Multiple-Factor Bidding Auction. As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM will use a multiple-factor bidding auction for this lease sale. The bidding system for this lease sale will be a multiple-factor combination of a monetary bid and a non-monetary factor. XXXX will grant bidding credits to potential bidders for commitments to:
Multiple-Factor Bidding Auction. As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor auction format for this lease sale. Under XXXX’s proposal, the bidding system for this lease sale would be a multiple-factor combination of monetary and non-monetary factors. The bid made by a particular bidder in each round would represent the sum of the monetary factor (cash bid) and the value of any non-monetary factors in the form of bidding credits. XXXX proposes to start the auction using the minimum bid price for the Lease Areas and to increase these prices incrementally until only one bidder remains bidding on each Lease Area in the auction. XXXX is proposing to grant bidding credits to bidders that commit to one or both of the following:
Multiple-Factor Bidding Auction. BOEM will use a multiple factor auction format for this lease sale. Under 30 CFR 585.113, multiple factor auction means an auction that involves the use of bidding credits to incentivize goals or actions that support public policy objectives or maximize public benefits through the competitive leasing auction process. For any multiple factor auction, the monetary value of the bidding credits, if any, is added to the value of the cash bids to determine the highest bidder. The bid made by a particular bidder in each round of this lease sale will represent the sum of the monetary factor (cash bid) and the value of any non-monetary factors in the form of bidding credits. Bidders will be limited to bidding for two lease areas at a time, including at most one lease area in the North Region. BOEM will start the auction using the minimum bid price for each lease area and will increase these prices incrementally until no more than one bidder remains bidding on each lease area in the auction. In response to public comments, BOEM is not revising the bidding credit percentages from those proposed in the PSN. The total bidding credits remain at 25 percent. BOEM will grant bidding credits to bidders that commit to one or both of the following, subject to XXXX’s evaluation of the bidder’s BFF and Conceptual Strategy:
Multiple-Factor Bidding Auction. As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor auction format for this lease sale. Under XXXX’s proposal, the bidding system for this lease sale will be a combination of monetary and non-monetary factors. The bid made by a particular bidder in each round will represent the sum of the monetary factor (cash bid) and the value of any non-monetary factors in the form of bidding credits. XXXX proposes to start the auction using the minimum bid price for the Lease Areas and to increase these prices incrementally until no more than one bidder remains bidding on each Lease Area in the auction. For this sale, BOEM is calculating bidding credits as a percentage of the whole bid, which is a change from the method used in sales held prior to 2024, where bidding credits were calculated as a percentage of the cash portion of the bid. The intended purpose of this change is to simplify the bidding credit calculation. XXXX is proposing to grant bidding credits to bidders that commit to one or both of the following:
Multiple-Factor Bidding Auction. As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM proposes to use a multiple-factor bidding auction for this lease sale. Under XXXX’s proposal, the bidding system for this lease sale would be a multiple-factor combination of monetary and non-monetary factors. The bid made by a particular bidder in each round would represent the sum of a monetary (cash) amount and a non-monetary factor (bidding credit). XXXX proposes to start the auction using the minimum bid price for the Lease Areas and to increase that price incrementally until no more than one active bidder per Lease Area remains in the auction.
Multiple-Factor Bidding Auction. As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM will use a multiple-factor auction format for this lease sale. The bidding system for this lease sale will be a multiple-factor combination of monetary and non-monetary factors. The bid made by a particular bidder in each round will represent the sum of the monetary factor (cash bid) and the value of any non-monetary factors in the form of bidding credits. Bidders will be subject to a ‘one-per-customer’ rule, meaning that each bidder can acquire at most one lease area. BOEM will start the auction using the minimum bid price for each lease area and will increase prices incrementally until no more than one bidder remains bidding on each lease area in the auction. In response to public comments, XXXX is revising the bidding credit percentages from those proposed in the PSN. The total bidding credits remain at 25 percent. BOEM is increasing the credit for contributing to a fisheries compensatory mitigation fund from 8 percent to 12.5 percent, and is reducing the credit for supporting offshore wind workforce training programs or supply chain development from 17 percent to 12.5 percent. These changes reflect the potential conflicts of offshore wind with commercial fisheries and the many existing efforts of state and other federal initiatives for offshore wind workforce training and supply chain development. For this sale, BOEM is calculating bidding credits as a percentage of the whole bid, which is a change from the method used in prior sales, where bidding credits were calculated as a percentage of the cash portion of the bid. The intended purpose of this change is to simplify the bidding credit calculation. BOEM will grant bidding credits to bidders that commit to one or both of the following, subject to review of the bidder’s BFF and Conceptual Strategy.
Multiple-Factor Bidding Auction. BOEM will use a multiple factor auction format for this lease sale. Under 30 CFR § 585.113, a multiple factor auction means an auction that involves the use of factors other than cash, such as bidding credits, to incentivize goals or actions that support public policy objectives or maximize public benefits through the competitive leasing auction process. For any multiple factor auction, the monetary value of the bidding credits, if any, is added to the value of the cash bids to determine the highest bidder. The bid made by a particular bidder in each round of this lease sale will represent the sum of the monetary factor (cash bid) and the value of any non-monetary factors in the form of bidding credits. Bidders will be subject to a ‘one-per-customer’ rule, meaning that each bidder can acquire at most one lease area. BOEM will start the auction using the minimum bid price for each lease area and will increase prices incrementally until no more than one bidder remains bidding on each Lease Area in the auction. BOEM is not revising the bidding credit percentages from those proposed in the PSN: a 15 percent workforce training and/or supply chain bid credit, a 5 percent Lease Area Use Community Benefit Agreement (CBA) bid credit and a 5 percent general CBA bid credit. The total of all offered bidding credits remains at 25 percent. For this sale, BOEM is calculating bidding credits as a percentage of the whole bid, which is a change from the method used in prior sales, where bidding credits were calculated as a percentage of the cash portion of the bid. The intended purpose of this change is to simplify the bidding credit calculation. BOEM will grant bidding credits to bidders that commit to one or more of the following, subject to review of the bidder’s BFF and Conceptual Strategy.
