ITB11 Low Protein Food.doc

STATE OF IDAHO

DEPARTMENT OF HEALTH AND WELFARE

Invitation to Bid (ITB) ITB11

LOW PROTEIN MEDICAL FOOD

Date of Issuance: 08/24/2023

TABLE OF CONTENTS

3ITB Administrative Information

PURPOSE

GENERAL INFORMATION, solicitation instructions and standard terms and conditions

INQUIRIES

BACKGROUND

SPECIFICATIONS

COST

BILLING PROCEDURE

SUBMISSION REQUIREMENTS

AWARD

Contract Monitoring

Price Adjustment Clause

Insurance Requirements

Records Maintenance

Audit Rights

8ATTACHMENT 1 - Specifications

11ATTACHMENT 2 - MODIFICATION AND EXCEPTION FORM

ITB Administrative Information

ITB Lead:

Steve Barclay

Senior Buyer

Steve.Barclay@dhw.idaho.gov

Deliver Sealed Bid Package to:

Steve Barclay

Idaho Department of Health and Welfare

450 West State Street

Boise, ID 83702

By Conference Call Only

During this time of social distancing due to COVID-19, you must email the ITB Lead twenty-four (24) hours in advance of the proposal opening if you wish to participate by phone. There will not be an in-person opening.

1 PURPOSE

The purpose of this ITB is to establish a contract for a supply of special, low protein medical foods and formula for the Department of Health and Welfare (Department) to administer to participants of the State’s Phenylketonuria (PKU) program, in accordance with the specifications provided below.

2 GENERAL INFORMATION, solicitation instructions and standard terms and conditions The ITB Lead is the only contact for this Solicitation. All correspondence regarding this ITB must be in writing. In the event that it becomes necessary to revise any part of this ITB, amendments will be posted at IPRO. It is the responsibility of the Bidder to monitor IPRO for any updates or amendments. Any oral interpretations or clarifications of this ITB must not be relied upon. All changes to this ITB must be in writing and posted at IPRO to be valid. Alternate Bids are not allowed.

3 INQUIRIES

Questions must be submitted using the Q & A Board in IPRO on the left-hand side. QUESTIONS MUST BE RECEIVED BY 11:59:59 P.M. Mountain Time ON THE DATE LISTED IN THE ITB ADMINISTRATIVE INFORMATION section. Official answers to all questions will be posted on the Q & A Board on IPRO.

Any requests for modifications regarding the State of Idaho Standard Contract Terms and Conditions found a(Contract Terms and Conditions) must be submitted in writing, using Attachment 2, Modification and Exception, and uploaded in IPRO on the Supplier Attachment page by the deadline identified in the ITB Administrative Information section. The State will not consider proposed modifications to these requirements after the date and time set for receiving questions. Proposed modifications and exceptions to requirements, terms or conditions must contain the following:

1. The rationale for the specific requirement being unacceptable to the party submitting the question (define the deficiency).

2. Recommended verbiage for the State’s consideration that is consistent in content, context, and form with the State’s requirement that is being questioned.

3. Explanation of how the State’s acceptance of the recommended verbiage is fair and equitable to both the State and to the party submitting the question.

The State has sole discretion to determine if the modifications or exceptions submitted by a Bidder would result in a material change or otherwise threaten the integrity of the procurement process. Pursuant to IDAPA 38.05.01.084, the State may only negotiate non-material modifications or exceptions. Modifications or exceptions which the State determines to be material, or which otherwise threaten the integrity of the procurement process, will not be accepted or negotiated. In the event that the Bidder has conditioned its Bid on the State’s acceptance or negotiation of its proposed modifications or exceptions, and the modifications or exceptions are deemed material, the Bidder will be given the opportunity to retract the proposed modifications or exceptions from its Bid. Failure to do so will result in the Bidder’s Bid being found non-responsive, after which it will receive no further consideration.

Non-material modifications or exceptions may be negotiated with the apparent successful Bidder, at the discretion of the State; however, the State shall have the right to reject any and all such modifications and or exceptions, and to instruct the Bidder to amend its Bid and remove the modifications and or exceptions. Failure to do so may result in the State finding the Bid non-responsive.

Except as otherwise provided in the solicitation document, including the State of Idaho Standard Contract Terms and Conditions (updated May 2021), the State will not consider modifications or exceptions to the requirements, terms, or conditions which are proposed after the Closing Date.

4 BACKGROUND

The Idaho Children’s Special Health Program provides low protein medical foods and formula for Idaho children with PKU. Currently there are approximately forty (40) pediatric participants in the PKU program who will have budgets set by the Department for low protein medical foods and approximately forty (40) adult participants that are eligible to purchase products by self-pay. As part of Title V Maternal and Child Health federal funding, the Department requires a Contract to provide PKU formula and low protein medical foods for the management of PKU and other inborn errors of metabolism which require a low protein diet. Pediatric and adult participants will be assigned a monthly budget based on their individual caloric needs. Over the past four (4) years, the program has expended $350,000 in low protein foods. The Bidder should note that state and federal funding and or policy changes will cause fluctuations in the Department’s funding and or the products needed.

5 SPECIFICATIONS

See SPECIFICATIONS (Attachment 1)

6 COST

Provide your fully burdened Total Cost on the Items page in IPRO.

7 BILLING PROCEDURE

The Contractor must provide a signed invoice upon acceptance of products. For orders placed by Department funded participants, invoices must be provided no less than monthly within seven (7) days after the end of the month to the agency identified below:

Department of Health & Welfare

Division of Public Health

PO Box 83720

Boise, ID 83720-0036

Attn: Idaho Children’s Special Health Program

Phone: (208) 334-5962

Email: IdahoMCH@dhw.idaho.gov The Contractor must provide the following information with each invoice:

· IPRO contract number and Agency PO number

· Identification of billing period

· Total amount billed for the billing period

· Detailed description of products provided, as appropriate

· Name of authorized individual and contact information for Contractor

The Contractor must charge and collect directly from the participant for any order or portion of order that is:

· Not paid by third party insurer

· Or is placed by non-Children’s Special Health Program (CSHP) funded participants

· Or is placed by CSHP funded participants in excess of their monthly budget

· Or is for any non-approved products

8 SUBMISSION REQUIREMENTS

8.1 Bid Submission Method Bids must be submitted electronically through IPRO. The Department will not accept hardcopy (manual) submissions.

All Bidders participating in a Solicitation issued through IPRO must establish an account in the IPRO system as it is necessary in order to process and/or award the resulting Contract(s). It is free to establish an account and only takes a few minutes.

Enter your Total Cost on the Cost Matrix Excel Spreadsheet located on the Prerequisites page in IPRO following the supplied instructions for each of the eleven (11) categories listed. This must be entered prior to the deadline established in the ITB ADMINISTRATIVE INFORMATION above.

Bids may include menu items in addition to the required menu items as listed in the specifications, additional menu items must be submitted on a separate cost matrix and uploaded in the Questions page in IPRO. These additional menu items may be added to the approved “food package” at the Department’s discretion on an as needed basis. These additional menu items will not be included in the evaluation for award.

All menu items bid plus all additional menu items offered must be accompanied by a list which contains their nutritional values for each item. Attach this document in the Prerequisites page. The list must include calories, calories from fat, fat, saturated fat, trans fat, cholesterol, sodium, carbohydrates, dietary fiber, sugars, protein, vitamin A, vitamin C, calcium, and iron.

Bids must be accompanied by a signed State of Idaho Signature Page. This page is attached in the IPRO Prerequisites page.

Bids must be accompanied by a COVER FORM. This page is attached in the IPRO Prerequisites page.

Supporting documents not otherwise listed in this section can be uploaded in IPRO on the Supplier Attachment page.

8.2 Trade Secrets

If your Bid contains trade secret information which you have identified, you must also submit a redacted copy of the Bid (in electronic format, with the word “redacted” in the file name) with all trade secret information removed or blacked out; as well as a separate document containing a complete list (per the instructions in the three (3) paragraphs directly below) of all trade secret information which was removed or blacked out in the redacted copy. Redacted file must be submitted in IPRO on the Supplier Attachment page.

Paragraph 28 of the Solicitation Instructions to Vendors describes trade secrets to “include a formula, pattern, compilation, program, computer program, device, method, technique or process that derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons and is subject to the efforts that are reasonable under the circumstances to maintain its secrecy.” In addition to marking each page of the document with a trade secret notation (as applicable; and as provided in Paragraph 28 of the Solicitation Instructions to Vendors), Bidders must also:

Identify with particularity the precise text, illustration, or other information contained within each page marked “trade secret” (it is not sufficient to simply mark the entire page). The specific information you deem “trade secret” within each noted page must be highlighted, italicized, identified by asterisks, contained within a text border, or otherwise clearly delineated from other text/information and specifically identified as a “trade secret.”

Provide a separate document entitled “List of Redacted Trade Secret Information” which provides a succinct list of all trade secret information noted in your Bid; listed in the order it appears in your submittal documents, identified by Page #, Section #/Paragraph #, Title of Section/Paragraph, specific portions of text/illustrations; or in a manner otherwise sufficient to allow the State’s procurement personnel to determine the precise text/material subject to the notation. Additionally, this list must identify with each notation the specific basis for your position that the material be treated as exempt from disclosure.

9 AWARD

Award will be made to the responsive responsible Bidder with the lowest Total Cost.

Award will be “All or None” to the responsive, responsible bidder with the lowest Total Cost meeting all of the requirements of the ITB. Bidders that do not bid on all items will not be considered for award. Multiple or alternate bids will not be accepted. Bidders that include multiple or alternate bids may be found non-responsive.

10 Contract Monitoring If the Contractor fails to perform as required, the Contractor will be given written notice to remedy any performance issues. If the Contractor fails to perform as required, the Contract may be cancelled, and the Contractor may be disqualified from participating in the solicitation or the subsequent contract that supersedes the failed Contract.

11 Price Adjustment Clause The Cost Per Unit rates quoted must remain fixed for one (1) year. The Department may consider rate negotiations at the time of the contract’s annual renewal, based on verifiable cost increases submitted by the Contractor and approved by the Department.

12 Insurance Requirements Within five (5) business days of notification of award (or such other time as designated by the Purchasing Activity), the apparent successful Bidder must provide certificates of insurance required herein and must maintain the insurance during the life of the Contract. There are no provisions for exceptions to this requirement. Failure to provide the certificates of insurance within the five (5) business day period may be cause for your Bid to be declared non-responsive or for your Contract to be cancelled.

For the term of the Contract, the Contractor must maintain in force, at its own expense, the following insurance.

· Commercial General Liability Insurance and, if necessary, Commercial Umbrella Liability Insurance with a limit of not less than one million dollars ($1,000,000) each occurrence. Insurance required by this section shall name the State of Idaho, Department of Health and Welfare as an additional insured.

· Workers' Compensation Insurance which includes Employer Liability Insurance and shall comply with Idaho Statutes regarding Workers' Compensation in the amount of: $100,000 per accident; $500,000 disease policy limit; and $100,000 disease, each employee.

If any of the liability insurance required for this contract is arranged on a "claims-made" basis, "tail coverage" will be required at the completion or termination of this contract for a duration of twenty-four (24) months thereafter. Continuous "claims-made" coverage will be acceptable in lieu of "tail-coverage" provided the retroactive date is on or before the effective date of this contract or twenty-four (24) months "prior acts" coverage is provided. The Contractor will be responsible for furnishing certification of "tail coverage" or continuous "claims-made" coverage.

Insurance required by this section shall be policies or contracts of insurance issued by insurers approved by the Department. Insurance certificates shall provide for thirty (30) days' prior written notice to the Department of cancellation or material change of such insurance.

The Contractor must further ensure that all policies of insurance are endorsed to read that any failure to comply with the reporting provisions of this insurance, except for the potential exhaustion of aggregate limits, shall not affect the coverage(s) provided to the State of Idaho, Department of Health and Welfare.

Send updated certificates to: DHWInsurance@dhw.idaho.gov 13 Records Maintenance

The Contractor must maintain or supervise the maintenance of all records necessary to properly account for all payments made to the Contractor pursuant to the Contract. These records must be retained by the Contractor for at least three (3) years after the Contract terminates, or until all audits initiated within the three (3) years have been completed, whichever is later.

14 Audit Rights

The Contractor agrees to allow State and Federal auditors and State purchasing staff access to all the records relating to this Contract, for audit, inspection, and monitoring of services or performance. Such access will be during normal business hours or by appointment.

ITB2023XXXX Low Protein Medical Foods ATTACHMENT 1 - Specifications TC "ATTACHMENT 1--specifications" \f C \l "1"

GENERAL REQUIREMENTS

1. The Contractor must:

a. For the management of Phenylketonuria (PKU) and other inborn errors of metabolism which require a low protein (Lo-Pro) diet, provide the PKU formula.

i. The product offered must have less than one (1) gram of protein per serving.

ii. All products offered must be appropriate for persons with PKU.

b. Provide the same services and price for all Idaho participants.

c. Ensure Idaho participants are able to purchase these Lo-Pro foods under the same price and conditions as stipulated in the contract.

d. Provide standard retail packaging sizes.

i. “Bulk” packaging or “case” quantities must not be offered or delivered to participants.

e. Ensure orders from adults not covered by Idaho Medicaid are always processed as self-pay.

2. The Department will:

a. Require a single Contractor from which PKU participants can order and receive products directly from.

b. Reserve the right to add or remove Lo-Pro foods to the eligible foods list throughout the contract period.

3. The Contract may be cancelled by either party with thirty (30) calendar days written notice.

MENU REQUIREMENTS

1. The Contractor must:

a. Provide a diverse and healthy menu of Lo-Pro items for persons with PKU. The menu must include:

i. five (5) bread product items bread, bagels, buns, tortillas, pita pockets

ii. four (4) breakfast items breakfast bars, hot cereal, cold cereal, low protein egg and omelet mix

iii. five (5) meat alternative items hot dogs, hamburger patties, chicken patty mix, sausage patty mix, seafood patty mix

iv. seven (7) pasta & rice items fettuccini, linguine, penne, spaghetti, cheese ravioli, pierogi, long grain rice

v. five (5) ready meals cheese pizza, burrito, enchiladas, pocket sandwich, vegetable & rice medley

vi. two (2) sauce items alfredo sauce mix, marinara sauce mix

vii. three (3) snack items crackers, tortilla chips, onion rings

viii. three (3) soup & seasonings items chicken consommé, instant noodle soup - beef, instant noodle soup - chicken

ix. five (5) dessert Items cookies, candy bars, brownie mix, chocolate chip cookie mix, sugar cookie mix

x. five (5) low protein cheese items American cheese singles, cream cheese - plain, mozzarella shreds, cheddar shreds, swiss cheese singles

xi. one (1) all-purpose baking mix

xii. One (1) low protein baby formula

ORDERING

1. The Contractor must:

a. Establish a procedure for accepting orders directly from Idaho participants.

b. At a minimum, ensure participants are able to place orders via telephone, on-line, US mail, or fax ordering systems.

c. Screen each order to guarantee the participant is eligible to utilize the contract, manage orders and to ensure:

i. Each participant does not exceed their monthly Department-allocated budget;

ii. Orders are filled within each participant’s approved food budget;

iii. Participants are provided with a shipment status; and

iv. Third party insurers are billed, and either require pre-payment or provide an invoice and collect directly from non-Department funded participants and for orders placed in excess of the monthly budget by Department funded participants.

d. Restrict Department-funded ordering to a “food package” provided by the Department, which will be a sub-set of all products offered by the Contractor.

e. Accept food orders, and payment for those orders, directly from Idahoans with PKU who are past their eighteenth (18) birthday (self-pay participants). These adults must be offered the same pricing as is offered to the Department-funded pediatric PKU participants.

f. Accept food orders in excess of participant’s monthly Department-funded budget and accept payment for those orders directly from the families of pediatric participants.

i. These orders must be sold at the same price as the Department-funded orders.

ii. The minimum order quantity must be one (1) unit of any one (1) item.

g. Not add, delete, or substitute items offered on the Cost Bidding Sheet without prior approval of the Department

h. Maintain a minimum fill rate of ninety percent (90%) of all orders placed being shipped within four (4) business days after receipt of order.

i. Items which are not available for shipping must be placed on back order unless the customer provides permission to cancel the item(s).

ii. Back orders must not be charged until the items are actually shipped.

iii. Backorder status must be provided to the customers along with the shipment status.

iv. Habitual or excessive back orders may result in cancellation of the contract.

2. At the Contractor’s discretion, shipments may be restricted or curtailed to self-pay participants who fail to meet the terms of the agreement or fail to either pre-pay or pay within a reasonable time.

3. The Contractor may require that the minimum total order must not be less than fifty dollars ($50) per order.

4. The Department will:

a. Provide the Contractor with a list of participants eligible to utilize the contract, an approved “food package” and a monthly budget for each participant who will receive financial support from the Children’s Special Health Program (CSHP).

i. The list will be updated as participants are added or removed from the Idaho PKU program, or when their monthly budget changes.

b. Not be responsible or accountable to the Contractor for any uncollected amounts from self-pay participants.

SHIPPING & DELIVERY

1. The Contractor must:

a. Ship orders free of charge to participants meeting a minimum fifty-dollar ($50) order on an as needed basis at various times throughout the term of the contract.

b. Deliver to various locations throughout the State of Idaho and ship directly to ordering participants or as directed by the participant.

c. Provide shipping status of each order to the participant and Department within twenty-four (24) hours after release of the shipment.

i. At the preference of the participant, the status must be provided either via e-mail or fax.

d. Work directly with participants to resolve shipping issues such as lost or damaged shipments.

e. Ensure a maximum turnaround time of four (4) business days or fewer for ninety percent (90%) of all orders.

i. Habitual or excessive delays may result in cancellation of the contract.

f. Ship F.O.B. Destination Pre-Paid & Allowed and added to the invoice.

PAYMENT

1. The Contractor must:

a. Invoice and collect from third party payers prior to collecting from either the Department or the participant, for those participants who have third party insurance, including Idaho Medicaid, or any private insurance which will pay for medical foods.

b. If prior authorizations are required for insurance or Idaho Medicaid to cover Lo-Pro medical foods, ensure that the authorization is current prior to filling an order.

c. Provide an invoice to the Department for payment of approved orders.

d. Charge and collect directly from the participant for any order or portion of an order that is:

i. Not paid by third party insurer; or

ii. Is placed by non-CSHP funded participants; or

iii. Is placed by CSHP funded participants in excess of their monthly budget, or

iv. Is for any non-approved products.

e. Accept either major credit card(s) or pre-payment from participants for items identified on the Cost Bidding Sheet.

f. At the Contractor’s option, may direct bill participants for non-funded orders.

2. At the Contractor’s discretion, they may direct bill participants for non-funded orders.

3. The Department will not be responsible or accountable to the Contractor for any uncollected amounts.

ITB11 Low Protein Medical Foods

ATTACHMENT 2 - MODIFICATION AND EXCEPTION FORM TC "ATTACHMENT 2 -- MODIFICATION AND EXCEPTION FORM" \f C \l "1" Instructions: Complete this form and include with your ITB submittal if you are proposing modifications or exceptions to any of the requirements, terms, or conditions included in the ITB, including any documents incorporated by reference (Standard Contract Terms and Conditions). See ITB Section 3 for a full explanation of the process surrounding Bidder-proposed modifications and exceptions.

Bidders must specifically address any and all proposed modifications and exceptions. Blanket requests to negotiate requirements, terms, or conditions will not be considered. Bidders must provide an explanation as to why the requirement, term, or condition should be considered non-material. Bidder must also provide a reason for the proposed modification or alternative language, specifically addressing the issues itemized in ITB Section 3.

The determination of materiality will be made at the State’s sole discretion. Non-material modifications or exceptions may be negotiated with the apparent successful Bidder, at the discretion of the State, and as otherwise provided in ITB Section 3.

ITB

Section ITB Requirement, Term, or Condition Reason Requirement, Term, or Condition Should be Considered Non-Material

or Exception

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ITB11 LOW PROTEIN MEDICAL FOOD

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