EXHIBIT A-SCOPE OF SERVICES.pdf
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- Solicitation number
- PS143903
- Issued by
- California
About this file
This is a Scope of Services document from the Los Angeles County Metropolitan Transportation Authority (Metro) for transaction and use tax revenue forecast and recovery services. Metro is soliciting proposals from qualified firms to provide comprehensive forecasting and recovery services related to four voter-approved transportation sales tax ordinances (Proposition A, Proposition C, Measure R, and Measure M) administered by the California Department of Tax and Fee Administration. The contractor will conduct initial and ongoing transaction and use tax reviews to identify and correct collection, allocation, distribution, and other errors to generate previously unrealized tax revenue for Metro. Services include initiating contacts with sales, management, and accounting officials at companies that may have incorrectly reported taxes, researching and submitting necessary documents to CDTFA to correct errors, and providing quarterly status reports on outstanding claims. The contractor must maintain and continually update a database tracking individual business locations and quarterly transaction and use taxes generated within the four tax jurisdictions, provide updated quarterly reports identifying sales changes by category with comparisons, deliver annual aviation fuel sales tax breakdowns for FAA reporting requirements, and provide quarterly reconciliation worksheets. All quarterly deliverables must be submitted within 45 days following the close of each quarter.
The forecasting component requires the contractor to provide a rolling five-year (20 quarters) forecast of transaction and use tax revenues for all four measures, updated quarterly with actuals, along with detailed methodology documentation. Quarterly forecast reports must include accounting of revenues received to date, updated 20-quarter revenue forecasts, and discussions of any pending litigation, legislation, or initiatives affecting revenues, as well as local, regional, state, or national economic factors impacting collections. The document does not specify pricing terms, set-asides, contract duration, renewal options, funding amounts, or award dates. The procurement objective is to select a qualified firm capable of delivering the highest quality services at the most competitive price.
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TRANSACTION AND USE TAX REVENUE FORECAST AND RECOVERY
SERVICES
EXHIBIT A - SCOPE OF SERVICES
August 19, 2026
I. BACKGROUND
The Los Angeles County Metropolitan Transportation Authority (Metro) is soliciting proposals from qualified firms authorized to perform comprehensive Transaction and Use Tax forecasting, and revenue recovery services related to Metro’s four (4) voter-approved transportation sales tax ordinances administered by the California Department of Tax and Fee Administration (CDTFA). Metro has adopted four (4) half-cent retail transaction and use district tax ordinances for transit purposes including funding public transportation expansion projects, bus service and operations, and highway improvement projects. The four measures impose a transaction tax of 1/2 of 1% on the sale of tangible goods by retailers and e-retailers within Los Angeles County, and a use tax at the same rate on the storage, use or other consumption of personal property in the county.
The selected contractor will support Metro in maximizing the accuracy, integrity, and recoverability of transaction and use tax revenues generated under Metro’s four transportation tax measures and deposited by the CDTFA and other applicable agencies. The objective of this procurement is to select a qualified and authorized firm capable of delivering the highest quality services at the most competitive price
II. SCOPE OF SERVICES
This Scope of Services defines Metro’s requirements for this contract and the various services that the Contractor shall provide.
A. Transaction and Use Tax Revenue Recovery Services
1. The Contractor shall:
a) Conduct initial and on-going Transaction and Use tax reviews in order to identify and correct collection, allocation, distribution, or any other types of errors found and thereby generate previously unrealized tax revenue for Metro. The review of Internet sales is included in this section. The initial review should extend back to the earliest point where taxes may be legally or reasonably recovered.
b) Initiate contacts with the appropriate sales, management, and accounting officials of those companies which may have incorrectly reported Transaction and Use taxes to the CDTFA.
c) Initiate contacts with appropriate officials at companies to identify additional potential Transaction and Use tax sources.
d) Research, prepare and submit to CDTFA any and all documents, reports or forms necessary to identify and correct any transaction and use tax allocation or processing errors.
The contractor will actively monitor and pursue all outstanding corrections being processed by CDTFA and provide quarterly status reports on all outstanding claims.
2. Deliverables - The contractor will be required to deliver quarterly reports which, at a minimum, provide the following information:
a) A database of all businesses generating Transaction and Use tax within the Proposition A, Proposition C, Measure R and Measure M sales tax jurisdictions. At a minimum this database is to track individual business locations and the amount of transaction and use taxes generated quarterly. This database is to be continually maintained and updated by the contractor.
b) Updated quarterly reports identifying changes in sales by category, growth and decline comparisons, utilizing charts, tables, and top producer listings. Quarterly aberrations due to State audits, fund transfers and receivables along with late or double payments will be also be identified.
c) Provide annual breakdown of sales tax collected on the sale of aviation fuel at Los Angeles County airports to meet FAA reporting requirements.
d) Provide quarterly reports which contain reconciliation worksheets to assist Metro with receipt monitoring. At a minimum, these reports will include:
i) Amount of anticipated Transaction and Use tax recovery expected and identification of the source.
ii) Listing and the status of problems encountered during the preceding quarter.
e) All deliverables will be submitted to Metro’s authorized representative(s) within 45 days following the close of the quarter.
B. Transaction and Use Tax Revenue Forecasting Services
1. The Contractor shall:
a) Provide a forecast of Transaction and Use tax revenues including sales tax revenue for Proposition A, Proposition C, Measure R and Measure M for a rolling 5-year (20 quarters) period. This forecast is to be updated quarterly with actuals.
The contractor may provide a forecast for just one ½ cent measure as long as there are not significant differences among the four.
b) Describe in detail the methodology used in the development of your forecast.
2. Deliverables - The contractor will be required to deliver quarterly reports which, at a minimum, provide the following information:
a) An accounting of quarterly Propositions A and C and Measures R and M revenues received to date.
b) An update to the forecast of Propositions A and C and Measures R and M revenues for each of the next 20 quarters.
c) A discussion of any ongoing or pending litigation, legislation or initiatives which may affect Propositions A or C or Measures R or M transaction and use tax revenues.
d) A discussion of local, regional, state or national economic factors affecting Propositions A and C and Measures R and M transaction and use tax revenues.
e) All deliverables will be submitted to Metro’s representatives within 45 days following the close of the quarter.
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