Illinois trades EBT vendors
- By Nicholas Morehead
- Jul 09, 2001
The Illinois Department of Human Services is switching vendors for the last
three years of its electronic benefits transfer (EBT) program contract.
As of this month, Logicon Inc., the information technology division of Northrop
Grumman Corp., will handle the state's EBT services. It will assume responsibility
for the state's food-stamp program as well as five other cash assistance
programs, including Assistance to the Aged, Blind or Disabled and the Child
Support Pass-Through Program.
Under the programs, eligible Illinois residents receive a government-issued
debit card that can be used to purchase food or receive cash benefits from
more than 7,000 retailers and automated teller machines across the state.
All told, the programs serve about 450,000 cases on a monthly basis.
Logicon, which already handles EBT services for the Texas Department of
Human Services, is picking up the last three years and $28 million of a
seven-year contract between Illinois and TransActive Corp. The terms of
Illinois' contract with TransActive allowed for the incorporation of a replacement
vendor should all parties agree.
"TransActive decided it no longer wanted to be a full-service EBT provider
and so excused itself from the relationship," said Ed Jakobsen, project
director for the Illinois Department of Human Services.
In addition to handling computer systems, full-service EBT providers handle
call centers for customer service, relations with the selected retailers,
maintenance and supplies for ATMs as well as issuance of the debit cards.
Logicon will be using the same software and team members as it has on
its Texas system. "We brought essentially a practiced team to the situation.
The process will be seamless, and they shouldn't even notice," Jakobsen
The company's work on the Illinois program is scheduled to go through October