2-01 Vendor Applications and Authorizations

2.01 Vendor Applications & Authorization

Effective Date: 4/01/2025

PURPOSE:

To outline the processes by which Vendor applicants may submit an application and pursue authorization or reauthorization as a WIC Vendor.

DEFINITIONS:

Chain contract means an owning entity with at least three (3) outlet locations authorized on the same WIC Vendor Contract.

Change of ownership means a change in taxpayer identification number and/or employer identification number (EIN).

Direct distribution means a system in which WIC participants or proxies pick up authorized supplemental foods from storage facilities operated by the Department or its local agencies.

Home delivery means a system in which WIC participants or proxies are shipped authorized supplemental foods directly to their home address on file.

Open Application Period means the time each year when the Department accepts and reviews applications from all currently authorized and waitlisted Vendors in a given contract region.

Participant access means the ability for WIC participants to easily access WIC-authorized Vendors. In Michigan, this is defined by Vendor location relative to other WIC-authorized Vendors (1-mile radius in urban areas and 5-mile radius in rural areas), the number, location and specific needs of participants, and geographic barriers limiting participant access to other Vendors.

Vendor means a retail food store or pharmacy with a single, fixed location that is authorized or is applying for authorization by the Department to provide approved supplemental WIC foods to participants. A Vendor’s authorization is tied to its owning entity (i.e., sole proprietorship, partnership, cooperative association, corporation, or other business entity).

Vendor authorization means the process by which the Department assesses, selects, and enters into a signed agreement or contract with retail food stores or pharmacies that apply or subsequently reapply to be authorized as WIC Vendors.

Vendor openings means the number of Vendors able to be authorized in a given zip code area based on a pre-defined Vendor/participant ratio.

Vendor waitlist means the list the Department keeps of all Vendor applicants that applied for authorization outside of the open application period but were not authorized due to insufficient Vendor openings.

WIC benefits means electronic benefits that can be used to purchase WIC-approved food items from authorized WIC Vendors using a WIC electronic benefits transfer (EBT) card.

1. POLICY
   1. The Department is responsible for authorization of each Vendor. Retailers may not transact WIC benefits without a current WIC Vendor Contract that has been executed by the Department. (See Vendor Policy 2.05 Application Determination & Contract Execution.)
   2. A Vendor must operate from a fixed location, i.e., a single physical store location as defined on their WIC Vendor Contract. The Department will not authorize the following types of stores and/or distribution systems:
      1. “Home food delivery systems;”
      2. “Direct food distribution systems,” except under specific circumstances when deemed appropriate by the Department. (See MI-WIC Policy 8.10 Local Agency Formula Distribution.)
      3. “Mobile stores,” which are stores that do not have a single fixed location;
      4. “WIC only” stores, or retailers that would have 50% or more of total food sales for any annual period from WIC. (See Vendor Policy 2.02 Vendor Selection Criteria.)
   3. Application Process. There are two types of application processes, one for applications received during the Open Application Period (OAP) and one for applications received at any time outside of the OAP.
      1. Open Application Period
         1. The Department uses a staggered contract cycle, one for the central region, one for the southeastern region, and the other for the northern region of the state. The open application period (OAP) for each region is October 1 through mid-December, on alternating years, and generally takes place every three years. Refer to Exhibit 2.01A Map of Vendor Contract Cycles for a list of the counties found in each region.
         2. At the beginning of the OAP, currently authorized Vendors and retail food stores and pharmacies on the Vendor Waitlist in each region will be emailed an application. (See Exhibit 2.01B WIC Vendor Application and 2.01C WIC Pharmacy Vendor Application.)
         3. A notice of the OAP will be published in the WIC Vendor Newsletters and on the WIC Vendor website, where interested parties may download an application as well.
      2. Applications Received Outside of the OAP
         1. Vendors may apply for authorization at any time outside of their region’s OAP.
         2. New applications received outside of the OAP and any applications on the Vendor Waitlist will be considered for authorization outside of the OAP only in the event of an opening for a WIC Vendor in the respective zip code during the course of the three-year contract period. (See Vendor Policy 2.04 Vendor Limitation Policy.)

References:

• 7 CFR Part 246.2
• 7 CFR Part 246.12 (a) (b) (e) (f) (g) (h) (n) (o) (r)
• MI-WIC Policy 8.10 Local Agency Formula Distribution

Cross-References:

• 2.02 Vendor Selection Criteria
• 2.04 Vendor Limitation Policy
• 2.05 Application Determination & Contract Execution
• 2.06 Contract Expiration & Termination
• 5.03 In-store Monitoring Visits

Exhibits:

• 2.01A Map of Vendor Contract Cycles
• 2.01B WIC Vendor Application
• 2.01C WIC Pharmacy Vendor Application
• 2.01D Pre-authorization Report
• 2.01E Quality Exception Pre-authorization Report
• 2.01F Pharmacy Pre-authorization Report
• 2.04C Quality Exception Review
• 2.05A WIC Vendor Contract
• 2.05B WIC Pharmacy Vendor Contract