TREAS - IRS - Cost of Capital - MRAS

The Department of the Treasury, through the General Services Administration (GSA), is conducting market research to support the Internal Revenue Service's (IRS) Large Business and International (LB&I) Division. The IRS seeks to enhance its capabilities in valuating intellectual property for Treaty and Transfer Pricing Operations (TTPO). This initiative aims to ensure accurate and reliable development of Cost of Capital inputs, which are crucial for valuation cases involving both U.S. and international companies. The overarching goal is to equip IRS economists with authoritative data tools that facilitate precise economic analysis, thus supporting fair and equitable tax assessments.

The primary requirement involves a database subscription to Duff & Phelps Cost of Capital Navigator Pro, formerly known as Kroll Cost of Capital Navigator. This tool is essential for developing Cost of Capital inputs by providing comprehensive data such as equity risk premiums, industry betas, company level betas, country risk premiums, size premiums, and other critical metrics. These inputs are integral for TTPO's field operations and Advanced Pricing & Mutual Agreement (APMA) valuation cases. By leveraging this database, TTPO economists can access a rich repository of valuation data that supports their analyses across multiple industries globally.

Specific modules required include the U.S. Cost of Capital Module and International Cost of Capital Module, along with their respective benchmarking datasets which provide vital financial statistics across numerous industries. This subscription service must offer web-based compatibility with IRS equipment and include historical valuation data spanning at least 20 years. Additionally, it requires regular updates at least quarterly to ensure that the most current information is available for analysis.

Moreover, robust support services such as a Help Desk are mandated to assist users in navigating the database effectively. This includes guidance on data access, model features, report generation, and troubleshooting during normal business hours throughout the contract duration. Such comprehensive support ensures that IRS personnel can maximize the utility of this critical resource in their day-to-day operations.