IFB_25-10121_-_Soy-Based_Infant_Formula_Rebate.pdf

GAVIN NEWSOM ERICA PAN, MD, MPH, FAAP

Director and State Public Health Officer Governor

State of California—Health and Human Services Agency California Department of Public Health

February 11, 2025

Invitation for Bid 25-10121 Soy-Based Infant Formula Rebate

You are invited to review and respond to this Invitation for Bid (IFB), entitled Soy-Based Infant Formula Rebate, 25-10121. The anticipated term of this contract is from August 1, 2025, to July 31, 2030. In submitting your bid, you must comply with the instructions found herein.

Note that all agreements entered into with the State of California will include by reference General Terms and Conditions and Contractor Certification Clauses that may be viewed and downloaded at:

https://www.dgs.ca.gov/ols/resources/page-content/office-of-legal-services-resources-list-folder/standard-contract-language.

If you do not have Internet access, a hard copy can be provided by contacting the person listed below.

In the opinion of the California Department of Public Health (CDPH), this Invitation for Bid is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, the contact person for this IFB is:

California Department of Public Health Attn: Kamilah Morton Centralized Contract Services Unit 1616 Capitol Avenue, MS 1802 Sacramento, CA 95814 Phone: 279-732-2499 Fax: 916-650-0110 Email address: kamilah.morton@cdph.ca.gov

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

https://www.dgs.ca.gov/ols/resources/page-content/office-of-legal-services-resources-list-folder/standard-contract-language https://www.dgs.ca.gov/ols/resources/page-content/office-of-legal-services-resources-list-folder/standard-contract-language

California Department of Public Health Women, Infants & Children (WIC) Division IFB 25-10121

Table of Contents

A) PURPOSE AND DESCRIPTION OF SERVICES

1. Purpose

2. Description of Services

B) BIDDER MINIMUM QUALIFICATIONS

C) BID REQUIREMENTS AND INFORMATION

1. Key Action Dates

2. Submission of Bid

3. Bid Opening Location (include additional instructions if needed)

4. Evaluation and Selection

5. Award and Protest

6. Disposition of Bids

7. Agreement Execution and Performance

D) PREFERENCE PROGRAMS

1. California Certified Small Business and Preference(s) Information

2. Target Area Contract Preference Act

3. Combined preferences

4. Commercially Useful Function

E) BUSINESS PARTICIPATION PROGRAM REQUIREMENTS

1. Disabled Veteran Business Enterprise (DVBE) Incentive

2. DVBE Compliance and Verification

3. CDPH Advocate

F) SUBCONTRACTORS

G) REQUIRED ATTACHMENTS

H) SAMPLE AGREEMENT

ATTACHMENTS

Attachment 1 Bidder Cover Page Attachment Attachment

Bid Form for Soy-Based Infant Formula Required Attachment / Administrative Certification Checklist

Attachment 4 CDPH Bidder Qualifications Certification Attachment 5 Bidder Contact Sheet Attachment 6 Business Information Sheet Attachment 7 Payee Data Record and Supplement (STD 204 & 205) Attachment 8 Bidder Declaration (GSPD-05-106) Attachment 9 Contractor Certification Clauses (CCC 04/2017) Attachment 10 Mandatory Generative Artificial Intelligence (GenAI) Disclosure & Factsheet

Form (STD 1000) Attachment 11 Bidder References Attachment 12 Commercially Useful Function (CUF) Certification Attachment 13 Darfur Contracting Act Certification (DGS PD 1)

EXHIBITS

Exhibit A-1 Sample STD 213 Agreement Exhibit A Scope of Work Exhibit B Budget Details and Payment Provisions Exhibit B-1 Bid Form for Soy-Based Infant Formula Exhibit

C

D

General Terms and Conditions (GTC 04/2017). View at https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal- Services-Resources-List-Folder/Standard-Contract-Language

Federal Terms and Conditions

Exhibit E Additional Provisions Exhibit F Definitions

G

H

Program Appendices

Appendix 1 - Rebate Invoice Calculation Appendix 2a - Sample Rebate Invoice for 04/2024 Appendix 2b - Sample Rebate Invoice for 05/2024 Appendix 2c - Sample Rebate Invoice for 06/2024 Appendix 3 - California WIC Authorized Vendors List Appendix 4 - Sample Infant Formula WIC Food Balances

Contractor’s Release https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

PREFACE: IFB #25-10121 and the associated sample contract exhibits use terms that are defined in Exhibit F (Definitions). Except for the capitalization of proper nouns, document titles or names, and section titles or headings, capitalization of the first letter of one (1) or more words indicates the use of a defined term. Consult Exhibit F for the full list of defined terms and definitions.

A. Purpose and Description of Services. The California Department of Public Health (herein referred to as CDPH or the State), Women, Infants, and Children (WIC) Division is soliciting Bids from Manufacturers for the purposes of providing soy-based Iron-Fortified Infant Formula for the WIC Program in three (3) Forms: liquid concentrate, powder, and ready-to-feed.

The selected Bidder will be required to supply contracted non-exempt, soy-based Iron- Fortified Infant Formula to WIC Authorized Vendors and provide a Rebate to the State for each Container of Contract Brand Infant Formula purchased by WIC Participants from WIC Authorized Vendors using the EBT Card and for Containers of Contract Brand Infant Formula purchased directly by the State, e.g., ready-to-feed. The State will reimburse the WIC Authorized Vendors for each Container of Contract Brand Infant Formula purchased by WIC Participants.

1. General Bid Information

a. The State issues separate solicitations for soy-based Iron-Fortified Infant Formula and milk-based Iron-Fortified Infant Formula as required by 7 Code of Federal Regulations part 246.16a(c)(2)(ii). An infant formula manufacturer has the option of bidding on (a) soy-based, Iron-Fortified Infant Formula in this IFB #25-10121;

(b) milk-based, Iron-Fortified Infant Formula in IFB #25-10009; or (c) both milk-based and soy-based, Iron-Fortified Infant Formulas by submitting separate bids in response to each IFB.

The soy-based Iron-Fortified Infant Formula being bid in response to this IFB #25- 10121 must meet the requirements under 7 Code of Federal Regulations part 246.10(e)(1)(iii) and (e)(2)(iii) and be suitable for routine issuance to the majority of generally healthy, full-term infants.

The Contract award will be based on the responsive and responsible Bidder that submits a timely Bid offering the lowest Total Net Cost Per Month to the State for soy-based Iron-Fortified Infant Formula.

Under federal law (7 C.F.R. § 246.16a(c)(5)), to be responsive a Bidder must submit a Bid by the deadline set by the State, the Bid must conform to the solicitation, and the Bid and Bidder must meet all requirements set forth in 7 Code of Federal Regulations part 246.16a and in the bid solicitation.

Under state law, to be responsive, a Bid must indicate compliance without material deviation from the requirements of IFB #25-10121 and the terms and conditions of the proposed contract. To be responsible, the Bidder must possess the experience, facilities, reputation, financial resources, and full capabilities to perform the proposed contract.

b. The Contractor must provide a monthly Rebate for any soy-based Contract Brand Infant Formula that the State chooses to issue, including soy-based Iron-Fortified Infant Formulas produced by the Contractor that are introduced by the Contractor after entering into the Contract with the State. The monthly Rebate will be calculated based on the Rebate Bid submitted by the Contractor and the number of Containers Redeemed, as described in the calculation methodology in Exhibit G, Appendix 1.

c. The State will issue Infant Formula in accordance with 7 Code of Federal Regulations part 246.10(e)(1) through (e)(3), and (e)(9). If necessary in order to provide the full nutritional benefit, the State will use the Rounding Up methodology described in 7 Code of Federal Regulations part 246.10(h) when issuing Infant Formula.

d. The Primary Contract Brand Infant Formula will be the soy-based Infant Formula of first choice for issuance by the State to WIC Participants. All other Contract Brand Infant Formulas will be issued as alternatives to the Primary Contract Brand Infant Formula.

Under federal regulation (7 C.F.R. § 246.16a(c)(9)), except as required in 7 Code of Federal Regulations part 246.16a(c)(8), the State agency may choose to approve for issuance some, none, or all of the winning Bidder’s other infant formula(s). Other than the issuance of the Primary Contract Brand Infant Formula as the first choice soy-based Infant Formula, the State provides no guarantee of the quantity or physical Forms of Contract Brand Infant Formula that will be issued under the Contract.

e. The Contract Brand Infant Formula will be the only soy-based Infant Formula supplied to WIC Participants, except Exempt Infant Formula and Non-Contract Brand Infant Formula that are prescribed by a health care professional licensed to write medical prescriptions under state law. Currently, issuance of all Non-Contract Brand Infant Formula is approximately 4.2% of total monthly formula issuance by the WIC Program.

(See Sections A.3.e and A.3.f, below, regarding the average monthly number of Participants issued Exempt Infant Formula and soy-based Non-Contract Brand Infant Formula).

2. Background

The WIC Program is a federally funded nutrition education and supplemental food program, which was established in 1972 under federal Public Law 92-433. The Program was added as Section 17 of the Child Nutrition Act of 1966 and subsequently amended https://www.fns.usda.gov/sites/default/files/CNA_1966_12-13-10.pdf by the Healthy, Hunger Free Kids Act of 2010. Federal regulations implementing these laws are codified in 7 Code of Federal Regulations part 246. To view these regulations, go to the Electronic Code of Federal Regulations (eCFR).

In California, the California Special Supplemental Nutrition Program for Women, Infants, and Children was established by and is authorized under California Health and Safety Code section 123275, et seq. The regulations for the California WIC Program are set forth in California Code of Regulations, title 22, sections 40601 through 40815, and in the WIC Regulatory Bulletins posted on the WIC Program’s Laws & Regulations webpage.

The WIC Program provides nutrition education, referral to medical and social services, and Food Instruments to be used for the purchase of authorized supplemental foods to eligible pregnant, postpartum, and breastfeeding women, infants, and children under five (5) years of age. To provide these services, including the distribution of Food Instruments, CDPH has contracts with more than eighty (80) WIC Local Agencies which operate approximately five hundred (500) clinic sites throughout California. Infant Formula is one (1) of the supplemental foods provided to WIC Participants through the issuance of Food Instruments used by WIC Participants at WIC Authorized Vendors. Under California’s current system, Food Instruments take the form of EBT Cards that are used to access a WIC Participant’s Electronic Benefits.

3. WIC Participant and Issuance Data

a. The participation and issuance data included in this Section is for reference only and is intended to allow potential Bidders to evaluate the quantities of soy-based Iron-Fortified Infant Formula that may be redeemed during the Contract term. This information is based on six (6) months of the most recent participation and issuance data available.

The figures included should not be construed to be guaranteed numbers because the amount of Iron-Fortified Infant Formula redeemed will fluctuate with the availability of federal funds and other factors, such as changes in federal regulations or participation levels. The participation and issuance data does not necessarily reflect the actual issuance and redemption that will occur under the Contract.

b. The following table shows the number of Participants receiving soy-based Contract Brand Infant Formula and milk-based Non-Contract Brand Infant Formula from the WIC Program, per month, for a six (6)-month period. These numbers exclude infant Participants who are exclusively breastfed (estimated 43,479 infants), Participants issued Exempt Infant Formula, and Participants receiving milk-based Iron-Fortified Infant Formula; the number of Participants receiving milk-based Infant Formula from the WIC Program will be included in IFB #25-10009. The State does not issue Electronic Benefits for ready-to-feed formula and data for ready-to-feed formula is not included in the table; data for all Forms of Infant Formula (i.e., liquid concentrate, powder, and ready-https://www.govinfo.gov/content/pkg/PLAW-111publ296/pdf/PLAW-111publ296.pdf https://www.ecfr.gov/cgi-bin/text-idx?SID=a42889f84f99d56ec18d77c9b463c613&node=7:4.1.1.1.10&rgn=div5 https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=106.&chapter=1.&part=2.&lawCode=HSC&article=2.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=106.&chapter=1.&part=2.&lawCode=HSC&article=2.

https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=IFFBC5590D4B711DE8879F88E8B0DAAAE&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default) https://www.cdph.ca.gov/Programs/CFH/DWICSN/Pages/LawsandRegulations.aspx to-feed) are included in Attachment 2, Bid Form for Soy-Based Infant Formula. Ready-to-feed formula is purchased directly by the State from the Contractor or another Distributor.

Formula Type/Form Jan. 2024 Feb.

March

April

May

June

Six (6)- Month

Average Soy-Based Concentrate 52 51 43 41 43 39 45

Soy-Based Powder 2,568 2,614 2,534 2,504 2,490 2,431 2,524

c. The following table shows the number of Units of soy-based Contract Brand Infant Formula and soy-based Non-Contract Brand Infant Formula issued by the WIC Program, per month, for a six (6)-month period. These numbers exclude data for Exempt Infant Formula and data for milk-based Contract Brand Infant Formula; the data for milk-based Infant Formula will be included in IFB #25-10009. The State does not issue Electronic Benefits for ready-to-feed formula and data for ready-to-feed formula is not included in the table; data for all Forms of Infant Formula (i.e., liquid concentrate, powder, and ready-to-feed) are included in Attachment 2, Bid Form for Soy-Based Infant Formula. Ready-to-feed formula is purchased directly by the State from the Contractor or another Distributor.

Formula Type/Form

Jan.

Feb.

March

April

May

June

Six (6)- Month

Average Soy-Based Concentrate 1,315 1,251 1,079 1,031 1,021 954 1,109

Soy-Based Powder 18,932 19,158 18,524 18,180 18,003 17,450 18,375

d. A small number of Participants over the age of one (1) year will be issued Food Instruments for the purchase of soy-based Contract Brand Infant Formula for medical reasons when prescribed by a health care professional licensed to write medical prescriptions under state law. This participation data is reflected in the table in Section A.3.b, above, and will be included in the Rebate invoice.

e. A small number of Participants with qualifying medical conditions may be issued Exempt Infant Formula with medical documentation. Approximately 5,603 Participants per month are issued Exempt Infant Formula statewide. In accordance with 7 Code of Federal Regulations part 246.10(d), Exempt Infant Formula will be issued only when prescribed by a health care professional licensed to write medical prescriptions under state law. No Rebate will be paid for Exempt Infant Formula.

Exempt Infant Formula is not reflected in the table in Section A.3.c above and will not be included in the invoice for Rebate under the Contract resulting from IFB #25- 10121.

f. A small number of Participants with qualifying medical conditions may be issued Non- Contract Brand Infant Formula with medical documentation. Approximately 5,653 Participants per month are issued Non-Contract Brand Infant Formula with medical documentation statewide. Non-Contract Brand Infant Formula for which medical documentation is required may be issued only when prescribed by a health care professional licensed to write medical prescriptions under state law. This soy-based Non-Contract Brand Infant Formula, excluding Exempt Infant Formula, is reflected in the table in Section A.3.c above but will not be included in the invoice for Rebate under the Contract resulting from IFB #25-10121.

g. Sample Rebate invoices are included in Exhibit G, Appendices 2a, 2b, and 2c. These appendices are for April through June 2024 and include Infant Formula Redemption totals by product name, Form, and Container size. This invoice format will be used in the Contract resulting from IFB #25-10121.

4. Food Instruments

a. Electronic Benefits for Iron-Fortified Infant Formula are issued to eligible WIC Participants and made available on EBT Cards that may be used by Participants’ parents or guardians at the WIC Authorized Vendor(s) of their choice.

b. The following terms apply to the issuance process for Electronic Benefits:

i. WIC Local Agencies, using the State’s Management Information System (MIS), issue Electronic Benefits into Participants’ EBT accounts. An account’s Food Benefit balance includes information on the applicable brand, product name, Form, Container size, and quantity of Containers of Infant Formula that are available to be purchased using the EBT Card at any given time within the Benefit Period (e.g., three (3) sixteen (16)-ounce Containers of [soy-based brand and product name] powder).

ii. Electronic Benefits are available for the Benefit Period. During the Benefit Period, Electronic Benefits may be used at any WIC Authorized Vendor. Any unused Electronic Benefits shall expire at the end of the Benefit Period. The State has opted to use an online-based EBT system. EBT transactions will be recorded as near as possible to the actual date the Electronic Benefits are used.

c. In the event the State uses the Rounding Up methodology described in 7 Code of Federal Regulations part 246.10(h)(1)(i) and (ii), the State shall do so in accordance with Exhibit A, Section 5.A.3.

d. Unless a Participant is prescribed Exempt Infant Formula or Non-Contract Brand Infant Formula, as described in Sections A.3.e and A.3.f, above, if the Participant’s parent or guardian selects soy-based Infant Formula, the Primary Contract Brand Infant Formula will automatically be issued to the Participant. When Participants are issued the Primary Contract Brand Infant Formula, the Participant’s parent or guardian may select the Form of Primary Contract Brand Infant Formula. Alternatively, the Participant’s parent or guardian may select a different Contract Brand Infant Formula, which will then be reflected in the Participant’s Electronic Benefits.

B) BIDDER MINIMUM QUALIFICATIONS

The following minimum requirements apply to the actual person(s) or entity(ies) who will be providing the above-mentioned services. Responses must contain all requested information and conform to the format described in Section C.3 – IFB Response Requirements. It is the Bidder’s responsibility to provide all necessary information for the State to evaluate the Bid and the Bidder’s ability to perform the tasks and activities described above in Section A, and in Exhibit A

– Scope of Work. If deemed necessary, in its sole discretion, CDPH may request or verify additional information related to the Bidder’s ability to perform. Please supply enough detail to clearly establish that actual person(s) or entity(ies) who will be providing the services meet(s) the minimum qualifications listed below:

Number Qualification

1 The Bidder must certify that it is currently an Infant Formula Manufacturer.

2 The Bidder must certify that it has at least three (3) consecutive years of experience operating as a Manufacturer, all of which occurred within the past five (5) years.

3 The Bidder must certify that it has the ability to manufacture and supply Sufficient Quantities of Infant Formula to WIC Authorized Vendors. (See Exhibit G, Appendix 3, for a web link to a list of WIC Authorized Vendors).

4 The Bidder must certify that the Iron-Fortified Infant Formulas contained in its Bid have been available from the Bidder for statewide distribution and purchase by WIC Authorized Vendors for a period of at least one (1) year prior to the Bid due date specified in Section C.1– Key Action Dates, below.

5 The Bidder must certify that it is registered with the Secretary of U.S.

Department of Health and Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 301, et seq.), as required under 7 Code of Federal Regulations part 246.10(g).

6 The Bidder must certify that its Iron-Fortified Infant Formulas comply with the Federal Food, Drug, and Cosmetic Act and regulations issued pursuant to the Act, as required under 7 Code of Federal Regulations part 246.10(g).

7 The Bidder must certify that it has an office in the United States that will manage the Contract at the time the Bid is submitted, and during the full Contract term.

8 The Bidder must certify that it shall submit the electronic file(s) containing product Label artwork (per Exhibit A, Section 4.G.1, “Artwork”) picturing Containers of each Form of soy-based Iron-Fortified Infant Formula being bid, and all products eligible to be Contract Brand Infant Formula, to the State’s project representative, as identified in Exhibit A, Section 3.A, and any subsequent notices from the State, within ten (10) days after the date of the Notice of Intent to Award, if awarded the Contract.

9 The Bidder must certify that it is willing to comply with all terms and conditions set forth in IFB #25-10121, including but not limited to the terms, conditions, and associated contract exhibits.

10 Corporations must certify they are in good standing with the California Secretary of State and qualified to conduct business in California.

11 Nonprofit organizations must certify they are eligible to claim nonprofit status.

12 The Bidder must have a past record of sound business integrity and history of being responsive to past contractual obligations.

13 The Bidder must certify that in the last two (2) years, it has not disclosed the amount of a bid, or the Bidder’s rebate or discount practices, in response to an infant formula solicitation pursuant to 7 Code of Federal Regulations part 246.16a, in advance of the time the bids were opened by the Secretary of USDA or a WIC State agency.

C) BID REQUIREMENTS AND INFORMATION

1. Key Action Dates

It is recognized that time is of the essence. All Bidders are hereby advised of the following schedule and will be expected to adhere to the required dates and times.

Key Action Dates Date(s) Time Release Date of IFB 02/11/2025 Questions Due 02/24/2025 by 3 PM (PST) Question/Answer Summary Posted 04/03/2025 by 5 PM (PDT) Bid Due Date 04/17/2025 by 2 PM (PDT) Bid Opening 04/17/2025 at 3:30 PM (PDT) Notice of Intent to Award 04/21/2025 by 5 PM (PDT) Intent to Protest Deadline 04/28/2025 by 5 PM (PDT)

Complete Written Statement of Protest Deadline

Within five (5) calendar days after the Bidder files Protest

Contract Award Date 05/02/2025 Anticipated Contract Start Date Friday, August 1st, 2025, or upon final DGS approval, whichever is later.

a. The term of the agreement shall be August 1st, 2025, or upon final approval by the Department of General Services (DGS), whichever is later, through July 31, 2030.

b. In the opinion of CDPH, this IFB is complete and without need of explanation. If CDPH receives questions regarding the content of this IFB, all questions must be typed, numbered, and submitted electronically via email to kamilah.morton@cdph.ca.gov.

All questions must be received on or before the date and time detailed under Section C.1 – Key Action Dates. Questions submitted by this date may be answered at the State’s discretion. Answers will be made available as an addendum under the solicitation for posting for general access. Questions received after the due date will not be considered.

2. Submission of Bid

a. All Bids must be submitted under sealed cover and sent to Department of Public Health, Centralized Contract Services Unit by the date and time shown in Section C.1 – Key Action Dates. The sealed cover must be plainly marked with the IFB number and title, must show your firm name and address, and must be marked with “DO NOT OPEN,” and mailed or delivered to the following address:

b. Bids not submitted under sealed cover will be rejected. A minimum of three (3) copies of the Bid must be submitted.

c. Bids shall include all required IFB documents and attachments, as identified in the Required Attachment / Administrative Certification Checklist (Attachment 3). Bids not including the required attachments shall be deemed non-responsive. To be considered responsive, a Bid must indicate compliance without material deviation

IFB # 25-10121 Soy-Based Infant Formula Rebate Attention: Kamilah Morton

Department of Public Health 1616 Capitol Avenue MS 1802 Sacramento, CA 95814

DO NOT OPEN UNTIL PUBLIC OPENING

TIME SENSITIVE BID

from the requirements of IFB #25-10121 and the terms and conditions of the proposed contract.

d. All documents requiring a signature must bear an original signature or e-signature of a person authorized to bind the bidding firm.

e. Bids must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a Bid to be rejected.

f. A Bid may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The State may reject any or all Bids and may waive an immaterial deviation in a Bid. The State’s waiver of an immaterial deviation shall in no way modify the IFB or excuse the Bidder from full compliance with all requirements if awarded the Agreement.

g. Costs for developing Bids and in anticipation of award of the Agreement are entirely the responsibility of the Bidder and shall not be charged to the State of California.

h. An individual who is authorized to bind the Bidder contractually shall sign the Bid/Bidder Certification sheet. The signature should indicate the title or position that the individual holds in the firm. An unsigned Bid will be rejected.

i. A Bidder may modify a Bid after its submission by withdrawing its original Bid and resubmitting a new Bid prior to the bid submission deadline. Bidder modifications offered in any other manner, oral or written, will not be considered.

j. A Bidder may withdraw its Bid by submitting a written withdrawal request to the State, signed by the Bidder or an authorized agent. A Bidder may thereafter submit a new Bid prior to the bid submission deadline. Bids may not be withdrawn without cause subsequent to bid submission deadline.

k. The awarding agency may modify the IFB prior to the bid submission deadline by issuing an addendum to all parties who received a bid package.

l. The awarding agency reserves the right to reject all Bids. The agency is not required to award an agreement.

m. Before submitting a response to this solicitation, Bidders should review their Bids, correct all errors, and confirm compliance with the IFB requirements.

n. Where applicable, Bidder should carefully examine work sites and specifications.

Bidder shall investigate conditions, character, and quality of surface or subsurface materials or obstacles that might be encountered. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

o. The State does not accept alternate contract language from a prospective contractor. A Bid with such language will be considered a counter proposal and will be rejected. The State’s General Terms and Conditions (GTC) are not negotiable. If awarded, the GTC will be made part of the resulting Agreement and identified as Exhibit C. The GTC may be viewed at Internet site https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language.

p. No oral understanding or agreement shall be binding on either party.

q. Bidder must complete and submit to the awarding agency the Payee Data Record (STD 204) and, if necessary, Payee Data Record Supplement (STD 205), to determine if the Contractor is subject to state income tax withholding pursuant to California Revenue and Taxation Code sections 18662 and 26131. These forms can be found on the Internet at http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf and http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std205.pdf, respectively. No payment shall be made unless a completed STD 204 and STD 205 (if necessary) has been returned to the awarding agency.

r. Bidder must sign and submit to the awarding agency, page one (1) of the Contractor Certification Clauses (CCC), which can be found on the Internet at: Standard Contract Language (ca.gov).

s. Pursuant to 7 Code of Federal Regulations part 246.16a(m), Bidders that submit a Bid in response to IFB #25-10121 and disclose the amount of the Bid, or the Rebate or discount practices of the Bidder, in advance of the time the Bids are opened by CDPH, shall be ineligible to submit Bids to supply Infant Formula to the WIC Program for the bidding in progress for up to two (2) years from the date the Bids are opened and shall be subject a civil penalty as specified in 7 Code of Federal Regulations part 3.91(b)(3)(iv).

3. IFB Response Requirements

Bids must contain all requested information and conform to the format described in this section. It is the Bidder’s responsibility to provide all necessary information for the State to evaluate the Bid and determine if the firm has submitted a responsive Bid and certified that it is a responsible Bidder. The following contents must be included with your Bid in the following order:

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std205.pdf https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

a. Bidder Cover Page (Attachment 1) – Complete, sign, and return.

b. Bid Form for Soy-Based Infant Formula (Attachment 2) – Complete, sign, have notarized, and return. For the Bidder that is awarded the Contract, the Bid Form for Soy-Based Infant Formula will become Exhibit B, Attachment 1 (Exhibit B-1), of the Contract.

Attachment 2, Bid Form for Soy- Based Infant Formula

Bidders must complete page 1 of the Bid Form entirely and shall not submit supplemental cost or rate sheets.

Information entered on page 1 will automatically populate on page 2 of the Bid Form.

A Bidder may bid on soy-based Infant Formula using the appropriate Bid Form.

The Bidder shall include a rebate amount for all physical forms (powder, concentrate, ready-to-feed) of the Infant Formula being bid.

All costs and prices on the Bid Form(s) must be submitted as a specific dollar and cent amount, carried out to three decimal places (e.g., $2.056) even if the last digit is zero (e.g., $2.000), or the Bid will be non-responsive.

Bid Form Instructions Page 1:

Data entry fields are in yellow sections. Use the tab or arrow keys to move between fields. Fill in only one unit size for each physical form.

Step 1 –The Bidder is to fill in the Manufacturer's name, product name, UPC code, product unit size, and the product’s reconstituted ounces per unit for each physical form.

Step 2 – The Bidder is to fill in the Manufacturer’s Lowest National Wholesale Price for each physical form.

Step 3 – The Bidder is to fill in the Rebate Bid per Unit for each physical form.

Step 4 – The Net Cost Per Unit will automatically calculate and populate, using the following formula:

Manufacturer’s Lowest National Wholesale Price Per Unit – Rebate Bid Per Unit Step 5 – The Percent Rebate will automatically calculate and populate, using the following formula:

Rebate Bid Per Unit / Manufacturer’s Lowest National Wholesale Price Per Unit Step 6 – The Bidder is to sign and date the Bid Form and have it notarized.

Page 2:

All bolded cells will automatically populate from the information entered on page 1 of the Bid Form.

Contract award will be based on the responsive and responsible Bidder that submits a timely Bid offering the lowest Total Net Cost Per Month to the State for soy-based Iron-Fortified Infant Formula.

c. A detailed response covering the following items, with each item covered on separate pages or under a separate header:

Description of Iron Level

A description of the iron level for the Bidder’s Iron-Fortified Infant Formula. The description must specify the level of iron, in milligrams per liter of Iron Fortified Infant Formula (at a standard dilution), which supplies 67 kilocalories per 100 milliliters of formula for each Form of Formula Bid.

Wholesale Distribution Network

A description of Bidder’s wholesale distribution network that has been used to make the Iron-Fortified Infant Formulas contained in the Bid available to retailers in all fifty-eight (58) California counties for a period of at least one (1) year prior to the Bid due date specified in Section C.1, above, and will be used to provide Sufficient Quantities of Infant Formula to WIC Authorized Vendors (see Exhibit G, Appendix 3, for a web link to a list of WIC Authorized Vendors), and a list of wholesale Distributors and/or distribution points, including addresses.

Manufacturer’s Commercial Wholesale Price List

Bidder shall provide a copy of their nationally published Manufacturer’s Commercial Wholesale Price List in effect at the time of the Bidder’s Bid submission.

Bidder's Office Location(s)

Bidder shall provide a list of Bidder's office location(s) within the United States that will manage the Contract resulting from this IFB, if awarded, and include the name, address, telephone number, fax number, and e-mail address of the project representative for the Contract.

d. A certification of meeting minimum requirements stated in Section B (Attachment 4 – CDPH Bidder Qualifications Certification) – Complete, sign, and return.

e. List of references (Attachment 11 – Bidder References) for projects of similar size and scope. Please include a contact name, phone number, and email address for each company listed.

f. If applicable, provide a current copy of your Small Business certification status with the Department of General Services, Office of Small Business Certification and Resources

(OSBCR).

g. Submit a copy of a valid business license to do business California. If applicable, provide copy of a contractor’s license.

h. Complete, sign, and return the following:

1) Attachment 3 – Required Attachment / Administrative Certification Checklist

2) Attachment 5 – Bidder Contact Sheet

3) Attachment 6 – Business Information Sheet

4) Attachment 7 – STD 204 Payee Data Record and, if necessary, STD 205 Payee Data Record Supplement

5) Attachment 8 – Bidder Declaration (GSPD-05-106)

6) Attachment 9 – Contractor Certification Clauses (CCC 04/2017)

7) Attachment 10 – Mandatory Generative Artificial Intelligence (GenAI) Disclosure & Factsheet Form (STD 1000)

8) Attachment 11 – Bidder References

9) Attachment 12 – Commercially Useful Function (CUF) Certification

10) Attachment 13 – Darfur Contracting Act Certification (DGS PD 1)

4. Bid Opening Location (include additional instructions if needed)

California Department of Public Health 1616 Capitol Avenue, Room 74.260 Sacramento, CA

5. Evaluation and Selection

a. At the time of bid opening, each Bid will be checked for the presence or absence of required information in conformance with the submission requirements of this IFB.

b. The State will evaluate each bid to determine its responsiveness to the published requirements.

c. Bids that contain false or misleading statements, or which provide references that do not support an attribute or condition claimed by the Bidder, may be rejected.

d. Award, if made, will be to the responsive and responsible Bidder that submits a timely Bid offering the lowest Total Net Cost Per Month to the State for soy-based Iron-Fortified Infant Formula.

e. In the event of a tie, the award will be determined by a coin toss. The coin toss will be held in the State Agency’s headquarters area office. This is a public event, which the

Bidders will be invited to attend.

6. Award and Protest

a. Whenever an agreement is awarded under a procedure which provides for competitive bidding, but the agreement is not to be awarded to the low Bidder, the low Bidder shall be notified by telegram, electronic facsimile transmission, overnight courier, or personal delivery five (5) working days prior to the award of the agreement.

b. Notice of the proposed award shall be posted in a public place in the office of the awarding agency at least five (5) working days prior to awarding the agreement.

c. If any Bidder, prior to the award of agreement, files a protest with the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605, OLSProtests@dgs.ca.gov, and CDPH, Attention: Kamilah Morton, 1616 Capitol Avenue MS 1802, Sacramento, CA 95814, kamilah.morton@cdph.ca.gov on the grounds that the (protesting) Bidder is a responsive responsible Bidder and its Bid provides the lowest Total Net Cost Per Month for the Type of Formula being bid, the agreement shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

d. Within five (5) calendar days after filing the initial protest, the protesting Bidder shall file with the Department of General Services and CDPH a detailed written statement specifying the grounds for the protest. Protests are limited to the grounds specified in Public Contract Code section 10345. The detailed written statement specifying the grounds of the protest must be sent to the Department of General Services, Office of Legal Services 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, California 95605, OLSProtests@dgs.ca.gov. A copy of the detailed written statement must be sent to the California Department of Public Health, Attention: Kamilah Morton, 1616 Capitol Avenue MS 1802, Sacramento, CA 95814, kamilah.morton@cdph.ca.gov. If you choose to submit a protest by mail, it is suggested that you submit any protest by certified or registered mail.

7. Disposition of Bids

a. Upon bid opening, all documents submitted in response to this IFB will become the property of the State of California and will be regarded as public records under the California Public Records Act (Government Code section 7920.000 et seq.) and subject to review by the public.

b. Bid packages may be returned only at the Bidder's expense, unless such expense is waived by the awarding agency.

8. Agreement Execution and Performance

a. If an inconsistency or conflict arises between the terms and conditions appearing in the final, executed Contract and the proposed terms and conditions appearing in IFB #25- 10121, any inconsistency or conflict will be resolved by giving precedence to the Contract.

b. Performance shall start no later than the express date set by the awarding agency and the Contractor, after all approvals have been obtained and the Agreement is fully executed. Should the Contractor fail to commence work at the agreed upon time, the awarding agency, upon five (5) days written notice to the Contractor, reserves the right to terminate the Agreement. In addition, the Contractor shall be liable to the State for the difference between Contractor’s bid price and the actual cost of performing work by the second lowest Bidder or by another Contractor.

c. All performance under the Agreement shall be completed on or before the termination date of the Agreement.

D) PREFERENCE PROGRAMS

The following Preference Programs can be applied for qualifying bidders.

1. California Certified Small Business and Preference(s) Information

SMALL BUSINESS PREFERENCES AND CERTIFICATION

Bidders claiming the small business preference must be certified by California as a small business or must commit to subcontract at least twenty-five percent (25%) of the net bid price with one or more California certified small businesses. Small Business Nonprofit Veteran Services Agencies (SB/NVSA) prime bidders meeting requirements specified in the Military and Veterans Code section 999.50 et seq. and obtaining a California certification as a small business are eligible for the five percent (5%) small business preference. If applicable, claim the preference in the box on the right-hand side of the first page of this solicitation.

Completed certification applications and required support documents must be submitted to the Office of Small Business and DVBE Services (OSDS) no later than 5:00 p.m. on the bid due date and the OSDS must be able to approve the application as submitted.

Questions regarding certification should be directed to the OSDS at 916-375-4940.

SMALL BUSINESS REGULATIONS

The Small Business regulations, located in the California Code of Regulations (Title 2, Division 2, Chapter 3, Subchapter 8, Section1896 et seq.), concerning the application and calculation of the small business preference, small business certification, responsibilities of small business, department certification, and appeals are revised, effective 9/09/04. The new regulations can be viewed at https://www.dgs.ca.gov/PD/Services/Page- Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business- Disabled-Veteran-Business-Enterprise. Access the regulations by clicking on the “Small Business California Code of Regulations” in the Authority section. For those without internet access, a copy of the regulations can be obtained by calling the Office of Small Business and DVBE Services (OSDS) at 916-375-4940.

SMALL BUSINESS PARTICIPATION REPORTING REQUIREMENTS

Per Government Code 14841, if a contract/purchase order is awarded from this solicitation with a commitment from the prime bidder to achieve small business participation, the contractor must within sixty (60) days of receiving final payment under this agreement (or within such other time period as may be specified elsewhere in this agreement) report to the awarding department the actual percentage of small business participation achieved.

NON-SMALL BUSINESS SUBCONTRACTOR PREFERENCE

A five percent (5%) bid preference is available to a non-small business claiming twenty-five percent (25%) California Certified small business subcontractor participation. If applicable, claim the preference in the box on the right-hand side of the first page of this solicitation.

If claiming the non-small business subcontractor preference, the bid response must include a list of the small business(es) with which you commit to subcontract in an amount of at least twenty-five percent (25%) of the net bid price with one of more California certified small businesses. Each listed certified small business must perform a “commercially useful function” in the performance of the contract as defined in Government Code section 14837(d)(4). The required list of California certified small business subcontracts must be attached to the bid response and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products supplied, 5) and the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

Bidders claiming the five percent (5%) preference must commit to subcontract at least twenty-five percent (25%) of the net bid price with one or more California certified small businesses. Completed certification applications and required support documents must be submitted to the Office of Small Business and DVBE Services (OSDS) no later than 5:00 p.m. on the bid due date, and the OSDS must be able to approve the application as submitted.

Questions regarding certification should be directed to the OSDS at 916-375-4940.

2. Target Area Contract Preference Act

This Preference does not apply to this Solicitation.

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise

a. Government Code (GC) Section 4530 (TACPA) provide that California based companies shall be granted a 5% preference whenever a state agency prepares a solicitation for services in excess of $100,000. The preference(s) shall apply if the worksite is not fixed by the government agency and the proposer can demonstrate and certify, under the penalty of perjury, that at least 90% of the total labor hours required to perform the services shall be performed at an identified worksite located in a distressed area (TACPA). TACPA preferences will only be applied if this procurement results in more than one responsive proposal receiving a passing narrative proposal score.

b. Additional work force preferences ranging from 1% to 4% can be earned by eligible proposers that agree to hire 5% to 20% of persons with a high risk of unemployment orthose living in a targeted employment area to perform a specified percentage of the contract work.

c. The granting of TACPA preference cannot displace an award to a certified small business.

d. Proposers seeking TACPA preference must submit a completed STD 830 - Target Area Contract Preference Act Request, Bidders Summary (DGS-PD-526) and Manufacturers Summary (DGS-PD-525) with their proposal. Complete Attachment 12.

e. TACPA preference cannot be granted if:

1) The lowest proposed cost does not equal or exceed $100,000 for the entire term, or

2) The work site or any part thereof is fixed or preset by the State, or

3) The services involve construction or a public works project or

f. A proposer who has claimed a TACPA preference and is awarded the contract will be obligated to perform in accordance with the preference(s) requested, provided the preference was granted in obtaining the contract. Firms receiving preference must:

1) Report their labor hours to the State and

2) Reference the state contract on which the award is based for the specific reporting requirements.

g. Proposers wishing to learn more about TACPA requirements, designated work site(s) or in California should contact the appropriate office of the Department of General Services at tacpa@dgs.ca.gov. DGS will attempt to determine TACPA eligibility within 5 working days.

mailto:tacpa@dgs.ca.gov

3. Combined preferences

The maximum preference or score addition that any proposer may be granted for preference, non-small business subcontractor preference, DVBE Incentive, TACPA preference, preference combined is 15% of the bid amount or $100,000, whichever is less.

Any firm that claims and is granted non-small business subcontractor preference, DVBE Incentive, TACPA preference cannot displace an award to a certified small business or microbusiness.

4. Commercially Useful Function

Only State of California, Office of Small Business and DVBE Services certified DVBEs who perform a commercially useful function relevant to this solicitation, may be used to satisfy the DVBE program requirements. Bidders are to verify each DVBE subcontractor’s certification with OSDS to ensure DVBE eligibility.

Definition of Commercially Useful Function: California Code of Regulations, Title 2, § 1896.61(l) The term "DVBE contractor, subcontractor or supplier" means any person or entity that satisfies the ownership (or management) and control requirements of §1896.61(f); is certified in accordance with §1896.70; and provides services or goods that contribute to the fulfillment of the contract requirements by performing a commercially useful function.

As defined in MVC §999, a person or an entity is deemed to perform a "commercially useful function" if a person or entity does all the following:

A. Is responsible for the execution of a distinct element of the work of the contract.

B. Carries out the obligation by actually performing, managing, or supervising the work involved.

C. Performs work that is normal for its business services and functions.

D. Is responsible, with respect to products, inventories, materials and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable and making payment.

E. Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

A contractor, subcontractor, or supplier will not be considered to perform a commercially useful function if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of disabled veteran business enterprise participation.

The CDPH Advocates listed herein can be contacted to provide assistance in identifying DBVE vendors that may perform a commercially useful function applicable to the scope of this solicitation.

E) BUSINESS PARTICIPATION PROGRAM REQUIREMENTS

1. Disabled Veteran…