A dispute is emerging over Maryland’s electronic benefits system for low-income families who may face difficulties accessing resources if the state and vendors fail to reach an agreement.

The Maryland Department of Human Services is requesting approval from the Maryland Board of Public Works to exercise a second six-month option under an existing contract with Conduent State & Local Solutions, which began in 2015. This request follows the contract’s voiding by the Maryland State Board of Contract Appeals in August, due to allegations that Conduent’s initial bid violated RFP guidelines, including the scope of work.

DHS filed a motion to stay on Oct.18, which was denied by a Baltimore City Circuit Court. Conduent suspended work under the new contract.

DHS is now requesting to exercise the remaining six-month renewal option on the current contract to ensure the state government is able to provide residents in need with cash and SNAP benefits, which help low-income households buy groceries, according to documents filed with the state Board of Public Works.

“We currently have an existing contract for Electronic Benefit Transfer services through Conduent, which began in 2015,” DHS spokesperson Lillian Price said in an email to The Baltimore Sun. “We are asking the Board of Public Works to approve our exercise of a second six-month option of the existing contract. Without an EBT system vendor, we will not be able to run an EBT system in Maryland, issue payment cards, or load benefits.”

The hearing for the Petition for Judicial Review will be held in January. The six-month extension with Conduent is valued at $3,838,596 and would run from Jan. 1 through June 30.

A Conduent spokesperson referred all questions to the state.

In the spring, DHS received three protests from Fidelity Information Services regarding the evaluation of Conduent’s bid before the contract was secured, alleging that it was unlawful and did not adhere to the criteria listed in the RFP.

DHS denied the protest on April 29, stating that the evaluation was performed in accordance with both the RFP criteria and Maryland code.

In July, the state approved a $19,982,015.28 contract with Conduent to upgrade Maryland’s EBT system, which delivers benefits to Marylanders eligible for the Temporary Cash Assistance Program, the Temporary Disability Assistance Program and SNAP.

Rafael J. Lopez, the secretary of Maryland DHS, defended the contract at the time.

“We would not bring to you, the constitutional officers of Maryland, an unlawful contract to sign,” Lopez told members of the Board of Public Works at the time. “We just wouldn’t do it.”

However, on Aug. 30, the Maryland State Board of Contract Appeals ruled in favor of Fidelity and the company’s sustained protests of awarding the contract to Conduent.

Officials with Maryland State Board of Contract Appeals could not be reached for comment.

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