Phase_VIII_QnA_1_22_16.docx
DOCX document 16 KB Posted
- Attached to
- Solar PV Energy Phase VIII - CDCR
- Solicitation number
- 0000000049
- Issued by
- California
About this file
This document appears to be a question-and-answer session related to a state government solicitation, likely for a Phase VIII and Phase IX renewable energy project. The key details include:
The solicitation involves a Power Purchase Agreement (PPA) contract that has undergone an amendment to remove the termination value schedule, which the contractor states makes the contract unfinanceable. The state has declined to reinstate the termination value schedule as requested by the contractor. Additionally, the RFP states that the contractor must pay for any utility distribution and transmission system upgrades required for interconnection, with no price adjustment mechanism for unforeseen costs. The removed project sites from Phases VIII and IX will not be offered in future phases, per the state's response. The RFP maintains prevailing wage requirements, but has waived the Disabled Veteran Business Enterprise (DVBE) participation requirement, allowing but not mandating DVBE utilization.
Pricing, funding sources, and other commercial terms were not detailed in the provided document. The focus appears to be on contractual and commercial points of contention between the state and the contractor.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| Attachment_8_Exhibit_8-3.xlsx | XLSX spreadsheet | |
| GTC-610.doc | DOC document | |
| Final_PPA_Template_1-6-2016.docx | DOCX document | |
| Phase_VIII_Addendum_1__01-13-2016.doc | DOC document | |
| Final_SLA_Template_1-6-2016.docx | DOCX document | |
| Attachment_8_Exhibit_8-2.xlsx | XLSX spreadsheet | |
| Phase_VIII_CDCR_RFP_01-13-2016.doc | DOC document | |
| Attachment_8_Exhibit_8-1.xls | XLS spreadsheet |
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Text version
QnA - PHASE VIII
Q: The PPA agreement released on 01/06 has been amended to remove the termination value schedule, and has replaced it with language that allows the Contractor to collect “actual damages established according to proof.” A termination value schedule is a required financing provision for PPA contracts, and the way the contract currently reads it is not financeable in its current form. The Contractor is securing tax equity partners to provide capital to build the project and who get paid back and earn their return over the term of the agreement. Without the assurance that the tax equity investor will get paid back in the event of default through the explicit and transparent inclusion of a termination value schedule, there will be little to no interest from the capital markets in participating in this transaction. We strongly encourage DGS to reconsider the removal of the termination value schedule and re-introduce back into the form agreement.
A: The state declines to make the requested modification.
Q: The last sentence of the RFP states “The Licensee must pay all costs imposed by the utility for distribution and transmission system upgrades that the Utility installs to interconnect the system. “ However, some upgrade costs may not be determined until after interconnection applications are submitted and studies are conducted, which occurs after the contract has been executed. Will DGS have a price adjustment mechanism for costs that were established to be reasonably unforeseen at the time of the bid?
A: No. There will not be a price adjustment for this category of unknown costs.
Q: For both Phase VIII and Phase IX, will CDCR be offering the removed sites in future phases or are they gone for good?
A: The removed projects have been removed by CDCR. It is unknown at this time if CDCR will choose to pursue those projects at a future date.
Q: Could you provide the reasoning for waiving the DVBE requirements and the verification of payment of prevailing wages prior to operations?
A: Prevailing wage requirements remain in the RFP. Refer to Section 4.6 (page 20) and the required Cover Letter Statements (page 23) of the RFP. For DVBE participation, there is no requirement, but vendors are welcome to use DVBE.
File details come from the government source that posted it. Updated .