Iam working with a Prime Contractor on a program and we have submitted our proposal. However, the Prime Contractor has asked us if we are tax exempt and we are not.
The Prime Contractor states: "The Government does not add additional funding for this program to cover taxes as the Prime Contractor is tax exempt."
The award will be a FFP for imagery, our pricing is all inclusive of our indirects, taxes, fee etc. This award will be a single source to my company.
The Prime Contractor is asking if all items will be procured from my company or if we are utilizing subcontractors and that is what is causing the taxes. All work will be performed by my company.
I am totally confused by this Prime, again my company is tax exempt so not sure what it is the Prime wants or needs from me.