Version 2 RFP 260000001094 Bidder Questions and Answers Michigan WIC Infant Formula Rebate Program (2).docx

Michigan.gov/MiProcurement

BIDDER QUESTIONS & ANSWERS

Version 2 RFP Number 260000001094 – Please see updates in red.

Michigan Department of Health and Human Services Michigan Women, Infants, and Children (WIC) Infant Formula Rebate Program

B. Please explain how the bids will be secured between the submission deadline and public opening.

C. Additionally, please identify everyone that will have access to the bids during that time period.

A. Please see RFP 260000001094, Amendment 2. Proposal due time and date are revised to 11:00 AM 9:30 AM Eastern Time, Wednesday, April 8, 2026. Public Bid Opening is revised to Wednesday, April 8, 11:30 AM. The time delay allows solicitation responses to sync to the system and become available for download.

B. Proposals are housed securely in Statewide Integrated Governmental Management Application (SIGMA).

C. Only employees with the Bureau of Grant and Purchasing, Purchasing Division with the appropriate security roles will have access to the solicitation responses from the proposal deadline to the bid opening.

B. Please confirm whether the contract is to be executed by the State and the awarded contractor consists of the Statement of Work and the Standard Contract Terms. If not, please specify which additional documents will comprise the final executed contract.

A. Yes, the Contract Effective Date refers to the date the Contract is fully executed.

B. The Contract to be executed will consist of the Contract Cover Page, Authorized Signatures, Standard Contract Terms, Schedule A Statement of Work, and Schedule B Pricing. If Additional attachments or Schedules are needed those will be determined by the State and the awarded Bidder.

The table identifies the items that need to be submitted by the April 6, 2026, deadline. 9:30 AM Eastern Time, Wednesday, April 8, 2026, deadline.

B. Please confirm that a presenter's screen will be shared during the virtual bid opening, so attendees can witness the files being opened and view all associated bid sheets appropriately.

A. See response to Question #1 B. Yes, the solicitation manager’s screen will be shared during the virtual bid opening.

If not incorporated, please specify where the State’s answers to questions would fall in the order of precedence of documents.

If the State’s answers to questions require revisions to the solicitation, an amendment to the solicitation will be issued and posted to SIGMA Vendor Self Service with the State’s Responses to the Bidder Questions.

Please see response to question 2. About the Contract contents.

A. Because of the amount of analysis and approvals required for a contract of this size, please confirm the State will allow 10 business days between the day responses to questions are published and the bid due/opening date.

B. If answers are not provided 10 business days prior to the scheduled bid due date, please revise the bid due date to be 10 business days after answers are posted.

C. Please confirm that the State will adjust the bid due date, if necessary, to allow at least ten (10) business days between the date that answers are posted and the scheduled bid due date.

A. Please see Proposal Instructions, Page 1 RFP Timeline. The State anticipates posting responses to Bidder questions by March 17, 2026. Bidder Proposals are due on Wednesday, April 8, 2026.Monday, April 6. This allows for over 13 business days between providing responses to bidder questions and the due date.

B. The State will consider revising the Bid due date, if necessary, based on the timing of the posting of responses to Bidder questions C. Yes, the State will allow at least ten (10) business days between the date question responses are posted and the proposal due date.

B. Please identify everyone who has access to bids once they have been submitted online, prior to the official bid submission deadline.

C. Please explain the steps taken to restrict access to bids to those persons identified in response to the question above.

D. What procedures do you have in place to make sure the online bidding system is functioning properly and accepting bid submissions.

E. We urge the state to consider allowing bidders to submit an alternate hard copy of their bid in case they have trouble submitting a bid online.

F. Please provide a specific contact who will be able to confirm that a manufacturer’s bid has been received by the State.

Please see response to Questions 1 and 7.

Please see Proposal Instructions, Page 1, Solicitation Manager for the State’s specific contact information who will confirm receipt of manufacturers’ bids.

See Proposal Instructions #7 Evaluation Process. Only proposals receiving a PASS rating in Step 1 will advance to Step 2 for pricing evaluation. The recommended contract award will go to the manufacturer providing the State with the lowest total monthly net cost.

Does the State intend to publish an intent to award? Please provide the exact link to where the Intent to Award will be posted.

Bidders will be notified of the publication of an Award Recommendation on SIGMA Vendor Self Service, the same portal where proposals are submitted. The Posting will be titled Notice of Intent to Award RFP 260000001094 WIC Infant Formula Rebate Program. The link is:

https://sigma.michigan.gov/PRDVSS1X1/Advantage4

Please confirm all bidders will be notified of the award via email.

Yes, if a protest is filed, all bidders receive an Acknowledgement Letter.

B. Bidders’ complete submitted proposals will be available by submitting a FOIA request to MDHHS-FOIA@michigan.gov. Proposals are not available for review on the SIGMA VSS website.

B. Please confirm that if a participant comes to a clinic in October to receive three months of infant formula benefits, they will receive October benefits for the current contract holder’s formula and November and December infant formula benefits for the new contract holder’s formula. C. If not confirmed, please provide specific details as to issuance during those months.

A. Please see Schedule A, Statement of Work, Sections 1.5. Transition and 8. Work Plan.

B. Michigan is an online EBT state with a rolling benefit month. In the case of a change to a new manufacturer’s products, if a family’s Benefit Start Date (BSD) falls before November 1, 2026, the family will only be able to redeem WIC benefits for the previous manufacturer’s products through November 30, 2026. Families with a BSD on or after November 1, 2026, will only be able to redeem the new manufacturer’s products. For example, a family with a BSD of October 15, 2026 would be able to redeem the previous manufacturer’s products through November 14, 2026.

C. N/A

B. If so, how many WIC‐only (above 50% vendors) are currently authorized?

A. No B. N/A

B. Please indicate the percentage of infants that are enrolled in the WIC program via adjunctive eligibility (i.e., they demonstrated active participation in SNAP, TANF, Medicaid or CHIP).

This information is not necessary for a bidder to submit a competitive proposal.

B. Please confirm that in the event of a shortage of supplies, the State will first utilize a different physical form and then an alternate rebate eligible brand of the winning manufacturer’s product line prior to the issuance of non-contract non-exempt formulas produced by other manufacturers.

C. Please clarify how the State determines the average retail price.

D. How many times annually does the State perform pricing surveys of infant formula?

E. Does the state perform compliance buys to confirm that WIC authorized retailers are only allowing the purchase of the formula listed on the Food Instrument?

F. If the state is not currently performing these compliance buys, we urge the state to begin.

G. How many vendors have been sanctioned over the course of the current contract for allowing the purchase of a formula not specified on the Food Instrument?

H. Does the State authorize vendors with more than 50% of their sales via the WIC program?

I. Please provide what percentage of contracted formula is redeemed at over 50% vendors.

J. Please provide the WIC vendors’ minimum stocking requirements.

K. What are the top 5 retail chains within the State?

A. The required minimum stock for formula is 12 cans contract formula (i.e., any combination of 12.4 oz can powder Similac Advance, 12.6 oz can powder Similac Total Comfort, 12.5 oz can powder Similac Sensitive, AND/OR 12.4 oz can powder Similac Soy Isomil). Pharmacy vendors do not have any required minimum stock, as their main role is to order specialty formulas as requested.

B. Refer to Schedule A, Statement of Work, Section 1.3.B.

C. The state does not determine an average retail price. We determine NTE (not to exceed) prices, which is the maximum price the state will reimburse a vendor for a specific item (UPC).

D. The bidder has sufficient information to submit a competitive bid.

E. The State conducts both inventory audits and compliance buys for formula.

F. N/A G. The bidder has sufficient information to submit a competitive bid.

H. No.

I. N/A J. See 202A-WIC-Vendor-Minimum-Stock-Requirements.pdf.

K. Walmart, Meijer, Kroger, Family Fare (owned by Prevo’s Family Markets LLC), Family Fare (owned by Family Fare LLC).

While the data requested regarding what percentage of infant benefits are issued for three months is not available, it is our estimation that this is the prevailing practice.

The average number of participants receiving a child’s food package containing infant formula from August 2025 – January 2026 was 119.

Month 0: 9 cans Months 1-3: 8 cans each month Month 4: 10 cans Month 5: 9 cans Months 6-11: 7 cans each month

If this contract language is not altered, and if the response to the above question indicates that the State would be seeking rebates for competitive products in the event of an Emergency Situation, this provision could have a material impact on the way a manufacturer views and evaluates the liabilities and costs associated with this contract. Please explain why it is appropriate for the contractor to pay for competitive products in situations of emergencies, including clean water supply issues and natural disasters that are outside the contractor’s control.

The section will remain as stated.

· Will participants entering the WIC clinic on October 15, 2026, receive benefits for October, November, and December that include the existing manufacturer’s products? Or will the month of October only be for the current manufacturer’s contracted product?

Please provide any additional details regarding the transition process if a different contract brand formula will be issued under the new contract.

Please refer to response to question 23.

As the State is requesting the Contractor to designate a Contract Representative, we respectfully request that the State also provide the name and role of its primary Contract Representative. Please confirm that the Contractor will also be notified should this designation change in the future.

This section will remain as stated.

Please see Standard Contract Terms, Section 4. Program Manager for the State’s Contact related to the WIC Infant Formula Rebate Program

B. If not confirmed, please advise how the bidders should complete this section if subcontractors will not be utilized for the infant formula rebate contract.

If a Contractor will not be using a subcontractor, within section 3.3 the very first box next to the box that reads “The legal business name address, telephone number of the subcontractor(s)” simply state Contractor will not require the use of subcontractors.”

B. If not removed, please provide the reasons that the State feels that this provision is in the best interest of the Department, the State, WIC infant participants and the Contractor.

As stated in the Code of Federal Regulations, the State agency may choose to approve for issuance some, none, or all of the winning bidder's other infant formula(s)(7 C.F.R. § 246.16a(c)(9)). See also 7 CFR 246.10(d)(2)(ii).

For example, if the contractor reformulated a State-authorized formula that the State did not feel was nutritionally equivalent to its previous version, the State may choose not to authorize the reformulated product.

Refer to 5.2.B.4 for language regarding the Primary Contract Brand Infant Formula.

A. If the State does not conduct retailer infant formula inventory audits, please explain all the reasons why these are not done.

B. If a discrepancy is found, what steps are taken to determine if reimbursement of rebate payment to the infant formula manufacturer is required?

Refer to response in question 35.

A. The State does conduct retailer infant formula inventory audits.

B. This information does not prevent a bidder from submitting a competitive proposal.

B. Please confirm that documents and/or information regarding policies, procedures and operations of each State’s WIC Program and infant formula monthly issuance allotments by brand and can size, infant age category and feeding method will be provided based on the State’s open records law.

C. Please confirm the State will provide the Contractor a way to validate, by family, rebates on infant formula were not paid in excess of the federal monthly maximums. If not confirmed, please describe what process is in place for the Contractor to validate issuance/ redemption and program compliance.

This section will remain as stated. Records that are subject to the State’s Freedom of Information Act (FOIA) law may be requested and produced in accordance with that law.

B. Please confirm the State agrees the manufacturer may recover funds in instances in which fraud has been discovered, and it has been further determined the manufacturer was overbilled for infant formula.

C. How many vendors have been disqualified from the State WIC Program due to fraud issues in each of the last three years?

D. Please confirm that there is no time limit on disputes arising from fraud or other illegal activity which prevents the contractor from being able to identify the billing error within the stated time limit.

The concerns/suggestions raised do not prevent a bidder from submitting a competitive proposal.

Please see Section 7. Invoice and Payment, 7.4 Errors, for Contractor procedures.

If no unique EBT transaction number is provided, please detail how the Contractor would be able to verify that issuance units being billed in the current month were not billed in a previous month.

The mentioned fields in Section 7. Invoice and Payment, 7.3.D are sufficient to meet the manufacturer’s objectives.

A. The Contractor will not be required to pay rebates on quantities of infant formula in excess of the federal monthly maximums

B. If rebates for quantities in excess of the federal monthly maximums are billed and rebated in error, the amounts associated with the over issuance and redemption will be reimbursed to the Contractor upon discovery. If any portion of above is not confirmed, please provide a detailed explanation of why such portion was not confirmed.

As indicated per Schedule A Section 7.3(A):

“The number of Contract Brand Infant Formula units reported for rebate billing purposes must be equal to the total number of Contract Brand Infant Formula units issued during the Contract period and redeemed according to State and Federal guidelines in the respective billing month.”

This section will remain as stated.

Additionally, applicable State policies are available at MI-WI Policy Manual Table of Contents, See Chapters 7 and 8.

The information requested does not prevent a bidder from submitting a competitive proposal.

B. For infants categorized as some breastfeeding, please provide the AVERAGE infant formula allotment by baby age.

Sufficient data has been provided to allow a bidder to submit a competitive proposal.

State contracts can include boilerplate. Certain provisions may not be applicable depending on the nature of the contract.

B. Please allow termination rights for contractors with a one (1) year notification. If not allowed, please describe all the reasons why the State is allowed to terminate the contract, but the Contractor is not afforded the same rights No, this section is not mutually available.

No, it is not possible for the State to amend the terms to provide 6 months’ notice.

No, it is not possible to amend terms to allow for 1 year notification.

State of Michigan is administering the contract; the State retains the ability to terminate.

Public interest and responsibility, as well as program stability requires State control and termination rights.

If this is not confirmed, please specify what information is required in each section.

This will not be used for evaluation. Schedule B – Pricing will be used for evaluation of pricing.

Pease see RFP 260000001094 Amendment 1, Section 1, Proposal Preparation and RFP Structure and Documentation Table.

The table identifies the items that need to be submitted by April 6, 2026, deadline as attachments.

B. If not confirmed, please list what additional information would need to be submitted to meet the State’s requirements.

Yes, the parent corporation’s financial statements are sufficient, as long as the parent company provides a binding guarantee of offeror’s performance.

See also response to Question #69.

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