Contract for WIC Div Undercover Compliance Buys

The Michigan Department of Health and Human Services (MDHHS) is seeking a contractor to conduct undercover compliance buys for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) through RFP No. 250000002544. The primary objective is to investigate potential fraud and abuse among WIC-authorized vendors across Michigan, with an estimated 250 compliance buys required annually. Investigators will be tasked with using WIC Electronic Benefit Transfer (EBT) cards to perform various compliance checks, such as attempting to purchase non-WIC items, exceeding authorized quantities, or attempting to obtain cash in exchange for benefits. Key qualifications for investigators include being at least 18 years old, capable of blending into local communities, and able to testify under oath. The investigators must follow strict protocols during compliance buys, including comprehensive documentation of transactions, photographing purchased items, and donating food items to non-profit organizations. The solicitation was issued on June 4, 2025, with proposals due by July 2, 2025, and an anticipated contract start date of October 1, 2025. The initial contract term is one year, with the potential for up to four one-year renewals.

While no specific set-aside designations or restrictions on respondents are explicitly mentioned in the documentation, the contract includes a detailed pricing structure with unit-based rates for compliance buys, in-person hearings, and virtual hearings. The state will pay a flat rate for each compliance buy regardless of location, with additional compensation for hearing testimony. Although the total annual estimated value is not explicitly stated, the pricing schedule allows for calculating the potential contract value. The funding appears to originate from the WIC program, with federal regulations mandating investigations of at least 5% of authorized WIC vendors annually. The contract requires comprehensive reporting using the MDHHS-5959 WIC Compliance Buy Report form, which provides a standardized method for documenting vendor performance, transaction details, and potential program violations. Investigators will be responsible for meticulously completing this form, which includes sections for vendor information, transaction specifics, store conditions, and a narrative description of observations during the compliance buy.