Transaction and Use Tax Revenue Forecasting and Recovery Services

The Los Angeles County Metropolitan Transportation Authority (Metro) is requesting proposals for transaction and use tax revenue 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, with proposals due September 29, 2026 and a pre-proposal conference scheduled for September 9, 2026.

No Small Business Enterprise or Disabled Veteran Business Enterprise subcontracting goal has been established for this contract, though proposers are expected to afford maximum opportunities to SBE/DVBE firms if subcontracting opportunities arise. Proposers must submit a notarized affidavit from an authorized representative certifying compliance with Revenue and Taxation Code section 7056 regarding conflicts of interest with retailers.

The scope encompasses transaction and use tax review, recovery services, and forecasting analysis. The contractor must maintain and continuously update a database tracking individual business locations and quarterly transaction and use taxes generated across the four tax jurisdictions; conduct initial and ongoing reviews to identify and correct collection, allocation, distribution, and other errors; research and submit documents to CDTFA to correct errors; and provide quarterly status reports on outstanding claims. All quarterly deliverables are due within 45 days following the close of each quarter. The forecasting component requires a rolling five-year (20 quarters) forecast of transaction and use tax revenues for all four measures, updated quarterly with actuals, plus detailed methodology documentation and discussions of pending litigation, legislation, and economic factors affecting collections.

The contract term is five years with compensation structured as a firm fixed price for forecasting services and contingency fees for recovery services. Recovery fees are tiered by cumulative amounts recovered: rates apply to recoveries of $0 to $5 million, $5 million to $10 million, $10 million to $15 million, and amounts exceeding $15 million; recovery fees are deducted from actual recovered gross revenues when verified by CDTFA and received by Metro. Proposers must demonstrate a minimum of five years of experience analyzing and forecasting municipal and state revenue sources, including local district add-on taxes, Bradley Burns taxes, and Internet sales taxes.

Evaluation criteria are weighted as follows: Qualification of Firm (25 percent), Qualification of Staff (10 percent), Work Plan and Project Organization (35 percent), and Price Proposal (30 percent). Within the price component, recovery services are weighted at 95 percent and forecasting services at 5 percent. The proposer with the lowest price proposal receives the maximum price score. Questions are due September 14, 2026. Pre-qualification applications for proposals exceeding $500,000 on non-construction contracts must be submitted by September 29, 2026.