Question:
Section 3.2 of the RFP states,
"In order to be considered for award of a PLHA Agreement pursuant to this RFP process, Proposers, and all proposed subcontractors, must be incorporated as a designated 501(c)(3) nonprofit organization which is exempt from taxation under Subtitle A of the Internal Revenue Code or a local or tribal governmental agency, except for any city, including a charter city, which are ineligible organizations".
My company is an S-corporation. Can my company be a subcontractor?
Answer:
The County must follow the language of the RFP. Under RFP Section 5.6 “Right to Reject Proposals”, the County reserves the right to waive, at its discretion, any irregularity, which the County deems reasonably correctable or otherwise not warranting rejection.” (emphasis added).
Subcontracting with a legal entity that is not designated as 501(c)(3) nonprofit organization which is exempt from taxation under Subtitle A of the Internal Revenue Code may only be allowed if the County makes a finding that the proposal is so compelling and necessary that the S-corporation status should be considered an irregularity not warranting rejection of the proposal.