Attachment 1 - DWAS Requirement Document.pdf

Large Business and International (LB&I) Data Web Access Subscription

Description/specifications/requirement

Table of Contents

1. Overview

1.1. Background

1.2 Objective

2. Scope

3. Research and Database System Requirements

3.1. Database System (Data & Integrated Tools)

3.2. Required Data

3.3 Financial Data

3.4 Geographic and Business Profile Data

3.5 Information Access

4. Training

5. Management

5.1 Kickoff Meeting

6. Period of Performance

7. Section 508 of the Rehabilitation Act

8. Deliverables

9. Security Requirements https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D

1. Overview The Internal Revenue Service (IRS) requires a standardized and curated global company database and related and integrated research tools accessible via the internet through a website for employees within Large Business & International Division (“LB&I”).

1.1.Background

The LB&I division within the IRS, and specifically the Treaty and Transfer Pricing Operations (“TTPO”) practice area within the LB&I requires a database system to enable tax audit, analysis and potential tax assessments in the area of transfer pricing and international taxation. While TTPO may have the greatest need for such a database system, there are functions and aspects that are needed by others in LB&I, including Research, Applied Analytics, & Statistics Division (RAAS), Criminal Investigations (CI), Withholding Exchange and International Individual Compliance (WEIIC), Pass-through Entities (PTE), and Global High Wealth (GHW). For example, RAAS requires data for global enterprise risk modeling and CI uses critical international data for tax evasion investigations. This database system is critical for identifying individuals and corporate entities engaged in aggressive tax avoidance and for countering aggressive foreign tax adjustments. Not having access to the required database system would result in inefficiencies in data collection, less comprehensive data collection, reduced reliability of IRS pricing opinions, reduced sustentions in Appeals, and weaker support for large litigation cases. IRS analysts cannot replicate taxpayer valuations or reliably determine their own independent arm's length pricing opinions without the required global data.

1.2 Objective

The objective of this requirement is to obtain access to an integrated web-based solution to access global business data and related analysis tools.

1. The required database system should provide the IRS with extensive financial data on global companies, including privately owned companies, which is critical to both general transfer pricing and to the identification of individuals and corporate entities engaging in aggressive tax avoidance and evasion.

2. The database subscription should provide unique and critical data including private company information and a full archive of analysis tools statutorily required for Internal Revenue Code Section 482 transfer pricing analysis, general tax compliance research, and for criminal investigations.

3. Additionally, the database should enable cross-border activity analysts, financial products analysts, and competent authority analysts to construct valuation analysis for historical audit periods.

2. Scope The contractor should provide access to an integrated search tool solution inclusive of a global business database system of financial data on global companies, including privately https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D owned companies and the capabilities to perform data analysis with analysis tools statutorily required for Internal Revenue Code Section 482 transfer pricing analysis, general tax compliance research, and for criminal investigations accessible via the Web (Internet) for a minimum 3000 number of IRS users to be accessed 24 hours a day, seven days a week.

3. Research and Database System Requirements

3.1.Database System

3.1.1. The contractor should provide full access to a database (data and integrated analysis tools) for users. The database should allow users to easily export all relevant information, save analyses, and search sets for future use. In addition, the contractor should permit the IRS to share the publicly available source documents contained in the database system and used in IRS’ analysis with third parties (taxpayers and other tax authorities) that the IRS engages with.

3.1.2. The contractor provide future enhancements/updates to the government at no additional cost, and simultaneously with the vendor’s commercial customers.. The contractor must notify the Contracting Officer’s Representative (COR) at least 30 days in advance of any changes in operation or functionality of the database system.

3.2. Required Data & Integrated Tools

3.2.1. The contractor must provide the ability to research businesses, both domestic and international, both public and private, both current and historical, and details about their financial records, assets, structures, ownership, and other information.

3.2.2. The contractor must provide the following database system modules and tools as listed below:

1. Company Database 1: The database must provide current and historical financial information on companies globally, including standardized company financials, detailed corporate ownership structures (including beneficial ownership Information), directors and contacts, stock data for listed companies, country profiles, financial strength metrics, and compliance data. It should also include news and events data, and access to original filing data.

2. Loan Database 2: IRS employees require access to loan data from national and international public companies and analytical tools that give the user a corroborative method when conducting transfer pricing analysis. The database should be designed to provide users with a comprehensive view of entity, financial and transfer pricing data for high-risk transfer pricing transactions, particularly those involving intra-group financing. This database must enable users to identify comparable arm’s length lending margins and interest rates for intercompany loans to ensure compliance with global transfer pricing https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D guidelines.

3. Companies Comprehensive Database 3: A comprehensive database used for analyzing listed, unlisted and delisted companies worldwide and providing detailed financial reports, ownership structures, and ratings for public and private companies globally. .

4. Monitoring Database 4: This database must provide ongoing, automated tracking of company information, allowing users to stay updated on changes to business partners, suppliers or targets. It should continuously track companies within Company Database #1 and trigger alerts or updates when changes occur. It must monitor updates on crucial information including changes in company status, ownership and control, changes in company name, address or country of incorporation, and detection of new financial statements.

5. M&A Database 5: The IRS requires a comprehensive database of Mergers & Acquisitions (M&A) deal information, with integrated company information. It must contain information on M&A, Initial Public Offerings, private equity and venture capital deals and rumors.

6. Intellectual Property Database 6: The IRS requires a database that links global patent data to companies and corporate groups and allows users to access information about patent ownership, company structures, and M&A transactions related to patents across the world.

The database must provide a comprehensive view of a company's intellectual property portfolio by connecting patent information to the companies that hold them.

7. Intellectual Patent Values Database 7: The IRS requires a database that links global patent data with company financials and provides tools to evaluate, value and analyze patent portfolios. The database must track patent sales, M&A activity involving intangible assets, and ownership changes to monitor technology transfers.

8. Global Reports Module 1: A global reports module that provides comprehensive data, analysis and risk metrics for public and private companies worldwide. It should contain standardized information from broad, multi-source data aggregation to facilitate corporate ownership structure mapping, financial analysis, compliance and due diligence.

This database must provide for both summary and detailed financial https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D reports to be created and downloaded.

9. News Module 2: This database must provide curated, real-time business intelligence by monitoring global news sources and linking them directly to entities in Company Database #1. This database must include real-time news monitoring, tracking global news sources, including news agencies, regulatory bodies and web-based media to provide near-instant updates on company news.

10. Comparison Tool 1: The IRS requires an analysis tool to identify comparable companies, derive arm's length benchmarks, apply adjustments and produce documentation. The tool should leverage Database1 to enable detailed assessments of transfer pricing risks, compliance, and intercompany transactions. Critically, it should include historical business descriptions, industry classifications, and ownership independence criteria to determine comparable companies using relevant historical year data.

11. Documents Tool 2: The IRS requires a tool that provides access to original, scanned images of company reports and accounts and enables in-depth research through official filings. The tool must serve as a repository for crucial, detailed information such as annual reports and financial filings and allow users to verify data and facilitate detailed research into company structures, ownership, and financial performance.

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3.3 Financial Data

Analysts will use data filters to search for important information and screen for companies of interest. The following data categories and tools (salient characteristic) features are mandatory:

3.3.1 Standardized and normalized financial data for comparison against businesses worldwide, with English translations, and formatted to facilitate year-to-year and company-to-company comparisons.

3.3.2 “As reported” financials and point-in-time financials for all listed companies and, where governmentally required to report, financials for non-listed entities, including income statement, balance sheet, and changes to financial data, both “as reported” and standardized data. At a minimum, historical financial data should go back for at least five years.

3.3.3 Company financials available in local currency and United State Dollars ($US).

3.3.4 Original source documents for public and private companies from non-United States (non-U.S.) regulatory filings, including original source image files.

3.3.5 Company data including all data reported by the firms listed on the major U.S.

and non-U.S. stock exchanges.

3.3.6 Annual reports and/or any other reports required by foreign governmental agencies, including English translations.

3.3.7 Financial, tax, and transactional data reported to non-U.S. government agencies and/or any other data collection entities.

3.3.8 Loan agreements and associated information for each debt (financial analysis, credit rating/worthiness, lending margins/credit spreads, debt fees, and appropriate identification information).

3.4 Geographic and Business Profile Data

3.4.1 Worldwide public and private company and data coverage that provides at least 5 companies across 3-digit Standard Industry Classification (SIC) codes and 3 years of financial data. Data coverage must include companies in the Asia Pacific region and Europe/Middle East/Africa region.

3.4.2 Company identifying data (such as name, address, telephone number, tax identification number, country of foreign owner/incorporation, active/inactive status, incorporation date, etc.)

3.4.3 Information on related persons (officers, board members, advisors, and auditors).

https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D

3.4.4 Industry Classification Codes (i.e. SIC, North American Industry Classification System (NAICS), Nomenclature of Economic Activities (NACE) codes, and so on, as appropriate by tax jurisdiction). Industry code data filters must include a 4-digit SIC option, including data originally collected in other coding classification systems.

3.4.5 Ownership and shareholder structure information down to 10% ownership share (including ultimate owner, direct and indirect ownership; individuals, partners, non-corporate institutions, corporate ownership).

3.4.6 An ownership independence indicator variable is required.

3.4.7 Examine corporate ownership structure via tree diagrams, and find all companies associated with the same parent/beneficial owner in a tree diagram.

3.4.8 Partnership and trust information for all entities required to register with foreign governmental reporting agencies.

3.4.9 Historical Company Trade and Business Descriptions and historical Industry Classification Codes must be available contemporaneously with historical corporate ownership and financial information for point-in-time filtering purposes. Company Trade and Business Descriptions must be available in English.

3.4.10 Filters: The database system must provide filters for screening companies by geography, industry (name and industry classification code), various measures of size (revenue, assets, number of employees, etc.), business descriptions key words, type (public versus private), status (active, inactive, unknown), and similar variables. The database system must allow user-specified ratios to be used in the screening process (for example, research and development expenses to sales).

3.4.11 Users should have unlimited download ability for data associated with searches and screening analysis (examples company, IP, loan, and similar screens).

3.4.12 Mergers & Acquisitions data providing comprehensive deal information (actual mergers and acquisitions tracking, IPOs, venture capital, deal records, deal history from initial rumors to completion, and related data with financial and ownership data of companies involved).

3.4.13 Associated news, analysts' research, and market research.

3.4.14 Patent information associated with covered companies, including a suggested value of a company's patent portfolio and a benchmark, trends in their portfolio’s value, intellectual property indicators, such as total and technical quality, relevance, legal score, distribution, and market coverage.

https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D

3.4.15 Reports: The system will offer default reports appropriate by search topic. The user should be able to customize database reports appropriately, for example, by adding and rearranging report columns. Numeric related reports must be downloadable in Microsoft Excel compatible format.

3.4.16 Documents: Document downloads should default to Portable Document Format (PDF). (Original image files may be in other appropriate formats. The vendor should make allowances for at least 30 image file format downloads for global banks and private companies filing with non-US tax authorities.

3.5 Information Access

3.5.1 The contractor’s database system must be available to all IRS employees via a high-speed Internet website. The contractor must assign IRS employees with an initial username and password. Access will be available to IRS employees 24 hours a day, seven days a week (24/7).

3.6 System Administration Supports

3.6.1 If the contractor offers a client-based user administration tool, the contractor must make at least two administrator licenses available to the IRS technical points of contact (TPOCs). If the contractor offers no such tool, the contractor must remain responsible for ongoing user access and deletion requests and ad hoc user reports at the direction of the IRS TPOCs or CORs.

3.6.2 System user reports must be obtainable either from a system administration tool available to the IRS TPOCs, or directly from the Contractor as needed. At a minimum, reports must be available for the following concepts in Microsoft (MS) Excel format:

3.6.3 Accounts (active accounts, user detail (name, login name, email, organization/department group, account creation date))

3.6.4 Usage by user by date and connection time and/or session count, for past day, week, month, quarter, and year, or a reasonably similar pattern of summary reporting.

3.6.5 General system usage summaries by research or vendor product areas, and report access and/or downloads by report content types.

3.6.6 Help/Support

The contractor must:

3.6.6.1 Assist users with dealing with data specifics, data access, use of any associated database utilities, use of report templates and downloading of data.

3.6.6.2 Help/Support must be provided 24 hours a day, seven days a week to IRS users during the period of performance of this requirement.

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3.6.6.3 Details of all updates should automatically be provided to users as soon as possible.

4. Training The contractor should provide requested virtual training and support to include use of each major tool/website at both introductory and advanced levels. The contractor must provide up to three virtual trainings per month on any of the available web-based tools, approximately 1-hour each, up to 50 IRS personnel per training. The Contractor should work with IRS TPOC to identify training needs and develop appropriate virtual introductory and advanced training classes. The IRS uses an e-learning strategy, including virtual classes, and occasionally pre-recorded classes. This provides the benefit of continuous learning opportunities for all employees. The training topic and the option to record the training for agency training purposes should be at the discretion of the COR, Alternate COR, and the IRS TPOCs.

5. Management

5.1 Kickoff Meeting

Within five (5) business days of contract award, the contractor should facilitate the kick-off meeting with Government representatives via teleconference on Microsoft teams. The intent of this meeting is to initiate the communication process for this effort between the IRS and the contractor by introducing key participants, explaining their roles, reviewing communication ground rules, and assuring a common understanding of contract requirements and objectives. The completion of this briefing should result in the following:

1. The contractor should demonstrate confirmation of their understanding of the work to be accomplished under this Performance Work Statement.

2. The contractor should introduce key personnel point of contact (POC) and explain their roles.

3. The contract should ensure all parties have a common understanding of the requirement.

4. The contractor should provide a list of personnel contact information.

5. The contractor should provide COR with kick-off meeting minutes and POCs within five (5) business days after meeting.

6. Period of Performance

The period of performance must be one base year, with four option years.

7. Section 508 of the Rehabilitation Act

The Contractor will provide Electronic and Information Technology (EIT) products (supplies and/or services) in the form of electronic reports that comply with Section 508 of the Rehabilitation Act of 1973, per the 1998 Amendments, and the Architectural and Transportation https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D

Barriers Compliance Board's Electronic and Information Technology Accessibility Standards at 36 CFR Part 1194 in accordance with the clauses set forth in the contract.

The Contractor must adhere to Section 508 of the Rehabilitation Act of 1973, which requires access to the Federal Government electronic and information technology. The law applies to all Federal agencies when they develop, procure, maintain, or use electronic and information technology. Federal agencies must ensure that this technology is accessible to employees and members of the public with disabilities. http://www.section508.gov/.

Each EIT product or service furnished under this PWS must comply with the EIT Accessibility Standards (29 U.S.C. 87794(d)). For every EIT product or service accepted under this contract by the Government that does not comply with (2987794(d)), the Contractor will, at the discretion of the Government, make every effort to replace or upgrade it with a compliant equivalent

8. Deliverables The contractor must be responsible for, and its performance will be measured by, the timeliness and quality of the deliverables set forth below.

8.1 Submission of Deliverables

The Contractor is responsible for quality control of the deliverables identified in the contract and will work with the Contracting Officer’s Representative (COR) and Program Managers (PM) that are members of the Government’s technical monitoring team to ensure the quality and quantity of deliveries and service performance is consistently maintained and meeting the need.

8.2 Schedule of Deliverables

The contractor must provide the deliverables as described in Table 1 below during the performance of this contract. All contractor deliverables or work products must remain categorized as "Official Use Only” except the “User Report”. The release of any portion must be authorized in writing by the Government. The deliverables and work products will be provided in electronic format and must comply with all applicable standards of Section 508 of the Rehabilitation Act.

TASK # DELIVERABLE WORK

PRODUCT

FORMAT DUE DATE OR

FREQUENCY

3.1 The contractor shall provide

IRS employees with access to

Subscription Database System (Data &

Integrated Tools) (all data, tools, and

Support

Not Applicable

Within 5 days of contract award.

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9. Security Requirements

No security requirements needed under this contract requirement.

Services).

3.6.2 User Report Digital via email As needed/requested

4 Training Virtual via MS Teams, or similar platform

Intro. training (core modules) within 1 month of award. All modules within 3 months of award. As needed by Contractor, and as requested by IRS.

5.1 Kick-off Meeting Virtual via MS Teams, or similar platform

5 business days after award https://irsgov.sharepoint.com/sites/LBI?OR=Teams-HL&CT=1676316638682&clickparams=eyJBcHBOYW1lIjoiVGVhbXMtRGVza3RvcCIsIkFwcFZlcnNpb24iOiIyNy8yMzAxMDEwMDkxMyIsIkhhc0ZlZGVyYXRlZFVzZXIiOmZhbHNlfQ%3D%3D