IFB 67003 Questions and Answers



IFB 67003 Questions and Answers

1. Section A.1.5.a, Contract General Content – Page 3. Provide in this section, nothing in any contract executed as a result of this IFB shall constrain the Department from providing another infant formula where such has been prescribed by a physician. [sic] In what circumstances, if any, will a physician be required to write a prescription for a non-contract standard infant formula?

The Department does not require a prescription for the issuance of a non-contract standard infant formula because the only instance in which this is allowed would be in the case of a religious exemption where the winning bidder does not have a Kosher or Halal certified product. In the case of religious exemptions, the Department is not allowed to require a prescription.

2. Section A.1.5.c, Cancellation of Contract – Page 3. Provide in this section, the State may cancel the contract with 60 days’ notice, yet the contractor must give 12 months written notice. [sic] These provisions should be equitable. Please confirm the State and the Contractor must give a 6 month notice to cancel the contract.

No. Section A.1.5.c (Cancellation of the Contract) shall not be modified.

3. Section A.1.6, Rejection of Bids - Page 4. Please define in detail under what circumstances would the Department reject any or all bids without cause?

The Department reserves the right to reject an individual bid if the Department’s evaluation of Tab 1 indicates the requirements of Tab 1 are not met. Rejection of bids is within the discretion of the Commonwealth, based upon whether the needs of the Commonwealth would be best served by rejecting the bid.

4. Section A.1.7, Pre-Bid Conference Date, Time and Place – Page 4. Please confirm when the State anticipates posting the answers to questions received at the pre-bid conference. Please also consider allowing a minimum of 10 business days from when the responses are posted until bids are due to allow manufacturers ample time to evaluate the State’s responses in order to formulate a bid and obtain internal approvals prior to submitting.

The formal answers will be posted to the DGS website on June 26, 2013. The Department will extend the due date for the IFB to no later than 2:30 pm EST on July 10, 2013. Please note that this formal answer takes precedence over the IFB and/or Standard Terms and Conditions. All other criteria remain the same, including the time due and the address for delivery on the cover letter.

5. Section A.1.7, Pre-Bid Conference Date, Time and Place – Page 4. Please confirm that the formal questions and answers, to be issued in writing by the State, will take precedence over the provisions of the IFB or the Standard Terms and Conditions, in the event there is a conflict with any of these provisions.

The formal answers will be in accordance with the provisions of the IFB and the Standard Terms and Conditions. To the extent that any formal answer may conflict with the provisions of the IFB and/or the Standard Terms and Conditions, the Department will explicitly state that the formal answer takes precedence over the provisions of the IFB and/or the Standard Terms and Conditions.

6. Section A.1.8, Bidder Proposals – Page 4. Seven (7) copies of the bid are required to be submitted. Please confirm one original and six photocopies are to be submitted. If not confirmed, please identify in detail how many originals and photocopies are required.

Confirmed. One (1) original and six (6) photocopies are required to be submitted.

7. Section A.1.9, Response Date – Page 4. Please provide the date which the Department intends to officially award the contract. How will the Department notify both the successful and unsuccessful bidders of award?

The award date cannot be specified at this time. Both the successful and non-successful bidders will be notified by way of mail at the contact information provided.

8. Section A.1.9, Response Date – Page 4. Noted in paragraph 1, “Bidders must allow sufficient mail delivery time to ensure timely receipt of their bids”. Please provide clarification as to the receipt process should the bid be sent via Courier such as Fed Ex. Is the bid delivered to a central mailroom and dispersed to the noted department? If so, what is the typical timing of delivery from this central point to the specific addressee?

The Department requires that one (1) original and six (6) copies of the bid must arrive at the Pennsylvania Department of Health, Division of Contracts, Room 824, Health and Welfare Building, 625 Forster Street, Harrisburg, PA 17120-0701 on or before 2:30 pm EST on July 10, 2013. The Department does not have any requirements regarding method of delivery. If mailed, the bid arrives at the Department’s central mailroom and is dispersed to the appropriate Department. The Department has no information regarding delivery time from the mailroom to the appropriate Department. The bidder is to allow sufficient mail delivery time to ensure timely receipt of their bids.

9. Section A.1.9, Response Date – Page 4. Please confirm exactly what will be read aloud at the public bid opening. Please confirm that Product Name, Unit size, Lowest Wholesale Full Truckload Price per Unit, Rebate Bid Per Unit, Net Cost, Percent Rebate, and Total Net Cost Per Month will be read aloud.

No. Only the name of each bidder and the total net cost per month of each bid will be read during the bid opening. This formal answer takes precedence over the provisions of the IFB and/or the Standard Terms and Conditions.

10. Section A.1.10, Record Accessibility – Page 5. To substantiate the monthly rebate invoices to the manufacture, the State has specified an incomplete list of data elements when compared to Appendix G. Would the State please add the following elements most of which are referenced in Appendix G: pseudo participant ID number, clinic code, tabulation date, issue date, not to exceed amount, check number and date of birth.

No. Appendix G shall not be modified.

11. Section A.2.1, Infant Formula Purchase System Description – page 7. Please provide a list by product, of the quantities of any non-contract non-exempt and exempt formula issuance in the previous six months.

A spreadsheet reflecting this information has been posted to the Department of General Services website.

12. Section A.2.1, Infant Formula Purchase System Description – Page 7. Does the State intend to implement an EBT purchase system during the term of the resultant contract? If implementation is confirmed, what is the timeline associated with this implementation?

There are no immediate plans to implement EBT in PA.

13. Section A.2.1, Infant Formula Purchase System Description – Page 7. Please describe, in detail, the transition plan for FI issuance to participants should a new manufacturer be awarded the contract.

Please refer to Section A.1.3, Page 3.

14. Section B.1.4, Wholesale Price Increases/Decreases – Page 10. Please confirm the national wholesale prices per unit, for all weight tiers are required only for those products being bid.

Confirmed. In addition, please refer to Section B.1.4, Page 10.

15. Section B.1.6, Supply of Formula – Page 11. Please amend this section to allow the Manufacturer, should a product be temporarily unavailable, to first provide another physical form or package size of the contract product, or another standard product already in the marketplace manufactured by the Contractor before the State issues another company’s formula.

Section B.1.6 (Supply of Formula) shall not be modified. This provision is intended only for supply or distribution problems that are the responsibility of the manufacturer; e.g. production of an insufficient quantity of formula and/or inadequate distribution of formula to Pennsylvania distributors.

16. Section B.1.6, Supply of Formula – Page 12. All bidders are required to describe its policy regarding the return of formula from a retail store. Please confirm that a bidder’s return policy will not be treated as criterion in awarding a contract under this IFB. If this requirement will not influence a contract award decision, please confirm that the Department will eliminate this requirement from the bid response.

Confirmed that the bidder’s return policy will not influence the contract award decision. The remainder of the question is not confirmed. The bidders return policy is required by all bidders so that it is readily available to PA-WIC as it communicates with its retail store partners regarding the resultant contract.

17. Section B.1.7, Contract Duration – Page 12. Please consider amending the contract duration to a three (3) year contract with two (2) one (1) year mutual extensions.

No. Section B.1.7 (Contract Duration), which states that the contract duration is for five years (5), shall not be modified.

18. Section B.1.8, Payment Provisions – Page 12/13. Please confirm that there is no time limit on dispute [sic] which arise from fraud or other illegal activity that prevent the contractor from being able to identify and incorrect billing.

No. Section B.1.8 (Payment Provisions) shall not be modified. The bidder must notify the Department of any dispute or error in the rebate invoice within sixty (60) days of the receipt of the invoice. After this 60 day period, any requirement to return funds to the Contractor as a result of a dispute or billing error is waived. Any controversy not settled by December 31 of the calendar year in which the dispute occurs will be settled by arbitration, as stated in the IFB.

19. Section B.1.8, Payment Provisions – Page 12. Please confirm that in addition to the invoice being sent certified mail, that the State is willing to email or fax a copy to the manufacturer on a monthly basis.

No. Section B.1.8 (Payment Provisions) shall not be modified.

20. Section B.1.9, News Releases – Page 13. Please confirm that this provision is a reciprocal provision. Please confirm that the State will not issue any news releases pertaining to this project without prior approval from the manufacturer.

No. This provision is not reciprocal. Section B.1.9 (News Releases) shall not be modified.

21. Appendix B – Lobbying Certification Form. Please confirm that as with the 2008 IFB issued by the Department, since no monies are being paid by the Department pursuant to the contract resulting from this IFB that the Lobbying Certification Form does not need to be submitted as part of the bid package.

Confirmed. Appendix B does not need to be submitted as part of this bid package.

22. Please provide all forms, including the bid sheet, to be completed and returned by the manufacturer, in an editable form. This will allow the vendor to complete the bid documents electronically, eliminating mistakes made by typing or writing.

The only electronic document that will be provided is the bid sheet.

23. Section E., Format and Submission – Page 16. Please confirm that a Certificate of Incumbency will suffice as proof that the person signing is authorized to sign.

Confirmed.

24. Cover letter, Section D

a. Please confirm that the signature on the Non Collusion Affidavit is sufficient for demonstrating the authority of the individual signing the bid.

Confirmed.

b. If not confirmed, please confirm a certificate of the Secretary or Assistant Secretary of the bidder certifying that the person signing the bid and contract is duly authorized by the bidder to sign WIC bids and contracts on behalf of the bidder would be sufficient documentation.

No response is required.

25. IFB, Section A.1.3, page 3

a. Please describe in detail how food instruments will be issued if there were to be a change in the contract infant formula provider. Please provide this information for both the beginning of the contract (Oct 2013) and the end of the contract (Sept 2018.

Please refer to Question 13.

b. Please confirm the contractor will not be billed for rebates on checks with a “First Date To Use” beyond the end of the contract.

Confirmed. Any check printed prior to the start date of the new contract shall reflect the existing contractor’s product, and the existing contractor will be billed until the checks expire.

26. IFB, Section A.1.7, page 4

a. Please provide the date when answers to questions will be posted to the website.

Please refer to Question 4.

b. We appreciate the Commonwealth’s willingness to respond to the bidders’ written questions. Because of the amount of analysis and approvals required for a contract of this size, please confirm the Commonwealth will allow 10 business days between the day responses to questions are published and the bid due/opening date.

Please refer to Question 4.

27. IFB, Section A.1.8, pages 4 & 5

a. Seven (7) copies of the bid are required for bid submission. Please confirm the Department is requesting one original and six copies. If not, please identify how many originals and how many copies are requested.

Please refer to Question 6.

b. The statute referenced in paragraph two was repealed in 2009. Please provide the proper reference.

The correct citation is the Act of February 14, 2008, PL6, Right to Know Law, found at 65 P.S. §§ 67.101-3104 .

28. IFB, Section A.1.10, page 5

a. Please confirm that documents and/or information regarding policies, procedures and operations of the WIC Program and infant formula monthly issuance allotments by brand and can size, infant age category and feeding method will be provided based on the Commonwealth’s open records law.

Confirmed.

b. Please confirm that redacted food instruments including infant age in months and feeding method type will be made available to the Contractor upon request for the purpose of verifying that appropriate issuance is maintained.

Confirmed. Please refer to Section A.1.10 (Record Accessibility).

c. If the above sub-sections are not confirmed, please describe what process is in place for the Contractor to validate issuance/redemption and program compliance.

The sub-sections referred to in 28.c have been confirmed, and no response is required.

d. Monthly data files are invaluable in order for the Contractor to validate invoices with accuracy and integrity. Please confirm that the details of all food instrument redemptions for which rebates are being requested through the monthly invoice process can be provided each month through an electronic data file including food instrument number, participant ID, product description, number of cans redeemed, redemption dollar amount, first date to use, redemption date, infant age range at first date to use or infant date of birth, and feeding method (e.g. Fully Formula Feed, Partially Breastfeed).

Please refer to Section A.1.10 (Record Accessibility).

29. IFB, Section A.2.1, page 7

a. Please provide the current percentage or number of infant participants that are receiving a non-contract routine infant formula.

Over the past four months, the average percent issuance of non-contract standard infant formulas was 4.5481%.

b. When does the Commonwealth plan to implement an EBT purchase system

Please refer to Question 12.

30. IFB, Section B.1.3, page 10

a. Please confirm that rebates will not be required for any new exempt formulas.

Confirmed.

b. Please revise both instances of the language in this section from “…yields the same net wholesale cost per ounce…” to “…yields the same percent discount…”.

Section B.1.3 (New Products) shall not be modified.

31. IFB, Section B.1.4, page 10

a. To better ensure that retail price adjustments which affect the rebate per can applied to the invoice accurately correspond to the retail price per can reimbursed to the vendor by the Commonwealth, please revise the last sentence to read “Cent for cent increases/decreases shall take effect on the first (1st) day of the month following the date of price increase/decrease and shall be applied to those food instruments with a first date to use on or after the first day of the month following the wholesale price increase”.

Section B.1.4 (Wholesale Price Increases/Decreases), page 10 shall not be modified.

b. Please confirm that rebate adjustments associated with wholesale price adjustments will be made effective on the Commonwealth’s rebate invoice for food instruments issued and redeemed on or after the effective date of the wholesale price increase or decrease. For example, consider a food instrument with a first date to use in July which is processed by the Commonwealth in August. Please confirm that if a wholesale price change goes into effect August 1, the rebate change associated with the wholesale price change would not be applied to this food instrument with a First Day to Use in the month of July as the retail amount reimbursed to the vendor by the Commonwealth was the wholesale price before the change went into effect.

An invoice will reflect the effective price on the date of processing.

32. IFB, Section B.1.6, page 11

a. Please confirm the Commonwealth also would be willing to substitute an alternate brand of the contractor’s formula prior to issuing non-contract formula in a shortage situation.

Please refer to Question 15.

b. If not confirmed, please provide all the reasons why the Commonwealth would use another manufacturer’s brand before using an alternate brand of the contract manufacturer.

Please refer to Question 15.

33. IFB, Section B.1.8, page 12

a. Please revise this section to include that the invoice could also be sent electronically, via email, and the acknowledgement from the Contractor of receipt will be deemed the “Delivery Date”.

No. Section B.1.8 (Payment Provisions) shall not be modified.

b. This section requires the Contractor to notify the Department of any dispute in any rebate invoice within sixty (60) calendar days of the receipt of the invoice. Sixty days is an insufficient amount of time to determine whether there are billing errors. We request this provision be changed to require 90 or 120 days notice of any dispute in any rebate invoice. We further request this provision be amended to clarify the Commonwealth waives their right to challenge any invoice or request additional funds if the Commonwealth does not provide 90 or 120 days notice of any dispute in an invoice.

No. Section B.1.8 (Payment Provisions) shall not be modified.

c. Please confirm that there is no time limit on disputes arising from fraud or other illegal activity that prevents the Contractor from being able to identify the incorrect billing earlier.

Please refer to Question 18.

d. Please confirm the following (i) Commonwealth will not issue quantities of infant formula in excess of the monthly maximums prescribed by federal law for each WIC participant; (ii) the Contractor will not be required to pay rebates on quantities of infant formula in excess of the federal monthly maximums; and (iii) if rebates for quantities in excess of the federal monthly maximums are billed and rebated in error, the amounts associated with the over issuance and redemption will be reimbursed to the Contractor upon discovery.

Confirmed.

e. If any portion of question d above is not confirmed, please provide a detailed explanation of why such portion was not confirmed.

All portions of the above question d are confirmed, and no response is required.

34. IFB, Section C.1.2, page 14

a. In the second paragraph it states that rebates quoted on the bid sheet should be carried to one thousandth of a cent. Paragraph 3 of this same section states that the rebates quoted should be carried to one tenth of a cent. Please confirm that three decimals are required for submission on the bid sheet.

Confirmed. The bids must be expressed in dollars and cents, carried to three decimals.

b. If three decimals are required, please provide a corrected Appendix A – WIC IFB Bid Sheet as the current electronic version has some columns with two decimals reflected on Page 1 and 2.

A revised Appendix A has been posted and attached.

c. Additionally, the current bid sheet mandates that bidders should “Carry all figures to three decimal places” however, not all columns allow for three decimal places. Please revise the current bid sheet to reflect three decimals in all the columns or confirm which columns should have three decimals and which columns should reflect two decimals.

Please refer to Question 34b.

35. IFB, Section C.2.4, page 15 – When does the Commonwealth expect to issue an award for this contract?

Please refer to Question 7.

36. IFB, Section E, page 16

a. Under Tab 2 it states that Company Name, Address, Contact Person and Phone Numbers should be completed on the bid sheet. The current version does not allow you to input information other than the fields provided. Please provide a corrected version of this document to allow for entry of this information or delete the requirement for this additional information

Please refer to Question 34b.

b. If Tab 2 is not revised, please advise where this information should be placed in the bid submission.

Please refer to Question 34b.

37. Bid Sheet, Page 1of 2 – The regulation stated P.L. 100-137 is incorrect, please revise to P.L. 100-237

Please refer to Question 34b.

38. Lobbying Certification Form & Disclosure of Lobbying Activities

These forms are not listed as required documents for bid submission and do not appear applicable to an infant formula rebate contract. Please confirm these documents are not required to be completed and submitted as part of a bid proposal.

Please refer to Question 21.

a. If required, please confirm where these documents should be included in the bid proposal.

Please refer to Question 21.

39. Rebate Invoices (Appendix F)

a. Please confirm that each month’s processed food instruments included in the rebate invoices will be divided according to first date to use and by product description and that any changes in the rebate per can will only be applied to the rebates for those food instruments with a first date to use on or after the effective date of the price change.

Please refer to Question 31b.

b. Please provide an explanation of the difference between the “Number of Cans on FI”, the “Number of Cans Purchased” and the “Number of Cans Rebated” on your rebate invoice?

The number of cans purchased equals the total paid for product divided by the maximum allowable price allowed for each peer group.

40. Page 3, Section A.1.3. – The last paragraph in this section states that “participants are normally issued WIC checks for a three month period. Checks printed through September

30, 2013 will be issued for the formula of our current contractor. Checks printed on or after

October 1, 2013 will be printed for the formula of the contractor named as a result of this bid.” We have the following questions:

a. Please provide additional information regarding the transition from the current contractor to a potential new contractor. If a participant visits a local WIC agency on September 27, 2013, what will be the first day to use date for the vouchers issued to this participant?

Please refer to Question 13.

b. Will all participants visiting a local agency in September receive one check for the current contractor’s infant formula and two checks for the potential new contractor’s formula?

Please refer to Question 13.

c. Will the check for the second month have a first day to use date of October 27, 2013 or October 1, 2013?

October 1, 2013.

d. When does the state anticipate the transition from the current contract to the new contract will be fully implemented (i.e. when will the check redemption reflect complete transition to the new contract)?

Pursuant to Section A.1.3 (WIC Program Description and IFB Goal), checks printed through September 30, 2013 will be issued for the formula of our current contractor. Checks printed on or after October 1, 2013 will be printed for the formula of the contractor named as a result of this bid.

e. Please provide any additional information that permits potential bidders to fully understand the transition period.

No further information shall be provided. All available information is stated within the IFB.

41. Page 3, Section A.1.5.a. – This section states “Nothing in any contract executed as a result of this IFB shall constrain the Department from providing another infant formula where such has been prescribed by a physician.” We have the following questions:

a. Please confirm that if the Contractor’s formula is Kosher and/or halal, the Commonwealth will enforce a zero tolerance policy with respect to non-contract standard formulas.

Confirmed. The Department has a zero tolerance policy with respect to non-contract standard formula issuance.

b. Are there any situations, other than the Kosher/halal exception described in Section A.2.1., in which the Commonwealth will issue a non-contract standard formula?

No.

42. Page 3, Section A.1.5.c – This section states that the “Department will give 60 days’ written notice before canceling any contract resulting from this IFB. The Bidder shall be required to give 12 months written notice before canceling any contract resulting from this IFB.” We urge the Commonwealth to require a minimum 180 days notice and request the IFB be amended accordingly. We note the Commonwealth will need this amount of time to re-bid the contract. In addition, we request that the Contractor be allowed to give 180 days written notice to cancel the contract to give both parties an equal position in terms of cancellation.

Please refer to Question 2.

43. Page 4, Section A.1.7. – Would the Commonwealth consider providing a call-in number for the pre-bid conference?

No.

44. Page 4, Section A.1.7. – Please confirm that the formal questions and answers to be issued in writing by the state will take precedence over the provisions of the IFB or the Standard Contract Terms and Conditions and Additional Contract Terms and Conditions in the event there is a conflict with any of these provisions.

Please refer to Question 5.

45. Page 4-5, Section A.1.8. – This Section states the “bidder shall submit seven paper copies of the response . . . THE BID MUST BE SIGNED IN INK BY AN OFFICIAL AUTHORIZED TO BIND THE BIDDER TO ITS PROVISIONS.” Is the Commonwealth requiring one original bid and seven copies? Must all signatures (bid sheets, certifications, etc.) on all copies be signed in ink?

Please refer to Question 6. In addition, only the original bid (1) must be signed in ink. The

remaining (6) copies may contain copies of the ink signature.

46. Page 5, Section A.1.9. – This Section provides information related to the receipt of bids.

a. Please provide the email address and/or phone number for the appropriate contact person(s) so bidders may confirm the bids were received.

The Bidder may contact the Division of Contracts, Bureau of Administrative and Financial Services at 717-787-1022.

b. Approximately how long after the pre-bid conference does the Commonwealth anticipate providing detailed written responses to the Bidders’ written questions?

Please refer to Question 4.

c. In order to adequately review the Commonwealth’s responses to all Bidders’ questions, we request the Commonwealth amend the bid due date to provide Bidders at least ten business days to review the questions and answers prior to the due date of the bids. Please confirm the Commonwealth will amend the bid due date accordingly.

Please refer to Question 4.

d. How will the Commonwealth notify Bidders when the responses become available? Would the Commonwealth agree to send the responses via email to all Bidders?

Please refer to Question 26.

47. Page 7, Section A.2.1 – The second paragraph of this section states, “The Commonwealth’s non-contract rate of formula issuance for exempt infant formula and/or medical food only is approximately 11.27% of the infant participants receiving infant formula.” We have the following questions:

a. What percentage of this issuance is for exempt formulas, and what percentage is for medical foods?

Over the past four months, average monthly issuance of special formulas to infants was 11.0721%, with 10.3737% being exempt infant formulas and 0.6984% being medical foods.

b. Please provide at least four months worth of issuance data for exempt infant formulas and medical foods. Please include the number of units by brand.

Please refer to Question 11.

c. Exempt formula issuance above 10 percent is high compared to other States. Why does the Commonwealth issue such a large percentage of exempt infant formulas?

An average over the past four months indicates that approximately 3.5228% of all infant formulas issued are post-discharge premature formulas. Approximately 6.8509% of the exempt formulas issued are for protein hydrolysate formulas and less than one percent (0.6984%) for metabolic products. If a legitimate physician prescription is presented for a special formula, PA WIC honors those prescriptions. We have several large pediatric medical centers in this state with a high proportion of pediatric specialists who may prefer that their patients be placed on special formulas as necessary. PA WIC does not currently limit the types of special formulas provided.

d. Please provide at least four months of issuance data for non-contract standard formulas. Please include the number of units by brand.

Please refer to Question 11.

e. Please confirm the Commonwealth has not issued any non-contract standard formulas to WIC participants, other than when such formulas are requested for religious reasons.

Confirmed. In addition, the Department has provided its policy and procedure on Standard Infant Formula requests for non-contract formula due to religious exemptions below:

a. Eligible participants may be identified by their dietary practices or by other indicators that local agencies are familiar with in their population.

b. Contract brand kosher soy formula should be offered as the first choice to the participant.

c. Non-contract milk-based kosher formula will be offered if there are intolerances to the soy product, if a soy product is contraindicated as in the case of infants who are born pre-term, or at participant request.

d. Documentation should be made in Quick WIC comments of the exception to the use of contract formula due to religious belief.

e. Written documentation or affidavits shall not be required of the participants unless there is suspected abuse of the exception policy.

48. Page 7, Section A.2.1. – The third paragraph of this section states: “Other formulas specified on the WIC check must be available at a store within 72 hours after a participant makes a request for the formula.” What is meant by “Other formulas specified on the WIC check”? How will this request be communicated to the Contractor?

Those standard infant formulas that are not requirements of our minimum inventory, such as ready-to-feed products are required to be obtained by the store within 72 hours. Other formulas would also include those special formulas that can be purchased at a retail store or through our special formula distribution center. Since it is the responsibility of the retail store to secure the formula, the Department has no information regarding how the request will be communicated to the contractor.

49. Page 7, Section A.2.1. – The last paragraph in this Section refers to WIC State Agency adoption of an Electronic Benefits Transfer (EBT) purchase system.

a. Please describe the Commonwealth’s efforts to-date to plan and prepare for statewide EBT implementation.

Please refer to Question 12.

b. What is the Commonwealth’s current best estimate for the year in which it will begin piloting an EBT system?

Please refer to Question 12.

c. What is the Commonwealth’s current best estimate for the approximate month and year it will implement a statewide EBT system?

Please refer to Question 12.

50. Page 8, Section A.2.2 – This Section describes the Department’s approach to partial redemption verification and invoicing. Does the Commonwealth conduct retail price surveys to estimate average retail prices for the contract infant formulas? If yes, how often are these survey conducted?

Yes. Price surveys are conducted twice a year in February and August and include contract formulas.

51. Page 10, Section B.1.4. – Please amend this section to require Bidders to submit only their “lowest national wholesale truckload price per unit, regardless of shipping weight tiers” as specified in Section B.1.2., on page 9 of this IFB. Please also amend similar requirement on page 14, Section C.1.1. Tab 1 – Bid Requirements.

No. Section B.1.4 (Wholesale Price Increases/Decreases) shall not be modified.

52. Page 12, Section B.1.6. The first sentence in the last paragraph of this section states that “All bidders shall describe to the WIC State Agency its policy regarding the return of formula from a retail store.”

To the extent that the above statement in 52 asks a question, the Department’s answer is “confirmed.”

a. Please confirm that a bidder’s return policy will not be treated as a criterion in awarding a contract under this IFB.

Please refer to Question 16.

b. If this requirement will not influence a contract award decision, please confirm that the Department will eliminate the requirement from the bid response. In response to Bidder concerns expressed when this IFB was last issued, the Commonwealth agreed to eliminate this requirement.

Please refer to Question 16.

53. Page 12, Section B.1.8. – Would the Commonwealth be willing to send invoices via email as well as “certified mail – return receipt requested”?

Please refer to Question 33a.

54. Page 12, Section B.1.8 – The second paragraph of this Section states that the “bidder must agree to notify the Department of any dispute or error in the rebate invoice within sixty (60) days of receipt of the invoice. After the sixty (60) day period, any requirement to return funds to the Contractor as a result of a dispute or a billing error is waived.”

a. Sixty days is an insufficient amount of time to determine whether there are billing errors. We request this provision be changed from 60 days to 120 days. Please confirm this change.

Please refer to Question 33b.

b. Please confirm that this time limit would also apply to the Commonwealth, such that if the Commonwealth does not notify the Contractor within 60 (or 120) days of a billing dispute or change related to a specific invoice, the Commonwealth will have waived any right to request a return of funds.

Please refer to Question 33b.

c. Please confirm all rebate disputes must be settled by closeout of the fiscal year to which the dispute relates.

Confirmed.

55. Page 12, Section B.1.8. – We have the following additional questions:

a. Please confirm interest charges will be prorated based on the number of days a payment is late in a given month. For example, if a payment is 15 days late, please confirm the late charge would be the amount due multiplied by the one and one-half percent late charge, divided by two. If unable to confirm, please provide additional information, including examples for how the late charge would be calculated based on a typical invoice amount, with a payment made (1) one day late, (2) ten days late, and (3) 29 days late.

Confirmed that the interest charge will be prorated.

b. If the Commonwealth is unwilling to prorate the late charge, what incentive is provided to the Contractor to make a prompt payment upon learning of a late payment?

The Department is prorating the late fees, and no response is required.

c. Please confirm the Commonwealth will agree to an agreed upon discount when requesting early payments.

No.

56. Page 13, Section B.1.8. (non-contract brand substitution) – We have the following questions:

a. Please describe all known instances in which the Commonwealth has learned of noncontract brand substitutions of infant formulas.

Please refer to Question 1.

b. Is this issue specifically addressed and tested during compliance buys?

No.

c. Have any individual retailers been sanctioned because of non-contract brand substitutions of infant formula?

No.

57. Page 14, Section C.1.2. – To minimize confusion and ambiguity, please remove “one thousandth of a cent, which are” in the first sentence of the second paragraph in this section. We note that as currently written, this language conflicts with the language in the third paragraph of this section.

Please refer to Question 34.

58. Page 14, Section C.1.2. – In the third paragraph of this section, please replace “carried to one tenth of a cent” to “carried to three decimal places.” We note the Bid Sheet provided requires prices to be extended three decimal places, and the cells are locked and therefore require prices to be expressed in this formal.

Please refer to Question 34.

59. Appendix B – Please confirm the Lobbying Certification Form does not need to be submitted as part of the bid package. If not confirmed, please advise where this form should be included in the bid submission.

Please refer to Question 21.

60. Please confirm that any bidder who so requests may receive notification of award by e-mail in order to facilitate the timing of subsequent meetings and mailings.

The selected bidder will receive notice of award via hard copy. All other bidders will receive a non-selection letter by hard copy. Any bidder who requests may receive notification by email at the address provided by the bidder.

61. Please provide the number of WIC only stores (above 50 percent vendors), as defined by USDA that are authorized by the Commonwealth. What is the status of approving existing or new WIC-only stores in Pennsylvania?

The Department does not authorize any WIC-only stores.

Section B.1.8 page 12:

62. As the contractor only has 60 days upon receipt of the invoice to validate it, would the State send the associated data file at the same time as the invoice? How long does this traditionally take?

Yes, each invoice will be supplied with a data file CD. At this time, the Department has no information regarding a time period for this task.

63. Please specify the timing of the transition should a new contractor be awarded the contract. Please specify if the transition to the new contractor will be completed will be completed on: October 1st, October 31st, or December 31st.

Please refer to Question 40d.

64. Will the state consider adding compliance buys of infant formula, in that the State checks that non-contracted brand is not allowed by retailers when the FI specifies the contract brand? This harms the manufacturer when a rebate is paid on a product that they do not produce.

The Department has no current plans to consider adding compliance buys of infant formula.

65. Please clarify only the bidder awarded the contract will be required to submit return policy information specifics in Sec. B.1.6. Confirm this information does not need to be submitted with the bid?

No. The bidders return policy is required by all bidders so that it is readily available to PA-WIC as it communicates with its retail store partners regarding the resultant contract. The bidder’s return policy, however, will not influence the contract award decision.

66. Please clarify the response to Q: 47. What percent of formula are non-contract standard; special, exempt and medical foods? Please also define these terms.

Please refer to Question 29a for the percent of non-contract standard formula issuance. Special formulas encompass exempt infant formulas and medical foods. Percentages for exempt and medical foods are reflected in 47a.

67. Q. 52 (b) Please confirm information on return policies do not need to be submitted with the bid and can be provided once an award is made.

Confirmed.

68. Q. 56 Non-contract brand substitutions. Is the Commonwealth aware of instances in which non-contract brand substitutions have taken place during WIC purchases? If no, why was this reference non-contract brand substitutions included in the IFB?

Substitutions cannot be made at the time of purchase. Non-contract formula was referenced in the IFB because they must be specified on the WIC check for religious exemptions.

69. Bid due Date- 10 days is all that should be required.

Please refer to question 4.

70. You have deferred several answers to questions today. When those questions are answered, please confirm that bidders will be allowed to ask follow-up questions if necessary to clarify issues

No, once the questions and answers are posted to the DGS website, no further questions will be allowed.

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