The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides participating infants with free infant formula. Price), every contract has received multiple bids, and contracts have turned over regularly In recent years, rebates have been large (over 90 percent of the wholesale This study suggest that infant formula manufacturers aggressively compete for WICĬontracts. In general, there was a largeĭisparity in the winning real net price bid and the next closest contender. This period, and bids varied greatly across the contracts. Only three infant formula manufacturers bid on rebate contracts during This study examines both the winning and losingīids from the infant formula manufacturers for State agency contracts awarded fromĢ003 to 2013. Offering the WIC State agency the lowest net price (as determined by the manufacturer’s Contracts are awarded to the manufacturer WIC State agencies are required by law to have competitively bid infant formula rebateĬontracts with infant formula manufacturers. United States, and its mandatory rebate program saved WIC $1.9 billion in FY 2013. Women, Infants, and Children (WIC) is the major purchaser of infant formula in the Department of Agriculture’s Special Supplemental Nutrition Program for
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