Third Party Administrator for Drug & Alcohol Testing

The State of Michigan's Department of Technology, Management & Budget (DTMB) Procurement office issued Request for Proposal (RFP) No. 250000002135 seeking two distinct drug and alcohol testing service contracts. The first contract is for Statewide Third-Party Administrator (TPA) Services for drug and alcohol testing of state employees and pre-hire applicants, while the second contract is for Off-site Reference Laboratory Urine and Saliva Screening and Confirmation Services specifically for the Michigan Department of Corrections (MDOC) prisoners, parolees, and probationers. The RFP was initially posted on April 15, 2025, with proposal submissions due by April 29, 2025. Evaluation criteria included a comprehensive assessment of technical factors such as project scope, service requirements, staffing, and company background, with bidders scored on a 100-point scale. The Joint Evaluation Committee conducted a rigorous review process that considered multiple technical dimensions, ultimately focusing on best value determination that incorporated technical evaluation scores, competitive pricing, proven experience, and established collection site coverage.

The procurement did not specify explicit set-aside designations or restrictions on respondent organizations. The state recommended awards to two vendors: First Hospital Laboratories, LLC (doing business as Vault Workforce Screening) for TPA services, and Abbott Laboratories (doing business as Redwood Toxicology Laboratory) for MDOC laboratory services. Vault Workforce Screening was awarded $1,570,719.00 after scoring 93 points, while Redwood Toxicology Laboratory received $462,766.50 with a score of 90.3 points. The recommended contract term is three years, with provisions for up to five potential renewal options. During the procurement process, bidders were requested to provide pricing clarifications, which resulted in minor reductions to their initial bid amounts. The overall economic impact to the State of Michigan was considered but not determinative in the final vendor selection.