Criteria for Vendor Selection and Authorization

Pursuant to federal regulations, 7 CFR Part 246, §246.12(g)(1) and (2), the Guam WIC Program authorizes an appropriate number and distribution of vendors in order to ensure adequate participant access to supplemental foods and ensure Program staff can effectively manage, oversee, and review its authorized vendors.

The Guam WIC Program has established criteria to select stores for program authorization pursuant to §246.12(g). The following are the vendor selection criteria for authorization:

1. 1. Competitive price. Pursuant to federal regulations, the Guam WIC Program will use the established vendor peer group system and distinct competitive price criteria for each peer group to evaluate the shelf prices a vendor/vendor applicant charges for supplemental foods as compared to the shelf prices charged by other vendor applicants and authorized vendors. The WIC Program will authorize vendors/vendor applicants selected from among those that offer the program the most competitive prices.
   2. Minimum variety and quantity of supplemental foods. The WIC Program has established requirements for a minimum variety and quantity of authorized supplemental foods that vendors/vendor applicants must stock on the shelves at all times in the shopping areas for authorization. The minimums specified for variety and quantity of supplemental foods are required for authorization. (See the requirements provided in a separate section under Part I. General Information.)Also, the WIC Program has established a food list (Guam WIC Program Approved Foods) that specifically identifies the types, brands, and sizes of supplemental foods approved for WIC participants in Guam to obtain from authorized vendors. Only the specified supplemental foods are allowed. (See listing provided in the application packet.)
   3. Business integrity. The Guam WIC Program will consider the business integrity of vendors/vendor applicants. The Program will not authorize a vendor/vendor applicant if during the last six (6) years the vendor/vendor applicant or any of the vendor’s/vendor applicant’s current owners, officers, or managers has been convicted of or had a civil judgment entered against them for any activity indicating a lack of business integrity. Activities indicating a lack of business integrity include fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, and obstruction of justice.The WIC Program will also consider other types of non-compliance actions against vendors/vendor applicants as follows:
      • A lack of previous WIC Program and Supplemental Nutrition Assistance Program (SNAP) sanctions (warning letter/charge letter/determination letter, monetary fines or civil money penalties, suspensions, disqualifications, etc.).
      • A positive compliance history on sanitary health requirements with the Division of Environmental Health of the Department of Public Health and Social Services (such as: any low scores on sanitary health permit ratings, previously unmet or current work orders for corrective action, history of temporary closing due to unsanitary conditions, etc.).
   4. Current Supplemental Nutrition Assistance Program disqualification or civil money penalty for hardship. The WIC Program will not authorize a vendor/vendor applicant that is currently disqualified from the Supplemental Nutrition Assistance Program or that has been assessed a Supplemental Nutrition Assistance Program (SNAP) civil money penalty for hardship and the disqualification period that would otherwise have been imposed has not expired.
   5. Certification by the Division of Environmental Health of the Department of Public Health and Social Services (DPHSS). The most recent inspection report and current sanitary permit rating issued by the Division of Environmental Health of the Department of Public Health and Social Services to the vendor/vendor applicant must be a grade “A.”
   6. Adequate Participant Access and Americans with Disabilities (ADA) Standards. The WIC Program will ensure adequate participant access to supplemental foods in selecting and authorizing vendors. Vendors/vendor applicants allowing the most convenient access for persons with disabilities will be given priority for selection and authorization. The following ADA standards will be considered: reserved parking space(s) properly designated, access ramp, and sufficient aisle space throughout the store for persons with disabilities.
   7. Hours of Operation. Vendors/vendor applicants must have hours of operation that ensures adequate participant access to supplemental foods. Vendors must be open for business at least six (6) days per week, at least nine (9) hours per day including the hours of 9:00 a.m. to 6:00 p.m.
   8. Electronic Benefit Transfer (EBT) or eWIC System. WIC vendors must have equipment that is capable of performing Electronic Benefits Transfer (EBT) or eWIC transactions such as an Integrated Register Systems or Stand-Beside terminals. The equipment must be certified by the Guam WIC Program as well as the current eWIC processor contracted with the Guam WIC Program prior to accepting eWIC transactions. Any hardware or software changes made after being certified must be reported immediately to the Guam WIC Program prior to changes being made and may require a re-certification of the system in order to continue to perform eWIC transactions.The equipment must support the following types of eWIC transactions:
      • • Balance Inquiry – to provide the WIC card holder with a shopping list to retrieve the balance of the benefit prior to beginning a purchase.
        • Purchase – to authorize and complete a sale.
        • Reversal – to partially or completely nullify the effects of a previous purchase transaction and add benefits back to the WIC participant’s benefits because the purchase transaction cannot be processed as instructed.
        • Void – to cancel a previously authorized and completed transaction, resulting in a reversal.
          – All eWIC transactions shall be settled in U.S. Dollar currency only.
          – The equipment must perform split tender processing to allow the card holder to pay the difference when a fruit or vegetable purchase exceeds the value of the Cash Value Benefit with an alternate method of payment (i.e. SNAP, cash, debit, credit card.).
          – The equipment must be able to generate a receipt at the end of the eWIC transaction, which at a minimum includes, last four digits of the card number of the Primary Account Number (no other digits should be displayed), store name, store address, city, state and zip code, date and time of purchase, store lane, if available, WIC food item identifier (if separate WIC purchase receipt is not provided), benefit expiration date and time, purchased food items including the food item quantity, description and unit of measure, unit cost, total purchase amount, benefits remaining, including the benefit description, quantity and unit of measure, unique transaction identifier or systems trace audit number.
          – The Guam WIC Program will not authorize a retail vendor if it cannot successfully demonstrate EBT capability in accordance with program requirements unless the Program determines that the vendor is necessary for participant access.NOTE: This particular criterion will be assessed post pre-authorization visit. The vendor has within three (3) months from the date of selection to ensure that they have equipment in place that is certified by the Guam WIC Program as well as the current eWIC processor contracted with the Guam WIC Program prior to accepting eWIC transactions. The Guam WIC Program will not authorize a vendor applicant who does not meet this requirement unless the Program determines that the vendor is necessary for participant access.
   9. Supplemental Nutrition Assistance Program Authorization. Vendor/vendor applicant must be authorized in the Supplemental Nutrition Assistance Program and must provide the WIC Program with their Supplemental Nutrition Assistance Program authorization number.
   10. Licensed Supplier for Infant Formula. Vendors/vendor applicants must obtain infant formula only from the sources in the Guam WIC Program’s restricted list of infant formula distributors and list of manufacturers registered with the U.S. Food and Drug Administration. This applies to primary contract brand and non-contract brand infant formula approved by the Guam WIC Program. (See the listing in the application packet.)
   11. Above-50-Percent Vendors. The Guam WIC Program will not authorize any “above-50-percent” vendors/vendor applicants unless the Program determines that an above-50-percent vendor/vendor applicant is needed for adequate participant access to supplemental foods. Vendors that derive more than 50 percent of their annual food sales revenue from WIC food instruments, and new vendor applicants expected to meet this criterion under guidelines approved by FNS, are defined as above-50- percent vendors.
   12. Prohibition of Incentive Items. The Guam WIC Program wholly disallows (WIC) vendors (regular or above 50 percent) from offering incentive items solely to WIC participants. Section 246.12 (h) (3) (iii) of the Federal WIC regulations requires vendors to offer Program participants the same courtesies that are offered to non-WIC customers. Therefore, a WIC-authorized vendor may not treat WIC customers differently by offering incentive items that are not offered to non-WIC customers. Incentive items include, but are not limited to, cash prizes, lottery tickets, transportation, sales/specials (e.g., buy-one, get-one free, free additional ounces, etc.), and other free food or merchandise. Minimal customary courtesies of the retail food trade, such as bagging supplemental food for the participant and assisting the participant with loading the supplemental food into his/her automobile are exceptions.

On-site Preauthorization Visit. The WIC Program will conduct an on-site preauthorization visit of all vendors to verify information received during the application process, including shelf prices, quality of foods, and the minimum variety and quantity of WIC supplemental foods.

Reassessment of Authorized Vendors – The Guam WIC Program may reassess any authorized vendor at any time during the vendor’s agreement period using the vendor selection criteria in effect at the time of the reassessment and will terminate the agreements with those vendors that fail to meet the criteria.

Revised 4/19/2024