Contract Completed For Citibank Provision Of EBT in Colorado

The Colorado Department of Human Services has completed contract negotiations with Citibank EBT Services for $500 million a year in electronic benefits transfers for public assistance recipients.

The contract, which will run through June 30, 2003, will pay the Citicorp unit about $3.2 million to develop a magnetic-stripe card system.

It is to provide welfare, food stamps, and other government benefits to 193,000 recipients through automated teller machines and point of sale networks.

A competing bidder, Transactive Corp., Austin, Tex., has filed a protest against the Citibank award that is currently in an administrative appeal phase.

Colorado officials said they proceeded with the contract to stay on schedule for inauguration of a three-month EBT pilot in Pueblo, Fremont, and Custer counties by February 1997.

The plan calls for EBT to go statewide by March 1998, according to Mark Tandberg, manager of the procurement and development effort.

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