(1) After evaluating the qualifications of all applicants for a distributorship, the department of management and budget shall determine, for each distribution area, which applicant meets the standards and criteria established by the department, demonstrates the ability to satisfy the requirements of section 9(a) to (g), and has submitted the lowest bid for a distribution area. The department of management and budget may seek the technical input of the family independence agency in evaluating the qualifications of applicants.

    (2) A nonprofit organization, a local office of the family independence agency, or a political subdivision of this state may be designated as the agency that will distribute coupons in an area without submitting a bid if the nonprofit organization, local office of the family independence agency, or political subdivision meets the requirements of section 9(a) and (b) and is distributing coupons on the effective date of this act.

    (3) The department of management and budget shall supply the identities of the distributors selected to the family independence agency. The department of management and budget shall be the contracting agency for the state.