Award Recommendation for RFP 260000001381

Michigan's Department of Technology, Management & Budget is recommending award to Phamatech Inc. for RFP 260000001381, a three-year drug screening and confirmation testing contract for the Michigan Department of Health and Human Services Children's Services Administration, with the award pending State Administrative Board approval by September 28, 2026.

The RFP, posted March 16, 2026, solicited proposals for comprehensive drug screening and confirmation testing services across all 83 Michigan counties. The scope includes mobile screening services, specimen collection and testing for both saliva and urine samples using 10-panel testing, confirmation testing, quality control and assurance programs, third-party administrator coordination, staffing with Michigan-based key personnel, extensive reporting capabilities, and compliance with state data security and HIPAA requirements.

Four vendors submitted proposals by the May 4, 2026 deadline: Avertest LLC dba Averhealth, Technical Resource Management LLC dba Cordant Health Solutions, Forensic Fluids Laboratories Inc., and Phamatech Inc. A Joint Evaluation Committee scored proposals on technical merit using four weighted criteria totaling 230 possible points, with a minimum threshold of 184 points for pricing evaluation. Only Averhealth (202.5 points) and Phamatech Inc. (207 points) advanced; Cordant Health Solutions (178 points) and Forensic Fluids Laboratories (180 points) did not meet the technical threshold.

Following negotiation, Phamatech Inc. reduced its bid by 56.8% to $13,505,000 over five years ($2,701,000 annually). Averhealth reduced its bid by 9.7% to $23,129,000 over five years ($4,625,800 annually). The Department recommended Phamatech Inc. based on best value, citing relevant experience, strong third-party administrator partnerships, minimal contract exceptions, capability to deliver all services including mobile collection, and competitive pricing. The contract includes three-year base term with up to five additional one-year renewal options.