EXHIBIT 3A- EVALUATION CRITERIA.pdf

EXHIBIT 3A - EVALUATION CRITERIA

TRANSACTION AND USE TAX REVENUE FORECAST AND RECOVERY

SERVICES

Phase I - Minimum Qualifications Requirements (Pass/Fail Criteria): Metro shall perform an initial responsiveness review to determine compliance with the minimum qualification requirements as defined herein and notify all disqualified Proposers. Proposers that are deficient in meeting the minimum qualifications requirements at the time of proposal submittal shall be deemed non-responsive to this RFP and no further consideration shall be granted.

Phase II - Weighted Evaluation: Proposals that meet the Phase I Minimum

Qualifications Requirements shall be evaluated based on the Phase II evaluation criteria listed below.

PHASE I- MINIMUM QUALIFICATIONS REQUIREMENTS:

Proposers must meet and demonstrate the Minimum Qualifications Requirements at the time of the proposal submission:

1. Proposer must provide a notarized affidavit, signed by its authorized representative, attesting that if awarded contract, contractor is prohibited by Revenue & Taxation Code section 7056 from performing services for any retailer during the term of the contract that have potential to create a conflict of interest with regards to a Proposer’s obligations under the contract.

2. Proposer must have a minimum of five years of experience analyzing and forecasting municipal and state revenue sources, including, but not limited to, local district add-on and Bradley Burns taxes, including such taxes on Internet sales.

PHASE II- WEIGHTED EVALUATION:

Proposers that meet all Minimum Qualifications Requirements listed in Phase I will be evaluated according to the following criteria and associated weights. Unless specified below, sub-criteria shall be equally weighted.

1. Qualification of Firm 25%

1.1. Demonstrated record of satisfactory performance and successful completion of similar work, including projects performed under a confidentiality agreement with the California Department of Tax and Fee Administration (CDTFA).

1.2. Demonstrated financial capacity and resources sufficient to perform the required services on a contingency fee basis, including the ability to fund all necessary costs and expenses pending Metro’s receipt of any recovered tax revenues.

1.3. Demonstrated history of amounts of prior recoveries of sales tax revenues in actual dollars and as a percentage of the revenues prior to the recoveries.

1.4. Indicated number of staff to be assigned to Metro’s sales tax audit, recovery and forecasting components.

1.5. Demonstration of the firm’s current and past sales tax revenue forecasting capabilities and level of expertise and accuracy (variance to actual experience).

2. Qualification of Staff 10%

2.1. Demonstration of specific qualifications regarding prior sales tax auditing, recovery and forecasting work for key individuals. Please indicate staff experience on transit agency accounts.

2.2. Demonstration of general qualifications to perform relevant auditing, recovery and forecasting work for the supporting staff assigned to Metro’s engagement.

3. Work Plan and Project Organization 35%

3.1. Demonstration of ability to organize sales tax revenue data and produce revenue forecasts based on relevant microeconomic factors, including separate data on aviation fuel sales at county airports and separate data on Internet sales.

3.2. Demonstration of a clear understanding of point of sale vs. point of destination sales tax reporting as it relates to Metro revenues.

3.3. Demonstration of realistic, well organized and thorough workplan designed to achieve maximum revenue recovery.

3.4. Identification of additional sales taxes owed to Metro by either the CDTFA or taxpayers.

3.5. Demonstration of effective process to collect delinquent taxes from taxpayers or cause the CDTFA to make corrections to its books where errors are found and remit any payments due.

3.6. Demonstration of detailed plan to coordinate a smooth transition from the current provider as well as a schedule of the conversion process.

4. Price Proposal 30%

4.1. Recovery Services (95%)

This will be a fee based on a percentage of revenues recovered as a direct result of proposer efforts and will be paid only after recovered revenues have been verified by the CDTFA and received by Metro.

The fee proposal for audit services will comprise up to 95% of the 30% potential value of this selection criteria.

4.2. Forecasting Services (5%)

This will be a fixed price proposal for annual forecasting services.

The fixed price proposal for revenue forecasting services will comprise up to 5% of the 30% potential value of this selection criteria.

The Price Proposal will be factored into the Proposer's final evaluation score in the following manner:

Proposer Price Score = Lowest Price Proposal X 30%

Proposer’s Price Proposal