Reduced Cost and Increased Competition for Printing Food Stamp Coupons

Ways to explore the possibility of reducing costs and increasing competition for printing food stamp coupons have been suggested. In order to minimize the risk of counterfeiting food coupons, a relatively sophisticated and high cost printing process has been employed that provides a high level of coupon security but offers limited opportuntiy for competition. Over the past 8 years, redemptions of counterfeit coupons have averaged about $6,000 annually. The Secret Service believes that an alternate printing process would be acceptable as long as security needs are met and the alternative offers sufficient savings on printing costs to offset potential counterfeiting risk. Such savings could be 30 percent or more of the present coupon printing cost.

Three possibilities for procurement were suggested. The first two vary on the latitude allowed for possible industry solutions. The third would provide additional time to develop a new industry solution. In the first method the security needs for the food stamp coupons would be described using the assistance of the Secret Service, the Government Printing Office, and the Bureau of Engraving and Printing in writing the security and production specifications and in evaluating the technical quality of industry responses. In the second method, if the security document market is sufficiently known, it may be possible to limit acceptable industry solutions to security needs by specifying certain minimum conditions. The third method would involve the consideration of extending the present contract until the other two suggestions could be fully explored. Further, reusing food stamps may provide opportunities for cost savings even under the present printing process.