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Tax Exempt Question with Regards to a Prime Contractor


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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.

 

 

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4 hours ago, tjsmith1957 said:

I am working with a Prime Contractor on a program and we have submitted our proposal.

You should have received an RFP or ITQ that states the terms and conditions and reviewed it. If there were none, I would amend the proposal to add a response to what you were asked by the prime...something like, the proposed price does not include applicable taxes.

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On 10/17/2023 at 2:29 PM, tjsmith1957 said:

We are not tax exempt, and not sure from what taxes as I cannot get a straight answer. All they state is that they are 

Did you know that if you are registered in SAM.gov that you can establish a Login account that allows you to view the general registration of any firm in SAM.gov?   Looking up the prime and viewing their core business info might give you an idea of exemption.   I say this profit status of business is shown.   It would seem to me that if the prime is a for profit business they would not be exempt from taxes.   I like here_2_help's response too.

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