Participating States:

Affiliation:	WSCA
Lead State:	Washington
Lead State Contract Number:	06406
Contact person:	Roz Knox
Phone:	(360) 902-7489
Fax:	(360) 586-4944
Email:	rknox@ga.wa.gov

Link to Lead State Website

https://fortress.wa.gov/ga/apps/ContractSearch/ContractSummary.aspx?c=06406

Inception & Expiration

Original Award: October 1, 1995

Original Expiration: September 30, 2001

Second Award: October 1, 2001

Second Expiration: September 30, 2007

Third (Current) Award: October 1, 2007

Current Expiration: September 30, 2012 [if all optional extensions are utilized]

Overview/Summary

This is a contract for rebates for the purchase of infant formula for the Women's, Infant's and Children Programs (WIC).

There are federal rule limits on participation and process for this kind of contract. See more information below.

In addition to the states indicated in the map above, participating entities include American Samoa, Commonwealth of Northern Marianna Islands (CNMI), Guam, Intertribal Council of Arizona, and the Intertribal Council of Nevada.

Contractor Information

Current contractor:

Abbott Nutrition (a division of Abbott Laboratories, formerly called Ross Products Division)

Pricing

Price structure is a rebate to participating WIC programs for purchases of eligible product from grocery stores.

Contract FAQs

1. Why can't other State WIC Agencies or organizations join the contract?

For State WIC Agencies: Federal legislation was enacted that added requirements about the size of state alliances. The Child Nutrition Act (CNA) – section 17(h)(8)(A) was added -- it limits the size of state alliances to 100,000 infants and defines when other State Agencies can be added to existing alliance. However, if a state alliance of over 100,000 infants is in existence prior to June 30, 2004, it may continue and may expand to serve more than 100,000 infants but may not expand to include additional state agencies except -- when the State Agency serves less than 5,000 infants, or Indian State agency that requests to join the State alliance. (References are Child Nutrition Act, section 17(h)(8)(A) and USDA-FNS-Western Region All States Memorandum 04-55, dated August 25, 2004.)

Western State Contracting Alliance (WSCA) was able to add Commonwealth of the Northern Marianna Islands since they serve less than 5,000 infants.
In addition, the contract has language that limits the additions of other states or eligible organizations. After the release of Invitation to Bid (IFB) is released to the bidders, no other state ore eligible organization can be added to the contract.

2. Who, what, why, when, how many, etc.

Who – Western States Contracting Alliance (WSCA) contracts with Abbott Nutrition to provide the participating State WIC Agencies rebates on contract infant formula.
- WSCA is a state alliance comprised of 22 “State WIC Agencies” – Alaska, American Samoa, Arizona, Commonwealth of Northern Marianna Islands (CNMI), Delaware, District of Columbia, Guam, Hawaii, Idaho, Intertribal Council of Arizona, Intertribal Council of Nevada, Kansas, Maryland, Montana, Navajo Nation, Nevada, Oregon, Utah, Virgin Islands, Washington, West Virginia, and Wyoming.
- The total number of participating infants is over 244,113.
What – For Washington, we will receive a rebate on every can of formula that issued and redeemed of the Primary Contract Infant Formula – milk-based, Similac Advance and soy based, Isomil Advance. We will also receive a rebate on the contractor's other standard formulas – Similac Sensitive and Similac Sensitive R.S. (Note: There are other standard formulas of the contractor's that we in Washington do not authorize). Other state programs authorize their own mix of formulas.
Why – Infant Formula Rebate Cost Containment is reason for contract. For infant formula, WIC programs are required by federal regulation to implement an infant formula cost containment system. It was mandated by Congress in 1989. We are required to do a competitive bidding system for the procurement of infant formula. We purchase our infant formula through the retail system (grocery stores) and for every “can” purchased of the contractor's rebated formula; we receive a rebate on it. Here's some additional information from the proposed rule on infant formula cost containment:

Proposed Rule to 7 CFR Part 246, Vol 70, No. 143, July 27, 2005, page 3 -- "Background on Infant Formula Cost Containment In response to rising food costs in the 1980's and the desire to use their food grants more efficiently, several WIC State agencies initiated infant formula rebate systems. At the time, infant formula expenditures represented almost 40 percent of all WIC food costs, making infant formula rebates an important cost-containment strategies… Building on the success of the voluntary State infant formula rebate systems, Public Law 100-460, The Department's fiscal year 1989 appropriations act, required all WIC State agencies (except Indian State agencies with participation levels under 1,000) to explore the feasibility of cost-containment measures for infant formula and implement such measures where feasible. As a result of this mandatory legislative requirement, WIC State agencies with participation levels over 1,000 implemented infant formula cost containment measures, primarily infant formula rebate systems. The passage of the Child Nutrition and WIC Reauthorization Act of 1989 (section 123(a)(6) of Pub. L. 101-147) made this cost-containment requirement a permanent program feature."

Participation

Participation is currently capped. Exception in federal rules is for "State Agency" serving less that 5,000 infants or Indian (Native American) state agencies.

States or programs should contact WSCA/NASPO Cooperative Development Team (wncoopdt@amrms.com) for assistance in properly documenting permission to participate.