RFP 4120-01-27_Performance Audit_Questions&Answers_8.12.26.pdf

RFP#4120-01-27: Questions and Answers Lee County Government Performance Audit

Published: August 12, 2026, at 1:00 PM

1. Does the County intend to include the Register of Deeds, Sheriff’s Department, Elections, Building Inspections, and Cooperative Extension as part of the project scope?

ANSWER: All County departments are expected to be evaluated as part of this performance audit. This includes the Register of Deeds, Sheriff’s Office, and Elections. Cooperative Extension is excluded at this time.

The County does not operate a Building Inspections department. All planning and building inspection services are contracted through the City of Sanford. Because these functions are externally managed, they will not be evaluated as County departments. However, an assessment of the related contract(s) and the value they provide to the County should be included in the audit scope.

2. Has the County identified a budget for the project?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. At that time, the Board will consider making the necessary appropriation for the selected proposal.

3. Has the County previously compiled a services inventory?

ANSWER: The County has a performance audit completed in 2012 but has not compiled a specific services inventory recently.

4. Does the County have staff assigned to support the compilation of the services inventory for each program and department?

ANSWER: County Administration staff will be supporting the processes of the performance audit. This includes the County Manager, Assistant County Managers (2), and Budget and Management Analyst. Department leadership will be available during this audit as well.

5. Can you identify the number of departments/offices included in this study and the number of staff budgeted for each?

ANSWER: Please see Charts 1 & 2 on pages 19 & 20 for more details on the County’s intended project scope.

RFP #4120-01-27: Lee County Government Performance Audit Q&A

6. Has the County identified a budget for this study?

ANSWER: Not at this time. See answer to Question #2.

7. Under 5) Proposal, d) can you clarify if you are looking for a total project budget, hourly rates, or a list of common fees associated with similar studies?

ANSWER: The County is seeking either an all-inclusive project budget or a total not-to-exceed project budget.

8. Section 3(a) / 4(a) – Does Lee County anticipate the performance audit encompassing all County departments and functions, or are there specific departments, programs, or operations that should be considered in scope for the engagement?

ANSWER: All County departments are expected to be evaluated as part of this performance audit. See answers to Question #1 and Charts 1 & 2 on pages 19 & 20 for more details.

9. Section 3(e) – Which local governments do Lee County consider most comparable for benchmarking purposes, and are there any peer jurisdictions the County would specifically like included in the analysis?

ANSWER: We would only like to be compared to other North Carolina counties.

Similar counties that have been used in previous analyses include Wilson, Harnett, Pender, Granville, Randolph, Wilkes, and Franklin. We also have to compare our operations, especially salary scales, to our surrounding counties that have much larger operations. These include Moore, Chatham, Wake, Durham, Orange, and Johnston Counties. We do not have the capacity to fund operations at the levels seen in these counties, but they are an important comparison due to our location.

10. Section 4(b)(iii) – Can the County provide a list of recent audits, studies, or assessments that will be available to the selected consultant?

ANSWER: All prior financial audits and our performance audit completed in 2012 will be made available. In addition, various departmental reports can be made available.

11. Section 4(d) – Does the County have a preference regarding on-site versus remote performance of interviews, meetings, and other audit activities?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-person final report presented to the Board of Commissioners is also expected at the conclusion of the audit.

12. Section 4(f) – Are there specific operational concerns or priority areas that prompted the County to pursue this performance audit?

ANSWER: The County has entered into a period of strong residential growth. We have a policy to set a tax rate during each revaluation that should be adequate to fund government operations until the next revaluation without additional increases.

There has been significant commercial/industrial growth, but not enough to fully offset the demands of an expanding population, which has put increasing pressure on our property tax rate. With the next revaluation set to take place in 2027, there was desire from the Board of Commissioners to have a complete performance audit conducted to ensure we are moving forward in the most effective and efficient manner.

13. What County departments/programs should be included in the performance audit, and are any departments/programs explicitly excluded from the scope of the project?

ANSWER: All County departments are expected to be evaluated as part of this performance audit. See answers to Question #1 and Charts 1 & 2 on pages 19 & 20 for more details.

14. Should the cost proposal be submitted separately from the technical proposal, and are reimbursable expenses permitted?

ANSWER: They should be submitted together. The County is seeking either an all-inclusive project budget or a total not-to-exceed project budget, so if proposal included reimbursable expenses, it must include the not-to-exceed amount.

15. What are the County’s anticipated contract award, project start, final report, and

Board presentation dates, particularly in relation to the FY 2027–28 budget development process?

ANSWER: Selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. A contract could then be considered during their next meeting on October 5, 2026. Work could begin after adoption. In order to begin incorporating possible recommendations into the FY 2027-28 budget, findings would need to be delivered by mid-April 2027. The Board holds its retreat each January. If preliminary findings are available, it would be great to begin discussions before the budget development process fully begins; however, this is not a requirement given the short timeline.

16. Please identify the departments, divisions, and employee population included in the audit and clarify whether the County expects a detailed review of every department or a government-wide assessment followed by deeper reviews of selected functions.

ANSWER: All County departments are expected to be evaluated as part of this performance audit. See answers to Question #1 and Charts 1 & 2 on pages 19 & 20 for more details. The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews of selected departments or functions where the initial analysis identifies opportunities for improvement or areas of concern.

17. What level of review is expected for technology systems and regulatory compliance, and is the consultant expected to provide detailed technical or legal assessments versus operational observations and recommendations?

ANSWER: The audit should include an assessment of technology systems and regulatory compliance at an operational level. The County does not expect detailed technical analyses of IT infrastructure or formal legal reviews. Instead, the consultant should evaluate how current systems and compliance processes support departmental operations, identify gaps or risks, and provide practical recommendations for improvement. If the initial assessment reveals areas that may require deeper technical or legal examination, the consultant may note those for potential follow-up outside the scope of this project.

18. Has the County established an available budget, anticipated fee range, or not-to-exceed amount for the engagement, and what portion of the work does the County expect to be performed onsite versus remotely? Please also clarify whether travel and reimbursable expenses must be included in the proposed fee.

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. At that time, the Board will consider making the necessary appropriation for the selected proposal. The County is seeking either an all-inclusive project budget or a total not-to-exceed project budget, so if proposal included reimbursable expenses, it must include the not-to-exceed amount. We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-person final report presented to the Board of Commissioners is also expected at the conclusion of the audit.

19. Does the County expect the performance audit to be completed under GAGAS or

IIA standards?

ANSWER: The County does not require the performance audit to be completed under specific standards. Proposers may indicate the professional standards they intend to follow, and the County will evaluate each approach as part of the proposal review.

20. To facilitate development of an appropriately scoped and priced proposal, please clarify the departments, programs, operational areas, and affiliated entities anticipated to be included in the performance audit. In particular, please clarify the intended scope of the references to public safety, facilities, expanded programming, and the public school system contained in the RFP.

ANSWER: All County departments are expected to be evaluated as part of this performance audit. See answers to Question #1 and Charts 1 & 2 on pages 19 & 20 for more details. The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews

21. How many employees does the county employ currently?

ANSWER: 474 Full-Time – 85.81 Part-Time – 559.81 Total FTEs. See answers to Question #1 and Charts 1 & 2 on pages 19 & 20 for more details.

22. What level of onsite presence is expected? Can portions of interviews and document reviews be performed remotely?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-

23. Should fees be proposed as a fixed price or not-to-exceed amount with hourly rates?

ANSWER: Either option is acceptable.

24. Does the County expect all departments, programs, services, and administrative functions to be reviewed at a similar level of detail, or is a countywide baseline assessment with more in-depth analysis of selected functions anticipated? If the latter, will the County identify those functions, or should the selected firm recommend them?

ANSWER: The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews of selected departments or functions where the initial analysis identifies opportunities for improvement or areas of concern. The County has not pre-identified specific departments or functions at time.

25. Is the performance audit expected to be conducted in accordance with Generally

Accepted Government Auditing Standards (GAGAS/GAO Yellow Book), or is the engagement intended to be performed as a non-attest consulting engagement?

ANSWER: The County does not require the performance audit to be completed under specific standards. Proposers may indicate the professional standards they

26. Objective 3(g) references recommendations on position classifications and job functions. Is the County seeking a formal classification and compensation study, including job analysis, market salary benchmarking, and compensation structure development, or recommendations regarding organizational structure, role clarity, reporting relationships, and potential duplication of duties identified through the operational review?

ANSWER: The latter. We are not seeking a new classification and pay study.

27. Approximately how many stakeholder interviews does the County anticipate will be required under Section 4(d)? Additionally, should stakeholder engagement be conducted onsite, virtually, or through a combination of both methods?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. The initial round will likely include interviews with elected officials and high-level staff, which is around 40 people.

28. Should the fee proposal and cost information required under Section 5(d) be included within the sealed proposal submission, or does the County prefer a separately sealed cost proposal?

ANSWER: It should be submitted together.

29. Section 6 outlines the evaluation criteria. Are specific weights assigned to these criteria as part of the scoring process, or will they be evaluated equally?

ANSWER: See example scoresheet on page 31.

30. Has the County established a budget or anticipated funding range for this engagement that it is able to share?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. At that time, the Board will consider making the necessary appropriation for the selected proposal.

31. What qualifications, experience, or characteristics do the County view as most important when selecting a service provider for this engagement?

ANSWER: The County would like to see firms with a documented history of providing detailed and implementable recommendations that increase efficiency and effectiveness of government operations.

32. Does the County require the proposal to be executed with original wet signatures, or will electronic signatures be accepted?

ANSWER: Wet signatures only.

33. Section 8(g) of the RFP states that once submitted, proposals, including the composition of the vendor staff, shall not be changed. During the course of an engagement, we may occasionally identify a need for additional subject matter expertise. Should proposers include all potential personnel who could be assigned to the engagement in their proposal, or would the County permit the addition of specialized resources as needed, provided the core engagement team remains unchanged?

ANSWER: Additional specialized personnel can be added on an as needed basis as long as core team remains unchanged.

34. We noted the County's prior 2012 performance audit was conducted as an operational review. Please confirm whether this engagement can be performed as a performance audit under relevant AICPA consulting standards.

ANSWER: The County does not require the performance audit to be completed under specific standards. Proposers may indicate the professional standards they

35. Please confirm the organizational scope of the engagement. Specifically:

a. Are departments and offices led by elected officials (e.g., Sheriff's Office, Register of Deeds) included within scope?

b. Is Lee County Schools excluded from scope, given its governance by a separately elected Board of Education?"

ANSWER: All departments, including those led by an elected official, are expected to be included in this audit. Lee County Schools as an organization will not be a part of this audit. A review of our current funding levels and mechanisms for LCS and other organizations should be included though.

36. Please confirm our understanding that the engagement encompasses approximately 30 County departments and divisions. Can the County provide (or confirm) the total number of authorized full-time-equivalent positions within scope as of the FY 2026–27 adopted budget?

ANSWER: Please see Chart 1 on page 19 for details.

37. Are there specific departments, programs, or functions the Board of

Commissioners considers of highest priority for depth of review (for example, emergency medical services, public safety, or growth-related development services), or should proposers assume equal depth across all County functions?

ANSWER: Growth, and how to manage it, is the largest focus for the Board. This idea of growth management will be a part of the reviews of all our operations as they are facing pressures from this growth. EMS and public safety are both highly important to the Board as well. A specific review of contracting our EMS services (as we currently

do) against operating services in-house should be completed.

38. Please confirm that a primary objective is for findings and recommendations to be actionable within the FY 2027–28 budget development process, and that the County's intent includes an assessment of what has changed since the 2012 performance audit report, including the status of its prior recommendations.

ANSWER: That is correct. We are actively compiling our current operations to the prior recommendations. This will be provided to the selected firm.

39. Has the County established a budget, fee ceiling, or appropriation for this engagement? If the County prefers not to disclose a figure, can it indicate whether funding has been appropriated within the adopted FY 2026–27 budget?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular

40. Will the four selection criteria listed in Section 6 (experience/qualifications, schedule, methodology, cost) be weighted, and if so, how?

ANSWER: See example scoresheet on page 31.

41. To whom will the selected firm functionally report during the engagement and for delivery of findings: the County Manager, the full Board of Commissioners, or both?

ANSWER: The primary point of contact will be the County Manager or her designee throughout the audit process. The complete findings are then expected to be presented in person to the County Manager and Board of Commissioners.

42. Please confirm our understanding of the intended timeline: contract award in early Fall 2026, with a final report and Board presentation targeted no later than early Spring 2027 so recommendations can inform the FY 2027–28 recommended budget (historically presented in mid-May). If the County has specific target dates for award, kickoff, and final report delivery, please provide them.

ANSWER: Selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. A contract could then be considered during their next meeting on October 5, 2026. Work could begin after adoption. In order to begin incorporating possible recommendations into the FY 2027-28 budget, findings would need to be delivered by mid-April 2027. The Board holds its retreat each January. If preliminary findings are available, it would be great to begin discussions before the budget development process fully begins; however,

43. Please confirm that the following prior work will be made available to the selected firm, and identify any additional studies or reviews in the County's possession: the 2012 Evergreen Solutions performance audit report and any implementation tracking; the County's current pay and classification plan and related study materials; recent external financial audit reports and management letters; and the Lee County Government Strategic Plan.

ANSWER: All will be made available.

44. Please describe the County's current performance measurement practices. We note the adopted budget presents departmental financial detail and mandated/non-mandated program schedules; do departments currently maintain formal performance measures or KPIs, and in what systems does the County maintain department-level budget, staffing, and workload data?

ANSWER: The County began the process of overhauling our strategic plan in 2024, of which a part has been the establishment of departmental goals and performance measures. As a part of the adopted budget, the Board adopted a full set of measures for almost all departments. We are working on collecting baseline data currently and will begin reporting data this fall. An evaluation of these measures and our current strategic direction should be conducted during this audit. The County utilizes Tyler Enterprise as our ERP, in which we maintain all budget and finance information. We do not have specific software currently to track workload data outside of Microsoft office.

45. For benchmarking purposes, does the County wish to endorse or update the peer cohort used in the 2012 performance audit (Chatham, Franklin, Granville, Harnett, Rutherford, Stanly, and Surry counties), or should the selected firm propose an updated comparable cohort reflecting the County's growth since that time?

ANSWER: See answer to Q9. The selected firm is free to propose comparison counties.

46. What are the County's expectations regarding employee and community input?

Specifically, does the County expect an all-employee survey, a community/resident survey, or both, in addition to the stakeholder interviews described in Section 4(d)?

ANSWER: The County would be open to surveys of both groups if deemed necessary by the selected firm.

47. Is the County aware of any concurrent or planned reviews, audits, or examinations of County operations by other parties during the anticipated engagement period?

If so, does the County have expectations regarding coordination to avoid duplication of effort or scheduling conflicts with County staff?

ANSWER: Outside of routine annual financial audits, no.

48. The RFP includes assessment of compliance with federal laws, state statutes, administrative rules, County ordinances, and internal policies. Please clarify whether the County expects detailed compliance testing by department and function or a high-level assessment of the governance, policies, and processes used to support compliance activities.

ANSWER: Higher level assessments with more detailed analyses when deemed necessary based on findings.

49. The RFP references evaluation of County systems and technology use. Please clarify whether the County expects a high-level assessment of technology's impact on service delivery and operational effectiveness, or whether it expects a more detailed review of major applications, data systems, IT governance, and related technology infrastructure.

ANSWER: Higher level assessments with more detailed analyses when deemed necessary based on findings.

50. What are the County's expectations regarding on-site presence versus remote work for interviews, observations, and status meetings?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-

51. Section 8(g) states that proposals, including the composition of vendor staff, shall not be changed once submitted. In the event of circumstances beyond the firm's control (e.g., departure of a named team member), will the County permit substitution of personnel with equivalent or superior qualifications subject to County approval?

ANSWER: Yes.

52. Please confirm the administrative requirements for submission: (a) that the contract will include the E-Verify compliance term required of North Carolina political subdivisions under N.C.G.S. § 143-133.3; (b) any required County forms, affidavits, or certifications to be included with the proposal; (c) the County's insurance requirements for the selected firm; and (d) whether there is a page limit or required format for proposals.

ANSWER: A-Yes, B&C- See sample contract beginning on page 21, D- No limit

53. Will the County accept scanned electronic signatures on the proposals?

ANSWER: No, wet signatures only.

54. Does the County require the engagement to be conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS/Yellow Book), or is another methodology acceptable?

ANSWER: The County does not require the performance audit to be completed under specific standards. Proposers may indicate the professional standards they

55. What existing reports, studies, audits, or system inventories (referenced in Section

4(b)(iii)) will be made available to the selected consultant?

56. Has Lee County previously completed a performance audit, management study, or similar review? If so, should this engagement build upon those findings or establish a new baseline?

ANSWER: A performance audit was previously completed in 2012. This new study is meant to establish a new baseline.

57. What is the established budget or anticipated funding range for this engagement?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular

58. What is the expected contract start date and anticipated duration of the engagement?

ANSWER: Selected proposal(s) will be presented to the Board for consideration during their regular meeting on September 21, 2026. A contract could then be considered during their next meeting on October 5, 2026. Work could begin after adoption. In order to begin incorporating possible recommendations into the FY 2027-28 budget, findings would need to be delivered by mid-April 2027. The Board holds its retreat each January. If preliminary findings are available, it would be great to begin discussions before the budget development process fully begins; however,

59. Does the performance audit encompass all County departments and divisions, or will the scope be limited to specific functions or administrative areas?

ANSWER: All departments and divisions. See Charts 1 & 2 on pages 19 & 20.

60. Approximately how many departments, employees, and organizational levels are included within the scope? Additionally, what is the anticipated number of stakeholder interviews, survey participants, and community stakeholders expected to participate?

ANSWER: See Charts 1 & 2 on pages 19 & 20. The initial round of interviews will include elected officials and high-level staff, which is around 40 people.

61. When the RFP says "evaluate... technology use" (Section 3d) and "systems"

(Section 4b), does that mean an audit of IT infrastructure and security, and/or an assessment of whether current systems adequately support operational and staffing needs?

ANSWER: Higher level assessments of operational needs with more detailed analyses when deemed necessary based on findings.

62. General Question: Would the County please clarify whether there is a page limit to the proposal and if so, specify what it is?

ANSWER: There is no page limit.

63. General Question: Would the County please confirm whether the selected firm is eligible to perform this work remotely?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-

64. General Question: Would the County please clarify whether the selected firm will be expected to conduct site visits?

ANSWER: See answer above to Q63.

65. General Question: Would the County please indicate whether the selected firm is expected to perform work in accordance with industry standards such as Generally Accepted Government Auditing Standards (GAGAS or Yellow Book) or AICPA’s Statement of Standards for Consulting Services?

ANSWER: The County does not require the performance audit to be completed under specific standards. Proposers may indicate the professional standards they

66. General Question: According to the Lee County government website, there are 32 different departments/sub-departments that make up the county government.

Would the County please clarify whether the scope of this audit will include a detailed review of all 32 departments or if a sample methodology is acceptable?

ANSWER: The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews

67. General Question: Would the County please provide information regarding its expected budget or level of effort associated with the requested work?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular

68. General Question: Would the County please clarify whether there is a date that work is expected to begin on this engagement?

ANSWER: A start date will be determined during the negotiation period after the Board selects a proposal on September 21, 2026. A contract will ideally be taken to the Board of Commissioners on October 5, 2026.

69. Item 8: Proposal Submission: (p. 4–5 of 6): Item 8b says that the project team must remain in effect for a minimum of 60 days after the submittal date, but item 8g says that once submitted, the composition of the vendor staff cannot be changed. Would the County please clarify whether changes to the assigned staff are acceptable after 60 calendar days?

ANSWER: Any change in staff members would need County approval.

70. Scope: To what extent does the County expect department-level operational reviews versus enterprise-wide assessments?

ANSWER: The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews

71. Scope: Are constitutionally established and independently elected offices included within the scope of the audit (e.g., Sheriff, Register of Deeds)?

72. Scope: Does the County expect estimated fiscal impacts to be quantified for all recommendations, or only where sufficient/realistic information/data exists to develop supportable estimates?

ANSWER: The County would prefer estimated impacts, if possible, for all recommendations.

73. Scope: Does the County have expectations regarding deliverables to be provided in addition to the final report? If so, does the County have a preferred method for the sharing of information throughout the audit and following its completion?

ANSWER: A presentation for the Board of Commissioners is required along with the final report. Email and shared folders will work for sharing information.

74. Scope: In addition to interviews and surveys, does the County anticipate awarded contractors will perform limited testing of high-risk areas identified during inquiry?

75. 2012 results and changes since: Has the County evaluated implementation and outcomes from the 2012 performance audit? If so, can the County provide available information regarding recommendation status, realized benefits, and areas of continuing interest for further review?

ANSWER: We are compiling that information currently in preparation for this upcoming audit. It will be made available.

76. 2012 results and changes since: Has the County identified any operational areas it believes have experienced the greatest change since the 2012 audit and would therefore benefit from the most detailed review?

ANSWER: Our operations overall have grown significantly since then along with the County population. It will be the selected firm’s responsibility to determine the areas where the most improvements to efficiency and effectiveness can be made.

77. Location of services: Does the County have any expectations regarding onsite presence during the engagement, or may the selected firm propose a combination of onsite and remote activities as appropriate?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-

78. Contract template, insurance, and license requirements: Can the County share its boilerplate contract and insurance requirements for review?

ANSWER: See sample contract that begins on page 21.

79. Contract template, insurance, and license requirements: What local/state business licenses, certs, etc. does the County require prior to engaging?

ANSWER: See sample contract that begins on page 21.

80. Public Records Act: Will the awarded contractor’s proposal be subject to North

Carolina’s “Public Records Act”? It if will, will the awarded offeror have an opportunity to redact confidential/proprietary/personally identifiable information in accordance with the Act prior to contracting?

ANSWER: Yes. Proposals, including the awarded contractor’s proposal, are subject to North Carolina’s Public Records Act once the process is complete. However, contractors may clearly mark confidential, proprietary, or personally identifiable information, which may be withheld or redacted in accordance with NCGS 132-1.2.

81. Public Records Act: Alternative if not, in addition to the two seal copies of the proposals, should the offer provide one additional sealed copy with confidential/proprietary/personally identifiable information redacted?

ANSWER: That would be helpful, but not necessary.

82. Stakeholder Participation: Approximately how many County employees, department leaders, elected officials, and community stakeholders are expected to participate in interviews, surveys, workshops, or other stakeholder input activities?

ANSWER: The initial round will consist of 40+ people. Later rounds of engagement could include an unknown number of people. It would be up to the selected firm to determine what the best course of action would be.

83. Scope and Scale: The County website identifies multiple departments and functions. Are all County departments, divisions, and major service areas expected to be in scope, or are any specifically excluded?

ANSWER: See Charts 1 & 2 on pages 19 & 20.

84. Scope and Deliverables: Given the breadth of County operations, does the County expect a similar level of review and department-specific findings for all departments and service areas, or is a risk- and opportunity-based prioritization approach with focused recommendations acceptable?

ANSWER: The expectation for the audit process is for a comprehensive, government-wide assessment to be conducted, followed by more detailed reviews

85. Available Information and Performance Data: To what extent does the County currently maintain and document organizational, staffing, operational, and performance information that will be available to the selected consultant at project initiation?

ANSWER: The County will provide as much information as possible at project initiation. We do not have specific software tracking most of this data, but rather we will have to gather it from various sources.

86. Technology Environment: What major enterprise systems and applications are currently used across County departments to support service delivery and administrative operations?

ANSWER: Tyler Technologies is our ERP.

87. Delivery Format and On-Site Expectations: Does the County expect interviews, workshops, meetings, and final presentation activities to be conducted primarily on-site, virtually, or through a hybrid approach?

ANSWER: We would prefer at least the initial round of interviews and meetings to take place on site. After those are completed, remote work will be acceptable. An in-

88. Budget and Contract Parameters: Has the County established a budget range, funding allocation, or not-to-exceed amount for this engagement that proposers should consider when developing their approach and pricing?

ANSWER: A budget has not been set for the project at this time as the Board of Commissioners moved to create this RFP after budget adoption. The selected proposal(s) will be presented to the Board for consideration during their regular

Full Time Part Time Total FTEs Revenues Expenditures Board of Commissioners N/A N/A N/A - 272,975 County Manager's Office (Administration) 7.00 - 7.00 - 1,162,789 County of Lee Transit System (COLTS) 9.00 28.57 37.57 3,119,053 3,196,291 Community Support Services 5.00 0.48 5.48 443,864 894,964 County Attorney (Legal) 4.00 - 4.00 410,028 752,304 Elections 5.00 - 5.00 10 933,986 Emergency Management 3.00 0.10 3.10 229,940 756,457 Finance 8.00 - 8.00 - 954,565 Fire Marshal 3.00 - 3.00 649,131 582,462 General Services- Operations 41.00 - 41.00 - 8,954,870 General Services- Solid Waste 4.00 17.67 21.67 2,379,853 2,379,853 Health- General Operations 35.00 6.91 41.91 2,252,040 4,347,750 Health- Animal Shelter 4.00 0.22 4.22 18,661 335,182 Health- Environmental Health 8.00 0.40 8.40 229,562 1,004,334 Human Resources 7.00 0.13 7.13 - 998,571 Information Technology 8.00 - 8.00 - 2,206,136 Lee County Libraries 18.00 - 18.00 159,917 2,058,377 Parks & Recreation 19.00 5.66 24.66 736,000 3,510,326 Register Of Deeds 6.00 13.20 19.20 888,924 592,971 Senior Services 13.00 - 13.00 610,570 1,758,820 Sheriff- General Operations 66.00 3.68 69.68 210,250 10,373,277 Sheriff- Animal Control 5.00 6.15 11.15 1,000 649,243 Sheriff- Communications 7.00 - 7.00 - 636,976 Sheriff- Jail 29.00 0.29 29.29 199,500 4,328,646 Sheriff- School Resource Officers (SROs) 21.00 1.10 22.10 271,352 2,501,120 Social Services (DSS) 115.00 - 115.00 7,141,804 12,072,663 Soil & Water Conservation 2.00 0.96 2.96 22,584 184,639 Strategic Services (GIS) 5.00 0.06 5.06 165,291 651,083 Tax Administration 17.00 0.23 17.23 362,000 2,756,623 28 Internal Departments/Divisions 474.00 85.81 559.81 20,501,334$ 71,808,253$

Chart 1: Lee County Government: Internal Departments/Divisions All Departments/Divisions Listed Below Should Be In Project Scope

FY 2026-2027 Allocated EmployeesLee County Government Internal Departments/Divisions

FY 2026-2027 Adopted Budget

Revenues Expenditures Building Inspections (City of Sanford) - - Contract Review Only Central Carolina Community College - 5,453,633 Funding Level Review Only Cooperative Extension 400 438,120 No District Court Facilities - 8,208 No E-911 Communications (City of Sanford) 868,661 1,580,368 Contract Review Only Economic Development (SAGA) - 1,561,056 Contract Review Only Emergency Medical Services (EMS) - 2,872,459 Contract Review Only Juvenile Crime Prevention Council (JCPC) 205,084 205,084 No Lee County Schools 685,000 27,982,205 Funding Level Review Only Mental Health (LME-MCO) 26,000 240,000 No Non-Profit Agenc ies - 12,250 No Planning (City of Sanford) - 827,932 Contract Review Only Raleigh Executive Jetport (Airport) 433,404 433,404 No State Forestry (Fire Control) - 151,204 No State Services (Coroner) - 331,200 No 15 External/Contracted Agencies 2,218,549$ 42,097,123$ 7 Included In Project Scope

Lee County Government External/Contracted Agencies

FY 2026-2027 Adopted Budget

Chart 2: Lee County Government: External/Contracted Agencies See Below For Details on Inclusion in Project Scope

Included in Performance Audit?

STATE OF NORTH CAROLINA AGREEMENT

COUNTY OF LEE

1. AGREEMENT. This agreement ("Agreement") is entered into on the _______ day of _________________, 20 ___, by and between Lee County, a political subdivision of the State of North Carolina ("County") and _______________________________, ("Contractor"), whose business address is ________________________________________________________.

2. INDEPENDENT CONTRACTOR. Contractor shall be an independent contractor in all its activities pursuant to this Agreement. Neither Contractor nor any of its employees are to be considered County’s employee or agent for any purpose including, but not limited to, the accrual of any employee benefits. Contractor is not authorized to represent County or otherwise bind County in any dealings between Contractor and third parties. Any employees furnished by Contractor under this Agreement shall be deemed to be Contractor's employees exclusively.

3. SCOPE OF THE WORK. Contractor shall furnish all labor, equipment, tools, materials, supplies, transportation, tests and supervision required to complete in a workmanlike manner the work described in the Engineered Stamped Drawings (“Drawings”), which were submitted with Contractor’s bid.

4. PERIOD OF PERFORMANCE. This Agreement shall commence as of the date first written above and shall continue until terminated by either party in accordance with the terms of this Agreement. Contractor shall promptly commence Work and shall complete Work as required in the Project within _________.

5. PAYMENT FOR WORK. Payment for work satisfactorily completed shall be made within thirty (30) days of receipt of invoice by County’s finance office. Payment will be made in a lump sum to Contractor after County is satisfied with the project. The County will pay the Contractor an amount not to exceed ______________ for the scope of work for this project.

Contractor shall submit documentation supporting its entitlement to payment as required by County, and County shall have no obligation to pay Contractor unless and until County has received such documentation. The County will not pay for late charges or finance charges assessed for any reason.

6. LICENSING REQUIREMENTS. Contractor represents and warrants that it holds a valid North Carolina General Contractor’s License at all times in the performance of Work and that license meets the level of requirements for this project and shall submit to County a copy of said license. Any subcontractors retained by Contractor must also hold current, appropriate licenses.

7. PERMITS AND LICENSES. Unless otherwise agreed in writing in advance by County, Contractor shall obtain and pay for all licenses and permits that are required for it to perform Work.

8. COMPLIANCE WITH LAWS/COMPLIANCE WITH RULES AND POLICIES

OF COUNTY. In performing the services pursuant to this Agreement, Contractor shall comply with all laws, rules, regulations, ordinances, codes, standards, and orders of any and all governmental bodies, agencies, authorities, and courts having jurisdiction. Contractor also shall comply with all rules and policies of County. Contractor will also perform background checks of his employees and require background checks of subcontractors.

9. INSURANCE. Contractor shall comply with the insurance requirements set forth in Exhibit B, attached and incorporated herein by reference.

No workers’ compensation insurance shall be obtained by County concerning Contractor or the employees of Contractor. Contractor shall comply with the workers’ compensation law concerning Contractor and the employees of Contractor.

10. TAXES. Contractor shall be responsible for paying all taxes, fees, assessments and premiums of any kind payable on its employees and operations. Contractor shall substantiate, on demand by County, that all taxes and other charges are being properly paid.

Pursuant to N.C.G.S. § 105-164.14, County is eligible for sales and use tax refunds on all materials which become a permanent part of the construction. Contractor agrees to provide County such documentation as may be necessary to meet the requirements of the North Carolina Department of Revenue regarding requests for refund of sales and use taxes. Such requirements include those described in the North Carolina Department of Revenue Sales and Use Tax Technical Bulletins § 18- 2(F), outlined below:

To substantiate a refund claim for sales or use taxes paid on purchases of building materials, supplies, fixtures, and equipment by a contractor, County must secure from a contractor certified statements setting forth the specific required information. A “certified statement” is a statement signed by a contractor’s County, a corporate officer of a contractor, or an employee of a contractor who is authorized to provide information set forth in the statement. The certified statement must include all of the following information:

a. The date the property was purchased;

b. The type of property purchased;

c. The cost of property purchased and the amount of sales and use taxed paid thereon;

d. The vendor from whom the property was purchased;

e. The project for which the property was purchased;

f. If the property was purchased in the State of North Carolina, the county to which it was delivered, or, if the property was not purchased in the State of North Carolina, the county in which the property was used; and

g. The invoice number of the purchase.

In the event Contractor makes several purchases from the same vendor, such certified statement must indicate the invoice numbers, the inclusive dates of the invoices, the total amount of the invoices, and the State and local sales and use taxes paid thereon. Such statement must also include the cost of any tangible personal property withdrawn from Contractor’s warehouse stock and the amount of State and local sales or use tax paid thereon by Contractor. Any local sales or use taxes included in Contractor’s statements must be shown separately from the State sales or use taxes. Contractor’s statements must not contain sales or use taxes paid on purchases of tangible personal property purchased by Contractor for use in performing the Contract which does not annex to, affix to or in some manner become a part of the building or structure that is owned or leased by a governmental agency and is being erected, altered or repaired for use by a governmental entity as defined by N.C.G.S. § 105-164.14(c). Examples of property on which sales or use tax has been paid by Contractor and which shall not be included in Contractor’s certified statement are scaffolding, forms for concrete, fuel for the operation of machinery and equipment, tools, equipment, equipment repair parts and equipment rentals. Similar certified statements by Subcontractors must be obtained by Contractor and furnished to County.

Contractor shall submit notarized sales tax certificates which meet the requirements detailed above with each Application for Payment. Payment will not be made until the sales tax certificate(s) have been submitted to County. County is the recipient of sales tax refunds and no such funds shall be provided to Contractor, or claim made by Contractor therefor.

11. WARRANTY OF WORK. Contractor warrants that all Work shall be new, unless otherwise agreed upon, and of good quality and performed in a good and workmanlike manner. Contractor shall, at its own expense, at the request of County, promptly replace or repair any defective or deficient Work for a period of one year after completion of Work. The express warranty contained in this section shall not diminish any of County's rights against Contractor with respect to the time within which proceedings may be commenced to establish Contractor's liability with respect to Contractor's obligations other than specifically to correct Work.

12. SAFETY. Contractor shall establish and enforce safe working procedures at all times during its performance of Work in accordance with all federal, state and local laws, ordinances, rules and regulations pertaining to safety. Contractor shall ensure that any hazardous chemical use or transport must conform to OSHA’s Hazard Communication Standard, Department of Transportation requirements and applicable EPA requirements. Contractor must provide the County a Material Safety Data Sheet with or prior to any shipment of any hazardous chemical or material.

13. AGE LIMITS. No employee of Contractor under the age of 18 shall be permitted on property owned or leased by County.

14. CLEANUP. Contractor shall keep its work areas clean of debris and excess materials, and at the end of each day will leave its work areas in broom-clean condition. If Contractor fails to clean up as required herein, County may clean up and deduct the cost from

Contractor's payment. Contractor is also responsible for the removal of hazardous construction materials from the job site, and those will need to be disposed of in accordance with State, Federal and Local laws. Cleanup of the job site and removal of hazardous waste materials must occur within fourteen days.

15. LIABILITY. Contractor agrees to protect, defend, indemnify and hold County, its officers, employees and agents free and harmless from and against any and all losses, penalties, damages, settlements, costs, charges, professional fees or other expenses or liabilities of every kind and character arising out of or relating to any and all claims, liens, demands, obligations, actions, proceedings, or causes of action of every kind in connection with or arising out of this agreement and/or the performance hereof that are due, in whole or in part, to the negligence of the Contractor, its officers, employees, subcontractors or agents. Contractor further agrees to investigate, handle, respond to, provide defense for, and defend the same at its sole expense and agrees to bear all other costs and expenses related thereto. Contractor will ensure any and all Subcontractor agreements between Contractor and Subcontractor will include this same provision.

16. DEFAULT/TERMINATION. If Contractor fails or refuses to supply sufficient and properly skilled labor, equipment or materials, or fails in any respect to diligently prosecute Work, or otherwise is in default or breach of any term of this Agreement, County may terminate this Agreement upon 24 hours' written notice. In the event of such termination, Contractor immediately will stop work and remove its employees from County's property. County may complete the Work in whatever way it determines best, and at completion of the Work shall pay Contractor for the value of the Work performed by Contractor (excluding profit) but unpaid prior to the termination, less any costs incurred by County to correct any deficiencies or defects attributable to Contractor's work.