Decision, Sec. 3.3 Commission SBUA advocated for designing Review, p. 32 see that there the solicitation process to (“We are risks associated with the encourage participation by solicitations, especially for smaller contractors. SBUA's an increasing portion of the recommendations included portfolios. The two main potential simplified bidding processes and risks we see are the following: standard templates as well as Contracting bias. Because many training and support programs for utilities have existing third party small contractors. relationships, likely including both positive and negative In addition, SBUA recommended experiences from past that the Commission specifically interactions, there is a risk that identify the risk of bias against utilities could exhibit some bias smaller contractors in its for or against certain contractors, discussion of the risks The in Commission intends the process including smaller contractors, the RFA/RFP process. This could to mitigate against this. The result in contract or program Commission adopted SBUA's (emphasis added)). recommendation and included the failure.” risk of bias against smaller Ordering Paragraph 6, p. 63 contractors in its discussion. and Electric (“Pacific Gas Company, San Diego Gas & SBUA advocated for larger Electric Company, Southern contracts going through the California Edison Company, and Advice Letter Process in order to Southern California Gas ensure Commission oversight and Company shall, within 60 days of a fair distribution of programs, the issuance of this decision, shall but advocated against smaller select one company from among contracts going through the them to file a motion in this Advice Letter process because proceeding for approval of a smaller contractors wishing to bid standard contract for third parties, on EE contracts may not have the with standard terms and capacity to engage throughout a conditions that address…(f) lengthier review process. The Diverse and disadvantaged Commission ultimately adopted a business and employee terms, $5 million threshold for Advice including small businesses, if Letter review. applicable…”). References to Claimant’s Presentations: SBUA Comments on Scoping Memo (June 29, 2017), p. 7 (“The Commission should consider the
SBUA advocated for designing the solicitation process to encourage participation by smaller contractors. SBUA's recommendations included simplified bidding processes and standard templates as well as training and support programs for small contractors. In addition, SBUA recommended that the Commission specifically identify the risk of bias against smaller contractors in its discussion of the risks The Commission intends the process to mitigate against this. The Commission adopted SBUA's recommendation and included the risk of bias against smaller contractors in its discussion. SBUA advocated for larger contracts going through the Advice Letter Process in order to ensure Commission oversight and a fair distribution of programs, but advocated against smaller contracts going through the Advice Letter process because smaller contractors wishing to bid on EE contracts may not have the capacity to engage throughout a lengthier review process. The Commission ultimately adopted a $5 million threshold for Advice Letter review. Decision, Sec. 3.3 Commission Review, p. 32 (“We see that there are risks associated with the solicitations, especially for an increasing portion of the portfolios. The two main potential risks we see are the following: Contracting bias. Because many utilities have existing third party relationships, likely including both positive and negative experiences from past interactions, there is a risk that utilities could exhibit some bias for or against certain contractors, including smaller contractors, in the RFA/RFP process. This could result in contract or program failure.” (emphasis added)). Ordering Paragraph 6, p. 63 (“Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison Company, and Southern California Gas Company shall, within 60 days of the issuance of this decision, shall select one company from among them to file a motion in this proceeding for approval of a standard contract for third parties, with standard terms and conditions that address…(f) Diverse and disadvantaged business and employee terms, including small businesses, if applicable…”). References to Claimant’s Presentations: SBUA Comments on Scoping Memo (June 29, 2017), p. 7 (“The Commission should consider the