Common use of RECTIFYING DEFICIENCIES OF REJECTED OFFERS Clause in Contracts

RECTIFYING DEFICIENCIES OF REJECTED OFFERS. As observed previously, PG&E communicated early to several Participants about basic deficiencies in their Offer packages and provided them with an opportunity to correct these deficiencies by completing or correcting their original submissions. None of these original shortfalls in the packages resulted directly in rejection from the short list, as far as can be discerned. Most of the individual rejections of Offers were based on low valuations, low viability, and avoidance of excess supplier concentration. In general deficiencies preventing Offers from being selected do not appear to be caused by errors or misjudgments by the Participants in drafting the Offer package, but rather by the poor economics of projects or technologies at the MW scale chosen by developers, by insufficient progress by the developer at this point in time in areas such as site control, permitting, demonstration of resource quality, and interconnection (e.g., a “not fully baked” project, deficient not in its intrinsic merits but in its degree of advancement to date), and by of equipment and of contractors are moving targets. Xxxxxx cannot identify how PG&E could have rectified the deficiencies associated with rejected Offers while maintaining fairness to Participants whose Offers were selected. The only suggestion Xxxxxx can offer would be to edit future solicitation materials and bidders’ workshop presentations to clarify that the RPS solicitation differs completely from any proposed PV Program.

RECTIFYING DEFICIENCIES OF REJECTED OFFERS. As observed previously, PG&E communicated early to several Participants about basic deficiencies in their Offer packages and provided them with an opportunity to correct these deficiencies by completing or correcting their original submissions. None of these original shortfalls in the packages resulted directly in rejection from the short list, as far as can be discerned. Most of the individual rejections of Offers were based on low valuations, low viability, and avoidance of excess supplier concentration. In general deficiencies preventing Offers from being selected do not appear to be caused by errors or misjudgments by the Participants in drafting the Offer package, but rather by the poor economics of projects or technologies at the MW scale chosen by developers, by insufficient progress by the developer at this point in time in areas such as site control, permitting, demonstration of resource quality, and interconnection (e.g., a “not fully baked” project, deficient not in its intrinsic merits but in its degree of advancement to date), and by the difficulty for some developers in locking down a competitive PPA price when the price of equipment and of contractors are moving targets. Xxxxxx cannot identify how PG&E could have rectified the deficiencies associated with rejected Offers while maintaining fairness to Participants whose Offers were selected. The only suggestion Xxxxxx can offer would be to edit future solicitation materials and bidders’ workshop presentations to clarify that the RPS solicitation differs completely from any proposed PV Program.