Online Purchasing Pilot ICR Memo 07-28-16

Memorandum
Date:

July 29, 2015

To:

Stephanie Tatham, OMB Desk Officer, Food and Nutrition Service

Through:

Ruth Brown
USDA Office of Chief Information Office, Departmental Clearance Officer

From:

Lynnette Thomas
Food and Nutrition Service, Branch Chief, Planning & Regulatory Affairs;

Re:

Under Approved Generic OMB Clearance No. 0584-0606 Request Approval to
Accept Applications for the Demonstration on Acceptance of Supplemental
Nutrition Assistance Program (SNAP) Benefits through Online Transactions
(Online Purchasing Pilot)
___________________________________________________________________________
The Food and Nutrition Service (FNS) of the USDA’s Food, Nutrition, and Consumer Services (FNCS)
is requesting approval to accept applications from retail grocers to participate in a pilot using FNSapproved online transaction technologies for the acceptance and redemption of SNAP benefits on their
retail websites.
FNS will issue a Request for Volunteers (RFV) to solicit an estimate of 50 applications for a one year
pilot. In order to participate in the Online Purchasing Pilot, applicant online food retailers must
complete an Online Purchasing Pilot RFV Application (RFV & RFV Pilot Form) as well as a SNAP
retailer application (already approved under OMB clearance No. 0584-0008).
This request is to allow FNS to accept the RFV Application as described above. The RFV Application
is included in this package.
The following information is provided for your review:
1. Title of Project: The Demonstration Pilot Project to Test the Redemption of SNAP Benefits
through Online Purchasing (the Online Purchasing Pilot)
2. Control Number: 0584-0606, Expires 03/31/2019
3. Affected Public: Businesses (Applicant Online Food Retailers)
4. Number of Respondents:
Audience
Number of Respondents
Businesses
50
50
Total

5. Time Needed Per Response:
Title
RFV Application (RFV & Pilot Form)

1

Time
(minutes)

Time
(hours)

1200

20.00

6. Total Burden Hours on Public:

(a)
Affected
Public

Businesses

(b)
Title

(c)
No.
Respondents

(d)
Frequency
of
Responses

(e)
Est. Total
Annual
Responses
per
Respondent
Type (c x d)

RFV application

50

1

50

20.00

1000.00

50

1

50

20.00

1000.00

Respondent
Type

Applicant
Online
Grocers
Totals

(f)
Hours per
Response

(g)
Total
Burden
Hours
(e x f)

7. Project Purpose, Methodology and Design:
Background
The Agricultural Act of 2014 (P.L. 113-79), otherwise known as the “2014 Farm Bill,” requires the
Secretary to conduct a demonstration project piloting the use of online transactions for the redemption
of SNAP benefits in order to test the feasibility and implications for Program integrity, if their use is
allowed in SNAP. The pilot will allow SNAP authorized retailers to redeem SNAP benefits through
online retailer websites in one or more State(s).
Purpose
The information collected in the RFV Application will help FNS determine each Applicant Food
Retailer’s eligibility to participate in the Online Purchasing Pilot, to evaluate their strengths and
weaknesses and select the best candidate(s) for the pilot. Ideally, selected participants will represent
different types of retailers with online capability.
The information collected in the evaluation will help FNS determine the success of and best practices
for the use of online transactions to redeem SNAP benefits. This information will inform Program
design, standards, rulemaking, and guidance for approval of Food Retailers with online capability as
well as Departmental decisions and recommendations to Congress with respect to requiring all State
Electronic Benefits Transfer (EBT) systems to accept online SNAP transactions in the future.
Methodology/Research Design
A publicly available RFV will request Applicant Food Retailers to submit the RFV Application in order to
apply for participation in the Online Purchasing Pilot. The pilot period will last a total of eighteen (18)
months, and Pilot Participants will join on a rolling basis with the condition that they must each participate
for a minimum of nine (9) months. An evaluation of the Online Purchasing Pilot will take place between the
midpoint and the end point of the Online Purchasing Pilot. FNS is procuring the services of an experienced
company to perform this evaluation and collect all data necessary to do so. The selected company will be
responsible for preparing and submitting the project-specific documentation to obtain clearance for this
data collection.

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Payments/Gifts to Respondents
There are no provisions for payment or gifts to respondents.
Design/Sampling Procedures
Only interested Applicant Food Retailers with online capability will be asked to submit an RFV
Application.
Recruitment of Participants
FNS will publish an RFV and solicit interested applicant grocers with online capability to participate in the
Online Purchasing Pilot through a variety of methods. FNS will develop a communications plan to ensure
that all interested parties are aware of the opportunity to participate. The communications plans may
include issuing a press release, publicizing the pilot on the public FNS website, and/or sending information
about the RFV to interested entities and organizations, such as State Agencies (SAs), retailer trade
associations, and other industry groups for distribution to their constituents.
FNS will verify that Applicant Food Retailers with online capability meet requirements laid out in the RFV
Application. Those that pass the verification process will be rated based on a structured evaluation
process described in the RFV. The 3-5 best rated Applicant Food Retailers will be invited to participate in
the pilot.
Data Collection Timeline
FNS will solicit applications from interested SNAP authorized retailers through an RFV that will be
posted by October 1, 2016 for participation during the Online Purchasing Pilot. Applicants will have 45
days to respond to the RFV.
Data Analysis
FNS will collect and analyze the information contained in the RFV Applications to determine eligibility for
pilot participation and select the best pilot participants.
Outcome
The data gathered will help FNS determine which Applicant Food Retailers with online capability will be
selected to participate in the Online Purchasing Pilot and this pilot will help FNS determine best
practices and areas of concern in the use of online transactions for SNAP benefit acceptance and
redemption. These insights will support FNS in providing tailored standards, rulemaking, and guidance
to allow SNAP authorized retailers to use online transactions to accept and redeem SNAP benefits and
to require all State agencies to accept and properly authorize online transactions.
8. Confidentiality:
Information collected in the RFV Application is subject to the confidentiality provisions in SNAP
regulations at 7 CFR §278.1(q) and may only be used or disclosed in accordance with the Privacy Act
System of Records Notice, USDA/FNS-9 Food Stamp Retailer Information. Information collected
during the evaluations will remain private and will be used by FNS for the purposes of the Online
Purchasing Pilot and ensuring that participation conforms to all Program regulations, as well as the pilot
requirements outlined in the RFV. This information will not be used or released for any other purpose.
9. Federal Costs:

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The estimated costs to the government for reviewing and analyzing all documents and data related to
the Online Purchasing Pilot will be approximately $44,556.00 for labor.
Work Hours
Required

Number of
Analysts

Total Work
Hours

400

3.00

1,200.00

Federal Costs

Hourly
Wage 1

Total Work
Hours

Total
Federal
Costs

Cost

$37.13

1,200.00

$44,556.00

Federal Hours
Program Analyst Work Hours

10. Research Tools/Instruments/Supporting Documents:
•

Attachment A: Request for Volunteers (RFV)

•

Attachment B: RFV Online Purchasing Pilot Application Form

1 GS-12 Step 1 annual salary, adjusted for the locality pay area of Washington-Baltimore-Arlington, DC-

MD-VA-WV-PA, is $77,490; divided by 2087 hours this yields an hourly rate of $37.13.
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