Women, Infants, and Children Infant Formula Rebate Program

The State of Michigan, through the Department of Technology, Management & Budget and Department of Health and Human Services, is procuring rebate services for the Women, Infants, and Children (WIC) Infant Formula Rebate Program through Request for Proposal No. 210000001676. This single-award competitive procurement seeks an infant formula manufacturer to supply iron-fortified milk-based and soy-based infant formula in three physical forms—liquid concentrate, powder, and ready-to-feed—to approximately 50,441 infants across 1,571 authorized WIC vendors in 83 Michigan counties over a 60-month contract period from November 1, 2021, through October 31, 2026. The contractor must deliver approximately 17.3 million units of formula, including an estimated 258,480 units of liquid concentrate, 16,762,740 units of powder, and 280,500 units of ready-to-feed formula, with approximately 95 percent milk-based and 5 percent soy-based distribution based on historical usage data. Bidders must demonstrate FDA registration compliance with the Federal Food, Drug and Cosmetic Act, certify that all formulas comply with applicable federal regulations under 21 USC 301 et seq and CFR 246.10(g), and submit nationally published wholesale price lists effective on the bid opening date. The evaluation process employs a two-step methodology: Step 1 is a pass/fail assessment of mandatory compliance requirements including completion of Schedule C (Bidder Response) and submission of wholesale price documentation, and Step 2 evaluates pricing proposals with award to the responsive and responsible bidder offering the lowest total monthly net price. Bidders must submit proposals electronically through the Michigan.gov/SIGMAVSS portal by 11:00 a.m. Eastern on May 26, 2021, with a public bid opening meeting scheduled for 2:30 p.m. Eastern the same day via Microsoft Teams; the deadline for bidder questions was May 5, 2021, with responses posted by May 12, 2021. The anticipated award recommendation date is June 4, 2021, with a contract effective date of July 14, 2021.

The RFP does not specify set-asides for disadvantaged enterprises, though qualified disabled veteran-owned business (QDV/SDVOB) status may be considered under Michigan law during evaluation. Bidders are subject to extensive federal and state compliance certifications, including labor law compliance, environmental law compliance, prohibition of forced and child labor, Michigan business tax requirements, and non-linkage to Iran-related businesses; proposals failing to meet any mandatory requirement will be rejected. The contractor must maintain commercial general liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate, and must comply with Davis-Bacon Act prevailing wage requirements (if applicable), Equal Employment Opportunity provisions, Clean Air Act and Federal Water Pollution Control Act standards, and Byrd Anti-Lobbying Amendment requirements for contracts exceeding $100,000. The contract includes liquidated damages provisions of $5,000 per day for widespread formula unavailability exceeding seven calendar days and affecting 5 percent or more of participating infants, or for non-payment of rebates within 30 days of invoicing. Rebate amounts must be calculated as a percentage discount on the manufacturer's lowest national wholesale truckload price and must adjust cent-for-cent with price changes communicated at least 90 days in advance; bidders unable to supply soy-based formula must subcontract with another manufacturer at the same percentage discount. The RFP documents do not specify an incumbent contractor or current service provider, and no total contract value or budget range is disclosed; however, contracts valued at $250,000 or greater require approval by the State Administrative Board, suggesting the procurement value likely exceeds this threshold.