RFP_BPM005142_-_Solicitation_Requirements.pdf

STATE OF ARIZONA

Department of Health Services

NOTICE OF REQUEST FOR PROPOSAL (RFP)

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

SOLICITATION NUMBER:

BPM005142 – PART 1, LOT 1, ROUND 1

SOLICITATION DUE DATE/TIME: August 28th, 2023 at 3:00:00 PM Local AZ Time

SUBMITTAL LOCATION: https://app.az.gov

DESCRIPTION: WIC Investigative Services

PRE-OFFER CONFERENCE:

Monday, August 14th, 2023 at 2:00:00 PM Local AZ Time meet.google.com/nqt-sfxn-fbo

In accordance with A.R.S. § 41-2534, competitive sealed proposals for the services specified will be received by the Arizona Department of Health Services (ADHS) online in the State of Arizona’s online procurement system, https://app.az.gov (Arizona Procurement Portal – APP). Proposals received by the due date and time will be opened. The name of each Offeror will be publicly available. Proposals must be submitted in the State APP system on or prior to the date and time indicated.

Late proposals will not be considered. It is the responsibility of the supplier/offeror to routinely check the APP website for Solicitation Amendments. Additional instructions for preparing an Offer are included in this solicitation.

With seventy-two (72) hours prior notice, persons with disabilities may request special accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Such requests must be addressed to the Solicitation contact person named below.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION CAREFULLY.

Solicitation Contact:

Joshua Griffin

Senior Procurement Specialist

Arizona Department of Health Services

Email: Joshua.griffin@azdhs.gov

Phone: (480) 510-4953 https://app.az.gov/ meet.google.com/nqt-sfxn-fbo https://app.az.gov/

PART ONE (1) – Table of Contents

ARIZONA DEPARTMENT

OF HEALTH SERVICES

REQUEST FOR PROPOSAL No.: BPM005142

WIC Investigative Services

*The following table of contents applies to all attachment documents in APP for this Solicitation*

SECTION CONTENT

Part One (1) Notice Page

Table of Contents

Scope of Services

Special Terms and Conditions

Uniform Terms and Conditions

Part Two (2) Special Instructions to Offerors

Uniform Instructions to Offerors

Attachments Located in APP:

● Attachment A: Offer and Acceptance

● Attachment B: Notices, Correspondence, Reports, and Payments

● Attachment C: Designation of Confidential, Trade Secret and Proprietary

● Attachment D: Participation of Boycott of Israel

● Attachment E: Forced Labor of Ethnic Uyghurs Ban

PART ONE (1) – Scope of Service

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SCOPE OF SERVICES

1. DEFINITIONS

The terms listed below are defined as follows:

1.1 “Above-Fifty Percent (50%) Vendors” - Vendors that derive more than fifty percent (50%) of their annual food sales revenue from Special Supplemental Nutrition for Women, Infants, and Children (WIC) food instruments. New Vendor Applicants are expected to meet this criterion under guidelines approved by Food and Nutrition Services (FNS);

1.2 “ADHS” - Arizona Department of Health Services;

1.3 "Anthropometric" - To gather the height and weight measurements of a WIC applicant or current WIC participant, which is performed by clinic personnel at the time of the certification;

1.4 “Authorized Representative” - The person, other than the WIC participant, who has the authority to sign for the participants of an economic unit, who is responsible for following the WIC regulations and may pick up and redeem WIC food instruments for authorized WIC foods;

1.5 “BNPA” - Bureau of Nutrition and Physical Activity;

1.6 “Cash Buy” - An undercover (covert) on-site visit to an Arizona WIC Program authorized Vendor, wherein specific food item(s) are purchased by the authorized secondary investigator utilizing cash and a receipt is requested, in order to establish baseline prices. The Cash Buy is only utilized when the Primary Investigator finds pricing violations during a Compliance Buy;

1.7 “Clinic” - The location where women, infants and children are screened and determined to be eligible to participate in the WIC Program and receive food benefits, nutrition education and health care referrals. The clinic locations include temporary and permanent service areas;

1.8 “Compliance Buy (CB)” - An investigation involving an undercover (covert) on-site visit to an Arizona WIC

Program authorized Vendor, in which an authorized investigator poses as a WIC participant and uses WIC food instruments or other electronic means to determine compliance by the Vendor. (WIC Program requirements, this document, the Arizona WIC Program Compliance Training Manual and appropriately deemed supplements will be used for specific situations;

1.9 “Compliance Buy Primary Investigator (CBPI)” - This authorized investigator will perform an undercover

(covert) on-site visit to an Arizona WIC Program authorized Vendor where the investigator poses as a WIC participant and uses WIC food instruments or other electronic means to purchase food item(s) and/or other non-WIC items. The investigator who uses WIC benefits is considered the primary investigator for the specific Vendor investigation;

1.10 “Compliance Buy Secondary Investigator” - This authorized investigator will perform an undercover (covert) onsite visit to an Arizona WIC Program authorized Vendor where the investigator enters the Vendor premises and purchases food item(s) utilizing cash to establish a baseline price for certain food item(s). This Cash Buy process only occurs if the CBPI has found food item(s) which are not priced during the Compliance Buy.

Not all investigations will utilize a Cash Buy;

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1.11 “Compliance Buy Report (CBR)” - A document (hardcopy and/or electronic) provided by ADHS to the Contractor, which is used by the Contractor’s investigator to document specific information that occurred during a CB visit. A CBR is used as the primary evidence for documenting noncompliance by authorized vendors;

1.12 “Covert” - Clandestine, anonymous, unannounced and undercover;

1.13 “Electronic Benefit Transfer (EBT) also known as E-WIC” - An electronic system that allows State Governments to provide financial and material benefits to authorized recipients via a plastic credit/debit type card;

1.14 “Entrapment” - Persuading or coercing someone into an illegal act that he/she are not predisposed to commit;

1.15 “FNS” - Food and Nutrition Service, a Federal agency of the United States Department of Agriculture (USDA);

1.16 “Inspector” - An approved Contractor’s employee who performs overt visits to authorized Vendors. The inspector does not perform any covert operations and is not required to meet the WIC participant demographic requirements;

1.17 “Inventory Audit (IA)” - An Inventory Audit consists of two (2) unscheduled, overt, on-site visits to an authorized

WIC Vendor, each performed in conjunction with a Vendor Site Review (VSR), wherein the inspector(s) document all quantities of WIC food item(s) located on the store premises. The second visit is performed three

(3) months after the first visit. Similar to the standard VSR procedure, when the inspector arrives on the premises, the Vendor is informed of the VSR. However, the Vendor is not informed that an Inventory Audit is taking place in conjunction with the VSR. To optimize time spent on the Vendor premises, it is recommended that two (2) people perform this function;

1.18 “Local Agency (LA)” - Local non-profit agencies, county health departments, and tribal entities under Contract with the ADHS to implement and enforce policies and procedures of the WIC Program;

1.19 “LA Compliance Investigation” - An LA compliance investigation is an investigation involving a covert onsite visit to a Local Agency Clinic in which an authorized investigator poses as a WIC participant to determine compliance by the Local Agency Clinic with the WIC Program Policy and Procedure Manual;

1.20 “LA Investigative Report (LAIR)” - A document (hardcopy and/or electronic) provided by ADHS to the

Contractor, which is used by the Contractor’s investigator to document specific information that occurred during a LA compliance investigation. A LAIR is used as primary evidence for documenting non-compliance by Local Agencies, clinics, and/or participants;

1.21 “Management Evaluation (ME)” - A comprehensive review of a Local Agency WIC Program conducted by

ADHS. During the review, ADHS evaluates program management, clinic operation, adherence to local and State policies and procedures, and program integrity processes;

1.22 “Minimum Stock Requirement” – A minimum amount of WIC food items as determined by ADHS, that a Vendor must keep on the store premises at all times. This minimum stock requirement is to ensure that Vendors will be able to adequately serve WIC participants/authorized representatives upon arrival at the Vendor location;

1.23 “Overt” - Not hidden or concealed; clearly evident; announced;

1.24 “PI” - Private Investigator;

1.25 “Report of Cash Buy (RCB)” - A document (hardcopy and/or electronic) provided by ADHS to the Contractor, which is used by the Contractor’s investigator to document specific information which occurred during a Cash Buy visit. An RCB is used as secondary evidence for documenting non-compliance by Vendors;

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1.26 “Special Supplemental Nutrition Program for WIC” - A Federally funded program that provides nutritious foods, nutrition education (including breastfeeding promotion and support), and referrals to health and other social services to participants at no charge. WIC serves low-income pregnant, postpartum, and breastfeeding women, infants, and children up to age five (5) who are at nutrition risk. WIC is administered by the State of Arizona through a Federal grant from USDA;

1.27 “SNAP” - Supplemental Nutrition Assistance Program (formerly known as Food Stamps);

1.28 “WIC Vendor (Vendor)” - A grocery store, military commissary, pharmacy or farmer/grower authorized and under Contract with ADHS to redeem WIC food benefits or otherwise provide supplemental foods to WIC participants;

1.29 “Vendor Site Review (VSR)” - An unscheduled but overt on-site visit to an authorized Vendor, in which an authorized inspector reviews (and documents) the Vendor’s facilities to ensure that the Vendor is compliant with all program related contractual and food stocking requirements;

1.30 “USDA” - United States Department of Agriculture;

1.31 “WIC Applicant” - Pregnant women, breastfeeding women, postpartum women, infants, and children up to age five (5) who are applying to receive WIC benefits. Applicants also include individuals who are currently participating in the program but are re-applying because their certification period is about to expire; and

1.32 “WIC Participants (‘Participants’ or ‘Clients’)” - Pregnant, breastfeeding, or postpartum women, infants, and children up to age five (5) years who are deemed eligible and are receiving WIC authorized supplemental foods (a.k.a. ‘benefits’);

2. BACKGROUND

2.1 The ADHS and BNPA administer funds provided by the USDA for the operation of the Special SNAP for the

WIC Program within the State of Arizona. Federal funds are distributed to twenty-one (21) local health agencies (governmental and community-based private non-profit) and one (1) Native American tribe. WIC services are provided in all fourteen (14) Arizona counties or parts thereof. This cost-effective nutrition intervention program is designed to improve the nutritional status of income eligible pregnant, breastfeeding, and postpartum women, infants, and children up to the age of five (5) years who are determined to be medically at risk;

2.2 WIC has four (4) major components: health services, nutrition education, breastfeeding education, and supplemental foods. Participants are screened for eligibility during the certification process by WIC staff at an LA clinic for one (1) or more nutritional risks when certain financial and State residential criteria are met.

Participants/authorized representatives receive food benefits for specific quantities and categories of WIC authorized foods on an e-WIC card. Authorized Vendors, which meet certain selection criteria (See 2.3), have signed Contracts with ADHS to accept an e-WIC card as payment for WIC food purchases. The foods provided through the WIC program are not intended to provide a complete diet, but rather supplement foods already being consumed. WIC foods are selected to meet certain USDA nutritional requirements for vitamins, minerals, and protein. Therefore, there are no substitutions for WIC authorized foods;

2.3 The following criteria must be met in order to become an Authorized Vendor:

2.3.1 Maintenance of minimum stock requirements,

2.3.2 Competitive pricing for WIC foods, OF HEALTH SERVICES

2.3.3 Location accessibility for WIC participants,

2.3.4 Type of retail establishment,

2.3.5 Sanitation compliance,

2.3.6 WIC and SNAP history,

2.3.7 Above-fifty percent (50%) Vendor,

2.3.8 Training attendance,

2.3.9 Conflict of interest,

2.3.10 Volume of WIC sales,

2.3.11 Current SNAP status,

2.3.12 Business integrity, and

2.3.13 Service Mark Compliance,

2.4 The Arizona WIC Program allows participants/authorized representatives to select their choice of Authorized Vendors from a current list;

2.5 WIC Contract execution authorizes ADHS to perform any/all monitoring (covert and overt) that ADHS deems appropriate. An example of a covert activity is a CB or LA investigation. An overt activity is the WIC VSR or ME. When WIC Program fraud or abuse is detected, sanctions may be imposed as outlined in the most current version of the Arizona WIC Program Policy and Procedure Manual and Vendor Manual (https://www.azdhs.gov/prevention/azwic/vendors/index.php#manual); and

2.6 Federal Regulations dictate that ADHS is responsible for the comprehensive monitoring of Vendors, WIC Staff, and WIC participants. WIC Authorized Vendors may be selected by ADHS for Compliance Buys or VSRs based on their volume of WIC sales, past program abuse, history of unusually high prices for WIC foods, random samples, complaints, availability and/or variety of WIC foods, submission of suspicious food instruments for payment, and from computer-generated high-risk reports. WIC Staff and/or participants may be selected for compliance investigations based on complaints and/or internal monitoring reports.

3. OBJECTIVES

3.1 Determine if Vendors and/or clinics are violating WIC regulations and/or the terms and conditions of WIC contracts; and

3.2 Determine if WIC participants are in compliance with WIC rights and obligations according to the Arizona WIC Program Policy and Procedure Manual and Vendor Manual.

4. SCOPE OF SERVICE

The Contractor shall:

4.1 Conduct the following four (4) major investigative services as outlined in the Scope of Work and at the request of ADHS:

https://www.azdhs.gov/prevention/azwic/vendors/index.php#manual

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4.1.1 Covert Vendor compliance investigations Statewide on WIC Vendors,

4.1.2 Unscheduled, overt VSRs Statewide on WIC Vendors,

4.1.3 Covert compliance investigations on Local Agency Clinics, and

4.1.4 Inventory Audits Statewide on WIC Vendors,

4.2 Testify at Administrative Fair Hearings as required.

5. REQUIREMENTS

The Contractor shall:

5.1 Maintain security and confidentiality of all records, case files, and information required to perform the services outlined in this Contract. The Contractor shall not release confidential records or information without prior written approval from ADHS;

5.2 Develop a working knowledge of the following manuals within thirty (30) calendar days of Contract execution:

5.2.1 The Arizona WIC Program Policy and Procedure Manual,

5.2.1.1 ADHS - WIC Local Agencies - WIC Manuals (azdhs.gov);

5.2.2 The Arizona Vendor Manual,

5.2.2.1 ADHS - WIC Vendors - Vendor Manual (azdhs.gov);

5.3 Ensure that all employees review, complete, and sign the Conflict of Interest form provided by ADHS annually, within three (3) business days of a change in circumstance which could result in a Conflict of Interest, or at the request of ADHS;

5.4 Employee Screening and Selection Process:

5.4.1 Have a thorough screening and selection process for hiring compliance investigators and inspectors prior to commencing any WIC Investigative Services,

5.4.2 Give preference to hiring personnel with training and/or experience in either law enforcement, criminal justice, or related investigative fields,

5.4.3 Provide proof that employees designated as primary and secondary investigators reside in the State of Arizona and shall maintain residency throughout the life of the Contract prior to commencing any WIC Investigative Services,

5.4.4 Provide proof of the process used to complete criminal status checks on all personnel performing any work requirements for ADHS. Copies of the status check may be requested by ADHS at any time,

5.4.5 Provide ADHS a comprehensive list of each employee’s work background (resume), certifications, and/or any specialized training for each employee prior to commencing any WIC Investigative Services, https://www.azdhs.gov/prevention/azwic/agencies/index.php#manuals https://www.azdhs.gov/prevention/azwic/vendors/index.php#manual

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5.4.6 Obtain approval from ADHS prior to utilizing any employee to perform CBs, LA Compliance Investigations, IAs, or VSRs,

5.4.7 At a minimum, ensure that all employees:

5.4.7.1 Are at least eighteen (18) years of age and have a High School Diploma or General

Equivalency Diploma;

5.4.7.2 Have no record of criminal convictions;

5.4.7.3 Have no record of criminal or civil traffic violations within the past three (3) years; and

5.4.7.4 Have a current valid driver’s license and proof of residence;

5.4.8 Provide ADHS with a list of personnel who will be conducting WIC compliance activities. The

Contractor’s employees are subject to approval by ADHS before utilization to perform CBs, Cash Buy(s), IAs, VSRs, and LA Investigations,

5.4.9 Inform ADHS immediately, in writing, when personnel conducting WIC compliance activities are hired, leave, or any other item of significance occurs which may affect the Contractor’s reliability in a legal sense,

5.4.10 Ensure that the same investigator who conducts CBs does not conduct Vendor site reviews and vice versa,

5.4.11 Obtain approval from ADHS to allow CB investigators to perform Clinic investigations and vice versa, and

5.4.12 Perform a thorough background check on all employees annually and provide proof of this background check to ADHS within two (2) weeks,

5.5 For all three (3) categories of compliance investigations, the Contractor shall:

5.5.1 Provide personnel who have strong report writing skills, are analytical, results oriented, and objective,

5.5.2 Provide proof of specific, relevant WIC experience to ADHS personnel for review and approval to determine proper suitability for the WIC Program prior to commencing any WIC Investigative Services, and

5.5.3 Utilize personnel capable of blending into the neighborhood (racial and ethnic background, attire, etc.)

in which the Vendor and/or clinic is located,

5.6 Training and Program Updates:

5.6.1 ADHS will:

5.6.1.1 Provide training to the Contractor and its employees to ensure Contractor and its employees fully comprehend contractual objectives, programmatic focus, and technical procedures;

and

5.6.1.2 As necessary, provide the Contractor with Program updates and training correspondence that will be sent to the Contractor via electronic mail;

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5.6.2 The Contractor shall:

5.6.2.1 Reply to the email regarding Program updates and training within twenty-four (24) hours acknowledging receipt and comprehension of the Program updates and training;

5.6.2.2 Along with its employees, participate in training provided by ADHS to ensure full understanding of contractual objectives, programmatic focus, and technical procedures;

5.6.2.3 Along with its employees, as necessary, and at ADHS’s discretion, participate in periodic training to maintain and update knowledge;

5.6.2.4 Ensure its employees, who will be performing CBs, LA Compliance Investigations, IAs, and

VSRs, attend all mandatory training annually; and

5.6.2.5 Ensure ADHS approved new employees attend classroom training as well as field training provided by ADHS within thirty (30) days of being notified by ADHS of scheduled training;

5.6.3 The Contractor’s new employee(s) shall:

5.6.3.1 Perform one (1) or more successful CB(s) individually while being observed by ADHS personnel and/or the Contractor after CB training completion and before a new compliance investigator can perform CBs independently;

5.6.3.2 Perform a minimum of two (2) buys during the CB training. ADHS reserves the right to request additional buys based on the competency of the employee(s) as observed during the training;

5.6.3.3 Perform at least one (1) buy one-on-one (1:1) between ADHS personnel during the CB field training;

5.6.3.4 The Contractor’s new VSR employee(s) shall:

5.6.3.4.1 Perform one (1) successful VSR individually while being observed by ADHS personnel after VSR training completion and before a new investigator may perform VSRs independently,

5.6.3.5 The Contractor’s new LA staff shall:

5.6.3.5.1 Process a clinic certification scenario while being observed by ADHS personnel after LA training completion and before a new LA compliance investigator may enter a clinic independently.

6. TASKS

6.1 VENDOR COMPLIANCE INVESTIGATIONS:

6.1.1 Investigations shall consist of a minimum of two (2) separate CBs and/or Cash Buy visits. More visits may be required to complete the investigation, and

6.1.2 The Contractor shall:

6.1.2.1 Assign and adhere to the type of buys to be conducted for each Vendor;

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6.1.2.2 Maintain an assignment log and verify receipt of completed reports by logging the date;

6.1.2.3 Perform Statewide Vendor CB investigations utilizing investigators employed by the

Contractor;

6.1.2.4 Have, at all times, a minimum of two (2) investigators designated as primary and secondary for each CB investigation and adhering to the requirements section of this Contract for hiring investigative staff;

6.1.2.5 Initiate and complete the CB and/or Cash Buy visits requested by ADHS no later than thirty

(30) calendar days after receiving the assignment;

6.1.2.6 Ensure that all investigators use the most current ADHS provided CBR and RCB forms for each investigation;

6.1.2.7 Maintain, at all times, an adequate inventory of all ADHS provided blank report forms necessary to conduct CB and Cash Buys. ADHS will not provide clipboards, pens, pencils, scotch tape, coolers, food scales, cameras, printers, cellphones or any other portable electronics, costume type apparel, or other related items;

6.1.2.8 Ensure that all investigators maintain a 100% completion and 100% accuracy level for all reports. Due to the unique regulatory jurisdiction of the program, ADHS personnel, not the Contractor or its investigators, will utilize their discretion to make the final determination of completion and accuracy;

6.1.2.9 Ensure that, at a minimum, all completed CBR/RCB reports are returned to ADHS monthly.

ADHS reserves the right to request these reports at additional times;

6.1.2.10 Ensure that all compliance investigators and employees adhere to the guidelines for conducting CB and Cash Buys as specified in the requirements section of this Contract;

6.1.2.11 Maintain copies of all reports, correspondences, and current addresses and telephone numbers for all Contractor staff involved in WIC compliance activities;

6.1.2.12 Ensure that all investigators attend, participate, and testify as a witness at any pre-hearing conferences, administrative fair hearings, or court trials as directed by ADHS; and

6.1.2.13 Participate in all conference calls at ADHS direction to provide information to ADHS to assess WIC program compliance activities;

6.2 LA INVESTIGATIONS:

6.2.1 ADHS will:

6.2.1.1 Maintain a transmittal log and verify receipt of completed LAIRs by date stamp and logging;

and

6.2.1.2 Assign the type of investigations to be conducted for each LA and instruct the Contractor on the type of LA compliance investigation that shall be attempted;

6.2.2 The Contractor shall:

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6.2.2.1 Conduct statewide compliance investigations of WIC Local Agency Clinics utilizing investigators employed by the Contractor;

6.2.2.2 Initiate and complete the LA compliance investigation visits requested by ADHS within thirty

(30) calendar days of request;

6.2.2.3 Ensure that all investigators and employees adhere to the requirements section of this

Contract;

6.2.2.4 Ensure that its investigators maintain a 100% completion and 100% accuracy level for all reports. Due to the unique regulatory jurisdiction of the program, ADHS personnel, not the completion and accuracy.

6.2.2.5 Ensure that, at a minimum, all completed LAIRS are returned to ADHS monthly. ADHS reserves the right to request these reports at additional times;

6.2.2.6 Maintain copies of all reports, correspondences, and current addresses and telephone numbers for all Contractor staff involved in WIC compliance activities;

6.2.2.7 Ensure that all investigators attend, participate, and testify as a witness at any pre-hearing conferences, administrative fair hearings, or court trials as directed by ADHS;

6.2.2.8 Ensure that all investigators attend, participate, and testify as a witness at any pre-hearing conferences, administrative fair hearings, or court trials as directed by ADHS; and

6.2.2.9 Participate in all conference calls at ADHS direction to provide information to ADHS to assess WIC program compliance activities;

6.3 VENDOR SITE REVIEWS:

6.3.1 VSRs shall consist of a minimum of one (1) separate, unscheduled, overt, on-site visit. More visits may be required to complete the investigation, and

6.3.2 The Contractor shall:

6.3.2.1 Adhere to the ADHS provided assignment list. The order of VSR performance is at the discretion of the Contractor unless otherwise instructed by ADHS;

6.3.2.2 Initiate and complete the VSR visits requested by ADHS within thirty (30) calendar days of request;

6.3.2.3 Ensure that all investigators use the most current versions of ADHS provided VSR forms for all inspections;

6.3.2.4 Maintain, at all times, an adequate inventory of all ADHS provided blank report forms necessary to conduct VSRs. ADHS will not provide clipboards, pens, pencils, scotch tape, coolers, food scales, cameras, printers, cellphones or any other portable electronics, costume type apparel, or other related items;

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6.3.2.5 Ensure that all investigators maintain a 100% completion and 100% accuracy level for all reports. Due to the unique regulatory jurisdiction of the program, ADHS personnel, not the completion and accuracy;

6.3.2.6 Ensure that all investigators provide the yellow copy of the VSR form to the on-site store representative before leaving the store premises at the end of the VSR visit;

6.3.2.7 Ensure that each Vendor is open for business before conducting a VSR and before its investigator travels to the Vendor location. The Contractor shall not charge ADHS when a visit was not completed (i.e. the required hours of operation confirmation were not obtained before travel);

6.3.2.8 Ensure that, at a minimum, all completed original and carbon copies of the VSR form (except the yellow copy as stated in Section 6.3.3.6) and any photographs taken are returned to ADHS monthly. ADHS reserves the right to request these reports at additional times;

6.3.2.9 Ensure that all investigators conducting VSRs wear clothing that would be considered appropriate for employees of a business; and

6.3.2.10 Ensure that all investigators and employees adhere to the requirements section of this

Contract;

6.4 INVENTORY AUDITS:

6.4.1 IAs shall consist of a minimum of two (2) separate, unscheduled, overt, on-site visits three (3) months apart, and

6.4.2 The Contractor shall:

6.4.2.1 Ensure that all investigators adhere to all tasks for IA;

6.4.2.2 Ensure that all investigators use the ADHS provided WIC Program Stock Review forms for all IAs;

6.4.2.3 Maintain, at all times, an adequate inventory of all ADHS provided blank report forms necessary to conduct IAs. ADHS will not provide clipboards, pens, pencils, scotch tape, coolers, food scales, cameras, printers, cellphones or any other portable electronics, costume type apparel, or other related items;

6.4.2.4 Adhere to the ADHS provided Adhere to the ADHS provided assignment list when initiating an IA (first visit). The schedule of the first visit is at the discretion of the Contractor unless otherwise instructed by ADHS;

6.4.2.5 Ensure that each investigator performs the second IA visit three (3) months after the first visit; and

6.4.2.6 Ensure that, at a minimum, all completed IA forms and any photographs taken are returned to ADHS monthly. ADHS reserves the right to request these reports at additional times.

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7. APPROVALS

7.1 All approvals for deliverables (reports, invoices, etc.) shall be made by ADHS, BNPA, WIC Program Integrity

Manager, or designee prior to payment; and

7.2 All marketing materials (the use of ADHS logo, brochures, posters, public service announcements, paid media, videos, etc.) which have been developed, written, published, or recorded by the Contractor and paid for with funds from this award must receive approval by ADHS prior to the dissemination of such materials or airing or use of such announcements.

8. DELIVERABLES

8.1 The Contractor shall submit to ADHS;

8.1.1 Record of personnel conducting WIC compliance activities that are hired, leave, or any other item of significance occurs which may affect the Contractor’s reliability within five (5) calendar days of occurrence, and

8.1.2 Monthly completion reports for each activity within five (5) calendar days of completion, and

8.1.3 Monthly invoices to include only ADHS prior approved completion report activities within five (5) calendar days of approval by the Program.

9. NOTICES, CORRESPONDENCE REPORTS AND INVOICES

9.1 All notices, correspondences, and reports from the Contractor to ADHS shall be sent electronically via email.

Program contact information will be provided upon award;

9.2 AUTOMATED CLEARING HOUSE. ADHS may pay invoices for some or all Orders through an Automated

Clearing House (ACH). In order to receive payments in this manner, the Contractor must complete an ACH Vendor Authorization Form (form GAO-618) within 30 (thirty) days after the effective date of the Contract. The form is available online at https://gao.az.gov/sites/default/files/GAO-618%20ACH%20Authorization%20Form%20101019.pdf;

9.2.1 ACH Vendor Authorization Form shall be emailed to Vendor.Payautomation@azdoa.gov,

9.3 All notices and correspondences from ADHS to the Contractor will be sent electronically via email to the individual(s) notated on the Offer and Acceptance attachment.

https://gao.az.gov/sites/default/files/GAO-618%20ACH%20Authorization%20Form%20101019.pdf mailto:Vendor.Payautomation@azdoa.gov

PART ONE (1) - Special Terms and Conditions

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

SPECIAL TERMS AND CONDITIONS

1. PURPOSE

Pursuant to provisions of the Arizona Procurement Code, A.R.S. 41-2501 Et Seq., the State of Arizona, ADHS intend to establish a Contract for the materials or services as listed herein.

2. TERM OF CONTRACT

The term of any resultant Contract shall commence upon final signature, and shall continue for one (1) year unless terminated, canceled, or extended as otherwise provided herein.

3. CONTRACT EXTENSIONS 5 YEAR MAXIMUM

The Contract term shall begin as specified in the section Two (2) above, and shall continue for one (1) year, and may be extended for additional successive periods of twelve (12) months per extension with a maximum aggregate including all extensions not to exceed five (5) years.

4. CONTRACT TYPE

Fixed Price.

5. LICENSES

The Contractor shall maintain in current status, all federal, state and local licenses and permits required for the operation of the business conducted by the Contractor.

6. KEY PERSONNEL

It is essential that the Contractor provide adequate experienced personnel, capable of and devoted to the successful accomplishment of work to be performed under this Contract. The Contractor must agree to assign specific individuals to the key positions.

6.1 The Contractor agrees that, once assigned to work under this Contract, key personnel shall not be removed or replaced without written notice to the State. Such notice shall be given thirty (30) days prior to the reassignment or personnel’s last day assigned to the Contract;

6.2 If key personnel are not available for work under this Contract for a continuous period exceeding thirty (30) calendar days, or are expected to devote substantially less effort to the work than initially anticipated, the Contractor shall immediately notify the State, and shall, subject to the concurrence of the State, replace such personnel with personnel of substantially equal ability and qualifications; and

6.3 The State Agency reserves the right to review resumes and participate in interviews for the hiring of any staff assigned to this Contract. Further, the State Agency reserves the right to deny or refuse any offered replacement personnel by the Planning Contractor;

7. POINT OF CONTACT

7.1 It is essential that the Contractor provide a Point of Contact, capable of and devoted to the successful accomplishment of work to be performed under this Contract. The Contractor must agree to assign a specific individual to serve as a primary day-to-day contact;

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7.2 The Contractor agrees that, once assigned to work under this Contract, the Point of Contact shall not be removed or replaced without written notice to the State; and

7.3 If the Point of Contact is not available for work under this Contract for a continuous period exceeding thirty

(30) calendar days, or is expected to devote substantially less effort to the work than initially anticipated, the Contractor shall immediately notify the State, and shall, subject to the concurrence of the State, replace such personnel with personnel of substantially equal ability and qualifications;

8. MOST-FAVORED CUSTOMER

Throughout the life of the Contract, the Contractor shall always offer the State the Most-Favored Customer or Highest Tier Customer price discount rate on contracted product(s) concurrent with a published price discount rate made to other Customers (both Private and Public sectors). The Contractor shall extend to the State that most-favored customer or Highest Tier Customer price discount on all new product lines during the life of the contract.

9. NON-EXCLUSIVE CONTRACT

Any contract resulting from this solicitation shall be awarded with the understanding and agreement that it is for the sole convenience of the State of Arizona. The State reserves the right to obtain like goods or services from another source when necessary, or when determined to be in the best interest of the State.

10. VOLUME OF WORK

The ADHS does not guarantee a specific amount of work either for the life of the Contract or on an annual basis.

11. INFORMATION DISCLOSURE

The Contractor shall establish and maintain procedures and controls that are acceptable to the State for the purpose of assuring that no information contained in its records or obtained from the state or from others in carrying out its functions under the Contract shall be used or disclosed by it, its agents, officers, or employees, except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the State.

The Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of the Contractor as needed for the performance of duties under the Contract, unless otherwise agreed to in writing by the State.

12. EMPLOYEES OF THE CONTRACTOR

All employees of the Contractor employed in the performance of work under the Contract shall be considered employees of the Contractor at all times, and not employees of the ADHS or the State. The Contractor shall comply with the Social Security Act, Workman’s Compensation laws and Unemployment laws of the State of Arizona and all State, local and Federal legislation relevant to the Contractor’s business.

13. ORDER PROCESS

The award of a contract shall be in accordance with the Arizona Procurement Code. Any attempt to represent any material and/or service not specifically awarded as being under contract with ADHS is a violation of the Contract and the Arizona Procurement Code. Any such action is subject to the legal and contractual remedies available to the state inclusive of, but not limited to, Contract cancellation, suspension, and/or debarment of the Contractor.

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14. CONTRACTOR PERFORMANCE REPORTS

Program management shall document Contractor performance, both exemplary and needing improvements where corrective action is needed or desired. Copies of corrective action reports will be forwarded to the ADHS Procurement Office for review and any necessary follow-up. The Procurement Office may contact the Contractor upon receipt of the report and may request corrective action. The Procurement Office shall discuss the Contractor’s suggested corrective action plan with the Program for approval of the plan prior to sending it to the Contractor.

15. PAYMENT PROCEDURES

15.1 ADHS accounting will not make payments to any Entity, Group or individual other than the Contractor with the Federal Employer Identification (FEI) Number identified in the Contract. Contractor invoices requesting payment to any Entity, Group or individual other than the contractually specified Contractor shall be returned to the Contractor for correction;

15.2 The Contractor shall review and insure that the invoices for services provided show the correct Contractor name prior to sending them to the ADHS Accounting Office for payment; and

15.3 If the Contractor Name and FEI Number change, the Contractor must complete an “Assignment and Agreement” form transferring contract rights and responsibilities to the new Contractor. ADHS must indicate consent on the form. A written Contract Amendment must be signed by both parties and a new W-9 form must be submitted by the new Contractor and entered into the system prior to any payments being made to the new Contractor;

16. FINANCIAL MANAGEMENT

16.1 For all contracts, the practices, procedures, and standards specified in the State of Arizona Accounting

Manual https://gao.az.gov/publications/SAAM/ and required by the Arizona Department of Health Services and Guidance for Federal Grant Award Management Manual shall be used by the Contractor in the management of contract funds and by the ADHS when performing a contract audit.

https://azdhs.gov/documents/operations/financial-services/bluebook-2018.pdf The contractor also agrees to abide by the rules as outlined by 2 CFR 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Funds collected by the Contractor in the form of fees, donations, and/or charges for the delivery of these contract services shall be accounted for in a separate fund.

https://ecfr.io/Title-02/cfr200_main;

16.2 State Funding Contractors receiving state funds under this Contract shall comply with the certified

Compliance provisions of A.R.S. § 35-181.03; and

16.3 Federal Funding Contractors receiving federal funds under this contract shall comply with the certified finance and compliance audit provision of the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200), if applicable. The federal financial assistance information shall be stated in a Change Order or Purchase Order.

17. INSPECTION AND ACCEPTANCE

All services, data, and required reports are subject to final inspection, review, evaluation, and acceptance by the ADHS. The ADHS may withhold payment for services that are deemed to not meet contract standards.

https://gao.az.gov/publications/SAAM/ https://azdhs.gov/documents/operations/financial-services/bluebook-2018.pdf https://ecfr.io/Title-02/cfr200_main

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18. AUTHORIZATION FOR SERVICES

Authorization for purchase of services under this Contract shall be made only upon ADHS issuance of a Purchase Order that is signed by an authorized agent. The Purchase Order will indicate the Contract number and the dollar amount of funds authorized. The Contractor shall only be authorized to perform services up to the amount on the Purchase Order. ADHS shall not have any legal obligation to pay for services in excess of the amount indicated on the Purchase Order. No further obligation for payment shall exist on behalf of ADHS unless a) the Purchase Order is changed or modified with an official ADHS Procurement Change Order, and/or b) an additional Purchase Order is issued for purchase of services under this Contract.

19. INDEMNIFICATION CLAUSE

19.1 To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the State of

Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. In consideration of the award of this contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents, and employees for losses arising from the work performed by the Contractor for the State of Arizona; and

19.2 This indemnity shall not apply if the contractor or sub-contractor(s) is/are an agency, board, commission or university of the State of Arizona;

20. INSURANCE REQUIREMENTS

20.1 Contractor and subcontractors shall procure and maintain, until all of their obligations have been discharged, including any warranty periods under this Contract, insurance against claims for injury to persons or damage to property arising from, or in connection with, the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors;

20.2 The Insurance Requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. The State of Arizona in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees or subcontractors, and the Contractor is free to purchase additional insurance;

20.3 Minimum Scope and Limits of Insurance

Contractor shall provide coverage with limits of liability not less than those stated below.

20.3.1 Commercial General Liability (CGL) – Occurrence Form, HEALTH SERVICES

Policy shall include bodily injury, property damage, and broad form contractual liability coverage.

20.3.1.1 General Aggregate $2,000,000.00

20.3.1.1.1 Products – Completed Operations Aggregate $1,000,000.00

20.3.1.1.2 Personal and Advertising Injury $1,000,000.00

20.3.1.1.3 Damage to Rented Premises $ 50,000.00

20.3.1.1.4 Each Occurrence $1,000,000.00

20.3.1.2 Policy shall be endorsed, as required by this written agreement, to include the State of

Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf of the Contractor.

20.3.1.3 Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor.

20.3.2 Business Automobile Liability

20.3.2.1 Bodily injury and Property Damage for any owned, hired, and/or non-owned automobiles used in the performance of this contract.

20.3.2.1.1 To Combined Single Limit (CSL) $1,000,000.00

20.3.2.2 Policy shall be endorsed, as required by this written agreement, to include the State of

Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by, or on behalf of, the Contractor involving automobiles owned, hired and/or non-owned by the Contractor.

20.3.2.3 Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents and employees for losses arising

20.3.3 Workers; Compensation and Employers’ Liability

20.3.3.1 Workers Compensation Statutory

20.3.3.2 Employers’ Liability

20.3.3.2.1 Each accident $1,000,000.00

20.3.3.2.2 Disease – Each employee $1,000,000.00

20.3.3.2.3 Disease – Policy Limit $1,000,000.00

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20.3.3.3 Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents and employees for losses arising

20.3.3.4 This requirement shall not apply to each Contractor or subcontractor that is exempt under A.R.S. § 23.901 and when such Contractor or subcontractor executes the appropriate waiver form (Sole Proprietor or Independent Contractor).

20.4 Additional Insurance Requirements

The policies shall include, or be endorsed to include, as required by this written agreement, the following provisions:

20.4.1 The Contractor’s policies as applicable, shall stipulate that the insurance afforded the Contractor shall be primary and that any insurance carried by the Department, its agents, officials, employees or the State of Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E).

20.4.2 Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the indemnification provisions of this Contract.

20.5 Notice of Cancellation

Applicable to all insurance policies required within the Insurance Requirements of this Contract, Contractor’s insurance shall not be permitted to expire, be suspended, be canceled, or be materially changed for any reason without thirty (30) days prior written notice to the State of Arizona. Within two (2) business days of receipt, Contractor must provide notice to the State of Arizona if they receive notice of a policy that has been or will be suspended, canceled, materially changed for any reason, has expired, or will be expiring. Such notice shall be sent directly to the Department and shall be mailed, emailed, or hand delivered to Arizona Department of Health Services, 150 N 18th Ave, Suite 260, Phoenix, AZ 85007.

20.6 Acceptability of Insurers

Contractor’s insurance shall be placed with companies licensed in the State of Arizona or hold approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers.

Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

20.7 Verification of Coverage

Contractor shall furnish the State of Arizona with certificates of insurance (COI) (valid ACORD form or equivalent approved by the State of Arizona) evidencing that Contractor has the insurance as required by this Contract. An authorized representative of the insurer shall sign the certificates.

20.7.1 All such certificates of insurance and policy endorsements must be received by the State before work commences. The State’s receipt of any certificates of insurance or policy endorsements that do not comply with this written agreement shall not waive or otherwise affect the requirements of this agreement, HEALTH SERVICES

20.7.2 Each insurance policy required by this Contract must be in effect at, or prior to, commencement of work under this Contract. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a material breach of contract, and

20.7.3 All certificates required by this Contract shall be sent directly to the Department. The State of Arizona project/contract number and project description shall be noted on the certificate of insurance. The State of Arizona reserves the right to require complete copies of all insurance policies required by this Contract at any time,

20.8 Subcontractors

Contractor’s certificate(s) shall include all subcontractors as insureds under its policies or Contractor shall be responsible for ensuring and/or verifying that all subcontractors have valid and collectable insurance as evidenced by the certificates of insurance and endorsements for each subcontractor.