MDHHS WIC Infant Formula Rebate Program Bid Contract

The Michigan Department of Health and Human Services (MDHHS) is soliciting proposals through Request for Proposal (RFP) No. 260000001094 for a sole-source Women, Infants, and Children (WIC) Infant Formula Rebate Program contract. The procurement seeks an infant formula manufacturer to supply and provide rebates on infant formula products distributed through Michigan's WIC retail food delivery system to approximately 41,100 infants across 1,343 authorized WIC vendors in 83 counties. The contractor must supply milk-based infant formula in three physical forms—powdered, liquid concentrate, and ready-to-feed—for infants aged 0-11 months in both fully formula-fed and partially breastfed categories, with estimated total purchases of 13,093,025 units over the contract period. Bidders without soy-based infant formula production capability must subcontract with another manufacturer for those products. The evaluation process employs a two-step approach: Step 1 requires bidders to submit a completed Schedule C (Bidder Response), nationally published wholesale price lists effective on the bid opening date, and a Confidential Treatment Form on a pass/fail basis; only proposals receiving a PASS rating advance to Step 2 for pricing evaluation, which awards the contract to the manufacturer offering the lowest total monthly net price for milk-based infant formula. The contract term runs for 60 months from November 1, 2026, through October 31, 2031, with no extension or renewal options. Critical deadlines include written questions due by 3:00 p.m. Eastern on March 2, 2026, with answers posted by March 17, 2026; proposal submissions must be made electronically through www.michigan.gov/SIGMAVSS by 9:30 a.m. Eastern on April 8, 2026, with a public bid opening meeting conducted via Microsoft Teams at 11:30 a.m. Eastern the same day. The contract includes service commencement on November 1, 2026, with an anticipated effective date of June 3, 2026, upon full execution.

The solicitation does not identify explicit set-aside designations for disadvantaged enterprises, though federal provisions require affirmative steps to ensure small and minority businesses are utilized when possible. Bidders must certify compliance with the Federal Food, Drug, and Cosmetic Act and demonstrate registration with the U.S. Department of Health and Human Services. All contractors must maintain Commercial General Liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 general aggregate, as well as Workers' Compensation and Employers Liability Insurance with $500,000 limits per accident. The contractor must guarantee sufficient statewide availability of formula, maintain immediate communication with the WIC Program Manager, and implement cent-for-cent rebate adjustments matching any subsequent wholesale price changes with 60 days' advance notice. Failure to maintain adequate supply affecting 5 percent or more of WIC infants for more than seven consecutive days results in $5,000 daily rebate invoice billing credits, while late or improper completion incurs liquidated damages of $5,000 plus $100 per day. The contract is federally funded through the USDA, requiring compliance with federal regulations including the Byrd Anti-Lobbying Amendment for contracts exceeding $100,000, and the State reserves the right to terminate the contract if the contractor cannot maintain adequate supply to serve the program's participants.