IFB Infant Formula Rebate Program

The Illinois Department of Human Services (IDHS) is conducting an Invitation for Bid (IFB) for an Infant Formula Rebate Program through the BidBuy electronic procurement system (Bid Number B-47390). The procurement seeks to solicit sealed bids from infant formula manufacturers to supply and provide rebates on infant formulas for the state's Women, Infants, and Children (WIC) program, with the contract spanning from February 1, 2026, to January 31, 2029, and potential renewal options for an additional four years. The contract requires vendors to provide a complete set of infant formula products, including milk-based and soy-based formulas in powder, ready-to-feed, and liquid concentrate forms, targeting approximately 168,807 monthly participants, with 44,133 infants receiving contract brand infant formula. Bidders must submit pricing for monthly net wholesale truckload cost per unit or the highest monthly rebate, with bids remaining firm for 90 days from opening. Key submission deadlines include questions due by 5 pm on April 30, 2025, with all required documents to be uploaded through BidBuy by the specified bid opening date. The state will evaluate bids based on responsiveness, responsibility, and price, with the intent to award to the lowest-priced responsive and responsible bidder.

The procurement includes specific set-aside provisions and vendor requirements, mandating that potential bidders be registered in the Illinois Procurement Gateway and complete various standard certifications. Small business set-aside provisions may apply, and the contract may be partially or fully funded by federal funds, with successful bidders required to pay a $15 administrative fee for contracts over $1,000. Vendors must complete a comprehensive Vendor Disclosure form, disclosing business ownership, potential conflicts of interest, and compliance with state regulations. The current procurement appears to be primarily targeting infant formula manufacturers, with previous invoices indicating Mead Johnson Nutrition as a current vendor. The contract is structured as a zero-cost contract with an estimated rebate value of $42,000,000 annually, with rebates calculated as a percentage of wholesale truckload prices. Historical rebate receipts show increasing values, from $44,023,317.86 in Federal Fiscal Year 2022 to $57,519,008.84 in Federal Fiscal Year 2024, demonstrating the significant financial importance of this procurement for the state's WIC program.