Contract for WIC Div Undercover Compliance Buys

The Michigan Department of Health and Human Services (MDHHS) is seeking an investigative services contractor to conduct undercover compliance buys for the Women, Infants, and Children (WIC) Program. The primary objective is to identify and prevent fraud and abuse among WIC-authorized vendors by conducting a minimum of 250 compliance investigations annually across Michigan. Investigators will use WIC Electronic Benefit Transfer (EBT) cards to perform undercover transactions, documenting attempts to purchase non-WIC items, exceed authorized quantities, or obtain cash benefits improperly. Qualified investigators must be able to blend into local communities, maintain strict confidentiality, and potentially testify at hearings in Lansing. Key deliverables include comprehensive transaction reports, photographic evidence of purchases, and immediate reporting of any identified violations. The contract will commence on October 1, 2025, with an initial one-year term and potential for four additional one-year renewals. Proposals are due by May 29, 2025, at 11:59 AM Eastern, with the State Program Manager identifying high-risk vendors based on federal regulations.

While no specific set-aside designations are explicitly mentioned, the contract requires investigators with diverse backgrounds capable of conducting discreet compliance investigations across different Michigan communities. The pricing structure is unit-based, with a flat rate per compliance buy and additional hourly rates for in-person and virtual hearings (estimated at 18 and 30 hours respectively). The contract will utilize Electronic Funds Transfer for payments, with monthly invoices divided by county (Wayne County, Lower Peninsula, and Upper Peninsula). Although a precise total contract value is not specified, the estimated annual volume of 250 compliance buys suggests a significant investigative effort. Investigators will be required to donate purchased food items to non-profit organizations and may be subject to background checks. The State reserves the right to adjust pricing based on documented cost changes, providing flexibility in the contract's financial structure. Payment will be made on a per-service basis, with rates remaining firm for the entire contract duration.