2-06 Contract Expiration and Termination

2.06 Contract Expiration & Termination

Effective Date: 08/01/2021

PURPOSE:    

To describe the conditions under which a WIC Vendor Contract may expire or terminate.

DEFINITIONS:

Termination means the ending of a WIC Vendor Contract prior to the contract expiration date.

WIC Vendor Contract means the legally binding agreement between the Department and an authorized WIC Vendor outlining the responsibilities and requirements for participation in the WIC Program.

POLICY:

1. A WIC Vendor Contract shall expire automatically on the expiration date identified in the contract unless renewed by the Department.

    

2. The Department is under no obligation to renew a WIC Vendor Contract and may reassess Vendors at any time using the Vendor Selection Criteria in effect at the time of reassessment. (See Policy 2.02 Vendor Selection Criteria.)

    

3. The Department may terminate a WIC Vendor Contract before the expiration date for any of the following reasons:

    

   1. Failure to comply with Federal or State statutes, regulations, policies, procedures, or terms of the WIC Vendor Contract.

       

   2. Failure to maintain Vendor Selection Criteria. (See Policy 2.02 Vendor Selection Criteria.)

       

   3. Failure to attend required Vendor training. (See Policy 4.01 Training of WIC Vendors.)

       

   4. Change of ownership.

       

   5. Change of location beyond allowable limits under the Vendor Limitation Policy. (See Policy 2.04 Vendor Limitation Policy.)

       

   6. Cessation of operations.

       

   7. Disqualification from SNAP.

       

   8. Any sanctionable offense identified in the WIC Vendor Sanction Schedule. (See Exhibit 6.01A WIC Vendor Sanction Schedule.)

    

4. The Department shall notify Vendors in writing of termination actions and any appeal rights associated with the action. (See Policy 7.0 Vendor Appeals.)

    

5. Termination of a WIC Vendor Contract does not relieve the Vendor of responsibility for violations or sanctions that occurred prior to termination.

    

6. The Department may prohibit a terminated or disqualified Vendor from reapplying for authorization during the disqualification period.

    

7. Vendors who voluntarily withdraw from the WIC Program remain subject to any pending sanctions, claims, or adverse actions identified prior to withdrawal.

References:

7 CFR Part 246.12

Cross-References:

2.02 Vendor Selection Criteria

2.04 Vendor Limitation Policy

4.01 Training of WIC Vendors

6.01 Vendor Sanction Schedule Overview

7.0 Vendor Appeals

Exhibits:

6.01A WIC Vendor Sanction Schedule