The file's text, extracted by GovTribe without its formatting.
STATE OF MICHIGAN
ENTERPRISE PROCUREMENT
| Department of Technology, Management & Budget |
| Constitution Hall |
525 W. Allegan St., 1st Floor.
Lansing, MI 48909
Bidder Questions & Answers Michigan Department of Health and Human Services (MDHHS) Women, Infants, and Children Infant Formula Rebate Program Request for Proposal 210000001676
IMPORTANT NOTE: As part of the Question and Answer process the following documents have been updated. You are responsible for using correct solicitation documents when submitting bid proposal.
· Proposal Instructions
· Schedule A - Statement of Work
· Schedule B – Pricing
· Schedule C- Bidder Response
· Standard Contract Terms Revisions have been captured in light blue highlight.
| Q# |
| Document and Section |
| Page # |
| Bidder Question |
Answer (to be completed by the State)
| 1 |
| Proposal Instructions |
| 4 – Section 6. – Delivery of Proposal |
| When entering an electronic bid in SigmaVSS, the mandatory fields of “Unit Price” and “Delivery Days” must be entered. Please provide information on what is being requested to be entered in these fields in order to submit an online bid. |
Please feel free to fill in as you like. This will not be used for evaluation. Schedule B – Pricing will be used for evaluation of pricing.
| 2 |
| Proposal Instructions |
| 5 – Section 7. – Evaluation Process |
| Please confirm a bidder’s QDV/SDVOB status is not applicable to this solicitation as bid evaluation is governed by specific federal regulations. |
| We can confirm that answering yes or no to QDV/SDVOB question on the Vendor Questions Worksheet will not prevent an organization from competing for the contract nor put you out of compliance in regard to Schedule C – Bidder Response. |
| 3 |
| Proposal Instructions |
| 5 – Section 7. – Evaluation Process |
| Did the State conduct any on-site visits or tours, or inspect the bidder’s facilities under the existing contract? Does the State anticipate invoking this provision under the new contract resulting from this bid? |
| No |
At this time no.
| 4 |
| Proposal Instructions |
| 6 – Section 10.h. Reservations |
| Please confirm this provision is not applicable to this WIC infant formula rebate solicitation. Please further confirm negotiations on price are not permitted and are not consistent with the federal regulations governing this WIC solicitation. |
| Confirmed. |
Pricing will not be negotiated. Award recommendation will be based as stated in Proposal Instructions – Section 11. Award Recommendation.
| 5 |
| Proposal Instructions |
| 6 – Section 10.i. Reservations |
| Please confirm this provision is not applicable to this WIC infant formula rebate solicitation and that a single award will be made to the qualified bidder offering the lowest total net cost per month. |
| It would not apply in this case. As noted in Schedule A – Statement of Work (page 5) “…The State intends to award a contract to a single manufacturer whose proposal offers the lowest total monthly net price for iron-fortified milk-based infant formula that is suitable for routine issuance to the majority of healthy, full-term infants.” |
| 6 |
| Proposal Instructions |
| 6 – Section 10.j. Reservations |
| Please further explain how the State might evaluate proposals “outside the scope identified in the Evaluation Process section of this document if the State receives only one proposal.” Please clarify the meaning of this section. |
| This is boiler plate language. Do not see this being applicable for this project. |
| 7 |
| Proposal Instructions |
| 6 – Section 12. – Debrief Meeting and Bid Protest |
| Please confirm the State notify all potential bidders when a bid protest if filed? How will bidders receive copies of any bid protests that are filed? |
| The State does not notify Bidders of protest. Bidders may submit a FOIA request. |
Please click on the below link (or copy and paste into your browser) to find applicable information pertaining to Freedom of Information (FOIA) requests. Requests are to be sent to the DTMB Central Procurement records designation.
http://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48677-57230--,00.html
| 8 |
| Proposal Instructions |
| 6 – Section 12. – Debrief Meeting and Bid Protest |
| Please provide additional information on pre-bid protest procedures for this solicitation. The link provided to the “Program and Policies” section of the website appears to only address award decisions. |
| No additional information to provide. No pre-bid protest procedures exist. |
| 9 |
| Proposal Instructions |
| 7 – Section 13. – Administrative Board |
| How soon after the Award Recommendation will the State forward the draft contract to the winning bidder? |
| Anticipate a few weeks after award recommendation. |
| 10 |
| Proposal Instructions |
| 7 – Section 14. – General Conditions |
| This section states bidders’ proposals will be irrevocable and binding for a period of 180 calendar days from the date of submission. We request the State amend this section by limiting the binding nature of the bids to 90 days. This provision is burdensome and diminishes the attractiveness of this bid by adding uncertainty for bidders who will need assess other bid opportunities once bids are submitted for this solicitation. Ninety days provides the State with ample opportunity, according to its own schedule, to make an award an execute a contract. |
| Language will remain as stated. As noted in the proposal instructions, Friday, June 4, 2021 is the anticipated award recommendation. |
| 11 |
| Proposal Instructions |
| 12 – Vendor Questions Worksheet |
| We urge the State to remove the questions regarding changes in bidders’ organization structure and bidders’ company history, growth etc. These questions are not relevant to the State and have no bearing on bidders’ ability to fulfill the requirements of the contract resulting from this RFP. If the State requires specific financial information from bidders to ensure ability to perform, the State should request such data. We respectfully request and urge the |
State to remove these questions or fully explain how they relate to this WIC infant formula rebate contract.
Language will remain as stated. This is standard solicitation language regardless of what the distinct solicitation may be for.
| 12 |
| Proposal Instructions |
| 12 – Vendor Questions Worksheet |
| For the question regarding litigation against the State of Michigan, please add a timeframe to this question (i.e., 3-5 years). |
| Language to remain as stated. |
| 13 |
| Proposal Instructions |
| 13 – Vendor Questions Worksheet |
| For the first full question on this page regarding default or termination of a contract, we request the State amend by limiting this question to related contracts (i.e., other WIC rebate contracts in Michigan). |
| Language to remain as stated. |
| 14 |
| Proposal Instructions |
| 13 – Vendor Questions Worksheet |
| For the second question regarding gross annual sales, we request the State amend this question by removing the first part and simply asking whether the contract under this RFP will increase gross revenue by more than 25%. All of the likely bidders responding to this solicitation have extensive experience with WIC infant formula rebate contracts and as such gross sales is not a relevant measure of ability to perform under this contract. |
| Language to remain as stated. |
| 15 |
| Proposal Instructions |
| 13 – Vendor Questions Worksheet |
| The question regarding partnerships and strategic relationships is not relevant to the bid evaluation, and in fact not permissible under the federal regulations. Therefore, we request this question be removed from this questionnaire. The State can discuss these relationships with the winning bidder. |
| We can confirm that the response to partnerships and strategic relationships you think will bring significant value to the State on the Vendor Questions Worksheet will not prevent an organization from competing for the contract nor put you out of compliance in regard to Schedule C – Bidder Response. |
| 16 |
| Proposal Instructions |
| 13-14 – Vendor Questions Worksheet – 3. Qualified Disabled Veteran/Service -Disabled Veteran-Owned Business Program |
| We request the State remove the question related to “qualified disabled veteran.” This status has no bearing on selecting a winning bidder and is not relevant to the bid evaluation. If unwilling to remove, please provide an explanation for why this question must be answered prior to submitting a bid, and how this question is consistent with the federal regulations governing this WIC rebate bid. |
| Please refer to response to question 2. |
This question is not answered prior to submitting a bid. Please refer to Proposal Instructions. Section 1. Proposal Preparation. This conveys all documents that need to be included in proposal submission by the May 26 deadline.
| 17 |
| Proposal Instructions |
| 14-15 – Vendor Questions Worksheet – 5. State of Michigan Experience and Prior Experience |
| Is this question limited to experience with the WIC Program in the State of Michigan? Please further explain what is requested with this question, and please consider limiting the scope of the question. |
| The first box is addressing any experience in working with the State. The second box is asking for experiences relevant to this RFP (Describe at least 3 relevant experiences…) |
| 18 |
| Proposal Instructions |
| 17 – Vendor Questions Worksheet – 7. Michigan Economic Impact |
| We urge the State to remove this section from the Vendor Questions. These questions are not related to performance under this contract and federal regulations prohibit the State from using any of the data in these questions from the bid evaluation process. How much bidders pay their employees and whether they are covered by health insurance are not factors relevant to this WIC infant formula rebate solicitation. We again urge the State to remove these questions. |
| We can confirm that the responses to section 7 – Michigan Economic Impact of the Vendor Questions Worksheet will not prevent an organization from competing for the contract nor put you out of compliance in regard to Schedule C – Bidder Response. |
| 19 |
| Schedule A – Statement of Work, Contract Activities |
| 6 |
| The second paragraph on this page refers to a separate contract document. Would the State provide a draft contract for bidders to review prior to submitting bids? |
| No draft contract will be provided. This is simply implying the included Statement of Work is not the official contract. A separate document comprised of the Statement of work, pricing and standard contract terms will be the official contract. |
| 20 |
| Schedule A – Statement of Work, Contract Activities |
| 7 |
| We are concerned the State has not fully captured all of the infants federal regulations require to be included on the Bid Sheet. The Bid Sheet lists 37,976 infants who “received” (does this mean issued) contract brand infant formula from March 2020 through February 2021. However, page 7 of Schedule A, states “The average monthly number of infants issued Contract Brand Infant Formula was 38,645 . . .” It appears approximately 700 infants have not been included on the Bid Sheet. Please review the data and correct either the Bid Sheet or the data provided on Page 7. USDA regulations require all infants other than those exclusively breastfed or those receiving exempt formulas to be included on the Bid Sheet for purposes of calculating the standardized number of units of infant formula. |
| Variations in data exist related to fluctuations in variables. The data contained in Schedule B on the Bid Calculation Sheet represents the most accurate infant issuance data for the dates specified and is sufficient to submit a competitive bid. |
Schedule B - Bid Calculation Sheet has been amended as follows:
The language contained under the first Note (bottom) has been changed to read "issued" instead of "receiving."
Schedule A has been amended as follows:
From: “The average monthly number of infants issued Contract Brand Infant Formula was 38,645 and the average monthly number of infants issued exempt infant formula was 4,225.”
To: “The average monthly number of participants issued Contract Brand Infant Formula was 38,645 and the average monthly number of participants issued exempt infant formula was 4,225.”
| 21 |
| Schedule A – Statement of Work, Contract Activities |
| 7 |
| We request the State provide infant participation data reported to FNS/USDA for the month of February 2022. This data is referenced in the solicitation but not yet included on USDA data tables. Based on the data reported by USDA through January 2021, it appears the State is under-stating the number of infants it has included on the Bid Sheet. The data reported by USDA through January 2021 lists an average monthly total 43,914 infants receiving infant formula. Page 7 of Schedule A, states 4,225 infants received exempt infant formula. This suggests 39,689 infants were receiving contract and/or non-contract, non-exempt formula. However, only 37,976 infants are included on the Bid Sheet – a difference of 1,713 infants. |
| February 2021 data |
| Full Breastfed 6,052 |
Partial Breastfed 4,976
Infant full formula 36,620
Total Infants 47,648
Please refer also to responses to questions 20 and 22.
| 22 |
| Schedule A – Statement of Work, Contract Activities |
| 7 |
| We request the State provide a Table listing the monthly number of infants for each month – March 2020 through February 2021, listed by feeding type (i.e., exclusively breastfed, fully formula fed, partially breastfed, and those receiving exempt infant formula). |
| The monthly average of exempt infant formula has been provided in Schedule A. Click on this link |
https://www.fns.usda.gov/pd/wic-program for USDA Monthly Data – State Level Participation by Category.
| 23 |
| Schedule A – Statement of Work, Contract Activities |
| 7 |
| The issuance data provided in the second paragraph under SCOPE, indicates issuance for each type of infant formula exceeds the amount redeemed and included on the invoices provided on pages 22-24. Redemption of soy concentrate in December 2020 appears to represent roughly 72% of the soy concentrate issued. Is the State able to provide average redemption rates for each type and form of infant formula? Does the State capture the number of participants who are issued infant formula and do not redeem at all? |
| Sufficient benefit issuance and redemption data has been provided to allow a bidder to submit a competitive proposal. |
| 24 |
| Schedule A – Statement of Work, Contract Activities |
| 8 |
| The first full sentence on this page states: “The WIC Program currently does not authorize Non-Contract Non-Exempt Infant Formulas.” Will the State adhere to the same policy during the term of the contract resulting from this RFP? |
| The State does not plan to make a change at this time. |
| 25 |
| Schedule A – Statement of Work, Contract Activities |
| 8 |
| If the winning Bidder does not offer a rice-thickened, 20-calorie infant formulas such as Enfamil AR, will the State continue to adhere to its current policy with respect to non-contract non-exempt formulas? Please indicate how and whether the State’s current policy might change if the contractor does offer a rice-thickened infant formula. |
| Please refer to response to question 24. |
| 26 |
| Schedule A – Statement of Work, Contract Activities |
| 8 |
| Which methodology is the State currently using to issue infant formula – the “Monthly Maximum” or the “Round Up” methodology? |
| The State currently uses a Monthly Maximum methodology, per WIC Federal Regulations, but utilizes Round-Up Methodology for specific age groups when the Monthly Maximum methodology exceeds the allowable monthly maximums. |
| 27 |
| Schedule A – Statement of Work, Contract Activities |
| 8 |
| We understand exempt infant formula is “Out of Scope” for purposes of paying rebates on WIC formulas. However, exempt infant formula is necessary for bidders to properly evaluate this bidding opportunity. Therefore, we request the State provide a table listing the number of units, by brand, type, and size of exempt infant formulas issued in each of the most recent 3-4 months. We respectfully urge the State to provide this data. The bidder fully understands what is necessary to evaluate this solicitation and submit a competitive proposal. |
| Sufficient data has been provided to allow a bidder to submit a competitive proposal. |
| 28 |
| Schedule A – Statement of Work, Contract Activities |
| 8 |
| Requirements – 1.1. Product Specifications – Please confirm the State has reviewed and will comply with the USDA Policy Memorandum issued on October 7, 2019 regarding bidding on single milk- and soy-based infant formula rebate contracts. |
| The State is aware of and will comply with the USDA WIC Policy Memorandum issued on October 7, 2019. |
| 29 |
| Schedule A – Statement of Work, Contract Activities |
| 10 |
| Requirements – 1.1.12. – 90 days advance notice of a price change far exceeds usual and typical price notifications for infant formula and the WIC Program. We urge the State to amend this section by requiring 30 days’ notice or notice at the time the Contractor notifies its other customers. Please confirm the State will amend this section to be consistent with both WIC and industry norms. |
| The section will remain as stated. |
| 30 |
| Schedule A – Statement of Work, Contract Activities |
| 11 |
| 1.5 Transition – We request the State outline the transition process it will utilize if there is a new Contractor resulting from this RFP. Will the State issue up to three months of benefits for the current contractor’s formulas each day and month up to October 31, 2021? For example, will a participant receiving benefits for the first time on October 1 (or receiving their next three months of benefits on October 1) receive October, November, and December benefits for the current Contractor’s formulas, or will the infant receive the current Contractor’s formulas in October and the new Contractor’s formulas in November and December? |
Michigan is an online EBT state. In the case of a change to a new manufacturer’s products, if a family’s Benefit Start Date (BSD) falls before November 1, 2021, the family will only be able to redeem WIC benefits for the previous manufacturer’s products through November 30, 2016. Families with a BSD on or after November 1, 2021, will only be able to redeem the new manufacturer’s products.
For example, a family with a BSD of October 15, 2021 would be able to redeem the previous manufacturer’s products through November 14, 2016.
| 31 |
| Schedule A – Statement of Work, Contract Activities |
| 11 |
| 1.5 Transition – Do most infants receive three months of benefits each month? If yes, what percentage of infants receive three months of benefit at a time? |
In accordance with Michigan WIC policy, local agencies may issue benefits at 3 month intervals, for no more than three full months.
While the data requested regarding what percentage of infant benefits are issued for three months is not available, it is our estimation that this is the prevailing practice.
| 32 |
| Schedule A – Statement of Work, Contract Activities |
| 11 |
| 2.1 Delivery – As this is a rebate contract with infant formula delivered through regular retail channels, please confirm this section does not apply to the WIC rebate contract resulting from this RFP. |
| 2.1 Delivery language has been removed. |
| 33 |
| Schedule A – Statement of Work, Contract Activities |
| 12 |
| 2.4 Errors – Paragraph 2 – Please confirm this provision applies only to disputes involving mathematical or other obvious errors on the invoice. We request this section be amended to provide 120 days for notice rather than 45. Forty-five days in an unreasonably short notice period. |
| This section will remain as stated. |
| 34 |
| Schedule A – Statement of Work, Contract Activities |
| 12 |
| 2.4 Errors – Paragraph 4 – Please confirm the State will fully cooperate with the Contractor when an audit of WIC rebate data is requested. Please further confirm the State will comply with all reasonable requests for data not covered by confidentiality regulations. |
| This section will remain as stated. Additionally, records that are subject to the State’s Freedom of Information Act (FOIA) law may be requested and produced in accordance with that law. Please refer to response to question 7 for instructions on how to submit a FOIA request. |
| 35 |
| Schedule A – Statement of Work, Contract Activities |
| 12 |
| 2.4 Errors – Please confirm all disputes involving funds owed by the Contractor must be settled by closeout of the fiscal year in which the dispute occurred. |
| Please see Schedule A, 2.4 #3. This section will remain as stated. |
| 36 |
| Schedule A – Statement of Work, Contract Activities |
| 13 |
| 3.3 Disclosure of Subcontractors – This section includes a Form to be completed and submitted with the bid. Please confirm if this section and/or Schedule A itself is required to be filled out and submitted with the bid. |
| Yes. Please refer to Proposal Instructions. Section 1. Proposal Preparation. This conveys all documents that need to be included in proposal submission by the May 26 deadline. |
Additionally, if a Contractor will not be using a subcontractor, within section 3.3 the very first box next to the box that reads “The legal business name address, telephone number of the subcontractor(s)” simply state Contractor will not require the use of subcontractors.”
| 37 |
| Schedule A – Statement of Work, Contract Activities |
| 16 |
| 4.2. Price and Product Changes – As noted above, we urge the State to amend this section by requiring 30 days advance notice of prices changes or notice at the same time the Contractor notifies its other customers. Please confirm the State will amend this section accordingly. |
| Please refer to response to question 29. |
| 38 |
| Schedule A – Statement of Work, Contract Activities |
| 16 |
| 4.2.B.3. – Is the State prohibiting the replacement of the primary contract formula during the term of this contract? Please provide additional information for bidders to understand the circumstances under which the State might cancel the Contract if the primary contract formula is replaced. |
| The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal. Accordingly, this section will remain as stated. |
| 39 |
| Schedule A – Statement of Work, Contract Activities |
| 17 |
| 4.2.B.5. – Please confirm the State will not unreasonably withhold approval of a product change for a formula that is approved by the Food and Drug Administration and is suitable for routine issuance to the majority of healthy, full-term infants. |
| This section will remain as stated, with the exception specified in response to question 82. |
| 40 |
| Schedule A – Statement of Work, Contract Activities |
| 17 |
| 6. Invoice and Payment – Please confirm the State will only bill the Contractor for rebates on containers of infant formula lawfully purchased at authorized retail vendors by WIC participants. |
| This section will remain as stated. |
| 41 |
| Schedule A – Statement of Work, Contract Activities |
| 19 |
| 7. Project Plan, paragraph 5 – Please provide a list of all Authorized WIC Vendors. |
| This information is not necessary for a bidder to submit a competitive proposal. |
| 42 |
| Schedule A – Statement of Work, Contract Activities |
| 19 |
| 7. Project Plan, paragraph 5 – How many WIC-only (above 50 percent vendors) currently operate in the State? |
| Michigan does not currently authorize any WIC-only vendors. |
| 43 |
| Schedule A – Statement of Work, Contract Activities |
| 19 |
| 7. Project Plan, paragraph 5 – Please provide a listing of the minimum stocking requirements for each infant formula product expected to be authorized (or currently authorized). Please provide the stocking requirements for all three forms of formula. |
Click here to access the current minimum stock requirements, including those for infant formula.
| 44 |
| Schedule A – Statement of Work, Contract Activities |
| 19-20 |
| 8. Rebate Invoice Billing Credits – this section references “a Rebate Invoice Bill Credit in the amount of $5,000 for each day the Contractor fails to remedy either the unavailability of infant formula or non-payment of infant formula rebate.” Is this Rebate Invoice Billing Credit an additional payment on top of regular rebate payments? Please specify the actual “loss and damage of the Department” that is contemplated and therefore is the basis for this provision. As currently written this provision appears punitive. Please provide additional details for how this provision might be applied, and please include an example that might necessitate invoking this provision. As currently written, this provision is ambiguous, and its scope and necessity is unclear. |
| This section will remain as stated. |
| 45 |
| Schedule A – Statement of Work, Contract Activities |
| 19-20 |
| 8. Rebate Invoice Billing Credits – Given the risk mitigation plan required by this section, please further explain the role of the Rebate invoice Bill Credit. Is the Credit intended to be a penalty and/or windfall payment to the State? How will the funds received from a Billing Credit be used to offset supposed costs incurred by the State? Please detail what these costs would be. |
| This section will remain as stated. The Rebate Invoice Billing Credit section was specifically included in the RFP as a result of previous questions resulting in an amendment of the RFP in previous cycles. |
| 46 |
| Schedule A – Statement of Work, Contract Activities |
| 22-24 |
| We request copies of at least 6 months of rebate invoices, including the March 2021 invoice. These reports are available and have been provided to the existing Contractor. All bidders should have the same information on which to evaluate this bid opportunity. |
| The three months of rebate invoices provided are sufficient to allow the bidder to submit a competitive proposal. |
| 47 |
| Schedule C – Bidder Response |
| 2 |
| Please confirm that the Schedule A document itself is not required to be submitted with the bid response. |
| Please refer to response to question 36. |
| 48 |
| Schedule C – Bidder Response |
| 2 |
| Please confirm that the Standard Contract Terms document itself is not required to be submitted with the bid response. |
| It is required. Please refer to Proposal Instructions - Section 1. Proposal Preparation. This conveys all documents that need to be included in proposal submission by the May 26 deadline. |
Additionally, if track changes are required, please refer to Proposal Instructions - Section 7. Evaluation Process and Vendor Question Worksheet – Section 6. Standard Contract Terms.
Note: below is partial language from Section 7. Evaluation Process:
“…The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the bidder’s need for each proposed change. Failure to include track changes with an explanation of the bidder’s need for the proposed change constitutes the bidder’s acceptance of the Contract Terms. General statements, such as that the bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.
| 49 |
| Standard Contract Terms |
| 4 |
| 11. Staffing – Please confirm this provision does not apply to this WIC infant formula rebate contract. This provision is not realistic, nor is it appropriate for a WIC rebate contract. |
| Language will remain. See Schedule A – Statement of Work, Section 3. Staffing. |
| 50 |
| Standard Contract Terms |
| 4 |
| 12. Background Checks – Please confirm this provision does not apply to this WIC infant formula rebate contract. The Contractor will not have access to any database information maintained by the federal government and therefore this provision is not appropriate for a WIC rebate contract. |
| Confirmed. |
| 51 |
| Standard Contract Terms |
| 4-5 |
| Sections 16. Acceptance; 17. Delivery; 19. Warranty Period; 20. Terms of Payment – Please confirm these provisions are not applicable to this WIC Infant Formula Rebate contract. As written in these standard terms they clearly do not apply to this type of contract. Please confirm. |
| Confirmed. |
| 52 |
| Standard Contract Terms |
| 8 |
| We request the State provide both parties with the right to terminate the contract for convenience with at least 180 days’ notice. We note the State would need this amount of time to rebid a new contract. |
| If a Bidder does not agree to the Standard Contract Terms, please refer to Proposal Instructions - Section 7. Evaluation Process and Vendor Question Worksheet – Section 6. Standard Contract Terms |
| 53 |
| Standard Contract Terms |
| 14 |
| 51. Entire Agreement and Order of Precedence – We request the State incorporate the Q&As into the contract resulting from this solicitation. |
| Applicable changes made during the Q&A process will be incorporated into the contract. |
| 54 |
| Standard Contract Terms |
| 16 |
| Federal Provisions and Addendum – Please confirm the State agrees this is not a “federally assisted construction contract.” |
| Confirmed |
| 55 |
| Standard Contract Terms |
| 18 |
| 2. Davis-Bacon Act (Prevailing Wages) – Please confirm the State agrees this is not a prime construction contract. |
| Confirmed |
| 56 |
| Standard Contract Terms |
| 19 |
| 3. Copeland “Anti-Kickback” Act – Please confirm the State agrees this is not a contract for construction or repair work in excess of $2,000 where the Davis-Bacon Act applies. |
| Confirmed |
| 57 |
| Standard Contract Terms |
| 19 |
| 4. Contract Work Hours and Safety Standards Act – Please confirm the State agrees this contract does not involve the employment of mechanics or laborers. |
| Confirmed |
| 58 |
| Standard Contract Terms |
| 23 |
| 10. Additional FEMA Contract Provisions – Please confirm funds from FEMA are not a part of this contract. |
| Confirmed |
| 59 |
| Additional Question |
| n/a |
| Would the State consider amending the base term of this contract to three years, with two extensions available by mutual consent of the parties? |
| No. The terms of the contract are non-negotiable. |
| 60 |
| Additional Question |
| n/a |
| Will MI WIC be sending a notice to authorized vendors, hospitals and healthcare providers if there is a change in the provider of contract infant formula? |
| Yes |
| 61 |
| Additional Question |
| n/a |
| What are the top 5 retail chains in each of the States in terms of total WIC dollar volume? |
| This information is not necessary for a bidder to submit a competitive proposal. |
| 62 |
| Additional Question |
| n/a |
| Have both the local agencies and the clinics been open and taking in-person visits since the pandemic, or has the State been utilizing WIC waivers to provide services online? Does the State believe participation has either increased or decreased because of the pandemic? Does the State foresee benefits by continuing to provide online services to WIC participants once the pandemic is over? |
| Click on this link for the status of Michigan WIC pandemic-related waivers, including physical presence: |
Click on this link https://www.fns.usda.gov/pd/wic-program for USDA Monthly Data – State Level Participation by Category.
This information is not necessary for a bidder to submit a competitive proposal.
| 63 |
| Additional Question |
| n/a |
| Understanding fraudulent activity with respect to WIC infant formula is essential in evaluating this proposal. Therefore, we respectfully request the State respond to our questions on this topic. It is important to bidders in understanding the full scope of this contract and understanding whether the State is committed to minimizing fraudulent WIC infant formula transactions that may involve the Contractor paying rebates on infant formula that is never actually purchased by WIC participants. With that said, separate from current methods for identifying high-risk vendors, other States utilizing an EBT system have identified routine reports that can be effective in identifying WIC fraud and/or trafficking in WIC Food Instruments. Has Michigan WIC identified specific reports that can be utilized to detect fraudulent activity? If yes, can the State provide a brief overview of such reports without revealing methods? |
| The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal. |
| 64 |
| Additional Question |
| n/a |
| Does Michigan WIC conduct inventory audits of its WIC retail vendors directed specifically at infant formula, the highest priced WIC-approved food? If inventory audits are conducted, do these audits determine whether infant formula purchased by WIC retail vendors is only purchased from authored wholesalers and distributors? |
| Yes, inventory audits are conducted. |
Yes.
| 65 |
| Additional Question |
| n/a |
| Do these audits determine whether purchases of infant formula by WIC retail vendors match its redemption history (i.e., address trafficking of WIC EBT cards)? For example, would the State’s inventory audit identify instances in which a WIC retail vendor has documentation for 100 units of formula purchased in a month but submitted redemption requests to the State for 2,000 units? |
| The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal. |
| 66 |
| Additional Question |
| n/a |
Have there been documented instances of either participant or retailer fraud identified in the last five years? What actions were taken in response to such instances? Were funds recovered?
The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal.
| 67 |
| Schedule A - Statement of Work Contract Activities |
| Pages 1 - 25 |
| A. Please confirm that Schedule A - Statement of Work Contract Activities is not required to be submitted in the bidder's response to this RFP. |
B. If not confirmed, please specify the page numbers that need to be included for a bid submission to be considered complete Schedule A – Statement of Work is to be included. Although the Statement of Work indicates several times throughout that “Bidder must provide response in Schedule C, Bidder Response,” section 3.3 Disclosure of Subcontractor has boxes to be filled in.
Also refer to response to question 36.
| 68 |
| Schedule A - Statement of Work Contract Activities - Section: Background |
| Page 6 |
| A. Does the State authorize vendors doing more than 50% of their sales via the WIC program? |
B. If so, how many WIC‐only (above 50% vendors) are currently authorized?
A. No B. N/A
| 69 |
| Schedule A - Statement of Work Contract Activities - Section: Background |
| Page 7 |
| Please provide the percentage of infant formula EBT benefits that were issued to participants but never redeemed in 2020 or whichever year the data is available. |
| Sufficient benefit issuance and redemption data has been provided to allow a bidder to submit a competitive proposal. |
| 70 |
| Schedule A - Statement of Work Contract Activities - Section: Background |
| Page 7 |
| The average monthly participation for FY 2020 does not match the number reported by the USDA Food and Nutrition Service. Please explain the discrepancy in these numbers. |
| Please refer to responses to question 21. |
| 71 |
| Schedule A - Statement of Work Contract Activities - Section: Scope |
| Page 7 |
| Please indicate what percentage of infants that are enrolled in the WIC program were enrolled with incomes higher than 185% of the Federal poverty level. |
| This information is not necessary for a bidder to submit a competitive proposal. |
| 72 |
| Schedule A - Statement of Work Contract Activities - Section: Scope |
| Page 7 |
| Please indicate what percentage of infants that are enrolled in the WIC program were enrolled via adjunctive eligibility (i.e., they demonstrated active participation in SNAP, TANF, Medicaid or CHIP). |
| This information is not necessary for a bidder to submit a competitive proposal. |
| 73 |
| Schedule A - Statement of Work Contract Activities - Section: Scope |
| Page 8 |
| This section reads that the State's WIC Program currently does not authorize Non-Contract, Non-Exempt Formulas. Would the State change their policy to allow Non-Contract, Non-Exempt formulas if the winning contractor did not produce a formula with a rice-thickening agent? |
| Please refer to response to question 24. |
| 74 |
| Schedule A - Statement of Work Contract Activites - Section 1.1.7 |
| Page 9 |
| Is a statement requred in a bid submission to certifiy a manufacturer meets the requirements listed in the section or is signature on the bid documents sufficient to indicate compliance? |
| Bidder response on Schedule C – Bidder Response document constitutes attestation of compliance to manufacturer requirements. |
| 75 |
| Schedule A - Statement of Work Contract Activities - Section 12 |
| Page 10 |
| Price increase timing is confidential and proprietary. Requiring ninety (90) days advance notice would be a disadvantage to the contractor. Please revise this section to allow for notification at the same time as other customers or at least 30 days prior to any change in the wholesale prices. |
| Please refer to response to question 29. |
| 76 |
| Schedule A - Statement of Work Contract Activities - Section: 1.5 Transition - B.) Post- Contract Transition |
| Page 11 |
| A. If a new Contractor is awarded the contract, please describe in detail the State’s transition plan. |
B. Please confirm that if a participant comes to a clinic in March to receive three months of infant formula benefits, they will receive March benefits for the current contract holder’s formula and April and May’s infant formula benefits for the new contract holder’s formula.
A. Please see Schedule A, Statement of Work, Section 7. Project Plan.
B. Please refer to response to question 30.
| 77 |
| Schedule A - Statement of Work Contract Activities - Section: 3.3 Disclosure of Subcontractors |
| Pages 13-14 |
| A. Please confirm the Disclosure of Subcontractors chart on pages 13-14 can be left blank if the bidder does not intend to use subcontractors to perform this Contract. |
B. If not confirmed, please advise how the bidders should complete this section if subcontractors will not be utilized for the infant formula rebate contract.
Please refer to response to question 36.
| 78 |
| Schedule A - Statement of Work Contract Activities - Section: 4.1 |
| Page 14 |
| Please advise if the bidder's entire price list is required or just the products that are bid. |
| Bidders shall submit their nationally published wholesale price list effective on the date of bid opening for each type and form of infant formula in its product line. |
| 79 |
| Schedule A - Statement of Work Contract Activities - Section: 4.1 - (iii) |
| Page 15 |
| Please revise the reference to "(c)(6) (iv)" as it does not exist in this section |
| As noted per the introduction to this section of Schedule A on page 14, the subsequent content in quotation marks are excerpts from the Federal Register (direct quotation from another source). |
| 80 |
| Schedule A - Statement of Work Contract Activities - Section: 4.1 - (V) |
| Page 16 |
| Please revise language to read, "Contractor must provide a rebate that yields the same percentage discount for the..." Please also provide completion for this sentence, as it is currently left incomplete. |
| This language hereby replaces the previous language: |
If production of the Primary Contract Brand Infant formula is discontinued, Contractor must provide a rebate that yields the same net cost per ounce for the replacement formula.
| 81 |
| Schedule A - Statement of Work Contract Activities - Section: 4.2.B 2. Product Changes |
| Page 16 |
| A. On what basis would the State deny an infant formula that was reformulated? Since manufacturers are not making product solely for the State, to allow the State to have “sole right to make final determination of what constitutes an acceptable replacement” is not practical. Manufacturing a product formulated for and distributed only in the State could dramatically affect a manufacturer’s ability to execute the requirements of this contract. Please remove this section. |
B. If not removed, please provide the reasons that the State feels that this provision is in the best interest of the Department, the State, WIC infant participants and the contractor.
The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal. Accordingly, this section will remain as stated. The State is not requiring that a particular product be made solely for the State; rather, it is reserving the right to approve or reject issuance of any ‘new and improved’ infant formula introduced by the Contractor or any substitution for a similar existing product.
| 82 |
| Schedule A - Statement of Work Contract Activities - Section 4.2 (B) Product Changes - 5 |
| Page 17 |
| Please revise sentence within section to read "Future rebates on all other Contract Brand Infant Formulas including new formula and changed can sizes will be based on the same percentage as the corresponding physical form of the primary Contract Formula." |
| The State hereby replaces the previous language with the following: |
Future rebates on all other Contract Brand Infant Formulas including new formula and changed can sizes will be based on the same percentage as the corresponding physical form of the primary Contract formula.
| 83 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| Please confirm the following: (1) the Contractor will not be required to pay rebates on quantities of infant formula in excess of the federal monthly maximums; and (2) if rebates for quantities in excess of the federal monthly maximums are billed and rebated in error, the amounts associated with the over issuance and redemption will be reimbursed to the Contractor upon discovery. If any portion of above is not confirmed, please provide a detailed explanation of why such portion was not confirmed. |
| As indicated per Schedule A Section 6.3 (1): |
“The number of Contract Brand Infant Formula units reported for rebate billing purposes must be equal to the total number of Contract Brand Infant Formula units issued during the Contract period and redeemed according to State and Federal guidelines in the respective billing month.”
This section will remain as stated.
Additionally, applicable policies are available at 10 (michigan.gov) 8.04_replacement_of_food_benefits_307102_7.pdf (michigan.gov)
| 84 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| Please confirm the time limit on disputes does not apply to disputes arising from fraud or other illegal activity that prevents the Contractor from being able to identify the incorrect billing earlier begins when the fraud or illegal activity is detected. |
| This section will remain as stated. |
| 85 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| A. Please confirm that the Contractor will be allowed to audit the records and policies and procedures relevant to the infant formula rebate process. |
B. Please confirm that documents and/or information regarding policies, procedures and operations of each State’s WIC Program and infant formula monthly issuance allotments by brand and can size, infant age category and feeding method will be provided based on the State’s open records law.
C. Please confirm the state will provide the contractor a way to validate, by family, rebates on infant formula were not paid in excess of the federal monthly maximums. If not confirmed, please describe what process is in place for the Contractor to validate issuance/redemption and program compliance.
The answer to your questions are as follows.
This section will remain as stated. Additionally, records that are subject to the State’s Freedom of Information Act (FOIA) law may be requested and produced in accordance with that law. Please refer to response to question 7 for instructions on how to submit a FOIA request.
| 86 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| How does the State ensure that every negotiable food benefit for infant formula submitted by a vendor to the State for reimbursement was exchanged for authorized infant formula? |
| The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal. |
| 87 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| Does the State conduct retailer infant formula inventory audits, other than compliance buys, to identify potential discrepancies between a store’s purchasing records and their WIC transactions processed at the retailer’s location and submitted for reimbursement specific to infant formula? |
A. If the State does not conduct retailer infant formula inventory audits, please explain all the reasons why these are not done.
B. If a discrepancy is found, what steps are taken to determine if reimbursement of rebate payment to the infant formula manufacturer is required?
The State conducts both inventory audits and compliance buys.
A) N/A B) Please refer to response to Question 66.
| 88 |
| Schedule A - Statement of Work Contract Activities - Section 6.1 Invoice and Payment |
| Page 17 |
| Please describe the State's policy when participants return infant formula to a WIC clinic. |
| Click on the following link: Returned Formula Policy. |
| 89 |
| Schedule A - Statement of Work Contract Activities - Section 6.2 |
| Page 17 |
| Please revise sentence within section to read "The Contractor must make payment in full to the State within 30 days of the receipt of the invoice." |
| This section will remain as stated. |
| 90 |
| Schedule A - Statement of Work Contract Activities - Section 7 Project Plan |
| Page 18 |
| Please confirm that a Project Plan will not need to be completed if there will be no change in contractor at the beginning of the new contract term. |
| If there is no change in contractor, the State will clarify the requirements of the plan, as all may not be needed. |
| 91 |
| Schedule A - Statement of Work Contract Activities - Section 8 Rebate Invoice Biling Credits |
| Page 19 |
| A. If a Contractor fails to supply any Contract infant formula or fails to pay a rebate invoice, the damages are easily calculable, and therefore a rebate invoice billing credit clause is unnecessary. Further the State has set forth a plan for dealing with such unavailability in the Risk Management section. Therefore, please remove the Rebate Invoice Billing Credit provision. |
B. If not removed, please confirm that this provision would only apply if every brand and form of Contract infant formula were unavailable.
C. If not confirmed, please state all the reasons why the State would choose to exact a penalty against the Contractor before it provided other available forms and brands of the Contractor's Contract infant formula to WIC participants.
D. If this section is not removed and given the fact that many retailers typically have ten to fourteen days of inventory on hand, please revise this section to read "The parties acknowledge that widespread unavailability of Contract infant formula exceeding 10 business days and affecting 5% or more.
This section will remain as stated. Please see responses to questions 44 & 45.
| 92 |
| Schedule A - Statement of Work Contract Activities - Section 9 Risk Management |
| Page 20 |
In the event of an outage/shortage of the Contract Brand Infant Formula, please confirm that the State would first issue an alternate form or brand of the Contractor's formula line prior to issuing a formula from a non-contract manufacturer.
This section will remain as stated.
| 93 |
| Schedule A - Statement of Work Contract Activities - Section 9 Risk Management |
| Page 20 |
| A manufacturer cannot be liable for short supply when retail vendor lacks supply due to their own efforts. As such, please revise this section to “If one particular physical form is in short supply (short supply being defined as when the manufacturer is unable to supply retail vendors for 7 business days).. Please revise this section to read “Net cost” shall be calculated by applying the same percent discount of the primary contract brand/form to the non-contract infant formula manufacturer’s national wholesale truckload price for infant formula provided during the time period when the Contractor was not able to supply WIC vendors with its approved infant formula”. |
| This language hereby replaces the previous language: |
In the event that Contract Brand Infant Formulas are not readily available due to a manufacturer shortage/outage, the Department may terminate the Contract without further liability and solicit new bids and may hold the Contractor responsible for any excess costs occasioned thereby.
Regarding the question about “Net Cost”, this section will remain as stated.
| 94 |
| Proposal Instructions - Section 1: Proposal Preparation |
| Page 2 |
| Would the States consider providing a complete checklist of documents and information that must be submitted for a responsive bid? |
| Please refer to responses to questions 36 and 48. |
| 95 |
| Proposal Instructions - Section 3: Public Bid Opening Meeting |
| Page 3 |
| A. Please explain what will happen with the bids between the time they are submitted at 11:00am and the bid opening at 2:30pm. |
B. Please explain how the bids will be secured between submission and opening and identify everyone that will have access to the bids during that time period.
A. Bidders proposals are housed within SIGMA. At the bid opening, the Solicitation Manager will then open and read out loud.
B. As stated, proposals are housed in SIGMA. Only individuals within Central Procurement with the appropriate roles and security have access.
| 96 |
| Proposal Instructions - Section 3: Public Bid Opening Meeting |
| Page 3 |
| Please confirm that "% Rebate" will also be included in the items that are read aloud at the bid opening. |
| This section will remain as stated. |
| 97 |
| Proposal Instructions - Section 3: Public Bid Opening Meeting |
| Page 3 |
| A. Please confirm that the video bid opening will be held in live/real-time. |
B. Please also confirm that the bids will not be viewed and will be securely opened for the first time during the live opening.
A. Yes
B. Yes
| 98 |
| Proposal Instructions - Section 3: Public Bid Opening Meeting |
| Page 3 |
| Pertaining to accessibility requests- please confirm if the bid opening will also be open for live attendance. |
No.
| 99 |
| Proposal Instructions - Section 5: Questions |
| Page 3 |
| We appreciate the State’s willingness to respond to the bidders’ written questions and inquiries. Timing between answers and bid submission is important and necessary to allow bidders enough time to prepare a bid proposal that is responsive and reflective of the responses provided by the State. Because of the amount of analysis and approvals required for a contract of this size, please confirm that if the State's answers are not provided 10 business days prior to the scheduled bid due date, please revise the bid due date to be 10 business days after answers are posted. |
| If the State decides to make a deadline date change, it will be communicated via SIGMA. |
| 100 |
| Proposal Instructions - Section 7: Evaluation Process |
| Page 4 |
| Please describe in detail what constitutes a Pass/Fail submission for the criteria listed. Specifically, will submission of the Criteria documents listed be enough to constitute a PASS rating for Step 1? |
| Please refer to Schedule C- Bidder Response, and response to question 122 for additional information regarding Pass/Fail. |
| 101 |
| Proposal Instructions - Section 7: Evaluation Process |
| Page 5 |
This is the start of the file's text. The full file is on GovTribe.