IFB Infant Formula Rebate Program

The Illinois Department of Human Services (DHS) is issuing an Invitation for Bid (IFB) for an Infant Formula Rebate Program under the state's Women, Infants, and Children (WIC) program. DHS is seeking sealed bids from infant formula manufacturers to supply and provide a rebate on all infant formulas the state chooses to issue, except for exempt infant formulas. The IFB covers a range of powdered, liquid concentrate, and ready-to-feed infant formula products for the WIC program, which serves approximately 154,000 women, infants, and children monthly. The initial contract term is from February 1, 2023 through January 31, 2026, with two optional 2-year renewal terms. Bidders must provide the lowest national wholesale price per unit and the rebate bid per unit, which will determine the net cost per unit and total net cost per month for the state. Bids are due by May 12, 2022, and the bid opening will be held virtually on May 6, 2022.

There are no small business, minority, women, or veteran-owned business set-asides for this procurement. The contract will be awarded to the responsive and responsible bidder who submits the lowest net cost or highest rebate. The current incumbent vendor is Mead Johnson & Co., LLC, and the estimated financial return to the state is not provided. However, the historical rebate receipts for the Illinois WIC program range from $49 million to $56 million annually, indicating the substantial value of this contract opportunity.