Process Overview
• The evaluation process may be multi-staged. A four stage process may consist of (see Management Framework: Procurement Process)
o Innovation submission
o Preliminary technical submission
o Detailed technical submission and Indicative Financial Model and Indicative Financial Plan.
o Financial model, Financing Plan, Financial Offer and Proposal deposit. Specified final components of the technical submissions are to be resubmitted with this submission.
• The intention is to provide early feedback to Proponents in order to minimize the possibility of unacceptable proposals.
• Proponents are also invited to submit comments on the draft Project Agreement.
• Provision of the Preferred Proponent deposit.
o Within 3 business days of notification of the Preferred Proponent status.
• Execution of the Project Agreement
o Within 10 business days of notification of the Preferred Proponent status
• Provide milestone dates for each of the stages and events.
Department Representative
• State the contact information for the named Department Representative for the RFP.
Information Meeting
• Provide details of the information meeting for all Proponents.
• Provide details of any information meetings with utility companies, municipalities or other interested parties.
Data Room
• Provide the electronic address for the data room and information on user ID and/or passwords
• Provision of hard copy information.
Site Access
• Include details on how Proponents may access the Project site
• Give information on any access agreements the Proponent is required to enter into.
• Explain insurance requirements.
Clarifications, Questions and Addenda
• Provide instructions on how Proponents may submit questions to the department and confidentiality of responses.
• The department may issue addenda in response to questions raised by the Proponents.
• The department may request clarification to information submitted by Proponents.
• The department may require meetings with Proponents.
• The department may entertain requests for meetings from Proponents.
• Establish timelines for the submission of questions and responding to requests for clarifications.
Comments on Project Agreement
• The department allows the opportunity to review and provide comments on the draft Project Agreement to achieve an optimal Agreement.
• The Proponents suggest modifications to the Agreement along with reasoning.
• The department may meet with Proponents to gain further understanding of any proposed modifications.
• Proponents should involve their financial advisors, lenders and equity investors in the review.
• The department issues the final form of the Project Agreement before the deadline for the final Proposal submission.
• The Preferred Proponent signs the final form of the Project Agreement without further negotiation or amendment or forfeits the Preferred Proponent Deposit.
Submission Procedure
• Provide information on the number of copies and form of each submission (hard copy, electronic, bound, unbound)
• State time, location and person the submissions must be received.
• Identify any labeling requirements.
• If using a staged submission, the final submission must be a complete stand-alone Proposal incorporating the earlier submissions. All changes and clarifications from the earlier submissions must be shown.
• The final submission, including the Financial Offer shall be irrevocable, valid and binding for 90 days from the final submission deadline.
Proposal Deposit
• Each Proponent must provide a certified cheque or unconditional irrevocable letter of credit at the time of the final Proposal submission.
• The deposit will be returned to the unsuccessful proponents after the Preferred Proponent has executed the Project Agreement.
• The deposit will be returned to the Successful Proponent when they provide the Preferred Proponent deposit.
• The amount of the deposit should be substantial (approx 0.5% of the estimated initial capital cost)
Preferred Proponent Deposit
• In order to secure the financial commitment of the Preferred Proponent, they should be required to submit a Preferred Proponent Deposit upon notification of their preferred proponent status.
• The deposit is returned once the Successful Proponent has obtained committed, unconditional financing of 10% the value of the initial capital cost or has completed 10% of the capital works.
• The amount of the deposit should be approximately 5% of the initial capital cost.
Proposal Content and Evaluation
• Each of the staged submissions should be reviewed to ensure that they are complete and address the stated Submission Requirements;
o Assessment that a substantially complete submission has been received
o Determination of the acceptability of the required forms
o Determination of the acceptability of each component of the stage submission (pass/fail basis) or scoring of the components (qualitative added value basis).
• The submissions will be evaluated by technical and financial teams (see Management Framework: Procurement process).
• The department will use specific evaluation criteria
• A Proponent will fail any submission if, after clarification, it is deemed that the submission is materially incomplete or unacceptable. Failed Proponents will be excluded from any further involvement in the selection process.
• The Financial Offer will be assessed on a total net present value basis. The net present value will be calculated using a discount rate based on the borrowing rate of the Province of Alberta at the close of one business day before the deadline for the final submission.
• The department should reserve the right not to enter into a Project Agreement with any Proponent.
Honorarium
• The department will generally pay an honorarium to each unsuccessful Proponent whose final submission met all requirements.
• If the department does not enter an Agreement with any Proponent, the honorarium should be paid to each Proponent whose final submission met all requirements.
Fairness Auditor
• Identify that the department has retained a Fairness Auditor to monitor and report on the RFP process.