Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JUNE 4,1996 PSA#1608

USDA, Food and Consumer Service, Contract Management Branch, 3101 Park Center Dr., Rm. 914, Alexandria, VA 22302

B -- FEASIBILITY STUDY OF CAPTURING FOOD DATA AT CHECKOUT SOL FCS96-029LMP DUE 071896 POC Lisa Parrett, Contract Specialist, (703) 305-2250 Elaine Lynn, Contracting Officer, (703) 305-2250. Sources are sought by the USDA, Food and Consumer Service (FCS) to conduct a ''Feasibility Study of Capturing Food Data at Checkout.'' While it is technically possible to link Electronic Benefits Transfer (EBT) transaction data with scanner data at checkout, doing so has not been tested in practice, in part because specialized equipment and software must be put in place and because scanner data is not directly usable. If feasible ways to overcome those barriers can be developed, it presents a tremendous opportunity to capture the food purchasing behavior of Food Stamp Program (FSP) participants. The project will support a demonstration that identifies a small sample of EBT/FSP retailers in a geographic area willing to test the feasibility of establishing an electronic linkage to scanner data, equipping those stores with necessary hardware and software, and analyzing the resulting data stream. Neither the shopping behavior of individual participants nor sales at specific stores will be examined (to eliminate Privacy Act and proprietary data concerns) -- all data analyses will be aggregated by demographics or store type aggregate variables. All identification to the individual food stamp participant and retailer will scrubbed from all datasets (including the EBT transaction data, STARS database and scanner transaction data) by the contractor prior to any analyses or manipulation of the data. In addition to direct analyses of the food purchasing behavior of food stamp participants, the goal will be to explore the feasibility of expanding the analysis to additional sites. The following tasks shall be completed by the contractor: 1) selecting the sample geographic area; 2) contacting and recruiting FSP retailers within the geographic area; 3) identifying the necessary hardware and software required to equip the participating stores; 4) preparing an electronic data collection plan; 5) obtaining, merging, and analyzing retail food store point-of-sale UPC scanner codes and FSP/EBT data; and 6) preparing a final report. Considerable time and personnel will be required to obtain and analyze the electronic data needed to address the study objectives. The contractor will vary the project team and the skills and knowlege available as needed to perform tasks in an efficient manner within the short time frame required by this study. The information produced by this study will allow the Agency to determine the technological feasibility and limitations of using EBT/FSP scanner data and examine the food purchasing patterns of FSP participants. While FCS collects data on the aggregate dollar value of EBT transaction, it does not have access to data on the types of foods which have been purchased. An analysis of this data would give FCS an opportunity to better understand the purchasing habits, patterns and preferences of its participants. This would be of great assistance in helping to better understand the choices participants meke in regard to nutrition, brand choice, cost and other factors. The estimated level of effort is 9 person years over a period of 36 calendar months. This includes a base period of approximately 72 weeks and one option period for a total of 156 weeks. A cost-plus-fixed-fee type of contract is anticipated. (0152)

Loren Data Corp. http://www.ld.com (SYN# 0009 19960603\B-0001.SOL)


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