ACT Bid Scoring: Process & Guidelines

The goal of this is to document the specific steps that Lumen Energy (LE) will take upon receiving ACT bids from EPC contractors to evaluate and score the bids submitted.

At a high-level, LE will perform bid evaluation in two (linear sequence) stages:

  1. Disqualification of ‘bad’ bids: immediately disqualify any bids that don’t need some minimum threshold and therefore merit no further consideration by the project buyer (ex: Bridge Solar)
  2. Scoring of remaining ‘good enough’ bids: score the remaining bids (that merit consideration by the project buyer) based on a standard set of evaluation criteria with the goal of sorting these bids so that LE can provided a recommendation to the project buyer

Stage 1: Disqualification of ‘bad’ bids

Disqualification criteria

When the bid period is closed, we (LE) will review each bid received for the following:

  • Unable or did not provide 3 customer references of C&I projects greater than 100kW
  • Number of relevant solar projects (greater than 100kW) completed over the past 3 years is fewer than 5
  • Production (kWh) of the system in the bid is lower than the target production specified in the “Project Info” doc, without any explanation from the EPC as to why
  • Hardware proposed in the bid does not meet the minimum specifications of the project'
  • Incomplete or false submission of required materials and documents (ex: missing info)
  • Project is located outside EPC service territory
  • EPC lacks the local license and credentials required to perform the project
  • Project timeline not complete
  • EPC cannot secure PV panel supply

Stage 2: Scoring of remaining ‘good enough’ bids

Scoring criteria and score assignment

Every ACT bid will be scored based on 4 high-level categories (each category will have different weights reflecting the importance of each category in the decision-making of the LE customer):

  • Company qualifications & project experience (category weight: 30%)
  • Cost (category weight: 30%)
  • Project schedule (category weight: 30%)
  • Responsible Supplier Policy (category weight: 10%)

Scores will be assigned to each ACT bid based on the following rules:

Category: Company qualifications & project experience (max possible points: 21)
Years in business
  • If years in business <3 years: 0 pts
  • If years in business ≥3 and <10 years: 1 pt
  • If years in business ≥10 years: 2 pts
Number of projects (larger than 100 kW) completed in the last 3 years
  • If <25: 0 pts
  • If ≥25 and <100: 1 pt
  • If ≥100: 2 pts
Total MW deployed through projects (larger than 100 kW) completed in the last 3 years
  • If <2.5MW: 0 pts
  • If ≥2.5MW and <10MW: 1 pt
  • If ≥10MW: 2 pts
Experience modification rating (EMR) from last 3 years
  • If most recent year is ≥1.0 and prior years were 1.0 or greater: 0 pts
  • If most recent year is ≥1.0 and prior years were <1.0: 1 pt
  • If most recent year <1.0 and lower than prior years (ie EMR has declined): 1 pt
  • If earliest year <1.0 and EMR has declined over time or been consistently <1.0: 2 pts
Number of projects permitted and interconnected with this utility:
  • If <25: 0 pts
  • If ≥25 and <100: 1 pt
  • If ≥100: 2 pts
References

EPC reference interview guide

  • If reference provides negative feedback about their experience or if the bidder is does not provide 3 references or all 3 references aren’t commercial & industrial (C&I) project: disqualify bid
  • If bidder provide 3 references for dissimilar projects (ex: system size smaller than project up for bid) and feedback is mixed: 0 pts
  • If references are for dissimilar projects but references provide positive reviews: 1 pt
  • If references are for highly similar projects and references provide positive reviews: 2 pts

Project team bio:

  • If project team members (individually) have ≤ 3 years of experience in solar projects or info is not provided: 0 pts
  • If project team members (individually) have >3 and ≤ 10 years of experience in solar projects: 1 pt
  • If project team members (individually) have > 10 years of experience in solar projects: 2 pts
  • [BONUS] If any of the project team members possess NABCEP PV Installation Professional (PVIP) Board Certification: 1 pt

Project manager experience:

  • If project manager has project managed <2.5MW of projects: 0 pts
  • If project manager has project managed ≥2.5MW and <10MW of projects: 1 pt
  • If project manager has project managed ≥10MW of projects: 2 pts

Debt ratio: this measures the bidder’s solvency. Thresholds set based on: https://www.readyratios.com/sec/industry/17/

  • If debt ratio >0.6: 0 pts
  • If debt ratio between 0.4 and 0.6: 1 pt
  • If debt ratio <0.4: 2 pts

Current ratio: this measures the bidder’s liquidity. Thresholds set based on: https://www.readyratios.com/sec/industry/17/

  • If current ratio is between ≤1.5: 0 pts
  • If current ratio is between 1.5 and 2.0: 1 pt
  • If current ratio ≥2.0: 2 pts
Category: Cost (max possible points: 2)

‘Bid adjusted project IRR’ (ie project IRR computed using bid info)

  • If ‘bid adjusted project IRR’ is +/- 0.5pp of the target project IRR (computed by LE during SELECT) OR ‘bid adjusted project IRR’ is lower than target project IRR by >0.5pp: 0 pts
  • If ‘bid adjusted project IRR’ is greater than target project IRR by >0.5pp: 1 pt
  • If ‘bid adjusted project IRR’ is greater than target project IRR by >1.5pp: 2 pts
Category: Project schedule (max possible points: 5)

EPC capacity to start work upon being awarded contract:

  • If time between contract execution end date and final design & engineering start date is >3 weeks: 0 pts
  • If time between contract execution end date and final design & engineering start date is ≤3 weeks: 1 pt

Procurement length

  • If time between procurement start date and end date is >5 weeks: 0 pts
  • If time between procurement start date and end date is between 2 to 5 weeks: 1 pt
  • If time between procurement start date and end date is ≤2 weeks: 2 pts

Construction length

  • If time between construction start date and end date is ≥ 8 weeks : 0 pts
  • If time between construction start date and end date is between between 4 to 8 weeks: 1 pt
  • If time between construction start date and end date is ≤4 weeks: 2 pts
Category: Responsible Supplier Policy (max possible points: 2)

Responsible Supplier Policy question:

  • If bidder selects none (0) of the listed options: 0 pts
  • If bidder selects ≥ 1 of the listed options and provides supporting documents: 1 pt
  • If bidder selects all of the listed options and provides supporting documents: 2 pts

Summing to a single bid score:

  • Every bid will be assigned points (not to exceed the ‘Max points allowed’) for each of the scoring criteria listed above. These individual criteria scores will then be summed up to the category that they fall under and this number will represent the category score.
  • Category scores will be automatically summed (a formula function has already been built) in AirTable. Therefore, there is no need for an LE team member to manually calculate and enter category scores into AirTable.
  • Each category score will then be multiplied by the category weight to generate a weighted category score.
  • The weight-adjusted category scores will be summed to calculate a ‘Weighted Bid Score’.
  • LE’s recommendations will be based on the ‘Weighted Bid Score’.

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