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Procurement Guidance Menu

Large-Scale Renewables Aggregation Guidance

Select a Consultant (Optional)

Procurement groups may choose to work with an outside consultant to assist with the procurement. Groups that are considering working with consultants should determine how costs will be split among participants.

Cost considerations for selecting a consultant

Consultants can often be paid through a success fee or hourly rates. Paying a consultant through a success fee reduces or eliminates the need to pay the consultant up front, which can be attractive to cash-strapped local governments. However, success fees can have two potential downsides. First, if a deal does go through, the local governments will almost certainly end up paying more in the long run, as the consultant will reasonably require a higher rate of return to compensate them for taking on the risk that a deal might not happen. Furthermore, success fees give the consultant a financial incentive to get a contract signed, which could impact their ability to provide neutral advice in some cases.

Case Study: Delaware Valley Regional Planning Commission (DVRPC) Buyer Group

DVRPC is facilitating a group of four counties to form the Southeastern Pennsylvania Regional Power Purchase Agreement Partnership. The group signed an MOU to outline the responsibilities of the DVRPC and each of the four participating counties — including for the DVRPC to issue an RFP for an Energy Services Consultant to help the group and for each county to contribute $30,000. This will help the group advance its goal to enter into a power purchase agreement to construct a large-scale solar energy facility.

For real-world examples of energy consultant RFPs used by local governments, please refer to these resources: