Texas awards $19 million electronic benefits deal

A Texas state agency has awarded Logicon Inc. a five-year, $19 million contract

to support an electronic benefits transfer system to deliver aid to needy

families.

The Texas Department of Human Services' EBT system will deliver temporary

aid and food stamps electronically to about 1.4 million recipients, the

largest system in the nation.

The recipients access their monthly benefits using a debit card with

a magnetic strip and personal identification number at machines in 13,000

retail stores across the state.

Herndon, Va.-based Logicon is a Northrop Grumman Corp. company. The

contract, which is subject to approval by the U.S. Agriculture Department

Food and Nutrition Service, also includes a five-year, $20 million option.

Northrop Grumman Technical Services Inc. will lead the contracting team

and Transaction Processing Services Inc. of Austin, Texas will provide software

support and maintenance.