Q14 Does Appendix E- Sample FAA Security Provisions outline all applicable security
requirements for this program/project? If not, please provide listings of the additional Treasury
security directives and requirements that are applicable for this program.
A14 Appendix E is intended to describe all Treasury security requirements applicable to the Direct
Express program.
Q15
With implementation planning scheduled to begin May 13, 2019 and services to begin
January 3, 2020, would the proposed service start date include the complete transition of all
existing incumbent cardholders wishing to continue in the Direct Express program (or at
minimum readiness to onboard new cardholders )?
A15
The current Financial Agency Agreement allows the Fiscal Service to extend the agreement for
a period of up to one year for transition purposes in the event of a transition. The specific timeline
for completing any transition will be determined once the selection process is complete.
Q16 It is mentioned that the program could possibly be expanded to “include additional types
of federal payments.” What are some examples of these additional payments types?
A16
Currently the Direct Express card is used solely for Federal benefit payments. However, the
Fiscal Service continuously strives to increase the electronic delivery of federal payments through
options such as prepaid debit cards. Federal tax refunds are an example of a type of payment that
could potentially be delivered via a prepaid debit card.
Q17
Please reconfirm, if a new Direct Express Financial Agent is selected, is Fiscal Service
approaching the transition as an “opt-in” (requires cardholder to select desired payment
method)? What is the process if the benefits recipient takes no action?
A17
Direct Express cardholders will need to take action to, at a minimum, activate a new Direct
Express card. Payments will not be withheld from cardholders who take no action but will instead
be delivered via check or other means.
Q18
It is understood that Fiscal Service cannot guarantee Direct Express statistics on
cardholder enrollments and transaction behavior, but can you provide by month for the July
2017 to June 2018 period the monthly average load value and average number of open/active
accounts? How many new cards were issued each month? In addition, are you able to provide
statistics on dollar amounts and transaction counts of signature and pinned point-of-sale,
ATM and teller cash transactions?
A18
We do not have data available on the monthly load average. The monthly average number of
accounts with at least one deposit and transaction is 3,426,716. The monthly average number of
cards issued is 276,593. We are not able to provide statistics on dollar amounts and transaction
counts of signature and pinned point-of-sale, ATM and teller cash transactions.
Q19 In addition to the Fiscal Agent’s transition cost, what cost has Fiscal Service assessed to
itself for a transition of Direct Express to a new Financial Agent? How will Fiscal Service
evaluate transition expense in the scoring process?
A19
In addition to the Fiscal Agent’s transition costs, the government’s own costs associated with a
transition will be considered in the selection process along with the other factors listed in the
Requirements. Such costs include, but are not limited to, increased staffing, cardholder outreach,
enrollment activities (to the extent enrollments are handled by the FRB Dallas), and mailed notices.