WIC Compliance Buys RFP 20-2149 - Combined Solicitation Documents.docx

RFP 200000002149 - WIC Program Compliance Investigative Services

STATE OF MICHIGAN

Department of Health and Human Services

Women, Infant and Children (WIC) Program Compliance Investigative Services Request for Proposal No. 200000002149

Solicitation Manager Name: Nathaniel Oliver Direct Phone: (517) 241-0084 Email: OliverN@michigan.gov Main Phone: 1-855-MI-PURCH 1-855-647-8724

This is a Request for Proposal (RFP) for:

Fraud and abuse investigations of the Special Supplemental Nutrition Program for Women, Infants and Children (WIC)

RFP Timeline

*A bidder’s proposal received at 1:59:01 p.m. Eastern is late and subject to disqualification.

This RFP is subject to change. Check www.michigan.gov/SIGMAVSS for current information.

PROPOSAL INSTRUCTIONS

1. PROPOSAL PREPARATION. The State recommends reading all RFP materials prior to preparing a proposal, particularly these Proposal Instructions and the Vendor Questions Worksheet. Bidders must follow these Proposal Instructions and provide a complete response to the items indicated in the table below. References and links to websites or external sources may not be used in lieu of providing the information requested in the RFP within the proposal. Include the bidder’s company name in the header of all documents submitted with your proposal.

RFP Structure and Documentation

2. CONTACT INFORMATION FOR THE STATE. The sole point of contact for the State concerning this RFP is listed on the Cover Page. Contacting any other State personnel, agent, consultant, or representative about this RFP may result in bidder disqualification.

3. MODIFICATIONS. The State may modify this RFP at any time. Modifications will be posted on www.michigan.gov/SIGMAVSS . This is the only method by which the RFP may be modified.

4. QUESTIONS. Bidder questions about this RFP must be emailed] to the Solicitation Manager no later than the time and date specified on the Cover Page. In the interest of transparency, only written questions are accepted. Answers to questions will be posted on www.michigan.gov/SIGMAVSS. Submit questions using the format below; a Microsoft Excel format or similar is suggested.

5. DELIVERY OF PROPOSAL.

Electronic – The bidder must submit its proposal, all attachments, and any modifications or withdrawals electronically through www.michigan.gov/SIGMAVSS. The price proposal should be saved separately from all other proposal documents. The bidder should submit all documents in a modifiable (native) format (examples include but are not limited to Microsoft Word or Excel and Google Docs or Sheets). In addition to submitting documents in a modifiable format, the bidder may also submit copies of documents in PDF. Attachment file size is limited to 6 MB per document. Bidder’s failure to submit a proposal as required may result in disqualification. The proposal and attachments must be fully uploaded and submitted prior to the proposal deadline. Do not wait until the last minute to submit a proposal, as the SIGMA VSS system requires the creation of an account and entry of certain information, in addition to uploading and submitting the materials. The SIGMA VSS system will not allow a proposal to be submitted after the proposal deadline identified in the solicitation Closing On/Closing Date fields (Summary view/Detail view), even if a portion of the proposal has been uploaded.

Questions on how to submit information or how to navigate in the SIGMA VSS system can be answered by calling (517) 284-0540 or (888) 734-9749. The Solicitation Manager will not provide assistance related to the submittal of the proposal and all attachments on the day of the proposal deadline. Responsibility for a complete submission lies with the bidder.

6. EVALUATION PROCESS. The State will evaluate each proposal based on the following factors:

Proposals receiving 80 or more technical evaluation points will have pricing evaluated and considered for award.

The State may utilize all bidder information, without regard to a proposal’s technical score, to determine fair market value for goods or services sought. The State is not obligated to accept the lowest price proposal. If applicable, the State’s evaluation will include consideration of a bidder’s qualified disabled veterans/service-disabled veteran owned business(QDV/SDVOB) status under MCL 18.1261(8). Additional information on the SDVOB preference is available at: https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48677-412612--,00.html.

The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the bidder’s need for each proposed change. Failure to include track changes with an explanation of the bidder’s need for the proposed change constitutes the bidder’s acceptance of the Contract Terms. General statements, such as that the bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.

The State may but is not required to conduct an on-site visit to tour and inspect the bidder’s facilities; require an oral presentation of the bidder's proposal; conduct interviews, research, reference checks, and background checks; and request additional price concessions at any point during the evaluation process.

7. NOTICE OF DEFICIENCY. The State reserves the right to issue a Notice of Deficiency to bidders if the State determines after the proposal deadline that a portion of the RFP was deficient, unclear, or ambiguous. Failure to respond to a Notice of Deficiency timely may be cause for disqualification.

8. CLARIFICATION REQUEST. The State reserves the right to issue a Clarification Request to a bidder to clarify its proposal if the State determines the proposal is not clear. Failure to respond to a Clarification Request timely may be cause for disqualification.

9. RESERVATIONS. The State reserves the right to:

a. Disqualify a bidder for failure to follow these instructions.

b. Discontinue the RFP process at any time for any or no reason. The issuance of an RFP, your preparation and submission of a proposal, and the State’s subsequent receipt and evaluation of your proposal does not commit the State to award a contract to you or anyone, even if all the requirements in the RFP are met.

c. Consider late proposals if: (i) no other proposals are received; (ii) no complete proposals are received; (iii) the State received complete proposals, but the proposals did not meet mandatory minimum requirements or technical criteria; or (iv) the award process fails to result in an award.

d. Consider an otherwise disqualified proposal, if no other proposals are received.

e. Disqualify a proposal based on: (i) information provided by the bidder in response to this RFP; (2) the bidder’s failure to complete registration on www.michigan.gov/SIGMAVSS ; or (3) if it is determined that a bidder purposely or willfully submitted false or misleading information in response to the RFP.

f. Consider prior performance with the State in making its award decision.

g. Consider overall economic impact to the State when evaluating proposal pricing and in the final award recommendation. This includes but is not limited to considering principal place of performance, number of Michigan citizens employed or potentially employed, dollars paid to Michigan residents, Michigan capital investments, job creation, tax revenue implications, and economically disadvantaged businesses.

h. Consider total-cost-of-ownership factors (e.g., transition and training costs) when evaluating proposal pricing and in the final award recommendation.

i. Refuse to award a contract to any bidder that has failed to pay State taxes or has outstanding debt with the State.

j. Enter into negotiations with one or more bidders on price, terms, technical requirements, or other deliverables.

k. Award multiple, optional-use contracts, or award by Contract Activity.

l. Evaluate the proposal outside the scope identified in the Evaluation Process section of this document if the State receives only one proposal.

10. AWARD RECOMMENDATION. The contract will be awarded to the responsive and responsible bidder who offers the best value to the State, as determined by the State. Best value will be determined by the bidder meeting the minimum point threshold and offering the best combination of the factors stated in the Evaluation Process section of this document, and price, as demonstrated by the proposal. The State will post an Award Recommendation and Evaluation Synopsis on www.michigan.gov/SIGMAVSS .

11. DEBRIEF MEETING AND BID PROTEST. The State will post an Award Recommendation and Evaluation Synopsis, which will provide instructions on how to request a debrief meeting

If you wish to initiate a protest of the award, submit protests via email to MDHHS-BGP@michigan.gov no later than 3:00 p.m.., 5 calendar days after posting the Award Recommendation and Evaluation Synopsis or by 3:00 p.m. the next business day if that date falls on a state holiday or weekend. Include “Protest” in the email subject line. All protests must include the bid number. The State reserves the right to adjust this timing and will publish any change on the SIGMA VSS system.

Additional information about the protest process is available at www.michigan.gov/micontractconnect under the “Programs and Policies” link.

12. STATE ADMINISTRATIVE BOARD. Contracts equal to $250,000 or greater than require approval by the State Administrative Board. The State Administrative Board’s decision is final; however, its approval does not constitute a contract. The award process is not complete until the awarded contractor receives a contract fully executed by all parties.

13. GENERAL CONDITIONS. The State will not be liable for any costs, expenses, or damages incurred by a bidder participating in this solicitation. The bidder agrees that its proposal will be considered an offer to do business with the State in accordance with its proposal, including the Contract Terms, and that its proposal will be irrevocable and binding for a period of [180] calendar days from date of submission. If a contract is awarded to the bidder, the State may, at its option, incorporate any part of the bidder’s proposal into a contract. This RFP is not an offer to enter into a contract. This RFP may not provide a complete statement of the State’s environment or contain all matters upon which agreement must be reached. Other than verified trade secrets, proposals submitted via www.michigan.gov/SIGMAVSS are the State’s property.

14. CONFIDENTIAL TREATMENT FORM AND THE FREEDOM OF INFORMATION ACT. All portions of the bidder’s proposal and resulting contract are subject to disclosure as required under Michigan’s Freedom of Information Act (FOIA), MCL 15.231, et seq. However, some information may be exempt from disclosure. Under MCL 18.1261(13)(b), records containing “a trade secret as defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902,” are exempt from disclosure under FOIA. In addition, “financial or proprietary information” submitted with a bidder’s proposal is exempt from disclosure under FOIA. A bidder’s failure to comply with this Section is grounds for rejecting a bidder’s proposal as non-responsive. As a part of its proposal, each bidder must follow the procedure below.

a. SUBMIT A COMPLETED “CONFIDENTIAL TREATMENT FORM” (CT FORM) WITH YOUR BID. Completion and submission of the CT Form is required regardless of whether the bidder seeks confidential treatment of information. Failure to submit a completed CT Form may be cause for disqualification from the solicitation process.

i. Complete and sign Section 1 of the CT Form if the bidder does NOT request confidential treatment of information contained in its proposal; or

ii. Complete and sign Section 2 of the CT Form if the bidder requests confidential treatment of certain information. Bidder must also submit a “Public Copy” of the proposal with the trade secret, financial, and proprietary information redacted and clearly labeled as the “Public Copy.”

b. FOIA REQUESTS. If a FOIA request is made for a bidder’s proposal, the Public Copy may be distributed to the public along with the bidder’s CT Form. The CT Form is a public document and serves as an explanation for the redactions to the Public Copy. Do not put any trade secret, financial, or proprietary information in the CT Form. Do not redact the CT Form itself.

c. NO ADVICE. The State will not advise a bidder as to the nature or content of documents entitled to protection from disclosure under FOIA or other laws, as to the interpretation of such laws, or as to the definition of trade secret or financial or proprietary information. Nothing contained in this provision will modify or amend requirements and obligations imposed on the State by FOIA or other applicable law.

d. FAILURE TO REQUEST CONFIDENTIAL TREATMENT. Failure to request material be treated as confidential as specified herein relieves the State, its agencies, and personnel from any responsibility for maintaining material in confidence.

e. Bids containing a request to maintain an entire proposal as confidential may be rejected as non-responsive. Bidders may not request confidential treatment with respect to resumes, pricing, and marketing materials. The State reserves the right to determine whether material designated as exempt by a bidder falls under MCL 18.1261 or other applicable FOIA exemptions. If a FOIA request is made for materials that the bidder has identified as trade secret, financial, or proprietary information, the State has the final authority to determine whether the materials are exempt from disclosure under FOIA.

f. Bidder forever releases the State, its departments, subdivisions, officers, and employees from all claims, rights, actions, demands, damages, liabilities, expenses and fees, which arise out of or relate to the disclosure of all or a portion of bidder’s proposal submitted under this RFP. Bidder must defend, indemnify and hold the State, its departments, subdivisions, officers, and employees harmless, without limitation, from and against all actions, claims, losses, liabilities, damages, costs, attorney fees, and expenses (including those required to establish the right to indemnification), arising out of or relating to any FOIA request, including potential litigation and appeals, related to the portion of bidder’s proposal submitted under this RFP that bidder has identified as a trade secret, or financial or proprietary information. The State will notify bidder in writing if indemnification is sought. The State is entitled to: (i) regular updates on proceeding status; (ii) participate in the defense of the proceeding; (iii) employ its own counsel; and to (iv) retain control of the defense, or any portion thereof, if the State deems necessary. Bidder will not, without the State’s written consent (not to be unreasonably withheld), settle, compromise, or consent to the entry of any judgment in or otherwise seek to terminate any claim, action, or proceeding. If a State employee, official, or law is involved or challenged, the State may control the defense of that portion of the claim. Any litigation activity on behalf of the State, or any of its subdivisions under this Section, must be coordinated with the Department of Attorney General. An attorney designated to represent the State may not do so until approved by the Michigan Attorney General and appointed as a Special Assistant Attorney General.

CONFIDENTIAL TREATMENT FORM (CT FORM)

INSTRUCTIONS. Complete either Section 1 or Section 2 of this CT Form and sign where indicated. This CT Form must be signed by the individual who signed the bidder’s proposal. A completed CT Form must be submitted with your proposal, regardless of whether your proposal contains confidential information.

Failure to submit a completed CT Form with your bid is grounds for rejecting the proposal as non-responsive. See the Confidential Treatment Form and The Freedom of Information Act section of the Proposal Instructions for additional information.

Section 1. Confidential Treatment Is Not Requested

This section must be completed, signed, and submitted with the proposal if bidder does not request confidential treatment of any material contained in the proposal.

By signing below, the bidder affirms that confidential treatment of material contained in the proposal is not requested.

[Printed Name] [Title] [Company]

Section 2. Confidential Treatment Is Requested

The section must be completed, signed, and submitted with the proposal if bidder requests confidential treatment of any material contained in the proposal. Submission of a completed CT Form is required to request confidential treatment.

Provide the information in the table below. Bidder may add rows or additional pages using the same format shown in the table. Bidder must specifically identify the information to be protected as confidential and state the reasons why protection is necessary.

The CT Form will not be considered fully complete unless, for each confidentiality request, the bidder: (1) identifies whether the material is a trade secret (TS), financial information (FI), or proprietary information (PI); (2) explains the specific legal grounds that support treatment of the material as TS, FI, or PI; and (3) provides the contact information for the person at bidder’s organization authorized to respond to inquiries by the State concerning the material. Bidders must not simply cite to an applicable act or case name; rather, bidders must provide a complete justification as to how the material falls within the scope of an applicable act or relevant case law.

CONFIDENTIAL TREATMENT FORM (CT FORM)

By signing below, the bidder affirms that confidential treatment of material contained in its proposal is requested and has attached to this form a redacted “Public Copy” of the bidder’s proposal.

[Printed Name] [Title] [Company]

VENDOR QUESTIONS WORKSHEET

Provide a detailed response to each question. “You” and “company” refers to the bidder.

1. Contact Information

Bidder’s sole contact person during the RFP process. Include name, title, address, email, and phone number.

Person authorized to receive and sign a resulting contract. Include name, title, address, email, phone number and vendor customer code in SIGMA VSS.

2. Company Background Information

Legal business name and address. Include business entity designation, e.g., sole proprietor, Inc., LLC, or LLP.

What state was the company formed in?

Phone number

Website address

Number of years in business and number of employees

Legal business name and address of parent company, if any

Has there been a recent change in organizational structure (e.g., management team) or control (e.g., merger or acquisition) of your company? If the answer is yes: (a) explain why the change occurred and (b) how this change has affected your company.

Discuss your company’s history. Has growth been organic, through mergers and acquisitions, or both?

Has bidder ever been debarred, suspended, or disqualified from bidding or contracting with any entity, including the State of Michigan? If yes, provide the date, the entity, and details about the situation.

Has your company been a party to litigation against the State of Michigan? If the answer is yes, then state the date of initial filing, case name and court number, and jurisdiction.

Within the last 5 years, has your company or any of its related business entities defaulted on a contract or had a contract terminated for cause? If yes, provide the date, contracting entity, type of contract, and details about the termination or default.

State your gross annual sales for each of the last 5 years.

If receiving a contract under this RFP will increase your gross revenue by more than 25% from last year’s sales, explain how the company will scale-up to manage this increase.

Describe partnerships and strategic relationships you think will bring significant value to the State.

State the physical address of the place of business that would have primary responsibility for this account if bidder is awarded a contract under this RFP.

3. Qualified Disabled Veteran/Service-Disabled Veteran-Owned Business Program

To demonstrate qualification as a qualified disabled veteran, you must provide:

(a) Proof of service and conditions of discharge (DD214 or equivalent);

(b) Proof of service-connected disability (DD214 if the disability was documented at discharge or Veterans Administration Rating Decision Letter or equivalent if the disability was documented after discharge); and

(c) Legal documents setting forth the ownership of the business entity.

In lieu of the documentation identified above, you may provide proof of certification by the National Veterans Business Development Council.

Enter the names of documents submitted with your proposal to demonstrate status as a qualified disabled veteran.

4. Participation in RFP Development or Evaluation

Did your company, an employee, agent, or representative of your company, or any affiliated entity participate in developing any component of this solicitation? For purposes of this question, business concerns, organizations, or individuals are affiliates of each other if, directly or indirectly: (1) either one controls or has power to control the other or (2) a third-party controls or has the power to control both. Indicia of control include, but are not limited to, interlocking management or ownership, identity of interests among family members, shared facilities or equipment, and common use of employees.

Enter YES or NO.

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

If you enter “YES,” you are not eligible for contract award. An awarded vendor may not partner or subcontract with anyone to provide goods and services required under a resulting contract if that subcontractor or partner assisted in the development of this solicitation.

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

5. State of Michigan Experience and Prior Experience

Does your company have experience working with the State of Michigan? If so, please provide a list (including the contract number) of the contracts you hold or have held with the State for the last 10 years.

Describe at least 3 relevant experiences from the last 5 years supporting your ability to successfully manage a contract of similar size and scope for the work described in this RFP.

Experience 1

Company name Contact name Contact role at time of project Contact phone Contact email

City State Zip

1. Project name and description of the scope of the project

2. What role did your company play?

3. How is this project experience relevant to the subject of this RFP?

Dollar value

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained

Experience 2

Company name

Contact role at time of project

City

1. Project name and description of the scope of the project

Dollar value

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained

Experience 3

Company name

Contact role at time of project

City

1. Project name and description of the scope of the project

Dollar value

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained

6. Standard Contract Terms

Bidder must affirm agreement with the attached Contract Terms. If not in agreement, written exceptions in accordance with the Evaluation Process section of the Proposal Instructions must be provided with Bidder’s proposal.

7. Michigan Economic Impact

Number of employees currently employed at locations within the State of Michigan

Number of additional employees to be employed at locations within the State of Michigan if awarded this Contract (if any)

Minimum wage paid to employees employed at locations within the State of Michigan

Average wage paid to employees employed at locations within the State of Michigan

Percentage of employees employed at locations within the State of Michigan that are covered by employer-provided health insurance

8. Other

Request For Proposal No. RFP 200000002149 Women, Infants and Children Program Compliance Investigative Service

SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP.

The Contractor must respond to each requirement or question and explain how it will fulfill requirement when Contractor Response is requested. Attach any supplemental information and appropriately reference within your response.

BACKGROUND

The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) provides supplemental foods for pregnant, non-lactating and nursing women, infants up to one year, and children up to age five. Eligibility is also based on age, financial and medical need. Foods are prescribed for the clients from a list of eligible WIC supplemental foods. Food benefits are issued on a WIC Electronic Benefit Transfer (EBT) Bridge card and are redeemable by the client at any of approximately 1,500 approved WIC vendors (i.e. grocers) in the State.

The Michigan Department of Health and Human Services (MDHHS) administers and coordinates the distribution of eligible WIC foods by these contracted vendors. The MDHHS WIC Vendor Relations Unit is responsible for vendor compliance activities, fraud and abuse detection and investigation. This investigation process includes undercover compliance buys at WIC approved vendors. When an investigation determines that a vendor is engaged in program abuse or fraudulent activities affecting the WIC Program, appropriate sanction action is taken in accordance with WIC Program Policy and Federal regulations. Sanction action may also impact the vendors’ eligibility for participation in the Supplemental Nutrition Assistance Program, or SNAP (formerly Food Stamps).

WIC Program Policy and Federal Regulations require investigations be performed on a minimum of 5% of authorized WIC Vendors as of October 1 of the fiscal year. The Program Manager will identify those vendors which will require compliance buys based on high risk indicators. High Risks indicators are mandated in Federal Regulations 7 CFR 246.12 and the State Plan of Operation for the Special Supplemental Nutrition Program for Women, Infants and Children. If you would like to request a copy of the State Plan of Operation, please email the solicitation manager. High Risk vendors could be identified in any county. There is at least one WIC approved vendor contracted in each county of Michigan.

SCOPE

Contractor must hire and maintain the necessary staff to provide trained undercover compliance investigators as independent contractors. The staff hired by the Contractor must perform WIC compliance buys and provide other investigative services in accordance with the terms of this agreement at WIC approved vendors, or other designated locations throughout the state of Michigan.

REQUIREMENTS

1. General Requirements The Program Manager will advise the Contractor of the specific target locations to receive compliance buys. The Contractor will be notified of these locations in the form of a compliance buy letter. On average, a compliance buy letter is generated every thirty to sixty days. The compliance buy letter will indicate which vendors are to receive compliance buys. The Program Manager will provide the WIC EBT cards in advance. The Program Manager will attempt to cluster selected vendors by geographic area; however, the Contractor will also be expected to conduct compliance buys in remote areas of the state. The Program Manager will provide Compliance Investigation packets to the Contractor. Compliance Investigation packets will include a Michigan WIC Program Booklet, EBT cards, a blank Vendor Integrity Evaluation Report, and a description of buys to be completed.

WIC EBT benefits are good for only a specific thirty-day period, for example, 4-7-20 to 05-6-20. The thirty-day period of their validity can begin on any day of the month. The Program Manager has final say on the scheduling of compliance buys. Compliance buys can be done anytime within the thirty-day period, unless directed otherwise by the Program Manager.

Bidder must acknowledge and accept this requirement.

1.1 Requirements

The Contractor must conduct the following activities statewide throughout the Contract period.

A. Provide investigative staff to conduct compliance buys at locations identified by the MDHHS Program Manager throughout the State of Michigan. The State will pay the Contractor the same flat rate for each compliance buy regardless of type of buy or location. At a minimum, the investigative staff must be able to do the following:

1. Blend into the target store’s neighborhood so as not to be identified by the store employees and

2. Be willing and able to testify under oath in person at a hearing in Lansing, Michigan or by video conferencing platform. The State will pay the Contractor one hourly rate for in person hearings and another hourly rate for hearings conducted via video conferencing platform.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

B. Conduct Compliance Investigations at selected vendor locations utilizing WIC EBT cards. The Compliance Investigation must be conducted in accordance with the State Plan of Operation for the Special Supplemental Nutrition Program for Women, Infants and Children, Section I. Vendor and Farmer Management, and under instruction of the Program Manager. All Compliance Investigations must be conducted in an appropriate manner so as not to appear threatening or intimidating or insinuate entrapment and thus jeopardize the principles behind the Compliance Investigations.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

C. The Contractor must manage the investigators in their efforts to conduct compliance buys. The contractor must assure the following:

1. The Contractor must provide investigative staff who are:

a) Female, unless otherwise indicated by the Program Manager.

b) 18 years of age or older.

c) Able to blend into the target store’s neighborhood (race, ethnicity, dress, etc.), including linguistic and cultural competencies to the degree necessary to emulate a typical member of the local community. The Contractor capabilities must include the ability to determine the characteristics to be emulated by the investigator to effectively blend into the targeted local community.

d) Without physical characteristics or disabilities which might result in the vendor claiming empathy/sympathy for the investigator.

e) Willing and able to testify under oath, in person or by phone/in camera (as deemed warranted by the Program Manager) at a hearing, that will be held in Lansing, Michigan.

f) Prepared with a cover story.

g) Equipped with an inconspicuous vehicle.

h) Approved by the MDHHS Program Manager.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

D. The Contractor must provide investigative staff who will not:

1. Be recognized as an investigator by the vendor. The Contractor must notify the Program Manager if they become aware the vendor knows they are conducting an undercover compliance buy. If the investigator is identified by the vendor, the Contractor must be able to provide a different investigator to conduct compliance buys at that vendor’s store

2. Be aggressive, threatening, or antagonistic in their manner.

3. Attempt to play on the sympathy of a store owner or employee.

4. Buy any other items for cash or other means while in the store unless instructed to do so by the Program Manager.

5. Do another compliance buy or any other activity, before completing a buy, doing the photography, and completing the report.

6. Have a record of criminal convictions.

7. Be active duty military personnel.

8. Have any conflicting interests in the outcome of the investigation. The Contractor will not provide investigative staff as investigators who are employees of state or local agencies and their relatives, employees of grocery stores, pharmacies, and other store types or their relatives, unless advance written approval is obtained from the Program Manager.

9. Write for publication.

10. Attempt entrapment or act in a manner that has the appearance of entrapment of a vendor.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

E. The following types of compliance buys may be requested:

1. An attempt to purchase WIC foods in excess of the quantity authorized.

2. An attempt to purchase non-WIC food with a WIC EBT card.

3. An attempt to purchase non-food items with a WIC EBT card.

4. An attempt to obtain cash from the vendor in exchange for WIC EBT card benefits.

5. An attempt to return WIC foods for cash

6. An attempt to redeem WIC EBT benefits or obtain cash for EBT benefits from an unauthorized store.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

F. The investigator must perform the following procedures during an undercover buy:

1. Equipped with a cover story, the investigator must enter the assigned WIC authorized store with a WIC EBT card and a list of items to be purchased (or other activities to attempt).

2. The investigator must go through the store and select the appropriate WIC food items as instructed by the Program Manager. During this time, the investigator will make note of any activities or circumstances in or around the store relevant to the investigation that would support an attempt to expand the scope of the investigation. This will be done in a manner that will not compromise the underlying investigation, but continue to follow established investigation protocols in an attempt to:

a) Purchase non-WIC items with their WIC Bridge card.

b) Trade infant formula or other benefits for cash or unauthorized items.

c) Sell WIC Bridge card or the benefits on the card

3. When done shopping, the investigator must take the selected items to a check-out lane and tell the cashier that they are using the Michigan WIC Bridge Card.

4. During the transaction itself the investigator must make observations of the transaction as indicated in Section D of the compliance buy report (Attachment A) as to how the cashier handled the transaction, including mannerisms, comments, etc.

5. The investigator or the cashier must swipe the card through the point of sale (POS) machine, and the investigator must enter a 4-digit PIN.

6. The cashier will scan the UPC of each item selected by the investigator. The cashier is required by Program policy to scan the UPC bar code of each item (except fresh fruits and vegetables) to confirm the item is a WIC approved food item and eligible for purchase at that time. If the UPC of the item selected by the investigator is not scanned by the cashier, the investigator must make detailed notation of the process and/or actions taken by the cashier as to how the item charged to the WIC Program is identified.

7. For the purchase of fresh fruits and vegetables, the vendor is required to determine the total dollar amount of fresh fruits and vegetables being purchased by the investigator and enter that amount on the POS device along with the numeric code 4469.

8. Upon completion of the transaction, the investigator must attempt to obtain a receipt unless such action might compromise the investigation.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

G. After the transaction is completed, the investigator must perform the following duties:

1. Immediately return to his/her car with the food items, drive to a nearby safe location to complete the report (Attachment A).

The report must include:

a) A description of the physical characteristics of the cashier (sex, glasses, mustache, beard, scars, moles, tattoo, other)

b) The food items purchased, including the UPC, brand names and types, container size, and the prices that were marked on the food items purchased or, if not marked on the items, any prices marked on the shelf, wall, sign, etc. All prices for items purchased must always be reported. If there is a different price than the price marked on the item, on a like item or on a shelf or sign anywhere in the store, that also must be reported and fully described.

c) If the cashier did not scan the food item UPC.

d) If the cashier provided the investigator with a receipt, and

e) If the investigator had or overheard any conversations or observed any actions that may be relevant to the investigation

2. The investigator must take a photograph in their vehicle (i.e. Photograph or digital image) that clearly shows the front of the food items purchased, including the product labels. The investigator must also include a placard naming the store and vendor identification number where the products are purchased in these photographs.

a) WITHOUT EXCEPTION ITEMS IN ABOVE SECTIONS 1.1.1(E)(1) AND (2) MUST BE COMPLETED IMMEDIATELY UPON COMPLETION OF THE BUY AND BEFORE ANOTHER COMPLIANCE BUY IS STARTED.

3. The investigator must take the purchased items to a nearby non-profit organization, in accordance with State of Michigan WIC Policy (MI-WIC) Policy 8.05A WIC Formula Acceptance and Action. [Please see https://www.michigan.gov/documents/mdch/8.05_Returned_Formula-final_299847_7.pdf] The investigator must also complete the appropriate donation form and donate the items. See below Section 1.1.I.

4. The investigator must submit the compliance buy report and donation form, along with any other relevant documents or notations to the Program Manager via email within 5 business days of completion.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

H. The Program Manager will notify the Contractor of scheduled hearing dates. The Contractor will be responsible for ensuring the appearance of the investigator(s) at such hearings. Some of the hearings may take place after the Contract period. The Contractor and investigators must agree to testify at any necessary hearings that take place after the Contract period has expired. Whenever possible, the investigator’s schedule will be taken into consideration; however, the applicable tribunal or court determines hearing schedules and any schedule changes must be approved by them. Hearings may be conducted in person or virtually.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

I. Federal Regulations require that the Program Manager document disposition of food items obtained through compliance buys. It will be necessary for the items to be donated (delivered) to non-profit organizations in accordance with MI-WIC Policy 8.05A WIC Formula Acceptance and Action. [Please see https://www.michigan.gov/documents/mdch/8.05_Returned_Formula-final_299847_7.pdf]. The Contractor must identify the receiving organizations and these organizations must be approved by the Program Manager. The donation report (Attachment B) must be submitted to the Program Manager with the Compliance Buy Reports within five (5) business days of completion. Donation report forms will be provided by the Program Manager at the start of the contract. Non-food items must be sent to the State WIC office via UPS or certified USPS within two (2) business days.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

J. The Contractor must establish that they are a currently licensed Private Investigator in the State of Michigan by the Michigan Department of State Police and are in good standing, bonded, and that any employees or subcontractors are licensed and bonded when required. The Contractor must indicate the approximate number of staff currently employed by the company who meet the previously outlined qualifications and their experience and work locations. The Contractor must always have a current Private Investigator license during the contract.

Bidder must provide documentation of the requirements listed above:

K. After the initial virtual orientation session where a reference manual is provided, the Contractor will be responsible for training the Contractor’s employees and for exercising appropriate supervision of the employees in carrying out the activities properly in accordance with the requirements of this Contract.

Bidder must demonstrate understanding of information provided and provide details on how each requirement will be met:

2. Services Levels

2.1. Time Frames

All Contract Activities must be delivered within 30 days from receipt of order, unless agreed upon by MDHHS due to exigent circumstances or project requirements. In the event the time frame is modified, the Contractor will be advised of such at the time of the project assignment or in writing.

The receipt of order date is pursuant to Section 2, Notices, of the Standard Contract Terms.

Bidder must acknowledge and accept this requirement.

2.2. Delivery

Delivery will be expected within 30 calendar days upon date of order. Delivery will be made at a secure file transfer site developed and maintained by MDHHS.

Bidder must acknowledge and accept this requirement.

3. Acceptance

3.1. Acceptance, Inspection and Testing

The following criteria will be used by the State to determine Acceptance of the Services or Deliverables provided under this SOW. The Program Manager will verify the following related to the Contractor and their staff:

A. Experience, qualifications, and ability to provide appropriate investigative staff as needed during the entire contract period. Such experience should include dealing with cultural and language issues.

B. A record of performing and fully documenting services similar to, follow-up cash buys and donations in a timely, accurate manner.

C. Demonstrated ability to safely and properly store food items until they are donated.

D. Knowledge and experience with donating food items on the same day or, at the latest, the next day of the compliance buy.

E. Demonstrated ability to conduct buys on short notice, in any area of the state, and at any time day or night, using staff that meet the criteria listed in Sections 1.1.A and B. At all times, the contractor must have qualified, trained investigators willing and able to travel anywhere in the state to conduct compliance buys in accordance with the policies and procedures set forth in Sections 1.1.C, D and E.

F. Ability to ensure that investigators will attend all required hearings.

G. Provide proof that the contractor is currently licensed in the State of Michigan by the Michigan Department of State Police and is in good standing, bonded, and that any employees are licensed and bonded when required. The contractor must indicate the approximate number of staff currently employed by the company who meet the previously outlined qualifications and their experience and work locations. The contractor must always be licensed during the course of the contract.

H. Capability, after the initial virtual orientation session where a reference manual is provided, to train any new employees and supervise all employees in carrying out their assignments properly.

I. Ability to submit accurate and timely invoices.

J. Work was performed according to the Contract specifications.

Bidder must acknowledge and accept this requirement.

4. Staffing

4.1. Contractor Representative

The Contractor must appoint one individual, specifically assigned to State of Michigan accounts, that will respond to State inquiries regarding the Contract Activities, answering questions related to ordering and delivery, etc. (the “Contractor Representative”). The Contractor must notify the Program Manager and the Contract Administrator at least 10 business days before redeploying non-Key Personnel, who are dedicated primarily to the Project. If the State does not object to the redeployment by its scheduled date, the Contractor may then redeploy the non-Key Personnel.

Bidder must acknowledge and accept this requirement and enter the Contract Representative information below:

Contract Representative:

Phone:

Email:

4.2. Work Hours

Compliance buy activities can be performed during all hours of the vendor’s operation. The Program Manager will specify when a specific undercover buy must occur at an abnormal time (e.g. 10:00 pm) as warranted.

Bidder must acknowledge and accept this requirement.

4.3.