ITB171021~2.doc

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SPECIAL SUPPLEMENTAL NUTRITION PROGRAM

FOR WOMEN, INFANTS, AND CHILDREN (WIC PROGRAM)

ITB # ITB171021

COMMBUYS Bid# BD-16-1031-BFHN0-BFH01-00000007021

INVITATION TO BID

FOR

NEW ENGLAND AND TRIBAL organizations (NEATO)

WIC RETAIL INFANT FORMULA REBATE AGREEMENT

Cherokee Nation

Connecticut

Maine

Massachusetts

New Hampshire

Rhode Island

Seneca Nation

Bid Due: Wednesday, April 20, 2016; 10:00 AM ET

TABLE OF CONTENTS

Tentative Time Table

Terminology

I. Introduction

A. Background

II. Bid Requirements

A. Time Table

B. How to Submit a Bid

C. Evaluation Criteria

D. Bid Evaluation and Award

E. Agreement Period

F. NEATO Provisions

G. State of Connecticut and New Hampshire Special Provisions

Table 2 Contract Formula Issued July to Nov. 2015 Table 3 Non-Contract Formula Issued July to Nov. 2015

Appendix

DRAFT AGREEMENT

Attachment 1

BID SHEET

Attachment 2

EVALUATION CRITERIA

Attachment 3

SAMPLE REBATE INVOICES Attachment 5

TENTATIVE TIME TABLE

EVENT

DEADLINE

ITB Release Date:

February 5, 2016 Bidder Questions Due:

February 23, 2016, 11:00 AM ET Response to Bidder Questions:

March 25, 2016 Bids Due:

April 20, 2016, 10:00 AM ET Bids Opened:

April 20, 2016, 11:00 AM ET Tentative Contract Award Notification:

May 4, 2016 Agreement Start Date:

October 1, 2016 Terminology

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

2. “MANUFACTURER” refers to the successful bidder who is subsequently awarded an AGREEMENT.

3. “NEW ENGLAND AND TRIBAL ORGANIZATIONS” or “NEATO” refer to the five (5) states and the two (2) tribes acting as a single entity in issuing the ITB, and the five (5) states and the two (2) tribes acting as a single entity which shall enter into a signed AGREEMENT with the MANUFACTURER that receives the award as a result of this ITB.

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

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

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

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

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

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

I. Introduction

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

A. Background

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

The WIC Program is administered on the local level by state and tribal WIC agencies in the Cherokee Nation, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and the Seneca Nation; [hereinafter the NEW ENGLAND AND TRIBAL ORGANIZATIONS (NEATO)]. In Massachusetts, state funding is provided in addition to federal funding.

Participants in Connecticut, Maine, New Hampshire, Rhode Island, and the Seneca Nation are issued WIC checks at local agencies for specific WIC authorized foods. The WIC checks are redeemed at authorized WIC vendors and processed through the banking system for reimbursement, except in New Hampshire where WIC food instruments are paid through the state accounting system. Peer group edits are performed on each WIC food instrument to ensure that specific payment and redemption requirements are met.

Electronic Benefits Transfer (EBT) cards are used by Massachusetts (the WIC Card) and Cherokee Nation (the eWIC Card) instead of WIC checks in their food delivery process. Participants are issued a card to each family group for specific authorized foods. Food purchases are decremented from the card, pre-payment edits are performed on each item, processed through the WIC vendor’s system, and then transmitted through the State/Tribes’ accounting system. WIC vendor payments are electronically paid to the vendor’s bank of choice.

During the term of any AGREEMENT resulting from this INVITATION TO BID (ITB), the Seneca Nation, Connecticut, Maine, New Hampshire or Rhode Island may pilot the electronic benefits transfer method of issuing WIC benefits. The pilot may be extended to statewide rollout during the AGREEMENT. For purposes of this ITB and the subsequent AGREEMENT, food instruments and electronic benefits transfer terminology are used interchangeably.

All issued infant formula products by NEATO are provided to participants in a manner that separates infant formula from other food benefits. For WIC checks, infant formula is listed on checks separate from all other food benefits. For EBT cards, infant formula is restricted to the formula category, further separated into individual subcategories, defined by each infant formula’s unique Universal Product Code (UPC). NEATO issues infant formula benefits to participants in accordance with 7 CFR §246.10(e)(1) through (e)(3) and (e)(9), of the WIC Program regulations. In addition, each state or tribe has the option of providing the full nutritional benefit (FNB), using the rounding up methodology outlined in 7 CFR §246.10(h) when issuing infant formula. The states and tribes can exercise their right to use this option at any time during the AGREEMENT. Connecticut and Rhode Island currently round up to the next whole can of infant formula.

During November 2015, WIC benefits and services were provided to 236,240 participants in NEATO. The number of infants provided WIC benefits and services for the same period in NEATO were 54,327. Individual state and tribal infant participation were as follows:

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

B. Commitment to Breastfeeding

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

II. Bid Requirements

A. TIME TABLE

1. Question & Answer Period: Questions regarding this ITB must be submitted via email in a Microsoft Word document received not later than 11:00 AM ET on Tuesday, February 23, 2016. Responses to all questions shall be prepared jointly by NEATO, and shall be posted on Massachusetts’ official procurement system website, COMMBUYS (http://www.commbuys.com). Responses shall be by consensus and shall be binding upon any state or tribe as long as it continues to participate in the receiving of bids, evaluation of bids, awarding of AGREEMENT, and implementation of AGREEMENT. No oral responses shall be provided to bidder questions. All questions and comments shall be directed to:

Beth Wilson-Lampro beth.wilson@state.ma.us Written answers issued by NEATO in response to timely filed questions shall be posted on COMMBUYS by Friday, March 25, 2016. The answers shall be binding upon all states and tribes continuing to participate in the receipt and evaluation of bids and shall constitute an amendment to the ITB and shall be incorporated into the AGREEMENT.

2. Bid Due: The sealed bid with one (1) original signed in blue ink, and one (1) duplicate copy of the bid must be delivered to Beth Wilson-Lampro by Wednesday, April 20, 2016 at 10:00 AM ET. One (1) sealed duplicate copy of the bid must also be mailed to each respective state and tribal representative by Wednesday, April 20, 2016 at 10:00 AM ET. See sections II B.5. & 6, for addresses.

The bid package must contain all of the information identified in sections II.B. & C, below. Only bids received by the 10:00 AM ET deadline will be considered. Bids received by facsimile or email will not be accepted. Late bids will be rejected, without exception.

3. Bid Opening: The bid opening shall be on Wednesday, April 20, 2016 at 11:00 AM ET at the Massachusetts Department of Public Health, 250 Washington Street, Boston, MA, 02108. The bids will be opened and page 1 of the Bid Sheet will be read aloud. No other information shall be given. The selection of the successful bidder shall not be made at the bid opening.

B. How to submit a bid:

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

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

· liquid concentrate iron-fortified milk infant formula;

· liquid concentrate iron-fortified soy infant formula;

· powdered iron-fortified milk infant formula;

· powdered iron-fortified soy infant formula;

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

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

Bidders who do not produce soy-based infant formula products directly may submit a bid only if they sub-contract with another manufacturer to supply the soy-based infant formula. See, §7 CFR 246.16a(c)(2).

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

4. The bid must be in a sealed inside envelope, separate from the outside envelope. The inner sealed envelope containing a bid shall be labeled in the following manner:

“SEALED BID – DO NOT OPEN

NEATO WIC INFANT FORMULA REBATE SYSTEM”

5. All bidders must submit the official sealed bid containing one (1) original signature in blue ink and one (1) duplicate copy by Wednesday, April 20, 2016 at 10:00 AM ET to the following address:

Beth Wilson-Lampro

WIC Nutrition Program

Massachusetts Department of Public Health

250 Washington Street, 6th floor

Boston, MA 02108

6. All bidders must submit a sealed bid containing one (1) duplicate copy of the bid (an original in blue ink is not required) to all six (6) NEATO representatives listed below by Wednesday, April 20, 2016 at 10:00 AM ET at the following addresses:

Cherokee Nation: Brenda Carter, Director

Cherokee Nation WIC Program

If by regular mail:

P.O. Box 948

Tahlequah, OK 74465

If through delivery service:

22361 Bald Hill Road

Tahlequah, OK 74464

Phone: 918. 453.5291 brenda-carter@cherokee.org Connecticut: Kevin Krusz Connecticut State WIC State of Connecticut, Department of Public Health

410 Capitol Avenue, MS #11WIC Hartford, CT 06134-0308

Phone: 860.509.8090

Kevin.krusz@ct.gov Maine: Lisa Burgess Hodgkins, Director

Department of Health & Human Services

Maine WIC Nutrition Program

286 Water Street, Key Plaza, 6th Floor

Augusta, ME 04333

Phone: 207. 287.5342 Lisa.hodgkins@maine.gov

New Hampshire: Frances McLaughlin, Nutrition Coordinator Nutrition Services Section Department of Health & Human Services

29 Hazen Drive

Concord, NH 03301-6527

Phone: 603.271.4546 fmclaughlin@dhhs.state.nh.us

Rhode Island: Ann Barone, Chief, WIC Program

Division of Family Health

Rhode Island Department of Health

3 Capitol Hill, Room 302

Providence, RI 02909-5097

Phone: 401. 222.4604 Ann.barone@health.ri.gov

Seneca Nation: Natasha Souter, Coordinator

Seneca Nation WIC Program

36 Thomas Indian School Drive

Irving, NY 14081

Phone: 716.532.8223 Natasha.Souter@senecahealth.org Each state and tribe representative will secure the bid in a locked cabinet until the official bid opening at 11:00 AM ET. This method has been used numerous times by NEATO without incident and is non-negotiable. Bidders can confirm with each NEATO representative listed above through phone or email that their bid was received and will remain secured until 11:00 AM ET, the representative shall provide no other information.

C. EVALUATION CRITERIA

1. Bid Sheet

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

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

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

d. Bids must be based on the bidder’s milk-based powder, liquid concentrate, and ready-to-feed physical forms. The milk-based formula must meet the requirements under §7 CFR 246.10(e)(1)(iii) and (2)(iii), and be suitable for the routine issuance to the majority of generally healthy, full term infants.

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

2. Certifications

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

b. The bidder must certify that it agrees to cooperate with NEATO and the current manufacturer (Mead Johnson) and any MANUFACTURER awarded an AGREEMENT for infant formula rebate as a result of a future procurement or an approved assignment of some or all of the AGREEMENT awarded pursuant to this ITB to ensure that the delivery of contracted infant formula products is not interrupted during the transition from a preexisting contract and the commencement of a subsequent contract. This certification shall be notarized on the Bid Sheet.

c. The bidder must certify that it can and shall supply the quantities of infant formula products offered by the bidder that meet one hundred percent (100%) of the WIC Program’s needs at all WIC vendors in all geographical areas served by each of the NEATO states and tribes. This certification shall be notarized on the Bid Sheet.

3. Other Documentation

In order to meet WIC participant needs, NEATO is seeking to assure an adequate supply of infant formula products at all WIC vendors in all geographical areas served by each of the states and tribes. The numbers of NEATO authorized WIC vendors is not guaranteed to remain constant but all bidders are hereby notified that the number of NEATO authorized WIC vendors served by the states and tribes as of 12/1/2015 are as follows:

State/Tribe Authorized WIC Vendors

Cherokee Nation

Connecticut

Massachusetts

Maine

New Hampshire

Rhode Island

Seneca Nation

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

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

b. The bidder shall provide a short description (no more than one page) of how infant formula products offered by the bidder can be purchased by authorized WIC vendors at the bidder’s current published wholesale quantity/price categories. In addition, bidders shall enclose their nationally published wholesale price list as of Wednesday, April 20, 2016.

D. Bid EVALUATION and awards

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

2. All bids shall be ranked by the lowest monthly total net cost, which is based on the lowest national wholesale price per unit for a full truckload and rebate amounts. The Monthly Net Wholesale Cost (MNWC) for all formulas shall be determined for each bidder on the Bid Sheet, and the single lowest bidder determined.

3. Final ranking and determination shall be based on the responsive and responsible bidder offering the lowest MNWC to NEATO.

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

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

E. AGREEMENT Period

1. With the selection of the successful bidder, the AGREEMENT shall be effective for thirty-six (36) months beginning October 1, 2016 and ending September 30, 2019. NEATO shall have the option to extend the AGREEMENT for one additional two-year period, or any portion thereof, under the same terms, conditions and rebate structure; this is non-negotiable and shall be included in the AGREEMENT. A copy of the draft AGREEMENT is included as Attachment 1.

2. NEATO will notify the MANUFACTURER by no later than January 31, 2019 if NEATO intends to exercise the option for an extension until September 30, 2021. Such notification shall have no effect on the remainder of the AGREEMENT in effect at that time. NEATO reserves the unilateral right to order changes and/or to delay initiation of the AGREEMENT if NEATO deems necessary and if such changes or delays do not alter the scope of the AGREEMENT. Reference Attachment 1, the Draft AGREEMENT for complete details.

F. NEATO Provisions

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

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

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

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

5. In the event of a conflict between the terms of the AGREEMENT and the terms of state or tribe specific clauses in the AGREEMENT Appendices, the terms of the Appendices shall control.

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

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

III. GOODS AND SERVICES TO BE PROVIDED

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

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

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

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

E. A rebate is to be paid on any contract formula (except exempt infant formula) each state and tribe chooses to approve for issuance.

F. The rebate on all other contract infant formulas (excluding the primary contract formula) shall yield the same percentage discount as the corresponding physical form of the primary contract infant formula for which bids were solicited. The discount established at the beginning of the contract (by physical form), is used to calculate the rebate for infant formula (new and existing) added to the contract. Therefore, the percentage discount for the primary brand concentrated liquid milk-based iron-fortified formula shall apply to other concentrated liquid formulas produced by the successful bidder that are issued by NEATO, and so on for the powdered and ready-to-feed forms.

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

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

I. Purchase of non-contract brands of infant formula by NEATO is allowed with medical documentation per §246.16a(c)(9).

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

K. The successful bidder shall:

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

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

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

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

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

5. Remit to each state and tribe a rebate per can, as specified in this section III above and in Attachment 1: Draft AGREEMENT, Section 2.

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

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

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

9. Make monthly rebate payments to each state and tribe based on the invoice and billing method as specified in Attachment 1, the draft AGREEMENT, Section 3 (Invoices and Billing) and as selected by each state and tribe, at its sole discretion, and the documentation of purchases submitted by the respective state and tribe, based upon the number of cans specified on food instruments issued and redeemed, supported by documents subject to audit. The states and tribes shall not be obligated by the successful bidder to make changes to their food instrument tracking, reporting and reconciliation systems for the purposes of any AGREEMENT resulting from this ITB. See Attachment 5 for copies of recent rebate invoices from each state and tribe.

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

11. Be totally and exclusively responsible for all costs related to the successful bidder’s requests for audits, inspections, and reviews of NEATO’s or any state’s or tribe’s records created solely for this purpose, outside of the usual documents (such as the state’s or tribe’s MIS or paper records) required to report invoices reflecting the number of cans specified on food instruments issued and redeemed. Access to actual or archived food instruments and/or other confidential records shall be subject to state, tribal and federal confidentiality requirements. The successful bidder shall not have access to actual or archived documents or other confidential records that identify WIC participants by name, address, or identification number.

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

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

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

Invitation To Bid for the New England and Tribal Organizations (NEATO) WIC Infant Formula Rebate System, February, 2016