Bids are binding. Each Bidder acknowledges that the price in the Bid constitutes a binding and irrevocable offer to supply RECs from the Project at that price under the terms of the REC Contract and the quantity in the Bid is the annual quantity in the REC Contract aggregated across all Companies. In the Part 2 Proposal, the Officer of the Seller acknowledges and certifies that if the Seller’s Bid on the Project is approved by the Commission, the Seller WILL execute the REC Contracts with the Companies as instructed by the Procurement Administrator. Failure to do so is a failure to abide by one of the central representations and requirements of the Proposal.
Such failure will lead to forfeiture of the bid assurance collateral required with the Part 2 Proposal (up to $3.2M). Furthermore, there could well be other consequences to the Seller of failing to execute a contract for a Project selected through an IPA procurement event and approved by the Commission (in addition to forfeiture of bid assurance collateral). The Procurement Administrator expects that such a Project could not be bid again in a future initial forward procurement event. Furthermore, there may be eligibility criteria in the Programs proposed in the Long-Term Renewable Resources Procurement Plan (and which remains under Commission review) that would lead to exclusion of a Bidder or Seller that has previously failed to execute a contract for a Project that was selected through an IPA procurement event and approved by the Commission.