4-26-071 Addendum 1.pdf

Generated on Aug 27, 2026 7:53 PM EDT - Melissa England

ADDENDUM #1

September 3, 2026

RFP Title:

Tax Audit Services

Owner: County of Wake – Melissa England, Procurement

RFP Bid No.: #26-071

The following are answers to questions submitted for RFP #26-071. Wake County answers are in blue.

1. The 26-071 TC document states that, “This agreement will be for one year with the option to renew annually for a period of up to five years.” Is it anticipated that the number of audits will remain within the estimated range of 75–150 audits for each subsequent renewal year?

The number of audits is based on budgeted appropriations.

2. The RFP states that the “list of accounts provided will have assessed values below $5 million.”

Is there an anticipated minimum assessed value or approximate lower range for the accounts that will be included in the assignment?

Tax Administration does not have an established minimum assessed value for assignments, especially since some accounts may be understated. Accounts are selected randomly, and the Department strives to maintain a fair and equitable audit program that includes businesses of all sizes.

3. Which locally imposed gross-receipts taxes does Wake County anticipate including in the audit assignments under this RFP?

Prepared food and beverage and room occupancy tax.

4. What limitation or lookback period should be applied to each gross-receipts tax?

The lookback period for gross receipts tax is governed per G.S. 105-241.8.

5. Does the $5,000 material-discovery threshold apply only to business personal property audits? If so, does Wake County apply a separate materiality threshold to gross-receipts tax adjustments?

Yes, the $5,000 applies to fair market value for business personal property, not reported sales or amount of gross receipts tax. There are other factors for gross receipts, and a firm threshold may not be appropriate.

6. For pricing and invoicing purposes, how will the County count an assignment involving the same business that includes a business personal property audit and one or more gross-receipts tax audits? Will each audit or tax type be considered separately, or will the combined examination be considered one account audit?

Each business personal property account will be priced separately based on the applicable value tier. Any associated gross receipts audit will be considered separately based on the vendor’s proposed gross receipts pricing.

7. Of the estimated 75–150 audits annually, what approximate allocation does the County anticipate between business personal property audits and gross-receipts tax audits?

The RFP and scope of work is primarily intended for business personal property audits. Gross receipts audits are included in case a need arises for outside audit assistance.

8. The RFP requests per-audit pricing tiers based on assessed value of an account. Are these tiers intended only for business personal property audits? If so, please clarify the required pricing format for gross-receipts tax audits.

The pricing tiers apply to business personal property audits. Vendors should provide their proposed pricing format for audits of accounts that include a gross receipts obligation.

9. When a taxpayer has multiple business locations or County account numbers, what will constitute one audit for assignment, pricing, and invoicing purposes?

Each business account of a multi-location taxpayer will be considered a single audit for assignment, pricing, and invoicing purposes. Leasing accounts are an exception, with all jurisdictional subaccounts treated as one audit and their combined value used to determine the pricing tier.

10. Does Wake County currently use outside vendors for business personal property or gross-receipts tax audit services? If so, will the contract awarded under this RFP replace the existing services, supplement the current vendors, or establish a pool of audit firms?

The County’s most recent contract for outside audit services expired June 30, 2026. Wake County Policy requires competition beyond the requirements of NC General Statutes for other services. It is the practice of Wake County to seek and obtain competitive proposals and offers from as many sources as practical, where such competition is available. Accordingly, this RFP is to meet the requirements of Wake County policy and may result in an award to one or multiple qualified vendors.

11. How many business personal property audits and gross-receipts tax audits were assigned to outside vendors and completed during each of the past three fiscal years?

FY 24: 34 BPP audits assigned and 32 audits completed (2 voided)

FY 25: 35 BPP audits assigned and 35 audits completed

FY 26: 71 BPP audits assigned and 67 audits completed (4 voided)

No gross receipts audits were assigned in the past three fiscal years.

12. For purposes of understanding the County's BPP account population and developing the requested per-audit pricing, please provide the approximate number of active BPP accounts within each of the following Fair Market Value ranges:

Size Fair Market Value Range Accounts

1 $0 – $49,999 16,125 2 $50,000 – $399,999 8,227 3 $400,000 – $999,999 1,716 4 $1,000,000 – $4,999,999 1,108 5 $5,000,000 – $9,999,999 135 6 $10,000,000 – $19,999,999 64

7 $20,000,000 – $49,999,999 24 8 $50,000,000 – $99,999,999 8 9 $100,000,000 and Greater 15

13. Please confirm the anticipated initial contract term and the number of available renewal periods under this RFP.

The County anticipates the initial contract(s) term from the date of contract execution through June 30, 2027. The County is open to four additional one-year term contracts after the initial contract.

14. What is the County’s anticipated annual budget for services under this RFP, and has funding for the first contract year been approved and appropriated?

Funding for outside audit contract services is included in the Department’s FY 2027 operating budget and is budgeted as part of the overall contractual services line item. Based on the responses received to the RFP, the Department will finalize the specific amount allocated for outside audit contract services.

15. The RFP indicates that the County anticipates assigning approximately 75–150 audits. Please confirm whether this represents the anticipated number of audits per fiscal year.

The County anticipates assigning approximately 75 to 150 audits per fiscal year, with all audits to be completed within the same fiscal year. The number of audits assigned may be adjusted based on contract timing but will not reduce the anticipated assignment budget.

16. Does the anticipated 75–150 audit volume represent the combined total of Business Personal Property and Gross Receipts audits, or does the County anticipate approximately 75–150 audits of each type? If combined, can the County provide the approximate anticipated allocation between BPP and Gross Receipts audits?

The anticipated 75 to 150 audits represent the combined total. The allocation is unknown;

however, the assignment will primarily focus on business personal property audits.

17. For the anticipated audit assignments, does the County have an expected distribution by BPP value tier and Gross Receipts audit type, or will assignments be made based upon the County’s needs throughout the contract year?

The County does not have a predetermined distribution by value tier. Accounts are randomly selected across the value tiers to meet the assignment budget.

18. Does the County anticipate awarding the contract to a single vendor, or may audit assignments be awarded to multiple vendors?

The County may award audit services to a single vendor or multiple qualified vendors based on the RFP evaluation and selection process.