ESBD_567618_1791985947690_PCS 137__HHS0016707.pdf

PCS 137 - SERVICES

Version 1.80 Page 1 of 49 Revised 04/25/2025

Stephanie Muth, Executive Commissioner

Invitation for Bids (IFB) for

WIC Infant Formula Rebate

IFB No. HHS0016707

NIGP Class/Item No(s): 271/28 Diets, Complete, Liquid; and Liquid Food Supplements, Oral and Tube Fed; 325/48 Milk Products; 393/31 Baby Food;

393/79 Soy Products: Extender, Flour, Grits, Meatless Products, Milk, etc.;

952/18 Child Care Services, Including Food Programs; 958/44 Food Management Services, Including Hygiene, Contamination, Preservation, Research

Procurement Schedule - All Times are Central Time Reference Section 2 for further information

IFB Date Posted to ESBD October 14, 2026

Questions or Clarifications Submission Deadline October 30, 2026, 1:00pm

CST

Responses to Questions or Clarifications - Addendum posted on the ESBD December 4, 2026

Response Deadline: Responses to this IFB must be received January 11, 2027, 10:30 AM

CST

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Public Opening of Proposals to be read aloud January 11, 2027, 4:00 PM

CST

Anticipated Contract Award Date February 3, 2027

Anticipated Contract Start Date October 1, 2027

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Table of Contents 1 Introduction and Purpose of IFB

1.1 General Provisions

1.2 Food Delivery and Food Issuances Systems By State and CNO

1.3 Authority

1.4 Historical Monetary Value

1.5 No Guarantee of Volume, Usage or Compensation

1.6 Negotiation, Exceptions or Assumptions

1.7 IFB Components

2 Procurement Schedule 3 Withdrawal or Amendment of Response 4 HHSC Overview 5 Definitions 6 General IFB Information

6.1 Sole Point of Contact and Communications

6.2 Exception to the Sole Point of Contact

6.3 Binding Offer Period

6.4 Costs Incurred

6.5 Changes, Modifications and Cancellation

6.6 Ambiguity, Conflict, Discrepancy

6.7 IFB Questions or Clarifications

6.8 Notification of Addenda or Cancellation

7 Scope of Work (SOW)

7.1 Scope of Services to be Performed

8 HUB Subcontracting Plan (HSP) Requirements

8.1 HUB Subcontracting Plan (HSP)

9 Pricing Information

9.1 Pricing Structure

10 Changes to The Contract 11 Contract Term

11.1 Term of Contract

11.2 Extension Option

11.3 Sample Contracts

12 Contract Administration/ Purchase Order Administration

12.1 Contract Manager/Program Lead

12.2 Performed Services Monitoring

12.3 Performance Reporting

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12.4 Contractor Response to Notification of Non-Material Deficiency

12.5 Corrective Action Plan (The Plan)

12.6 Performance Issues

12.7 Public Information Act – Bidder Requirements Regarding Disclosure

12.8 Bidder Waiver – Intellectual Property

13 Invoicing and Payment

13.1 Bill-to Address

13.2 Invoice Information

13.3 Payment

13.4 Invoice Submission

13.5 Disputed Invoice(s)

14 Insurance Requirements 15 Screening of Responses

15.1 Administrative Screening

15.2 Irregularities

16 Evaluation

16.1 Evaluation of Responses

16.2 Conformance with State Law for Evaluation

16.3 Specific Evaluation Criteria

17 Award 18 Disclosure of Interested Parties 19 Protest Procedures Appendix A – Submission Instructions and Response Checklist

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1 Introduction and Purpose of IFB The Texas Health and Human Services Commission (HHSC) is an agency within the Texas Health and Human Services (HHS) system. The Procurement and Contracting Services (PCS) division of HHSC administers IFBs for HHS.

HHSC PCS is seeking competitive bids on behalf of the HHS Special Supplemental Nutrition Program for Women, Infants and Children (WIC) to establish rebate Contract(s) for all milk and/or soy-based infant formula (excluding Exempt Infant Formula) purchased within the Bidder’s product line. The WIC Program is funded by the United States Department of Agriculture (USDA).

This solicitation will be processed by HHSC, a Texas state agency, on behalf of the States of Texas, Minnesota and Iowa (States) and the Choctaw Nation of Oklahoma (CNO). The solicitation and its processing will conform to applicable federal and Texas laws. Nevertheless, each State and the CNO will enter into separate Contracts with the selected vendor(s) based upon the terms and conditions of this solicitation and each States’ and CNO’s Contract requirements.

To be considered for award, Bidders must submit a comprehensive Response which includes all required information and documentation as outlined in this Solicitation to ensure the Bidder meets all requirements, possesses the required experience and qualifications, and has the capacity to provide the goods and related services described in this Solicitation. Each Bidder is solely responsible for the preparation and submission of a bid in accordance with the instructions contained in this Invitation For Bid (IFB). See Appendix A, Submission Instructions and Response Checklist.

1.1 General Provisions

The WIC programs in the states of Texas, Minnesota, Iowa, and the Choctaw Nation of Oklahoma (States and CNO) are bidding together in an alliance. No additional states or Indian Tribal Organizations (ITOs) may be added to this alliance between the date of the bid solicitation and the end of the Contract term unless a waiver is granted by the Secretary of Agriculture, in accordance with 7 CFR §246.16a(c)(3).

The States and CNO are required to receive bids separately for milk-based infant formula and for soy-based infant formula (excluding Exempt Infant Formula), per 7 CFR §246.16a(c)(2)(ii).

Each Bidder must specify a Rebate and brand name for a single milk-based and/or soy-based formula (excluding Exempt Infant Formula) for the following physical forms: concentrated liquid, powdered, and ready-to-feed.

Up to two (2) Bidders will receive Contract(s) from this IFB: one Contract will be awarded for milk-based infant formula (excluding Exempt Infant Formula) and one Contract will be awarded for soy-based infant formula (excluding Exempt Infant Formula) or one Contract for both. One Contractor may win the bid for both Contracts or the Contracts may be awarded to two different Contractors.

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Bidders must bid using a milk-based formula that meets the requirements under 7 CFR 246.10(e)(1)(iii) and §246.10(e)(2)(iii) and is suitable for routine issuance to the majority of generally healthy, full-term infants per 7 CFR §246.16a(c)(4)(ii)(A). Bidders must bid using a soy-based formula that meets the requirements under 7 CFR 246.10(e)(1)(iii) and §246.10(e)(2)(iii).

The Primary Contract milk and/or soy based infant formula will be the formula(s) of first choice for issuance (by physical form) to the majority of generally healthy full-term infants in the States’ and CNO’s WIC Programs. All other formulas will be issued only as alternatives to the Primary Contract milk and/or soy-based infant formula (excluding Exempt Infant Formula) (7 CFR §246.16a(c)(8) and 7 CFR §246.10(e)(1)(iii)). States and CNO may choose to issue some, none, or all of the winning Bidder's other infant formula(s). States and CNO may choose to require documentation for some, none, or all of the winning Bidder’s other formulas.

Negotiated applicable changes to the IFB and answers to questions will apply equally to both milk and soy-based infant formula Contracts in this procurement process.

Contractor and State or CNO contact is allowed for routine business activities excluding communication regarding the bid solicitation.

1.2 Food Delivery and Food Issuances Systems By State and CNO The States and CNO, through their WIC Programs, utilize a uniform food delivery system for eligible participants statewide and CNO wide. The system consists of a network of grocery stores and pharmacies (WIC Vendors) that allow the redemption of WIC food benefits in exchange for specified nutritious foods authorized by the WIC Program. The food instruments now used by the States and CNO are Electronic Benefits Transfer (EBT) eWIC cards. Food benefits (including infant formula) issued to the Electronic Benefit Accounts accessed by eWIC cards specify the quantity and types of nutritious foods that may be purchased at an authorized retail food WIC vendor. Infant formula is issued in accordance with 7 CFR §246.10(e)(1) through (e)(3) and (e)(9), of the WIC Program regulations. In addition, the States and CNO will, if necessary, provide the full nutritional benefit (FNB), using the methodology outlined in 7 CFR §246.10(h) in the WIC program regulations when issuing infant formula. States and CNO may accept exchanges of unused formula and issue replacement formula benefits; States and CNO will not replace used benefits except in disaster situations as allowed by USDA.

Iowa does issue non-contract brand infant formula without medical documentation in order to meet religious eating patterns (7 C.F.R. 246.10(d)(2)(i)). Texas, Minnesota and CNO do not issue non-contract brand infant formula without medical documentation in order to meet religious eating patterns. All the States and CNO require medical documentation to issue authorized supplemental food to participants who receive Food Package III in accordance with 7 CFR 246.10(d)(1)(v), except as allowed under any applicable waivers.

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The following sections details each State’s and CNO’s process for formula issuance, redemption and processing:

1.2.1 Texas

Participants are typically issued formula benefits by the calendar month for three (3) months at a time. They are scheduled with benefits in hand for the current month and then receive additional new benefits for the next three (3) months.

During the first month of issuance, formula benefits are prorated in thirds. Participants receive full benefits the first ten (10) calendar days, then two thirds of the full quantity from day eleven through twenty (11-20) and then one third of the full quantity from day twenty-one (21) to the end of the calendar month. Quantities are rounded down to the nearest full can.

Benefits for the current Contractor will continue through September 30, 2027. Benefits for the new Contractor will begin for all Contract formula fed participants on October 1, 2027. As an example, participants receiving issuance in and for the month of September 2027 will receive the current Contractor’s product for September and the new Contractor’s product for October 2027, and November 2027.

A. EBT Issuance, Purchase and Transaction Processing

Food benefits are loaded to an Electronic Benefit Account (EBA) that is maintained by the Program’s eWIC Host processor. Benefits are accessed from the EBA with a magnetic stripe card (eWIC card) at contracted WIC Vendors.

WIC Vendors operate under a Contractual agreement with the HHSC to accept eWIC card benefits in accordance with the WIC Program’s terms and conditions as specified in a written Contract and a set of WIC Vendor policies patterned after federal requirements set out in 7 CFR Part 246 which may be accessed via Code of Federal Regulations (CFR) Main Page website at:

https://ecfr.federalregister.gov/current/title-7/subtitle-B/chapter-II/subchapter-A/part-246

The HHSC Contract with each WIC Vendor specifies the responsibilities of both the WIC Program and the WIC Vendor.

Food benefits loaded to EBAs specify the type and quantity of foods that may be purchased at an authorized WIC Vendor. Specifically, an electronic file known as an Authorized Product List

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(APL) is downloaded at a minimum of once every forty-eight hours (48) into each WIC Vendor location’s Point-of-Sale (POS) System.

The APL is specific as to the category and sub-category of all foods authorized by the WIC Program which also contains the corresponding Universal Product Code (UPC) identified with each type and size of product authorized.

During a purchase, the eWIC card will interface with the EBA and the WIC Vendor’s in-store POS system as each food item being purchased is scanned to assure that it is an authorized product and sufficient benefits remain in the EBA to purchase the food item on that transaction date.

Once all items are scanned and accepted by the WIC Vendor’s POS system, an electronic transaction is submitted for processing and then the WIC EBA is decreased for the quantity of each food category and sub-category purchased.

The purchase of a Rebate item using WIC benefits creates the requirement for that item to be Rebated by the Contracted manufacturer. The time of purchase establishes the date regarding eligibility for the Rebate Contract. The redeeming WIC Vendor's submission of that item in an EBT transaction notifies the WIC Program that the Rebate item was purchased. The WIC Program's submission of that item on a Rebate invoice notifies the Contracted manufacturer to pay the Rebate for that item.

WIC Vendor transactions that have been received during the processing period for the day are processed for payment daily via Automated Clearinghouse (ACH) for those vendors connecting directly to WIC Direct or submitted to a WIC Vendor's Third-Party Processor (TPP) for payment.

(WIC Direct uses a twenty-four (24) hour settlement window based on a pre-determined settlement cut-off time, usually about 6:00 pm Central Standard Time).

Texas WIC receives a drawdown report daily for payments from the prior day, which is used to validate the payments to the EBT Processor.

Texas may modify its food delivery system in future, for example by allowing broadband formula issuance and/or instituting online shopping or drop shipment of contract formula.

Texas may choose to offer multiple can sizes of contract formula. At its discretion, Texas may utilize limited direct distribution during a shortage or emergency.

1.2.2 Minnesota

Participants are typically issued formula benefits for three (3) months on a rolling benefit month basis. Initial issuance is for the current month, and subsequent months’ benefits become

Version 1.80 Page 9 of 49 Revised 04/25/2025 active thirty (30) and then sixty (60) days later. Unused benefits do not rollover to the next benefit month; they are expunged. Formula is issued on a Broadband/Wildcard basis.

Participants receiving formula issuance in and for the month of September 2027 will receive the current Contractor’s product for all redemptions through September 30, 2027, but will receive the new Contractor’s product as of October 1, 2027.

A. EBT Purchase and Claims Process

The Minnesota WIC Program utilizes an online eWIC card equipped with a magnetic stripe to access an Electronic Benefit Account (EBA) that is maintained by the Program’s eWIC Host Contractor.

WIC Vendors operate under a Contractual agreement with the Minnesota Department of Health (MDH) to transact eWIC cards in accordance with the Program’s terms and conditions as specified in a written Contract encompassing the WIC Vendors’ rights and responsibilities, as set forth in federal requirements (7 CFR 246) and Minnesota Rules (Chapter 4617).

Food benefits are loaded to the EBA and are specific as to the type and quantity of foods that may be purchased at an authorized WIC Vendor. Specifically, an electronic file known as an Approved Product List (APL) is downloaded nightly into each WIC Vendor’s Electronic Cash Registering (ECR) System or Point of Sale (POS) device.

Minnesota WIC Contract formula is typically issued under one sub-category (Broadband/Wildcard) to allow selection of any contract formula by participants at the store.

Participants are educated to first select the primary Contract product.

The APL is specific as to the category and sub-category of all foods authorized by the WIC Program and contains the corresponding Universal Product Code (UPC) identified with each type and size of product authorized.

During a purchase at brick and mortar stores, the WIC participant’s eWIC card is swiped on the WIC Vendor’s POS device and the participant enters their Personal Identification Number (PIN) to access their EBA in real-time over an encrypted online connection. The benefit balance is downloaded to the WIC Vendor’s POS device and is used to verify each food item being purchased is an authorized product and that sufficient benefits remain in the EBA to purchase the food item at that time.

Once all items are scanned and accepted by the WIC Vendor’s ECR system, an electronic transaction is created and transmitted to the eWIC host and the eWIC card’s EBA is

Version 1.80 Page 10 of 49 Revised 04/25/2025 decremented for the quantity of each food category and sub-category authorized for purchase with WIC benefits.

During a WIC online transaction, the WIC participant enters their card information into a store platform to authorize use of WIC benefits. There are currently two options for authentication for online shopping, Open Authorization (OAuth) and PIN.

Open Authorization (OAuth): OAuth is a secure method for processing a transaction and is regularly used by the online shopping industry. When a WIC Vendor’s website uses OAuth, the WIC participant is redirected from the WIC Vendor’s website to the EBT processor’s participant portal to authenticate their identity. Once the participant is authenticated, the vendor’s website receives an encrypted validation in the form of a token from the processor’s solution, which subsequently gives authorization to the WIC Vendor’s website to process the WIC transaction.

Personal Identification Number (PIN): like the in-store transaction, when a WIC Vendor’s website uses the PIN to authenticate transactions, the participant enters their PIN into a secure on-screen PIN pad. This secure PIN pad sends an encrypted message to the EBT Processor, confirming the identity of the participant, and authorizing the transaction.

Both brick and mortar and online transactions result in WIC Vendor claims that have been received during the processing period for the day and are processed for payment nightly via Automated Clearinghouse (ACH).

MDH receives a drawdown report daily for payments made by the eWIC host the prior business day. MDH reviews this report and authorizes funding the payment account used to make the ACH payments to WIC Vendors.

1.2.3 Iowa

Participants are typically issued formula benefits by the calendar month for three (3) months at a time. They are scheduled with benefits in hand for the current month and then receive additional new benefits for the next 3 months.

New Contract transition- Benefits for the current Contractor will continue until September 30, 2027. Benefits for the new Contractor will begin for all Contract formula fed participants on October 1, 2027. As an example, participants receiving issuance in and for the month of September 2027 will receive the current Contractor’s product for September and the new Contractor’s product for October 2027, and November 2027.

A. EBT Purchase and Claims Process

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The Iowa WIC Program utilizes an online eWIC card equipped with a magnetic stripe to access an Electronic Benefit Account (EBA) that is maintained by the Program’s eWIC Host Contractor, FIS/CDP.

WIC Vendors operate under a Contractual agreement with Iowa Health and Human Services (HHS) to accept eWIC card in accordance with the Program’s terms and conditions as specified in a written Contract and a set of Iowa WIC Vendor policies patterned after federal requirements set out in 7 CFR Part 246. The Iowa WIC Vendor Agreement outlines the rights and responsibilities of the WIC Vendor and the Program.

Food benefits are loaded to the EBA and are specific as to the type and quantity of foods that may be purchased at an authorized WIC Vendor. Specifically, an electronic file known as an Authorized Product List (APL) is downloaded nightly into each WIC Vendor location’s Electronic Cash Registering (ECR) System.

The APL is specific as to the category and sub-category of all foods authorized by the Iowa WIC Program which also contains the corresponding Universal Product Code (UPC) identified with each type and size of product authorized.

During a purchase, the Iowa WIC participant’s eWIC card is utilized at the WIC Vendor’s Point of Sale (POS) and the participant enters their personal identification number (PIN) or alternate authentication method to access their EBA real-time over an encrypted online connection. The benefit balance is downloaded to the WIC Vendor’s store system and used to verify each food item being purchased to assure that it is an authorized product and sufficient benefits remain in the EBA to purchase the food item on that transaction date.

Once all items are scanned and accepted by the WIC Vendor’s system, an electronic transaction is created and transmitted to the eWIC host at which time the participant’s EBA is decremented for the quantity of each food category and sub-category authorized for purchase with WIC benefits.

WIC Vendor claims that have been received during the processing period for the day are processed for payment nightly via ACH.

Iowa receives a drawdown report daily for payments made by the eWIC host the prior business day. Iowa reviews and authorizes funding the payment account used to fund the ACH payments to WIC Vendors.

1.2.4 Choctaw Nation of Oklahoma

Participants are issued formula benefits for three (3) months at a time on a rolling benefit month.

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Benefits for the current Contractor will continue until September 30, 2027. Benefits for the new Contractor will begin for all Contract formula fed participants on October 1, 2027. As an example, participants receiving issuance in and for the month of September 2027 will receive the current Contractor’s product. New Contractor’s product will be given for October 2027 and November 2027.

A. EBT Purchase and Claims Process

The Choctaw Nation of Oklahoma WIC Program utilizes an online eWIC card equipped with a magnetic stripe to access an Electronic Benefit Account (EBA) that is maintained by the Program’s eWIC Host Contractor, FIS/CDP.

WIC Vendors operate under a Contractual agreement with the Choctaw Nation of Oklahoma WIC Program to accept eWIC cards in accordance with the Program’s terms and conditions as specified in a written Contract and a set of WIC Vendor policies patterned after federal requirements set out in 7 CFR Part 246. The WIC Vendor Agreement outlines the rights and responsibilities of the WIC Vendor and the Program.

Food benefits are loaded to the EBA and are specific as to the type and quantity of foods that may be purchased at an authorized WIC Vendor. Specifically, an electronic file known as an Authorized Product List (APL) is downloaded nightly into each WIC Vendor location’s Electronic Cash Registering (ECR) System.

The APL is specific as to the category and sub-category of all foods authorized by the WIC Program which also contains the corresponding Universal Product Code (UPC) identified with each type and size of product authorized

During a purchase, the WIC participant’s eWIC card is swiped on the vendor’s Point of Sale (POS) device and the participant enters their Personal Identification Number (PIN) to access their EBA real-time over an encrypted online connection. The benefit balance is downloaded to the WIC Vendor’s in-store ECR system and used to verify each food item being purchased to ensure that it is an authorized product and sufficient benefits remain in the EBA to purchase the food item on that transaction date.

Once all items are scanned and accepted by the WIC Vendor’s ECR system, an electronic transaction is created and transmitted to the eWIC host at which time the participant’s EBA is decremented for the quantity of each food category and sub-category authorized for purchase with WIC benefits.

WIC Vendor claims that have been received during the processing period for the day are processed for payment daily via Automated Clearinghouse (ACH). (WIC Direct uses a twenty-

Version 1.80 Page 13 of 49 Revised 04/25/2025 four (24) hour settlement window based on a pre-determined settlement cut-off time, usually about 6:00 pm Eastern Standard time)

Choctaw Nation of Oklahoma WIC receives a daily clearing statement for payments made by WIC Direct.

1.3 Authority

HHSC issues this solicitation in accordance with Texas Government Code 2156.063 .

HHSC is posting this Solicitation for the Services stated herein on behalf of Iowa, Minnesota, and the Choctaw Nation of Oklahoma (CNO) per 7 CFR 246.16a.

1.4 Historical Monetary Value

The historical Rebate for the same or similar services by the States and CNO can be estimated from the milk and soy-based infant formula Rebate invoices attached as Exhibits H-1 through K- 4 - Invoice Examples for October 2025 to March 2026. These invoices were processed by each State and the CNO in the quarter January, February and March 2026. Invoice format and appearance may change during the Contract term but will provide the same essential details.

1.5 No Guarantee of Volume, Usage or Compensation

HHSC does not guarantee any volume, usage, or compensation to be paid to any Contractor under any Contract resulting from this IFB. Additionally, all HHSC Contracts are subject to appropriations, the availability of funds, and termination.

The estimated historical quantities based on the October 2025 through March 2026 averages of the States and CNO’s milk and soy-based infant formula issuance (excluding exempt formula) is included in the Exhibit E – Pricing Proposal and are provided only as a guideline for preparing the pricing response and should not be construed as representing anticipated or actual quantities that will be required.

1.6 Negotiation, Exceptions or Assumptions

Negotiations are prohibited under the IFB procurement method under most circumstances, and even then, the scope of permissible negotiations is limited and may not result in a material change to the scope of work or specifications as advertised in this IFB.

Bidders should NOT submit exceptions to this IFB which could result in disqualification of a Response. No changes to a Response can be made after the submission deadline.

No assumptions should be included in a Response. The inclusion of assumptions could result in disqualification of a Response. Instead, a Bidder should advance assumptions and seek

Version 1.80 Page 14 of 49 Revised 04/25/2025 clarification of a section of this IFB, any Exhibits or Attachments, in the form and manner required in Section 6.7 IFB Questions or Clarifications.

1.7 IFB Components

This IFB includes the following items:

• PCS 137 IFB (this document)

• Exhibit A – HHS Solicitation Affirmations, version 2.10, March 2026.

• Exhibit B – PCS 111-Contract Affirmations and HHS Uniform Terms and Conditions (UTCs) version 2.9, March 2026.

• Exhibit C – Pricing Sheet

• Exhibit D – Pricing Proposal-FNS Bid Sheet

• Exhibit D-1 – Milk-based and Soy-based Formula Rebate Table

• Exhibit E – Bidder Reference and Contractor Qualifications Form

• Exhibit F – HHS Online Bid Room Information

• Exhibit G – Scope Of Work (SOW)

• Exhibit H-1 – Texas Invoice Examples

• Exhibit H-2 – Minnesota Invoice Examples

• Exhibit H-3 – Iowa Invoice Examples

• Exhibit H-4 – Choctaw Nation of Oklahoma Invoice Examples

• Exhibit I-1 – Texas Sample Contract

• Exhibit I-2 – Minnesota Sample Contract

• Exhibit I-3 – Iowa Sample Contract

• Exhibit I-4 – Choctaw Nation of Oklahoma Sample Contract

• Exhibit J – Infant Participation Example

• Exhibit K-1 – Texas Infant Formula Issuance (Excluding Exempt Infant Formula)

• Exhibit K-2 – Minnesota Infant Formula Issuance (Excluding Exempt Infant Formula)

• Exhibit K-3 – Iowa Infant Formula Issuance (Excluding Exempt Infant Formula)

• Exhibit K-4 – Choctaw Nation of Oklahoma Infant Formula Issuance (Excluding Exempt Infant Formula)

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• Exhibit L – USDA FNS Provisions

2 Procurement Schedule The Procurement Schedule dates on the cover page of this IFB are subject to change. HHSC reserves the right to modify these dates at any time by issuing an Addendum. Any events listed in the Procurement Schedule after the Response Deadline will occur at the discretion of HHSC.

Responses must be received by HHSC prior to the Response Deadline as indicated in the Procurement Schedule. Every Bidder is solely responsible for ensuring its Response is received by HHSC before the Response Deadline in accordance with all requirements regarding submission. HHSC is not responsible for lost, misdirected or late Responses.

By submitting a Response, the Bidder represents and warrants that the individual submitting the Response, inclusive of the documents made part of the Response, is authorized to sign on behalf of the Bidder, and to bind the Bidder under any Contract that may result from this IFB.

3 Withdrawal or Amendment of Response Bidders may withdraw or amend their Responses at any time prior to the Response Deadline by e-mailing the point of contact listed in Section 6.1 (Sole Point of Contact and Communications).

The e-mail subject line for withdrawal or response amendment should contain the IFB number as indicated on the cover page of this IFB. The Bidder is solely responsible for ensuring the email is received by HHSC before the Response Deadline. HHSC is not responsible for lost or misdirected e-mails.

4 HHSC Overview HHSC was created in 1991 to oversee and coordinate the planning and delivery of health and human services in Texas. It is established pursuant to Chapter 531, Texas Government Code and is responsible for oversight of Texas Health and Human Services agencies.

HHSC PCS administers the procurement process, which includes IFB announcement and publication, Bidder communications, receipt of Responses, screening of timely received Responses, and facilitating the evaluation of qualified Responses. PCS, in coordination with each HHSC program, manages the execution of the award, through issuance of Purchase Order(s) or other Contract document, resulting from this IFB.

5 Definitions Unless the context clearly indicates otherwise, throughout this IFB, the definition given to a term below applies whenever the term appears in this IFB, in any Response (Bid) submitted in response to this IFB, and in any Contract awarded as a result of this IFB. All other terms have their ordinary and common meaning.

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.531.htm

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a) Addendum – A written clarification or revision to this solicitation issued by HHSC.

b) Approved Product List (APL) – A comprehensive listing of WIC approved food items which list Universal Product Code (UPC) and/or Price Look-Up (PLU) information.

Information is separated by food category/subcategory.

c) Bidder – The entity or individual that submits a response to this Solicitation. This term also includes anyone acting on behalf of the entity or individual that submits a response, such as an agent, employee, or representative. See also Respondent below.

d) Billable Unit Equivalent – This value is defined Contractually for each WIC food type (i.e.

formula brand, form, size). The billable unit equivalent defines a specific number of redeemed issuance units for which a single rebate amount may be charged. For example: The category/sub-category for product A is defined in ounces, therefore, “ounce” is the unit of issuance. However, the rebate Contract defines the rebate amount for Product A based on an 8 oz container. Then 8 issuance units (ounces) of Product A = 1 billable unit of Product A.

e) Billable Units – For any UPC the number of billable units is the Consumption Quantity/ Billable Unit Equivalent. Issuance units and billable unit equivalents are usually but not always the same.

f) Broadband or Wildcard formula benefit issuance – a sub-category issuance of similar products that allows the WIC participant selection of Rebate powder WIC Contract formula of like size at a WIC authorized Vendor.

g) Can – When used with respect to a unit of infant formula, means any container that maintains the nutritional integrity of the formula.

h) Contract –A legally enforceable agreement between awardees and each State that is participating in this solicitation, such as the signed Purchase Order or Signature Document, the Uniform Terms and Conditions, Affirmations, along with any Attachments, Exhibits and any Amendments or Work Orders that may be issued by HHSC or another State that is participating in this solicitation.

i) Contract brand milk-based infant formula – All milk-based brands of infant formulas, (except Exempt Infant Formulas), produced by the manufacturer awarded the milk-based infant formula cost containment Contract, and any milk-based infant formula introduced by the manufacturer after the Contracts are awarded. (See 7 CFR 246.2 Definitions).

j) Contract brand soy-based infant formula – All soy-based brands of infant formulas, (except Exempt Infant Formula), produced by the manufacturer awarded the soy-based infant formula cost containment Contract, and any soy-based infant formula introduced by the manufacturer after the Contracts are awarded. (See 7 CFR 246.2 Definitions).

k) Contractor – Each Bidder, business entity or individual, if any, awarded a Purchase Order or other Contract to provide the services or goods as a result of this solicitation.

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l) Contract Term – The period of time during which the Purchase Order or Contract is in effect from the start date through the end date and may include renewal or extension periods.

m) Debarment – An exclusion from contracting or subcontracting with state agencies on the basis of cause pursuant to Title 34, Part 1, Chapter 20, Subchapter G of the Texas Administrative Code, and the Federal System for Award Management (SAM).

n) Deliverables – The services or goods specified in this Solicitation and any resulting Contract that the Contractor shall perform or deliver to the HHS Agency for acceptance.

o) Electronic Benefit Account (EBA) – Account data maintained on the WIC EBT Host (WIC Online EBT) that tie together all of the various data elements required to enable WIC EBT for a WIC account, such as benefit information, card data, and transaction history.

p) Electronic Benefits Transfer (EBT) – Electronic Benefits Transfer for WIC. The electronic transfer of government benefits to individuals through the use of card technology and point-of-sale terminals. All States and CNO use an eWIC card, an online (magnetic stripe card) which transacts real time at the point-of-sale terminal over a communication line with the eWIC processor.

q) Electronic Cash Registering (ECR) System – a system that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in whatever manner.

r) Electronic State Business Daily (ESBD) - The electronic online directory, administered by the Comptroller of Public Accounts, Statewide Procurement Division (SPD), for publishing procurement opportunities which exceed $25,000 in total estimated value and for providing public notice of contract awards. The ESBD may be accessed through the CPA web site at: https://www.txsmartbuy.com/esbd.

Note: The Texas Comptroller of Public Accounts (CPA) recommends utilizing Google Chrome when navigating CPA websites.

s) Exempt Infant Formula – 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. (See 7 CFR 246.2 Definitions).

t) Exhibit – A document, included as an attachment to this Solicitation, which provides terms and conditions, additional requirements and information related to this solicitation.

u) Form – When used with respect to infant formula, means liquid concentrate, powder, or ready-to-feed (ready-to-use).

v) Full Nutrition Benefit (FNB) – The minimum amount of reconstituted fluid ounces of liquid concentrate infant formula as specified in Table 1 of 7 CFR 246.10(e)(9) for each http://www.txsmartbuy.com/sp https://www.txsmartbuy.com/esbd

Version 1.80 Page 18 of 49 Revised 04/25/2025 food package category and infant feeding variation (e.g. Food Package IA fully formula fed, IA_FF). (See 7 CFR 246.2 Definitions).

w) Full Truckload – This quantity is typically 40,000 - 45,000 lbs. in weight. The two descriptions are equivalent when bidders provide their lowest manufacturer’s truckload price per unit for infant formula.

x) Generally Accepted Auditing Standards (GAAS) – a set of guidelines used by auditors when conducting audits that are maintained by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA).

y) HHS Agency -- HHSC or any of the agencies of the State of Texas that are overseen by HHSC under authority granted under state law and the officers, employees, authorized representatives, and designees of those agencies. These agencies include: HHSC and the Department of State Health Services (DSHS), separately or combined. May also be referred to as System Agency.

z) IFB – This document, including all exhibits, attachments, appendices, or Addenda (if applicable). May also be referred to as Invitation for Bids or Solicitation.

aa) Inadequate supply (also referred to as a shortage or supply disruption) – An inadequate supply exists if WIC participants' ability to reasonably purchase the milk and/or soy-based infant formula (except Exempt Infant Formula) using WIC benefits is impeded within all or part of the State’s or CNO’s jurisdiction and/or if the Contractor’s production or distribution may negatively impact WIC participants' ability to reasonably purchase the milk and/or soy-based infant formula (except Exempt Infant Formula) using WIC benefits within all or part of the State’s or CNO’s jurisdiction.

bb) Infant Formula – 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 et seq.) 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. (See 7 CFR 246.2 Definitions).

cc) Issuance unit – Measurement used for issuance of a WIC food type (i.e. formula brand, form, size) as defined by the assigned category and sub-category.

dd) Issue month – Timeframe when WIC benefits may be spent at an authorized WIC Vendor’s establishment. For the State agencies and CNO issuing benefits on the calendar month basis, the benefits are valid from the first of the calendar month through the last day of the calendar month. The participant will be allowed to transact their benefits after the last day of the calendar month when an online shopping order placed in the issue month is not fulfilled as ordered when permitted by USDA regulation or waivers and State and CNO policy. For the State agencies issuing benefits on a rolling month basis, the benefits are valid from the first date of use to the last date of use.

When permitted by USDA regulation or waivers and State policy, the participant will be

Version 1.80 Page 19 of 49 Revised 04/25/2025 allowed to transact their benefits after the last date of use when an online shopping order placed in the benefit period is not fulfilled as ordered.

ee) NIGP (The National Institute of Governmental Purchasing (NIGP) Commodity Book) – The Class-Item numbering and descriptions used by State agencies to properly code services or products for a procurement.

ff) Non-Contract brand milk-based infant formula – All brands of milk-based infant formulas, including Exempt Infant Formulas, which are not covered by the milk-based infant formula cost containment Contract award. (See 7 CFR 246.2 Definitions).

gg) Non-Contract brand soy-based infant formula -- All brands of soy-based infant formulas, including Exempt Infant Formulas, which are not covered by the soy-based infant formula cost containment Contract award. (See 7 CFR 246.2 Definitions).

hh) Participants – Pregnant women, breastfeeding women, postpartum women, infants and children who are receiving food benefits under the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) and the breastfed infants of participant breastfeeding women. (See 7 CFR 246.2 Definitions).

ii) Primary Contract Milk-Based Infant Formula Brand – The specific milk-based infant formula for which manufacturers submit a bid to State agencies in response to a rebate solicitation and for which a Contract is awarded by the State agencies as a result of that bid. (See 7 CFR 246.2 Definitions).

jj) Primary Contract Soy-Based Infant Formula Brand – The specific soy-based infant formula for which manufacturers submit a bid to State agencies in response to a rebate solicitation and for which a Contract is awarded by the State agencies as a result of that bid. (See 7 CFR 246.2 Definitions).

kk) Process month – The calendar month when a transaction is electronically received at the EBT Processor to be processed for payment.

ll) Product Line – All formulations, variations, forms and sizes of standard milk and/or soy-based infant formula (excluding Exempt Infant Formula).

mm) Purchase Order – A legally enforceable agreement between two or more parties. A Purchase Order is issued by HHSC or another State indicating types, quantities, and agreed pricing for services and goods the Contractor will provide. Also considered a contract.

nn) Rebate – means the amount of money refunded under cost containment procedures to any State agency from the manufacturer of the particular food product as the result of the purchase of the supplemental food with a voucher or other purchase instrument by a participant in each State agency's program. Such rebates shall be payments made subsequent to the exchange of a food instrument for food. (See 7 CFR 246.2 Definitions).

Version 1.80 Page 20 of 49 Revised 04/25/2025

oo) Reconstituted ounces – Number of ounces a unit of formula yields when mixed with water according to the mixing instructions found on the container label.

pp) Redemption Quantity – Number of issuance units deducted from the EBA account per each scanned item. The redemption quantity for each product is determined separately by the States and CNO for each authorized UPC Code. For example: Assuming that the formula is issued in cans, the UPC for a single can of formula will have a redemption quantity of 1 (one). The UPC for a twelve (12) can case of the same formula would have a redemption quantity of 12 (twelve).

qq) Required Quantity – the amount of milk and/or soy-based infant formula (excluding Exempt Infant Formula) in the forms issued by the States and CNO necessary to supply the maximum issuance per month for one hundred percent (100%) of WIC participants in the States and CNO who are issued infant formula.

rr) Response – All information and materials submitted by a Bidder in response to this Solicitation. May also be referred to as Bid or Bid Response.

ss) Respondent – A term interchangeable with Bidder.

tt) Scope of Work – The description of requirements, services, specifications for goods which may be required, and deliverables as provided in this Solicitation and any resulting Contract which the Contractor is required to provide.

uu) Solicitation – This document, including all exhibits, attachments, appendices, or Addenda (if applicable). May also be referred to as Invitation For Bid or IFB.

vv) Subcontractor - Any entity or individual that enters into a contract with the Contractor to perform part or all of the obligations of the Contractor under the Contract.

ww) Transaction Month – The calendar month in which the transaction is conducted at the WIC Vendor’s POS system.

xx) Type – When used with respect to infant formula, means milk or soy based.

yy) Texas Identification Number (TIN) – The 11-digit identification number set up through the Texas Comptroller of Public Accounts which is required for any entity or individual to receive payment under a Contract with the State of Texas. Also known as Texas Payee ID Number. Further information regarding this number may be accessed via the CPA Fiscal Management TexPayment Resource web page at:

https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p =payee_numreq.

zz) Unit Rate – The set rate per the unit of measure (UOM) used for payment of the services, included on the Price Sheet, under the Contract or Purchase Order. May be hourly, daily, weekly, monthly, etc.

aaa) Universal Product Code (UPC) – A standardized global identifier for a particular product, which enables products to be sold, reordered and tracked through supply chains.

https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p=payee_numreq https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p=payee_numreq

Version 1.80 Page 21 of 49 Revised 04/25/2025 bbb) Vendor – A business entity or individual that supplies services or goods and may be a potential Bidder to this solicitation.

ccc) WIC Vendor – A grocery store, Durable Medical Equipment (DME) supplier, pharmacy, or other business entity that is authorized by the State agency to provide authorized supplemental foods to participants.

6 General IFB Information

6.1 Sole Point of Contact and Communications

The HHSC PCS Sole Point of Contact for inquiries concerning this IFB is:

Mike McKelvy; CTCD, CTCM

Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756

512-406-2579

Mike.mckelvy@hhs.texas.gov

Bidders shall NOT use the e-mail address above for submission of a Response to this IFB. See Appendix A for submission requirements.

Bidders shall direct all communications, including questions or clarifications relating to this IFB, by e-mail to the HHSC PCS Sole Point of Contact named in Section 6.1 (Sole Point of Contact and Communications); communications by phone will not be accepted except for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation.

All other communications between a Bidder and HHS agency staff concerning this IFB are prohibited. In no instance is a Bidder to discuss cost information regarding this IFB with the HHSC PCS Sole Point of Contact or any other HHS staff. Failure to comply with these requirements may result in disqualification of the Response.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point of Contact in their automatic reply out-of-office e-mail message. See also Section 6.2 (Exception to Sole Point of Contact) below.

This restriction (as to only communicating in writing with the HHSC Sole Point of Contact identified above) does not preclude discussions between Bidder and agency personnel for the purposes of conducting business unrelated to this IFB.

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6.2 Exception to the Sole Point of Contact

The only exceptions to the Sole Point of Contact are the HUB Coordinator, or, if expressly directed by the Sole Point of Contact, another designated System Agency representative.

6.3 Binding Offer Period

By submitting a Response to this IFB, Bidder agrees that its Response will remain a firm and binding offer for 240 days, as stated in the HHS IFB Affirmations (Exhibit A).

Bidder may extend the time for which its Response will be firm and binding and include the extended period in the Response.

6.4 Costs Incurred

Bidder understands that issuance of this IFB or retention of Responses in no way constitutes a commitment by HHSC to award a Contract. HHSC accepts no obligations for costs incurred in preparing and submitting a Response, including, but not limited to, preparing for or participating in a vendor conference or site visit.

Responses shall be submitted at the sole expense of the Bidder. All Responses shall be prepared simply and economically, providing a straightforward, concise delineation of the Bidder’s capabilities to satisfy the requirements of this IFB.

6.5 Changes, Modifications and Cancellation

HHSC reserves the right to change, amend, or modify this IFB prior to the Response Deadline indicated in the Procurement Schedule (cover page of this IFB). Changes, amendments, and modifications will be processed through one or more Addendum. The notification for any Addendum will be processed in accordance with Section 6.8.

HHSC reserves the right to cancel this IFB at any time. The notice of cancellation will be in accordance with Section 6.8.

6.6 Ambiguity, Conflict, Discrepancy

Bidders must notify the Sole Point of Contact, Section 6.1, of any ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error in the IFB in the manner and by the deadline for submitting questions.

If Bidder fails to properly and timely notify the Sole Point of Contact, Section 6.1, of any ambiguity, conflict, discrepancy, exclusionary specification, omission or other error in the IFB, the Bidder, whether awarded a Contract or not:

a) shall have waived any claim of error or ambiguity in the IFB and any resulting Contract,

b) shall not contest the interpretation by HHSC of such provision(s), and

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c) shall not be entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

6.7 IFB Questions or Clarifications

HHSC will allow questions and requests for clarification regarding this IFB if submitted by e-mail to the Sole Point of Contact, Section 6.1, by the deadline established in the Procurement Schedule (cover page of this IFB) or deadlines established in subsequent Addenda. Responses to questions or other written requests for clarification will not be provided individually to requestors but will be consolidated in one or more Addenda.

HHSC reserves the right to amend the answers to questions or clarifications prior to the Response Deadline (cover page of this IFB) through a…