Dept of Revenue - Identification of Administrative Cost

The Colorado Department of Revenue is soliciting proposals for an activity-based cost study to identify administrative costs associated with four consolidated cash funds under House Bill 26-1059, with proposals due September 10, 2026.

The vendor will conduct a comprehensive analysis of collection, processing, compliance, and remittance processes across five operating units: the Executive Director's Office, Taxation and Compliance Division, Taxpayer Service Division, Tax Conferee/Office of Appeals, and Tax Policy Unit. The four fee types under analysis are Prepaid Wireless 911 Charge, Oil and Gas Production Fees, Enterprise Per Ride Fees, and Retail Delivery Fees. Key deliverables include statutory authority verification, cost modeling and methodology development using labor allocation matrices and system modification cost analysis, creation of an annual adjustment framework based on Consumer Price Index and account/return filing metrics, and a narrative report with comprehensive charge listings, cost analysis by fee type, recommended adjustments, and established adjustment mechanisms. An optional presentation slide deck is also deliverable. The completed report must be delivered before June 2027.

The contractor must provide adequate personnel resources for on-site observational interviews and process walkthroughs; the State will conduct background checks and provide reasonable staff access. All contractor and subcontractor personnel performing work must pass background checks and comply with federal tax information safeguarding requirements per IRS Publication 1075.

Pricing requires two components: a total firm, fixed price for Task Order One scope of work, and a single blended hourly rate for any additional services or projects. The initial contract term extends through June 30, 2027, with the State retaining discretionary options to extend for successive one-year periods not to exceed five years total without Chief Procurement Officer approval, plus an optional end-of-term extension up to two months. After the initial term, the contractor may request annual price increases not exceeding three percent, subject to State approval. Payment is contingent upon appropriation and continuing availability of contract funds, which may include federal or non-State funding sources. The State may terminate without further liability if funds become unavailable.