1. NEATO Invitation To Bid ITB_Updated 2.23.21.doc

PAGE

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

FOR WOMEN, INFANTS, AND CHILDREN (WIC PROGRAM)

INVITATION TO BID

NC0126

FOR

NEW ENGLAND AND TRIBAL organizationS (NEATO)

WIC RETAIL INFANT FORMULA REBATE AGREEMENT

Cherokee Nation

Connecticut

Maine

Massachusetts

New Hampshire

Rhode Island Vermont Bid Due: Wednesday, March 17, 2021; 2:00 PM ET

TABLE OF CONTENTS

Tentative Timetable

Terminology

I. Introduction

A. Background

B. Commitment to Breastfeeding

II. Bid Requirements

A. Timetable

B. How to Submit a Bid

C. Evaluation Criteria

D. Bid Evaluation and Award

E. Agreement Period

F. NEATO Provisions

G. State of Connecticut, New Hampshire, and Vermont Special Provisions

III. Goods and Services to Be Provided

Table 2 Contract Formula Issued Table 3 Non-Contract Standard Formula Issued Table 4 Vermont Contract and Non-Contract Formula Issued

Appendix

DRAFT AGREEMENT

Attachment 1

BID SHEET

Attachment 2

EVALUATION CRITERIA

Attachment 3

TENTATIVE TIMETABLE

EVENT

DEADLINE

ITB Release Date:

January 20, 2021 Bidder Questions Due:

February 3, 2021, 11:00 AM ET Response to Bidder Questions:

February 24, 2021 Bids Due:

March 17, 2021, 2:00 PM ET Bids Opened:

March 17, 2021, 2:00 PM ET Tentative Contract Award Notification:

March 24, 2021 Agreement Start Date:

October 1, 2021 Terminology

1. “Bidder” refers to all potential respondents to this Invitation to Bid (ITB).

2. “Manufacturer” refers to the successful bidder who is subsequently awarded an Agreement.

3. “New England and Tribal Organizations” or “NEATO” refers to the six (6) states and one (1) tribe acting as a single entity in issuing the ITB and entering into a signed Agreement with the Manufacturer that receives the award as a result of this ITB.

4. “WIC vendor” refers to authorized WIC retail grocery stores and pharmaceutical stores.

5. “Infant formula” means a food that meets the definition of an infant formula in section 201(z) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(z)) and that meets the requirements for an infant formula under section 412 of the Federal, Food, Drug, and Cosmetic Act (21 U.S.C. 350a) and the regulations at 21 CFR parts 106 and 107.

6. “Contract brand infant formula” means all infant formulas (except exempt infant formulas) produced by the Manufacturer awarded the infant formula contract. If the Manufacturer subcontracts for soy-based infant formula, then all soy-based infant formulas covered by the subcontract are considered contract brand infant formulas. Contract brand infant formulas also include all infant formulas (except exempt infant formulas) introduced by the Manufacturer after the award.

7. “Primary contract infant formula” means the specific infant formula for which the Manufacturer submits a bid to NEATO in response to a rebate solicitation and for which a contract is awarded by NEATO as a result of that bid.

8. “Non-contract infant formula” means all infant formula (including exempt infant formula) that is not covered by the infant formula contract awarded by NEATO.

9. “Exempt Formula” means an infant formula that meets the requirements for an exempt infant formula under section 412(h) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 350a(h)) and the regulations at 21 CFR parts 106 and 107.

I. Introduction

The Cherokee Nation, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont acting as a single entity seek to comply with 7 CFR §246.16(a), soliciting sealed bids under the single-supplier competitive system from infant formula manufacturers to supply and provide a rebate on all infant formulas it produces that the above states or tribe choose to issue, except exempt infant formulas, to participants in the Special Supplemental Nutrition Program for Women, Infants, and Children (hereinafter WIC). No additional states or tribes shall be added to this alliance between the date of this bid solicitation and the end of the contract.

A. Background

The WIC Program is funded by the United States Department of Agriculture (USDA), Food and Nutrition Service (FNS). The purpose of the program is to provide supplemental foods, nutrition education, and referrals for health and support services to eligible participants. WIC provides services to pregnant, breastfeeding and post-partum women, infants, and children up to five years of age who are at nutritional risk. WIC provides a monthly prescription of supplemental nutritious foods (for example, low-fat milk, eggs, cheese, whole grain bread, iron-fortified cereal, fruits and vegetables, beans/peanut butter) to certified participants. Participants must meet residency, identity, and income eligibility requirements, and be verified to be at nutritional risk by a health care professional.

The WIC Program is administered on the local level by WIC agencies in the Cherokee Nation, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; [hereinafter the New England and Tribal Organizations (NEATO)]. In Massachusetts, state funding is provided in addition to federal funding.

Participants in NEATO are issued Electronic Benefit Transfer (EBT) cards that permit electronic access to WIC food benefits. Participants are issued a card to each family group or household for specific authorized foods. Food purchases are decremented from the card, pre-payment edits are performed on each item, processed through the WIC vendor’s system, and then transmitted through the accounting system of each NEATO member. WIC vendor payments are electronically paid to the vendor’s bank of choice.

Through the EBT system, all issued infant formula products are separate from other food benefits. Infant formula is restricted to the Formula Category and separated into subcategories defined by each infant formula’s unique Universal Product Code (UPC). NEATO issues infant formula benefits to participants in accordance with 7 CFR §246.10(e)(1) through (e)(3) and (e)(9), of the WIC Program regulations. In addition, each state/tribe has the option of providing the full nutritional benefit (FNB), using the rounding up methodology outlined in 7 CFR §246.10(h) when issuing infant formula. NEATO members can exercise their right to use this option at any time during the Agreement. Connecticut, Rhode Island, and the Cherokee Nation currently round up to the next whole unit of infant formula.

During October 2020, NEATO provided WIC benefits and services to 218,602 participants, 47,818 of which were infants. NEATO infant participation was as follows:

Be advised, the number of infant participants during the term of any Agreement entered into as a result of this ITB is dependent upon availability of funds and costs of WIC food items. No assurance can be given that participation and infant formula data included in this bid or in Data Tables 1, 2, 3, and 4 of the Data Tables Appendix will reflect actual issuance and redemption that will occur under the new Agreement.

B. Commitment to Breastfeeding

NEATO is fully committed to breastfeeding as the recommended choice for mothers. WIC is actively promoting breastfeeding and conducting initiatives to encourage breastfeeding and shall continue to pursue this commitment during the Agreement.

II. Bid Requirements

A. TIMETABLE

1. Question & Answer Period: Questions regarding this ITB must be submitted via email in a Microsoft Word document received not later than 11:00 AM ET on Wednesday, February 3, 2021. Responses to all questions shall be prepared jointly by NEATO, and shall be posted on Massachusetts’ official procurement system website, COMMBUYS

(http://www.commbuys.com). Responses shall be by consensus and binding upon any state/tribe as long as it continues to participate in the receiving of bids, evaluation of bids, awarding of the Agreement, and implementation of the Agreement. No oral responses shall be provided to bidder questions. All questions and comments shall be directed to the NEATO ITB Representative:

Beth Wilson-Lampro beth.wilson@mass.gov Written answers issued by NEATO in response to timely filed questions shall be posted on COMMBUYS by Wednesday, February 24, 2021. The answers shall be binding upon all NEATO members continuing to participate in the receipt and evaluation of bids and shall constitute an amendment to the ITB and incorporated into the Agreement.

2. Bid Due Date: The sealed bid comprising two documents, one (1) original bid signed in blue ink and one (1) duplicate copy of the bid without bindings, must be delivered to the NEATO ITB Representative, Beth Wilson-Lampro, by Wednesday, March 17, 2021 at 2:00 PM ET. The bid package must contain all of the information identified in Sections II.B. and C. Only bids received by the 2:00 PM ET deadline will be considered. Bids received by facsimile or email will not be accepted. Late bids will be rejected, without exception. See Section II.B.5 for address. Be advised, Massachusetts Department of Public Health staff are working remotely at this time, to ensure all mailed bids are received, all bidders must email the NEATO ITB Representative, Beth Wilson-Lampro, their bid submission intentions (mail or hand deliver at the public bid opening) at beth.wilson@mass.gov by Friday, March 12, 2021 at 2:00 PM ET.

3. Bid Opening: The bid opening shall be on Wednesday, March 17, 2021 at 2:00 PM ET. The sealed bids shall be opened, and page 1 of the Bid Sheet will be read aloud. No other information shall be given. The selection of the successful bidder shall not be made at the bid opening. The public bid opening will be held at the Massachusetts Department of Public Health’s WIC Learning Center (TLC), 63 Fountain Street, 3rd floor, Framingham, MA, 01702. Due to the evolving orders and guidance associated with the Massachusetts COVID-19 State of Emergency, only one person per bid shall be allowed to attend the public bid opening. Masks shall be worn properly, at all times and a distance of six feet between attendees must be maintained. Any attendee that does not comply with these COVID-19 safety measures will be asked to leave, without exception. A Webex link will be emailed by the NEATO ITB Representative to all interested parties prior to the public bid opening.

B. How to submit a bid:

1. Each bidder must submit any bid using the Bid Sheet (Attachment 2) and documents required to satisfy all technical requirements as outlined in the Evaluation Criteria (Attachment 3) and specified in this section II.B. and C.

2. Only bidders who offer all of the following products may submit a bid:

· powdered iron-fortified milk infant formula;

· powdered iron-fortified soy infant formula;

· liquid concentrate iron-fortified milk infant formula;

· liquid concentrate iron-fortified soy infant formula;

· ready-to-feed iron-fortified milk infant formula; and

· ready-to-feed iron-fortified soy infant formula.

See section II.C.1.d below for product specifications. Bidders who do not produce soy-based infant formula products directly may submit a bid only if they subcontract with another manufacturer to supply the soy-based infant formula per §7 CFR 246.16a(c)(2)(i).

3. The bid must be signed with an original signature in blue ink by a company representative with the legal authority to commit the company to this bid, as documented by a signed “Certificate of Corporate Resolution” or similar document attached with the bid.

4. The bid package, containing the one (1) original and one (1) duplicate copy without bindings, must be in a sealed inside envelope, separate from the outside envelope. The inner sealed envelope containing the bid package shall be labeled in the following manner:

SEALED BID – DO NOT OPEN

NEATO WIC INFANT FORMULA REBATE SYSTEM

5. All bidders must submit the official sealed bid containing one (1) original signature in blue ink and one (1) duplicate copy without bindings by Wednesday, March 17, 2021 at 2:00 PM ET to the Massachusetts NEATO ITB Representative:

Massachusetts Department of Public Health

WIC - The Learning Center (TLC) 63 Fountain Street, 3rd floor Framingham, MA 01702 Attention: Beth Wilson-Lampro Bidders can confirm with the Massachusetts NEATO ITB Representative via email that their bid was received. No other information shall be provided.

C. EVALUATION CRITERIA

1. Bid Sheet

a. Bids must be submitted on the Bid Sheet (Attachment 2). Numbers listed represent six months of the most recent data available for each state/tribe included in this ITB as the standardized number of units for evaluation. This includes the average monthly number of fully formula fed (FF) and partially breastfed (PBF) infant participants, excluding those exclusively breastfed and issued exempt formula, as well as the maximum monthly allowance of reconstituted amounts of each physical form of formula issued during the period.

b. All bids must be submitted to at least three decimal places, or the bid shall be disallowed.

c. Bidders shall record their lowest national wholesale price per unit for a full truckload as of the date of the bid opening.

d. Bids must be based on the bidder’s milk-based powder, liquid concentrate, and ready-to-feed physical forms. The milk-based formula must contain at least 10 milligrams of iron per liter (at least 1.5 milligrams iron per 100 kilocalories) at standard dilution (except as specified in 7 CFR §246.10(d) when medical documentation is required), meet the requirements under 7 CFR §246.10(e)(1)(iii) and (2)(iii), and be suitable for the routine issuance to the majority of generally healthy, full term infants.

e. Bidders must complete, sign, and notarize page 1 of the Bid Sheet (Attachment 2). The Bid Sheet is a pre-filled Excel workbook. Bidders shall only enter data in the highlighted cells on page 1. Page 2 will automatically populate based on data entered by the bidder in the highlighted cells on page 1. Include page 1 and 2 with your bid proposal.

2. Certifications

The following certifications shall be notarized on page 1 of the Bid Sheet:

a. The bidder must certify that it is registered with the Secretary of the United States Department of Health and Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) and its products and each infant formula product to be supplied under the terms of the Agreement, whether directly or through subcontracting, are in compliance with federal regulations issued pursuant to such Act.

b. The bidder must certify that it agrees to cooperate with NEATO and the current manufacturer (Abbott Laboratories) and any manufacturer awarded an Agreement for infant formula rebate as a result of a future procurement or an approved assignment of some or all of the Agreement awarded pursuant to this ITB to ensure that the delivery of contracted infant formula products is not interrupted during the transition from a preexisting contract and the commencement of a subsequent contract.

c. The bidder must certify that it can and shall supply the quantities of infant formula products offered by the bidder to meet one hundred percent (100%) of NEATO’s needs at all WIC vendors in all geographical areas.

3. Other Documentation

In order to meet WIC participant needs, NEATO is seeking to assure an adequate supply of infant formula products at all WIC vendors in all geographical areas served by each state/ tribe. The number of NEATO authorized WIC vendors are not guaranteed to remain constant but all bidders are hereby notified that as of 11/1/2020 the number of NEATO authorized WIC vendors are as follows:

NEATO Member Authorized WIC Vendors

Cherokee Nation

Connecticut

Massachusetts

Maine

New Hampshire

Rhode Island

Vermont

To this end, the bidders shall provide the following documentation with their bids, or the bid shall be disallowed:

a. The bidder shall provide a short description (no less than one paragraph but no more than one page) of the wholesale and distribution network that is, or shall be, established in all geographical areas served by each of the NEATO members in order to provide the required quantities of contracted infant formula products to all WIC vendors by the effective date of the Agreement. In addition, a list of wholesale distributors and/or distribution points to be used, including addresses, shall be provided.

b. The bidder shall provide a short description (no less than one paragraph but no more than one page) of how infant formula products offered by the bidder can be purchased by authorized WIC vendors at the bidder’s current published wholesale quantity/price categories. In addition, bidders shall enclose their nationally published wholesale price list as of Wednesday, March 17, 2021, for each type and form of infant formula in their product line.

D. Bid EVALUATION and awards

1. The Agreement will be awarded to the responsive and responsible bidder (as demonstrated through fulfillment of all eleven criteria elements in the Evaluation Criteria, Attachment 3) offering the lowest total monthly net price for a standardized number of units of infant formula. These requirements are explained in sections II.B. and C. above.

2. All bids shall be ranked by the lowest monthly total net cost, which is based on the lowest national wholesale price per unit for a full truckload of infant formula as of the date of the bid opening and rebate amounts. The monthly net wholesale cost for all formulas shall be determined for each bidder on the Bid Sheet, and the single lowest bidder determined.

3. Final ranking and determination shall be based on the responsive and responsible bidder (as explained in II.D.1. above) offering the lowest monthly net wholesale cost to NEATO (as explained in II.D.2. above).

4. The successful bidder and the non-selected bidder(s) shall be notified by email as soon as possible after NEATO evaluates the bids.

5. NEATO accepting an offer and making an award, acting as a single entity, shall post a public announcement on COMMBUYS.

E. AGREEMENT Period

1. The Agreement shall be effective for thirty-six (36) months beginning October 1, 2021 and ending September 30, 2024. NEATO shall have the option to extend the Agreement for one additional two-year period, or any portion thereof, under the same terms, conditions and rebate structure; this is non-negotiable and shall be included in the Agreement. A copy of the Draft Agreement is included as Attachment 1.

2. NEATO will notify the Manufacturer no later than January 31, 2024 if NEATO intends to exercise the option for an extension until September 30, 2026. Such notification shall have no effect on the remainder of the Agreement. NEATO reserves the unilateral right to order changes and/or to delay initiation of the Agreement if NEATO deems necessary and if such changes or delays do not alter the scope of the Agreement. Reference the Draft Agreement (Attachment 1) for complete details.

F. NEATO Provisions

1. NEATO reserves the right to accept or reject all or any part of any bid, to waive minor technicalities, and/or to award the bid solely as it deems to be in the best interest of NEATO, as defined through the result of the bid evaluation process set forth above and the Evaluation Criteria (Attachment 3).

2. The successful bidder’s proposed rebate and any extensions, if accepted, shall become the official rebate incorporated into the resulting Agreement. The official rebate and method by which the rebate is calculated is non-negotiable.

3. The offer of a rebate is voluntary, but once an offer is accepted, a binding contractual agreement exists. The conditions contained in this ITB and the attached Draft Agreement form the basis for the contractual agreement. Following the question, comment and response process, there shall be no modifications to the terms and conditions contained in this ITB and Draft Agreement, except as a result of said question, comment and response process or for the correction of errors. Bidders may submit proposed language or terms and conditions and modifications prior to the deadline for questions. Any such consideration and modification must recognize that competitive bid principles shall not allow any modification to terms related to the impact of the offer on net formula costs, that it is unlikely the needs of participants and the several state/tribe IT systems and the decision-making process would accommodate changes having significant impact on the rebate system, and that changes could only be those which are allowed by all the purchasing and administrative rules and policies of all of the states/tribe planning to implement the Agreement.

4. NEATO shall act as a single entity, accepting and implementing the most beneficial system. No individual state/tribe rebate offers shall be considered.

5. In the event of a conflict between the terms of the Agreement and the terms of a state/ tribe-specific clause in the Agreement Appendices, the terms of the Appendices shall control.

G. State of Connecticut, New Hampshire, AND VERMONT Special Provisions Connecticut: CGS 21a-12C. No person or entity shall manufacture, sell, offer for sale, or distribute in this state any infant formula or baby food that is stored in a plastic container, jar, or can that contains bisphenol-A. (1) “infant formula” means a milk-based or soy-based powder, concentrated liquid or ready-to-feed substitute for human breast milk, that is intended for infant consumption and is commercially available, and (2) “baby food” means a prepared solid food consisting of a soft paste or an easily chewed food that is intended for consumption by children two years of age or younger and is commercially available.

New Hampshire: Vendors doing business with the State of NH must obtain a Certificate of Good Standing from the NH Secretary of State.

Vermont: “Standard State Provisions for Contracts and Grants” (revision version dated December 15, 2017) constitutes part of this Agreement and is hereby incorporated by reference as if fully set forth herein and shall apply to the purchase of all goods and/or services by the State under this Agreement. A copy of this document is available online at: https://bgs.vermont.gov/purchasing-contracting/forms.

III. GOODS AND SERVICES TO BE PROVIDED

A. The milk-based formula specified by the bidder awarded the contract shall become the “primary contract formula” and shall be the first choice of issuance for all WIC participants eligible for formula by NEATO. All other formulas will be issued as an alternative to the primary contract formula.

B. Except for the issuance of primary contract formula as the formula of first choice, NEATO provides no guarantee of the quantity, type, or physical forms that will be used during the term of any Agreement resulting from this ITB.

C. Rebate is to be provided on all physical forms of infant formula the successful bidder produces, including any new infant formulas (except exempt formula) during the term of any Agreement resulting from this ITB.

D. The rebate for infant formula added to the contract after the start date (new and existing) is calculated using the wholesale price of the formula at the time the formula is approved for issuance by each state/tribe (see section III.F below).

E. A rebate is to be paid on any contract formula (except exempt infant formula) each state/ tribe chooses to approve for issuance. Each state/tribe may require medical documentation before issuing any contract infant formula per 7 CFR §246.16a(c)(9) and 7 CFR §246.10 (d)(1)(vi) and (2)(ii).

F. The rebate on all other contract infant formulas (including new formula, but excluding the primary contract formula) shall be calculated by multiplying the percentage discount for each corresponding physical form of the primary contract infant formula for which bids were solicited. The discount established at the beginning of the contract (by physical form), is used to calculate the rebate for infant formula (new and existing) added to the contract. Therefore, the percentage discount for the primary brand powder formula shall apply to other powder formulas produced by the successful bidder that are issued by NEATO, and so on for the liquid concentrate and ready-to-feed forms. The percentage discount must remain the same throughout the contract period except for the cent-for-cent rebate adjustments (see section III.H below).

G. If the successful bidder discontinues production of the primary contract infant formula, a rebate must be provided which yields the same net cost per ounce for the replacement formula.

H. Price level adjustments (increases or decreases) in the successful bidder’s lowest national wholesale price for a truckload of infant formula shall result in an automatic rebate adjustment on a cent-for-cent basis, taking effect for formula benefits redeemed, in accordance with state and federal rules, on or after the first day of the month following any such adjustment in the successful bidder’s lowest national wholesale price for a truckload of infant formula. Any adjustments in the lowest national wholesale price for a truckload of infant formula after completion of the bid sheet shall be reflected in a cent-for-cent adjustment to the initial bid amount.

I. Purchase of non-contract brands of infant formula by NEATO is allowed with medical documentation per 7 CFR §246.10(d)(1)-(2). Be advised, the state of Vermont is joining the NEATO consortium for the Agreement starting October 1, 2021. In accordance with 7 CFR §246.10 (d)(2)(i) Vermont currently authorizes issuance of non-contract brand infant formula that meets the requirements in Table 4 of paragraph (e)(12) of 7 CFR §246.10 without medical documentation in order to meet religious eating patterns (see Table 4 of the Data Table Appendix for Vermont infant formula issuance under their current contract).

J. The successful bidder cannot be required to provide gratis items, such as sample units of infant formula, and/or educational materials, such as brochures and flyers.

K. The successful bidder can contact each state/tribe for routine business activities. The NEATO ITB Representative can be contacted for information on bid solicitations.

L. The successful bidder shall:

1. Provide all infant formula products required in any Agreement in sufficient supply to meet one hundred percent (100%) of WIC caseload requirements for purchase during the Agreement period. These products shall be packaged in containers which are not different than the containers distributed by the successful bidder to retail vendors for sale to the general public, consistent with any applicable state or tribal laws regarding containers.

2. Guarantee availability of said infant formula products to all of the NEATO vendors through currently utilized marketing channels and practices, or makes such distribution changes as needed to guarantee availability. WIC vendors are responsible for stocking adequate levels of contract formula made available by the successful bidder through its marketing channels and practices.

3. Identify the individual responsible for ensuring product availability in each state/tribe.

4. Not less than thirty (30) days prior to implementation of the Agreement contact all major wholesalers/brokers, all authorized WIC retail outlets (i.e., chain and independent grocers and pharmacies), and grocer and wholesaler associations in each state/ tribe to assure adequate knowledge of the contract brand of WIC infant formula products by those parties.

Each state/tribe shall supply necessary information, such as the names and addresses of current authorized WIC vendors. Each state/tribe shall also communicate directly with WIC retail outlets to inform them of any change in contract brand of formula. The successful bidder shall not have access to any information about a vendor that individually identifies the vendor except for the vendor’s name, address, telephone number, website, email, store type, and authorization status per 7 CFR § 246.26(e).

5. Remit to each state/tribe a rebate per unit, as specified in this section III above and in Attachment 1, Draft Agreement, Section 2 (Manufacturer’s Rebate).

6. Provide notification of any new or replacement milk or soy-based infant formula products at least as early as notification is made to all other customers. Such products must be submitted to and approved for use in each state/tribe, at the sole discretion of each state/ tribe. Each state/tribe reserves the right to accept or reject the successful bidder’s offer.

7. Provide at least 90 days advance notification to NEATO of any changes in labels, unit size, reformulation, UPC Number, and discontinuation of infant formula.

8. Accept substitution by a state/tribe of another company’s (ies’) infant formula products to provide participant(s) with his/her monthly allotment, during any period when the successful bidder’s product is not available for order or has a factory back order or delivery failure of three (3) days or more, which affects product availability at a wholesale or retail customer of the successful bidder. If there is a temporary shortage of a particular product brand issued to WIC participants and the successful bidder has made its best efforts to alleviate the shortage, NEATO shall first substitute alternate forms (i.e., powder, liquid concentrate, ready-to-feed) of the primary contract brand, or, shall first provide another type of the successful bidder’s formula to relieve any temporary supply problems, before resorting to the use of non-contract brand formula. If this is not possible, the successful bidder shall offer to the affected state/tribe a rebate which yields the same net wholesale cost per ounce as the comparable ingredient base or form stipulated in this ITB. All medical documentation requirements specified in III.E. & I. above will be followed. See Attachment 1, the Draft Agreement, Section 2.

9. Make monthly rebate payments to each state/tribe based on the invoice and billing method as specified in Attachment 1, the Draft Agreement, Section 4, and the documentation of purchases submitted by the respective state/tribe, based upon the number of units issued and redeemed, supported by documents subject to audit. Each state/tribe shall not be obligated by the successful bidder to make changes to their food benefit tracking, reporting, and reconciliation systems for the purposes of any Agreement resulting from this ITB. See Attachment 4 for copies of recent rebate invoices from each state/tribe. Be advised, Maine began the transition to EBT in June 2020, rebate invoices provided reflect the combined detail of both paper and EBT benefits.

10. Transmit monthly rebate payments by check/wire transfer/electronic funds transfer to each state/tribe within thirty (30) days of receipt of the invoice. If payment is not forwarded to each state/tribe within thirty (30) days of receipt of the invoice, the successful bidder shall pay the state/tribe, in addition to the amount due, interest at a rate of three-quarters of one percent (.75%) per month or portion thereof on the unpaid balance from the expiration of such thirty (30)-day period until such time that payment is received by the state/tribe.

11. Be totally and exclusively responsible for all costs related to requests for audits, inspections, and reviews of NEATO’s or any state/tribe’s records created solely for this purpose, outside of the usual documents (such as the state/tribe’s MIS or paper records) required to report invoices reflecting the number of units issued and redeemed. Access to actual or archived food benefit information and/or other confidential records shall be subject to state, tribe and federal confidentiality requirements. The successful bidder shall not have access to actual or archived documents or other confidential records that identify WIC applicants, participants, and/or household members per 7 CFR § 246.26(d)(1)(i).

12. Be totally and exclusively responsible for any costs associated with any claim arising from such an audit, including any fees incurred by an independent auditor. In the event that a claim submitted by the successful bidder for billing errors is disputed by a state/tribe, the successful bidder and the state/tribe shall agree upon an independent auditor to review the claim and determine its validity.

13. Provide any state/tribe with its audit standards, guides and audit plan for conducting the audit thirty (30) days prior to conducting the audit.

14. Reference Attachment 1, the Draft Agreement for complete details on terms and conditions.

Invitation To Bid for the New England and Tribal Organizations (NEATO) WIC Infant Formula Rebate System - REVISED February 19, 2021