ACS to provide benefits transfer services

Affiliated Computer Services (ACS) has won a $45 million contract to provide electronic benefits transfer (EBT) services for the Ohio Department of Job and Family Services.

The project, which focuses on food stamp benefits, will span eight years. ACS will help Ohio transition from an off-line smart card-based program to an online system that uses magnetic stripe cards, the company said.

ACS will provide EBT transaction processing, project management, retailer management for merchants, card reconciliation and settlement. The outsourcing vendor will also provide a data center and a call center.

ACS’ Government and Community Solutions business unit will manage the contract. The group specializes in EBT and child support payment processing services. Other EBT awards for ACS this year include a $24 million contract with the New Jersey Department of Human Services and a $27 million contract with the Massachusetts Department of Transitional Assistance.

Overall, ACS’ public-sector revenue declined 4 percent for its fiscal fourth quarter, which ended June 30.

Warren Edwards, ACS’ chief financial officer, said the company’s government business “hasn’t grown as much as we’d like it to this last year.” Speaking recently at Citigroup’s Global Technology Conference, Edwards said ACS had nonrecurring business during fiscal 2004, citing the company’s Health Insurance Portability and Accountability Act compliance work with Medicaid customers.

Edwards said the company has hired more sales people on the government side to spark business.

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