REQUESTFOREXPRESSIONOFINTEREST PROCUREMENT OF CONSULTING ... · REQUESTFOREXPRESSIONOFINTEREST...

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Republic of the Philippines ENERGY REGULATORY COMMISSION REQUESTFOREXPRESSION OFINTEREST PROCUREMENT OF CONSULTING SERVICES FOR THE TECHNICAL ASSISTANCE FOR THE CREATION OF MARKET ANALYSIS FRAMEWORK FOR THE SURVEILLANCE AND MONITORING OF THE WHOLESALE ELECTRICITYSPOT MARKET 1. The Energy Regulatory Commission (ERC), through the 2017 General Appropriations Act intends to apply the sum of Thirty Four Million Five Hundred Thousand Pesos (Php34,500,000.00), being the Approved Budget for the Contract (ABC) to payments under the contract for Procurement of Consulting Services for the Technical Assistance for the Creation of Market Analysis Framework for the Surveillance and Monitoring of the Wholesale Electricity Spot Market (WESM). Bids received in excess of the ABC shall be automatically rejected at the opening of the financial proposals. 2. The ERC now calls for the submission of eligibility documents for the Procurement of Consulting Services for the Technical Assistance for the Creation of Market Analysis Framework for the Surveillance and Monitoring of the WESM. Eligibility documents .of interested consultants must be duly received by the BAC Secretariat on or before 29 September 2017 (Friday) at one o'clock in the afternoon (1:00 P.M.) at the Mezzanine floor, Pacific Center Building, San Miguel Ave., Ortigas Center, Pasig City. Application for eligibility will be evaluated based on a non-discretionary "pass/fail" criterion. The consultant engaged on this task needs to be able to demonstrate capability in the following areas: A. Must have at least ten (10) years of experience in providing monitoring and surveillance services to wholesale market operators/independent system operators or regulators in other jurisdictions; B. Must have been previously engaged in providing consulting and quantitative services related to energy market monitoring, market power investigation and analysis, and market design and performance; Pacific Center Building, San Miguel Avenue, Pasig City l\1ailing Address: P.O, Box 181 Greenhills. Metro Manila \Vebsite: http://w\\.w.erc.gov.ph Trunk line: 689-5-372 (ERC) Fax Nos. 633-32-53/634-86-41 638-45-17/689-58-06

Transcript of REQUESTFOREXPRESSIONOFINTEREST PROCUREMENT OF CONSULTING ... · REQUESTFOREXPRESSIONOFINTEREST...

Republic of the PhilippinesENERGYREGULATORYCOMMISSION

REQUEST FOREXPRESSION OF INTEREST

PROCUREMENT OF CONSULTING SERVICES FOR THETECHNICAL ASSISTANCE FOR THE CREATION OFMARKET ANALYSIS FRAMEWORK FOR THESURVEILLANCE AND MONITORING OF THE WHOLESALEELECTRICITYSPOT MARKET

1. The Energy Regulatory Commission (ERC), through the 2017General Appropriations Act intends to apply the sum of Thirty FourMillion Five Hundred Thousand Pesos (Php34,500,000.00), beingthe Approved Budget for the Contract (ABC) to payments under thecontract for Procurement of Consulting Services for the TechnicalAssistance for the Creation of Market Analysis Framework for theSurveillance and Monitoring of the Wholesale Electricity SpotMarket (WESM). Bids received in excess of the ABC shall beautomatically rejected at the opening of the financial proposals.

2. The ERC now calls for the submission of eligibility documents for theProcurement of Consulting Services for the Technical Assistance forthe Creation of Market Analysis Framework for the Surveillance andMonitoring of the WESM. Eligibility documents .of interestedconsultants must be duly received by the BAC Secretariat on orbefore 29 September 2017 (Friday) at one o'clock in theafternoon (1:00 P.M.) at the Mezzanine floor, Pacific CenterBuilding, San Miguel Ave., Ortigas Center, Pasig City. Applicationfor eligibility will be evaluated based on a non-discretionary"pass/fail" criterion.

The consultant engaged on this task needs to be able to demonstratecapability in the following areas:

A. Must have at least ten (10) years of experience in providingmonitoring and surveillance services to wholesale marketoperators/independent system operators or regulators in otherjurisdictions;

B. Must have been previously engaged in providing consulting andquantitative services related to energy market monitoring,market power investigation and analysis, and market design andperformance;

Pacific Center Building, San Miguel Avenue, Pasig Cityl\1ailing Address: P.O, Box 181 Greenhills. Metro Manila\Vebsite: http://w\\.w.erc.gov.ph

Trunk line: 689-5-372 (ERC)Fax Nos. 633-32-53/634-86-41

638-45-17/689-58-06

Republic of the PhilippinesENERGYREGULATORYCOMMISSION

C. Must have served as a market monitor in at least two (2) existingwholesale electricity spot market in international jurisdictionswith the responsibility to identify flaws in market rules; detectattempts by participants to manipulate the market, detect andmitigate measures to exercise market power; and identifyoperating procedures or actions by the system operators thatundermine the efficiency of the market;

D. Must have been previously engaged or have demonstrableexperience in understanding the issues on enforcement of marketrules, including identifying and investigating rule breaches,identifying anti-competitive behavior and understanding marketpower abuse;

E. Must be able to provide technical support on issues as they ariseduring daily monitoring of the market operations, and be able toanalyze and explain price formation in the market. This includesanalysis of generator dispatch, demand patterns, generatorbidding behavior, generator ownership structures andinvestigating the causes and reasons for transmission networkcongestion;

F. Must be able to provide technical support on the monitoring andanalysis of the co-optimization of the reserve and energy marketsand the pricing and market outcomes thereof;

G. Must have experience, technical skills and capabilities tosystematically organize and analyze large market data sets of thePhilippine; and

H. Must have sufficient knowledge of applicable 'software andhardware facilities that are required to effectively monitor theWESM.

DELIVERABLES

The consultant shall:

A. Develop a market monitoring analysis framework for the Energyand Reserve Market through the preparation of a detailed MarketMonitoring and Surveillance Manual (MMSM) includingestablishment of market analysis database and market indicescalculators. The MMSM shall serve as guideline for theimplementation of the monitoring and surveillance functions ofthe ERC. It shall contain different parameters and priceindicators applicable in monitoring the anti-competitive behavioror discriminatory behavior by any electric power industryparticipant, including the System Operator (SO) and Market

Pacific Center Building, San Miguel A venue. Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro Manila\Vebsite: http://\'o'ww.crc.gov.nh

Trunk line: 689-5-372 (ERC)FaxNos.. 633-32-53/634-86-41

638-45-17/689-58-06

Republic of the PhilippinesENERGYREGULATORYCOMMISSION

Operator (MO). It is intended to provide effective monitoring andevaluation by the ERC to ensure that the WESM functions in acompetitive environment as envisioned by EPIRA.

B. Produce monthly, quarterly and annual state-of-the-marketreports which shall include market analysis with focus onmarket efficiency, compliance, structure and conduct of marketparticipants;

C. Recommend policy guidelines such as but not limited to:

a. Mitigating measures to prevent anti-competitive behaviorand/ or misuse of market power; and

b. Parameters in defining and determining anti-competitiveacts or behavior.

D. Coordinate with the Commission's counterparts in otherjurisdictions to ensure the most productive knowledge exchange;

E. Conduct meetings with the Commission to effectively utilize thetechnologies being used by the host jurisdiction;

F. Determine additional reports (both internal and externalincluding for posting on the website) to be prepared using newtechnologies and methodologies;

G. Conduct rigorous hands-on training for MOS personnel todevelop market monitoring capabilities and enhance marketinformation analysis;

H. Facilitate and provide training to five (5) MOS personnel injurisdictions that employs similar monitoring system andmarket design with that of the Philippine WESM to ensure themost productive knowledge exchange; and

1. Be able to identify and provide the appropriate' technologicalinfrastructure (hardware and software) and the installation ofpackaged software of a market surveillance and monitoringsystem subject to the criterion set by the Commission.

3. Interested bidders may obtain further information from ERC-BACSecretariat and inspect the Bidding Documents at the addressgiven below during Monday through Friday, 8:00 A.M. to 5:00P.M.

Pacific Center Building, San Miguel Avenue, Pasig City:\1ailing Address: P,O. Rox 181 Greenhills, Metro Manila\\'ebsite: http://ww\I.. ..crc.gov.ph

Trunk line: 689-5-372 (ERC)Fax Nos. 633-32-53/634-86-41

638-45-17/689-58-06

Republic of the PhilippinesENERGYREGULATORYCOMMISSION

4. A complete set of Bidding Documents may be acquired by interestedBidders starting on 21 September 2017 (Thursday) from theaddress below and upon payment of a non-refundable fee for thebidding documents in the amount of Php2S,ooo.oo. The methodof payment shall be in cash.

It may also be downloaded free of charge from the website of thePhilippine Government Electronic Procurement System (PhilGEPS)and the website of the Procuring Entity, provided that Bidders shallpay the applicable fee for the Bidding Documents not later than thesubmission of their bids.

5. The BAC shall draw up the short list of consultants from those whohave submitted Expression of Interest, including the eligibilitydocuments, and have been determined as eligible in accordance withthe provisions of Republic Act 9184 (RA 9184), otherwise known asthe "Government Procurement Reform Act", and its ImplementingRules and Regulations (IRR). The short list shall consist of Five (S)prospective bidders who will be entitled to submit bids. The criteriaand rating system for short listing are:

Parameters Equivalent PointScore

A. Experience Factor 35%

B. Technical Qualification Factor 35%

C. Firm Track Record Factor 30%

Total 100%

(Note: Only the top 5 ron ked Firms with at least 75% points based on the short listing criteriawill be invited to submit the Technical and Financial Proposals, Should less than the j'requirednumber apply for eligibility and short listings pass the eligibility check, and/or pass the minimumscore required in the short listing, the BAC shall consider the same.)

A. Experience Factor - Bidder must have at least ten (10)years of experience in providing monitoring and surveillanceservices to wholesale market operators/independent systemoperators or regulators in other jurisdictions; .

B. Technical Qualification Factor - To establish that thebidders excel or are among the leaders in its field ofexpertise, they must have been engaged as a market monitorin at least two (2) existing wholesale electricity spot marketin international jurisdictions with the responsibility toidentify flaws in market rules; detect attempts by

Pacific Center Building, San Miguel A venue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro Manila\Vebsite: http://,,,,'ww.crc.gov.ph

Trunk line: 689-5-372 (ERC)FaxNos. 633-32-53/634-86-41

638-45-17/689-58-06

Republie of the PhilippinesENERGYREGULATORYCOMMISSION

participants to manipulate the market, detect and mitigateattempts to exercise market power; and identify operatingprocedures or actions by the system operators thatundermine the efficiency of the market; and

C. Firm Track Record Factor - the bidder must have beenpreviously engaged in providing consulting and quantitativeservices related to energy market monitoring, market powerinvestigation and analysis, and market design andperformance.

6. Bidding will be conducted through open competitive biddingprocedures using non-discretionary "pass/fail" criterion as specifiedin the IRR of RA 9184.

Bidding is open to all interested bidders, whether local orforeign, subject to the conditions for eligibility provided in theIRR of RA 9184.

7. The Procuring Entity shall evaluate bids using the Quality BasedEvaluation (QBE) procedure. The criteria and rating system for theevaluation of bids shall be provided in the Instructions to Bidders.

8. The contract shall be completed within twelve (12) months.

9. The ERC reserves the right to reject any and all hids, declare afailure of bidding, or not award the contract at any time prior tocontract award in accordance with Section 41 of RA 9184 and itsIRR, without thereby incurring any liability to the affected bidder orbidders.

10. For further information, please refer to:

Ms. Cherry Lynn S. GonzalesERC-BACSecretariat ChairpersonMezzanine Floor, Pacific Center Building,San Miguel Avenue, Pasig City,[email protected] /[email protected] No. 689-5312/689-5947/689-5350

20 September 2017, Pasig City.

~T(]~MARIA CORAZON C. GINES

BAC-Chairperson trsf

Pacific Center Building. San Miguel Avenue, Pasig CityMailing Address: P.O. Box 181 Greenhills, Metro Manila\Vebsite: http://www.crc.gov.ph

Trunk line: 689-5-372 (ERC)Fax Nos. 633-32-53/634-86-41

638-45-17/689-58-06