The Energy Trust of Oregon has had a policy in place for some time that limits the number of prime and subcontracted management contracts to no more than two per contractor. This policy was designed to provide for healthy competition in Trust management contracts. The Trust is now in the process of re-bidding a number of project management contracts and is dividing that work into smaller increments to foster greater competition. As such, the organization believes that its current policy on the total number of contracts held by a single contractor could pose problems. As a remedy, the Trust is modifying its Balanced Competition policy along the lines embodied in its Board of Director’s resolution, which states;
- The Balanced Competition policy provides that no one may be a prime contractor or subcontractor of more than two Energy Trust programs. The purpose of the policy is to ensure competition for Energy Trust program management contracts.
- Energy Trust is re-bidding a number of program management contracts, and in doing so is dividing programs into smaller parts.
- Dividing programs into smaller parts is meant to foster competition for program management contracts. At the same time, subdividing programs could limit competition because contractors who previously had a single program contract or subcontract would now have two, and could no longer compete consistent with the Balanced Competition policy.
- The board sought a way to balance these effects by allowing firms with two or more program management contracts also to subcontract on other programs, as long as the subcontract represents no more than 33% of the program’s energy savings.
- Energy Trust also provides services to southwest Washington customers of NW Natural. These services are to be treated as a separate program in the re-bid process. Because this involves a relatively small market, the board intends to exempt this program from the Balanced Competition Policy.