Vehicle Mileage Rate Study

Background
The Internal Revenue Service (IRS) provides a national standard mileage rate for taxpayers to compute the deductible costs of operating passenger automobiles. The use of the rate is optional and is deducted in place of the actual variable and fixed costs attributable to the use of an automobile. The contractor shall obtain vehicle registration data, conduct an annual mileage study, and perform statistical analyses to determine the rate to recommend that the IRS adopt as the Optional Standard Mileage Rate.

Work Details
The contractor shall obtain state-by-state vehicle registration data in electronic format from recognized official bodies and national automotive trade associations. The data will be broken down by year, state, vehicle type, make, model, and segment. The contractor shall determine the cost of operating a model auto based on a composite of at least eight representative class categories of autos used to represent the entire market. The contractor shall also derive the cost of fuels from normal pump prices of regular grade unleaded gasoline sold by major brand gasoline service stations throughout each state and determine other variable and fixed costs.

Period of Performance
The period of performance includes a base period from June 1, 2023, through November 30, 2023, with option periods extending through November 30, 2027.