Maryland Department of Human Services has secured a $20 million contract with Conduent State & Local Solutions Inc. to upgrade the state’s EBT system. The upgrade is aimed at reducing the risk of fraud and benefits theft for low-income residents receiving benefits through programs like Temporary Cash Assistance and SNAP.
The contract was approved by the Maryland Board of Public Works, despite an ongoing appeal regarding the bid evaluation process. The upgrade is crucial to protect Marylanders from benefit theft and enhance security features that the current system lacks.
Around 943,000 Maryland residents are served through the EBT system annually. The federal-state partnership provides 75% of funding from the U.S. Department of Agriculture’s Student Nutrition Service, with the state providing the remaining 25%.
The EBT system allows recipients to access benefits through EBT Cards, similar to debit cards with a PIN for transactions. In 2023, legislation was signed to enhance security for the system, including microchips in new cards.
Although only two vendors submitted bids for the contract, the Department of Human Services followed USDA procurement guidelines in the search for a new vendor. A protest from another vendor regarding the bid evaluation process was denied by the department.
The new contract will go into effect immediately, allowing for a quick transition to the upgraded system. The department is confident that the Board of Contract Appeals will uphold their decision should the appeal proceed, ensuring the continued protection of benefits for Maryland residents.
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