases, transactions and programs shall be restricted to those personnel needing access to such data to meet professional responsibilities. The security system shall protect authentication data to make it unavailable to any unauthorized user. The security system shall provide the capability to identify authorizations of individual users. The security system shall support an administratively defined lock out threshold for excessive invalid access attempts. The security system shall support the immediate deletion or disablement of accounts for users no longer authorized by the DC WIC Program. In addition, the system shall send the DC WIC Program notice of any State or local agency user who has been inactive for an administratively defined period of time. Such defined period of time can be changed by the DC WIC Program as needed. 4. Role-Based Access Controls - The security system shall use role-based identification and authorization data controls (RBAC) to determine user access to information and level of information accessed. The security system shall provide the users with the capability to specify who (by user or type of

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user) may have access to system data. The security system or network shall ensure that users without proper authorization are not allowed access to EBT data. 5. System Access and Audit Controls – The security system shall provide an audit trail of access to the system and maintain and protect such records from modification, unauthorized access and destruction. At a minimum, the security system shall record the following types of events: log on, log off, change of password, program initiation and all actions by system operators, administrators and security officers, including date and time of occurrence. The DC WIC Program’s security administrator and/or developer shall be able to selectively audit the actions of one or more EBT system users based on individual identity with access to historic information from the day the user first accessed the system. 6. Transaction Communications – The contractor shall provide controls to ensure that EBT transaction communications are safeguarded and only processed from authorized terminals or PIN selection devices. Communications message validation shall provide for control edits for message completeness, file and field formats and control, and authentication measures. The contractor shall provide controls to secure communication lines and links. The contractor shall have the ability to perform error checking of transmitted data. The contractor shall provide a configuration layout showing complete end-to-end details of the telecommunications and automated information system(s) as part of the detailed system design required as a System Development Deliverable. This should include hardware & software components, including but not limited to modems, encryption devices, etc., that the DC WIC Program would be required to use in support of communication access controls. C.16.2.4.4 System Data Security C.16.2.4.4.1 System data shall be protected to ensure that system and confidential information shall not be disclosed for unauthorized purposes. In addition, the contractor shall not provide any DC WIC Program, local agency or Federal agency with access to system data without advance approval from the DC WIC Program. Such data security controls shall include the following at a minimum: 1. DC WIC Program Access - The contractor shall ensure that designated users from the DC WIC Program may access only the DC WIC Program EBT system. Users from other states may not access the DC EBT system without express authorization. In addition, the contractor shall ensure access is granted only as allowed by the user’s role-based access control (RBAC) security profile. 2. Disclosure of Information and Data – Any sensitive information made available in any format shall be used only for the purpose of carrying out the provisions of this Contract. Information contained in such material shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this Contract. Disclosure to anyone other than an authorized officer or employee of the DC WIC Program is prohibited without prior written approval. Sensitive information shall be accounted for upon receipt and properly

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stored before, during and after processing. In addition, all related output should be given the same level of protection as required for the source material. 3. Data Destruction – The contractor shall provide for the destruction of magnetic media, or deletion of information from magnetic media when no longer required. The contractor’s methodologies shall meet or exceed the Guidelines for Media Sanitation as written by the National Institute of Standards and Technology (NIST). 4. Separation of Duties – The contractor shall provide for adequate internal controls through separation of duties and/or dual control for the functions of card and PIN issuance, system administration, and security administration. This includes the separation of operations from control functions (such as reconciliation controls), account set up, benefit authorization, and settlement authorization. 5. Back-up and Contingency Operations – The contractor shall provide for back-up procedures to ensure the continuation of operations in the event of a temporary disruption or disaster. The contractor shall work with WIC EBT system project staff to determine recovery point objectives and recovery time objectives. 6. System and Procedural Documentation – The contractor shall provide and maintain appropriately detailed Documentation of system and software applications and operating procedures and requirements. 7. System Modification and Tampering Controls – The mechanisms within the application that enforce access controls shall be continuously protected against tampering and/or unauthorized changes. 8. Encrypted e-Mail – All confidential information contained in e-mail sent by the system shall be appropriately encrypted.

C.16.2.5 Inspections, Audits and Investigations C.16.2.5.1 The DC WIC Program and USDA-FNS shall have the right to inspect, review, investigate, or audit all parts of the contractor’s or any subcontractor’s facilities engaged in performing EBT services. In such capacity, the DC WIC Program, or its representative(s), shall have access to facilities, records, reports, personnel, and other appropriate aspects of the EBT system upon notification, as indicated

C.16.2.5.2 Certification and Examination - Statement on Standards for Attestation Engagements no. 16 (SSAE 16) C.16.2.5.2.1 As an integral component of the contractor’s EBT Security Program, the contractor shall provide the DC WIC Program with an annual self-certification of compliance with banking, Electronic Funds Transfer, EFT, and other regulations and requirements relating to the EBT application. The annual self-certification should be considered a normal cost of doing business for the contractor. The annual self-certification requirements shall be applicable to the contractor and any organization(s) to which the contractor has contracted for the performance of EBT related services (subcontractors). The self-certification of the contractor and its subcontractors will be subject to independent examination and validation. The following lists the EBT program specific requirements that shall be addressed in the contractor SSAE:

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1. Banking and Financial Service Rules – The contractor must comply with banking, EFT and other financial services industry rules that relate to the EBT application. The contractor certification of compliance shall include banking, EFT and financial service industry rules to the extent that such rules govern aspects of EBT system operations. 2. Benefit Program Rules – The contractor shall comply with the most current DC WIC Program requirements and any EBT or EBT system requirements established by USDA-FNS. 3. Internal Control and Physical/Personnel Security Requirements – The EBT system contractor is subject to the control and security requirements of this Contract and the components of its individual EBT Security Plan. 4. Self-certification requirements include: 4.1 Evaluation of Compliance – The contractor shall accept responsibility for and provide an evaluation of its compliance with the EBT program and specific requirements, compliance with the applicable regulatory requirements and an evaluation of the effectiveness of the internal control structure in ensuring proper safeguards for the administration of public funds. 4.2 Certification of Compliance – The contractor shall provide to the DC WIC Program a written certification of compliance with WIC and EBT-specific requirements and applicable bank, EFT and financial services industry requirements related to the EBT application. The contractor shall explain how such determination of compliance was made, including bank examination, audit and internal review. It is the expectation of the DC WIC Program that the contractor will utilize the results of current bank examinations, audits and reviews in making certification of compliance. 4.3 Internal Control – The contractor shall certify that it has properly administered all components of the EBT Security Plan and that such controls provide reasonable assurance that public funds administered through the EBT system are properly safeguarded and protected.

C.16.2.5.2.2 The contractor shall provide DC WIC with the intended certification of Compliance script and process for review prior to applying it.

C.16.2.5.2.3 In addition to the self-certification, the contractor and any subcontractor(s) shall arrange for the performance of an annual attestation engagement of the EBT system by an independent auditor acceptable to the DC WIC Program. The purpose of this engagement is to ensure that the certifications of compliance and internal control provide reasonable assurance and that any disclosure of exceptions or qualifications made by the contractor are proper and complete. A written report of this engagement is required and must be sent to the DC WIC Program together with the annual self-certification statements. The engagement shall be performed in accordance with the guidance in Government Auditing Standards issued by the Comptroller General of the United States, for a financial audit, specifically, Statement of Standards for Attestation Engagements No. 16 (SSAE No. 16) SSAE No. 16 is applicable to the EBT annual engagement in that it addresses the attestation requirements to examine management’s assertions of compliance and internal controls.

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C.16.2.5.2.4 Conformance with updates to the SSAE No. 16 requirements is also required. The engagement should culminate in a report on the policies and procedures placed in operation and tests of the operating effectiveness of the DC WIC Program’s EBT system. The report shall be submitted within 30 calendar days of the DC WIC Program’s fiscal year end. The DC WIC Program Fiscal Year ends on 09/30.

C.16.2.5.2.5 The contractor shall authorize the DC WIC Program or its representatives to perform audits and /or inspections of its records at any reasonable time during the term of the contract and for a period of three (3) years following the date of final payment under the contract to ensure compliance with its terms and/or to evaluate the contractor’s performance.

C.16.2.5.2.6 Any amounts that have been paid by the DC WIC Program, which are found to be improper in accordance with the terms of the contract, shall be returned to the DC WIC Program or may, at the discretion of the DC WIC Program, be returned in accordance with other remedies.

C.16.2.5.2.7 The contractor shall permit the DC WIC Program and any other governmental agency authorized by law, or their authorized designee to monitor all activities conducted by the contractor pursuant to the terms of the contract. Such monitoring may consist of internal evaluation procedures, special analysis, on site verification, and any other reasonable procedure that does not unduly interfere with contract work.

C.16.2.5.3 Security Incident Reporting C.16.2.5.3.1 The contractor shall notify in writing the DC WIC Program of any instances of non- compliance with security measures promptly upon their discovery. The contractor shall notify in writing the DC WIC Program of a security breach or a suspected breach immediately. Any other security non-compliance shall be reported to the DC WIC Program within a period of no more than five (5) business days after discovery. Notification shall include a description of the non-compliance and corrective action planned and/or taken.

C.16.3 Back-up, Continuity of Operations, and Disaster Recovery

C.16.3.1 Back-up and Contingency Requirements C.16.3.1.1 The contractor shall provide for back-up procedures to ensure the continuity of operations (COOP) in the event of a disruption in operations. Back-up procedures will allow benefit access when the contractor’s computer, system terminals, EBT gateway, or communications are not operational. The Contractor shall address the intended approach to meet both back-up system operations and contingency plans for benefit delivery and how communications will be established between the DC WIC Program MIS, the WIC authorized vendors and the contractor’s primary and back-up systems.

C.16.3.1.2 Contingency planning consists of the advance plans and arrangements which are necessary to ensure continuity of the critical functions of the EBT service. The contractor shall establish policies and assign responsibilities to ensure that appropriate contingency

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and disaster recovery plans are developed and maintained, and that procedures are followed during outages and local disasters. The contingency plan shall describe the actions to be taken, the resources to be used and the procedures to be followed before, during and after any unlikely event occurs that would render inoperative a function supportive to the EBT service. The contingency plan shall cover all events of total or partial cessation of operations or destruction of the database or physical facility. As part of these policies, and included in the contractor’s COOP plan, the contractor shall detail the names, phone numbers, and e-mail addresses of contractor personnel that will serve as contact points for the DC WIC Program, as well as emergency contact escalation procedures.

C.16.3.1.3 The Contractor’s contingency planning should include the actions to be taken before, during and after a disaster (or contingency), along with documented, and tested procedures, which, if followed, shall ensure the availability of critical resources and facilities maintaining the continuity of operations. The contingency planning should describe how the proposed architecture, technical capabilities, and organization will protect the system during emergency operations and continue to provide communication between the DC WIC Program MIS, the WIC vendors, WIC providers, and the contractor.

C.16.3.2 Disaster Response Support and Services C.16.3.2.1 The contractor shall provide the DC WIC Program with the capability to respond to an emergency or disaster. The Contractor shall work with DC WIC to develop a WIC-EBT disaster plan in accordance with any State or FNS requirements and is expected to support WIC-EBT in the event of a disaster to the extent outlined in the current DC Disaster Services Plan.

C.16.3.2.2 The services provided for a disaster shall not be included in the cost per case month (CPCM) but shall be on a per incident basis in accordance with the Contract Price Schedule.

C.16.3.2.3 The contractor shall provide the necessary systems and procedures required to ensure the continuation of the benefit issuance function that is in the contractor’s control. The contractor must be prepared to implement a disaster EBT system to deliver benefits. The disaster EBT system must provide easy integration and reconciliation with the DC WIC Programs MIS and the EBT processor’s database and ancillary system(s). C.16.3.2.4 A disaster situation may warrant work to be done outside the regularly defined work hours in order to rectify the problem as expediently as possible.

C.16.3.2.5 At the end of a disaster, the contractor shall issue a report addressing the encountered problems in each of the below outlined disaster categorical tasks with their respective methods of resolution applied to rectify the issues as well as their relative success with this approach. In case of a disaster, DC WIC expects that a failover of the EBT host system including the EBT subsystems and EBT interface to the Contractor’s backup data center will occur within a one-hour timeframe to ensure the Contractor’s continuity of business.

C.16.3.2.6 Cardholder Support Services

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C.16.3.2.6.1 The contractor shall provide the following disaster or emergency services: 1. Benefit Issuance or Re-issuance: During a disaster, if the DC WIC Program is unable to transmit a benefit file, the DC WIC Program may require the contractor to issue or re-issue benefits at the prior month’s benefit levels to household accounts that were active the previous month and who do not have benefits in queue for issuance during the current month. 2. Increased Customer Service Support: In the event of a disaster, the contractor shall provide the same scope of services to cardholders for the automated support and live customer support but may need to extend usual business hours. The automated support shall have a specific disaster script that has been approved by the DC WIC Program. Because call volumes will likely increase, the contractor shall increase the number of live support staff available to support DC WIC cardholders. Live support agents should be alerted when accessing the cardholder’s record that the cardholder resides in the disaster area. 3. Drop Ship Card Delivery: New cardholders receiving their first EBT card during a disaster may have their card issued over-the-counter at local agency and/or mailed from the local agency and/or State central offices, or have the card mailed to their residence via normal mail delivery by the contractor. The DC WIC Program may require the contractor to drop ship active cards and/or PIN selection devices via overnight express mail to a specific State or local agency office(s). PINs will not be mailed with drop shipped cards. Cardholders shall call the Audio Response Unit (ARU and select their PIN; select their PIN through local agency PIN selection devices; or select their PIN via the cardholder web portal. 4. Identifying Operating WIC Vendor Locations and Mapping: In the event of a disaster, the contractor shall provide daily and possibly more frequent reports, as necessitated, to the DC WIC Program identifying operational WIC vendor locations including geographical mapping of the operational and non- operational locations.

C.16.3.2.7 WIC Vendor Support Services C.16.3.2.7.1 The contractor shall provide the following WIC vendor support services.

1. WIC Vendor Site Survey: Upon notification by the DC WIC Program of a disaster, the contractor shall survey selected WIC vendor locations to determine the level of service that can be provided to cardholders because of equipment outage or other factors. After disaster services have been completed and the DC WIC Program resumes normal operations, the contractor shall contact these benefit redemption points again to determine the status of ongoing operations. The contractor shall ensure that live support agents are aware of which benefit redemption points are not operational during and after the disaster in order to direct cardholders to appropriate locations. 2. Increased WIC Vendor Customer Service: In the event of a disaster, the contractor shall provide the same scope of services to WIC vendors for the automated support and WIC vendor live agents. The automated support

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system(s) shall have a specific disaster script that has been approved by the DC WIC Program. Because call volumes will likely increase, the contractor shall increase the number of live agents to support WIC vendors and meet expected performance standards. C.16.3.2.8 Technical Support in a Disaster C.16.3.2.8.1 In a disaster, the contractor shall provide the following technical support as directed by the DC WIC Program.

1. DC WIC MIS Interface Support: The contractor shall support the recovery of the DC WIC Program’s eligibility and EBT interface systems at a back-up site in the event of a disaster at the DC WIC Program’s primary data center. This support shall consist of providing connectivity to the DC WIC Program’s back-up site to support the transmission of data files and reports between the DC WIC Program and the contractor. The contractor shall provide support to the DC WIC Program in ensuring that benefits are still being provided to cardholders through the EBT system during the recovery of the DC WIC MIS. Following the declaration of a disaster by the DC WIC Program and movement to a back-up data center, the contractor shall work with the DC WIC Program technical staff to provide EBT system administrative system support. 2. Administrative System Access: In the event the DC WIC Program’s eligibility system or the traditional interface is not accessible, the DC WIC Program shall have access to the contractor’s system using a direct dial process. The contractor shall provide the appropriate passwords, access and software components, and training and related documentation/staff training materials explaining how to use the Contractor’s system prior to the disaster situation.

C.16.4 Set-up of Initial User Accounts

C.16.4.1 At appropriate points during EBT system development, implementation, and deployment, the contractor will be responsible for entering and configuring user accounts. This will be done to support user access for the various testing activities. Prior to full, operational deployment, the contractor will set-up all user accounts for DC WIC Program and local agency users and technical support staff. The contractor will provide necessary orientation and documentation so that designated WIC Program personnel may maintain user account information.

C.17 REQUIRED DOCUMENTATION

C.17.0.1 In addition to the various project management plans and reports, the contractor will prepare the documents identified in Table 9. The Contractor shall confirm their acceptance to prepare the items in Table 9, briefly describe the applied methodology, and also identify additional documents which will be prepared during the course of the project. All documents will be submitted in draft form with an opportunity for review and

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comment by the DC WIC Program with the possibility for several draft review and cycles leading to final versions. The documents will include: a) cover page with title and date, b) information on revision history, c) page numbering, numbering for all figures, tables, exhibits, etc., and d) a full table of contents. The documents will be submitted in a digital editable format limiting the file size to a possible minimum (original file formats such as Microsoft Word, Excel, PowerPoint). As appropriate, DC WIC Program staff will participate in the preparation of these documents and provide information to the contractor during their preparation.

Table 9: Minimum Requirements for EBT System Documentation Main Associated Contract Document Name Comments References 1 Document that provides an overall design of system components, Functional/Operations Design Sections 3, 4, 5, 6, describes system functions, Document 7, 8, and 11 operational procedures, and roles of key system stakeholders. 2 Written scripts to be used in internal Test Scripts testing and formal UAT, pilot project, Section 9 and WIC Vendor certification testing. 3 One or more documents that describe the technical design of the system including a data dictionary, the hardware/network configuration, Detailed Technical Design Sections 3, 4, 5, 6, software/applications, system Document(s) 7, 8, and 11 administration and security tools and procedures, processing of WIC EBT data, and the standards governing systems design and operations. 4 Document that describes the details on points of integration, the batch and MIS Interface Specification real-time data transfer, physical Section 7 Document connections required to support the interface, security/sign-on controls, and user interface integration.

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Main Associated Contract Document Name Comments References 5 Reports as needed that document the results of key testing activities— describing the testing process, results, Reports documenting system features which passed or failed demonstration and testing All Sections testing criteria. Reports will be results prepared for internal testing activities, formal UAT and pilot testing, and at other appropriate points. 6 Documents that describe system monitoring, administration, and security tools and procedures in place Disaster response, system for system operations. This document administration, security, will also describe processes for which Section 12 maintenance processes and the contractor and the DC WIC procedures program is responsible (e.g., User account maintenance, UPC maintenance) 7 Training materials (e.g., documents, agendas, presentations, canned demos) Training materials Section 11 prepared by the contractor to support training requirements. 8 Manuals targeted at specific user groups (WIC Program, WIC vendors, WIC vendor store personnel) which Sections 5, 6, 7, 8, User manuals describe in clear terms how the user and 12 invokes the system, login procedures, use of all applicable system functions, and exiting the systems. 9 Reports that document official completion of requirements and certification of system components at key development and deployment Certification reports Section 9 steps including WIC Vendor certification, UAT completion, Pilot testing completion, and full operational deployment.

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C.18 Service Performance and Contract Management Requirements

C.18.1 Service Level Agreement

C.18.1.1 The DC WIC program intends to establish a service level agreement (SLA) with the contractor, prior to District-wide deployment. In addition, the DC WIC requires that the contractor establish SLAs with authorized WIC vendors and that the DC WIC Program will be party to negotiation of these terms. The actual SLAs will be prepared and ratified prior to full system deployment and specific terms will be negotiated during the implementation process. Basic SLA terms to be negotiated are summarized in Table 10. Contractor’s shall indicate their acceptance of these terms and suggest any additional items and information on basic performance standards (as a basis for later negotiation).

Table 10: Anticipated Provisions for Service Level Agreement (SLA) DC WIC WIC Vendor Brief Description and Potential SLA Term SLA SLA Performance Target 1 Overall System Availability X X 2 Scheduled Downtime X X 3 System Modification X X Downtime and Notification 4 Host Performance and X X Response Time 5 Response to User Requests X X 6 Unplanned System X X Disruptions and Outages 7 Security Breaches X X 8 Time to replacement of stand-beside POS X equipment 9 Settlement Timeframe and X Accuracy 10 WIC Account Adjustments X 11 Virus and Malware X X Protection 12 Direct connect availability X X 13 WIC Vendor Tech Support X 14 Response to the DC WIC X X Program regarding issues

C.19 CHANGE MANAGEMENT PROCESS

C.19.0.1 In supporting the WIC Program, the contractor shall be required to adhere to the following Change Management process.

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C.19.1 Change Request Process

C.19.1.1 Change requests will be initiated through a Change Request Form. DC WIC will designate all Change Requests as high, medium, or low priority, and the Contractor’s proposal must outline proposed timeframes for initiating changes based on priority ranking. The DC eWIC COTR will forward a signed Change Request Form to the contractor’s designee for analysis of the request for potential impacts on existing system processes, other schedule changes, resources, hours, and applicable costs. C.19.1.2 The contractor shall return the Change Request Form and the results of the analysis to the DC eWIC COTR within 14 calendar days of receipt. The contractor shall provide the COTR with a proposed development and implementation schedule for completing the change. Contractor responses to DC WIC-initiated change requests must include a price quote utilizing the change request pricing for personnel services as submitted by the contractor in response to this Contract for the requested change, including the number of hours required to perform the request. However, should such changes result in a reduction in the contractor’s responsibilities/efforts in providing services a like reduction in pricing will be negotiated in good faith based upon an equal sharing of contract related savings. C.19.1.3 If DC WIC chooses to formally approve the change, the Change Request Form will be signed and dated by the COTR and forwarded to the contractor. C.19.1.4 The contractor shall provide a final development and implementation schedule within 14 days of receipt of the approved Change Request and must include specific dates for development and implementation consistent with the schedule being proposed.

C.19.2 Changes Initiated by the Contractor

C.19.2.1 The contractor shall provide the COTR with written, advance notification of all self- initiated, non-remedial changes to the EBT system, including gateway services. The written notification must include, at a minimum, known or anticipated impacts the changes will have on the State’s functionality, file formats, screens, reporting, performance, and any costs or cost savings to the WIC Program. C.19.2.2 The contractor shall coordinate all non-remedial changes to the system with DC WIC. Non-remedial changes must be implemented at a time agreed upon with DC WIC, so that the availability and participation of State program and technical staff can be assured. All contractor-initiated changes are subject to the prior written approval of DC WIC. Upon such approval, the contractor shall provide a proposed development and implementation schedule for completing the change, including the number of hours required to perform the request.

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