Mail Order Incontinence Supplies and Services

The State of Michigan Department of Health and Human Services, in collaboration with the Wisconsin Department of Health Services, seeks a qualified vendor through Request for Proposal No. 210000000821 to provide mail order incontinence supplies and services to eligible Medicaid beneficiaries in both states. The procurement encompasses approximately 18,000 monthly beneficiaries in Michigan and 8,000 in Wisconsin, excluding those enrolled in Medicaid Health Plans. The contractor must supply a comprehensive range of incontinence products identified by Healthcare Common Procedure Coding System (HCPCS) codes, including insertion trays, catheters, external collection devices, undergarments, briefs, diapers, pull-on products, disposable pads, underpads, skin barrier products, and miscellaneous supplies totaling 53 distinct line items with estimated annual quantities ranging from zero to over 11 million units. Required qualifications include enrollment as a Medicare provider with current Medicaid provider enrollment in both states, employment of a minimum of three registered nurses with one additional nurse for every 2,000 beneficiaries served, establishment of a HIPAA-compliant call center with specific hours of operation for each state, and maintenance of comprehensive beneficiary records in an electronic health record system. Deliverables include monthly residential delivery of products within three calendar days of shipment and nursing assessments for product renewals in accordance with state Medicaid policies. The contractor must meet service level agreements with performance standards enforced through monthly service credits of $1,000 to $2,000 for non-compliance in product accuracy, delivery timeliness, nursing assessment completion, and complaint resolution, and the state reserves the right to assess liquidated damages of $5,000 plus $100 per day for late or improper contract completion. The evaluation process consists of technical evaluation (100 points total: 50 points for the Statement of Work excluding staffing, 20 points for staffing qualifications, and 30 points for vendor responses), pricing evaluation for proposals scoring 80 or more points, and sample evaluation of alternate products if necessary. Proposals must be submitted electronically through www.michigan.gov/SIGMAVSS by 1:00 p.m. Eastern Time on February 26, 2021, with bidder questions due by February 9, 2021 and answers posted February 12, 2021; the anticipated contract effective date is July 1, 2021, with initial contract terms of three, four, or five years as determined during evaluation, and optional renewal for up to two additional one-year periods.

The RFP does not identify specific set-aside designations or restrictions limiting organizational types; however, the solicitation notes that qualified disabled veteran business status will be considered as an award factor under the best value evaluation criterion. No incumbent vendors or current contractors are identified in the procurement documents. The contractor must comply with Michigan and Wisconsin Business Associate Agreements establishing HIPAA compliance frameworks for the handling of Protected Health Information, breach notification within 24 hours (or five business days under Wisconsin requirements), and ongoing security safeguards. Existing state infrastructure requiring integration includes Michigan's CHAMPS claims submission system for Michigan beneficiaries and Wisconsin's ForwardHealth Portal for Wisconsin beneficiaries; the contractor must establish separate provider enrollment with each state and maintain operational readiness across both systems. Pricing must be submitted separately for Michigan and Wisconsin on Schedule B in modifiable Microsoft Excel or Word format, with unit prices inclusive of all costs including emergency deliveries with no additional charges to the state or beneficiaries, and contractors are encouraged to offer quick payment discount terms. While specific award values are not disclosed in the solicitation documents, the procurement references estimated internal transition costs of $250,000 for Michigan and $125,000 for Wisconsin if contractor replacement becomes necessary, and historical spending data indicates average monthly costs of approximately $60–$83 per beneficiary depending on age, suggesting a total contract value in the range of several million dollars annually across both states; contracts equal to or exceeding $250,000 require approval by the State Administrative Board.