MDHHS WIC Infant Formula Rebate Program Bid Contract

The Michigan Department of Health and Human Services (MDHHS) is soliciting proposals through Request for Proposal No. 260000001094 for a single infant formula manufacturer to supply and administer the Women, Infants, and Children (WIC) Infant Formula Rebate Program statewide. The procurement seeks a qualified infant formula manufacturer capable of supplying milk-based and soy-based infant formula in three physical forms—powdered, liquid concentrate, and ready-to-feed—to serve approximately 41,100 WIC infants through 1,343 authorized vendors across all 83 Michigan counties over a 60-month contract period from November 1, 2026, through October 31, 2031. The State estimates purchasing approximately 13,093,025 units of contract brand infant formula during the contract term, including approximately 12,893,660 units of powder, 62,305 units of liquid concentrate, and 137,060 units of ready-to-feed formula. Bidders must submit proposals by 11:00 a.m. Eastern on Monday, April 6, 2026, with a public bid opening meeting scheduled for 1:00 p.m. Eastern the same day via Microsoft Teams; written questions were due by 3:00 p.m. Eastern on Monday, March 2, 2026, with State responses posted by 5:00 p.m. Eastern on March 17, 2026. The evaluation process occurs in two steps: Step 1 assesses mandatory pass/fail compliance requirements including completion of Schedule C Bidder Response and submission of nationally published wholesale price lists effective on the bid opening date; Step 2 evaluates pricing proposals with award to the lowest total monthly net price bidder. Bidders must certify registration with the Secretary of Health and Human Services under the Federal Food, Drug and Cosmetic Act, confirm formula compliance with applicable federal regulations (21 USC 301 et seq and CFR 246.10(g)), demonstrate capability to supply sufficient quantities statewide, and comply with Standard Contract Terms requiring Commercial General Liability Insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 general aggregate, Workers' Compensation Insurance, and Employers Liability Insurance with $500,000 limits per accident. The contract includes provisions requiring contractors to supply alternate formulas and pay rebates during product recalls and supply chain disruptions, with potential penalties of $5,000 per day for unavailability affecting 5 percent or more of WIC infants for more than seven days and liquidated damages of $5,000 plus $100 per day for late or improper completion.

The solicitation does not specify set-aside designations or restrictions limiting response to disadvantaged enterprises or minority-owned businesses; however, the State is subject to affirmative socioeconomic steps for small and minority business utilization, and all contractors must comply with state and federal nondiscrimination requirements under the Elliott-Larsen Civil Rights Act. The contract is governed by Michigan law and subject to federal provisions related to debarment and suspension under 2 C.F.R. Part 180 and Byrd Anti-Lobbying Amendment certifications for awards exceeding $100,000. Bidders that do not produce soy-based formula must subcontract with another manufacturer, agreeing to pay rebates on subcontracted soy formula using the same percentage discount as milk-based formula. The RFP does not identify any incumbent vendors or current contractors serving the program. Rebates will be calculated on a per-unit basis as the difference between the manufacturer's lowest national wholesale truckload price and the rebate level offered, with manufacturers required to adjust rebates on a cent-for-cent basis for any subsequent increases or decreases in wholesale truckload prices, with price change notifications required at least 60 days in advance. Rebate payments must be made via Electronic Funds Transfer within 30 days of invoice, and the State reserves the right to assess daily rebate invoice billing credits of $5,000 per day for widespread formula unavailability. The procurement does not identify a specific budget range or award value; compensation is based entirely on the manufacturer's rebate pricing structure and estimated monthly volume requirements outlined in Schedule B Bid Pricing Sheets.