An anonymous staffer from inside the agency gave us this tip and internal email on this subject.

Texas, to help reduce the unemployment rate in the state we think outsourcing state contracts to companies skirting U.S. tax law is a great idea!

The Texas eligibility call center for TANF, Food Stamps and Medicaid by law - HB 2292 has to be located in Texas but Accenture is a non-U.S. company based in offshore tax haven of Bermuda.

The lay-offs will affect as many as 3,000 to 8,000 long-term Texas state employees, their families and local communities, from almost every small Texas town to inner-city elgibility offices.

Outsourcing jobs is a big issue with folks these days, here's what the GAO says about Accenture.

The RFP asks this question:

Question: Do HUBs have to be certified by State? Must they be located in Texas?

Answer: Yes, they must be certified by the State of Texas TBPC. All certified HUBS must have their principal place of business in Texas.

February 25, 2005
Notice of Tentative Award

The Health and Human Services Commission (HHSC) announces the tentative award of a contract under request for proposals (RFP) #529-04-334 for Integrated Eligibility and Enrollment Services to
Accenture LLP for all components prescribed by the RFP.

The tentative award is contingent upon, among other things, a final determination that a contract for call center services is cost-effective, the successful negotiation of a contract for the services, and obtaining federal agency approval for the portion of the contract that is subject to such approval. If negotiations
with the selected vendor are unsuccessful, the tentative award will be withdrawn and HHSC may initiate negotiations with the next highest rated respondent or respondents. A tentative contract award becomes final upon successful execution of a contract.

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February 25, 2005 Communications from HHSC:
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As most of you know, HHSC has been evaluating private proposals to operate call centers as part of our effort to modernize our eligibility system. We still have not made a final determination on whether call centers will be operated with state employees or through a private contract. However, we are taking a significant step in that process today by issuing a tentative award to Accenture, one of the companies that submitted a proposal to operate the call centers.

We will not be able to make a final decision on whether a private proposal or the state's plan for call centers represents the best value for taxpayers without more discussions with the vendor. Once that decision is made, changes to staffing levels will still be months away.

Regardless of the decision on call centers, state employees will continue to determine eligibility and staff field offices across the state.

After a decision is reached on how to staff call centers, HHSC will be able to develop a more detailed transition plan and timeline for
employees. That means we'll be able to tell employees how many state jobs there will be in the new system, where the jobs will be located,
and what criteria will be used to determine who gets those positions. Our goal is to provide employees with this information several months
before any changes take place.

We recognize that this a stressful time. We will continue our efforts to use temporary workers, paid overtime and other innovative ideas to help deal with workload issues as we transition to the
new eligibility system. HHSC also remains committed to giving displaced eligibility employees priority consideration for other jobs
within the health and human services system.

We appreciate the continued dedication of our eligibility workers. Change is rarely easy, but our efforts will result in an eligibility system that is more convenient for Texans and makes better use of limited tax dollars. We will continue to provide employees with open and honest communication about the changes taking place in a timely manner so that you can make the best decision for you and your family.