The process of contracting for new electricity generation - or demand management projects - begins with the identification of need by the Power System Planning group in consultation with the IESO.  Authority to proceed with addressing the need is provided either through the Minister of Energy and Infrastructure (prior to the existence of an approved Integrated Power System Plan) or the Ontario Energy Board (pursuant to an approved Integrated Power System Plan).

Procurement
The OPA has a number of ways of beginning the procurement process. Depending on specific requirements, it can issue one or more of the following: 

• A Request for Expressions of Interest (RFI) to determine organizations interested in providing the required capacity;
• A Request for Qualifications (RFQ) to explore which organizations might be in a position to fulfil the contracts; and 
• A Request for Proposal (RFP) to secure specific proposals and contract commitments to fulfil the identified needs.

RFIs/RFQs/RFPs are managed through our Generation Procurement microsite.

Contract Management
When the procurement processes are complete and a successful bidder has been chosen, the Contract Management department within Generation Development assumes two roles in support of the successful completion of the contract:

• During the development phase (before commercial operation), Contract Management supports the supplier, providing facilitation as necessary and monitoring project progress;
• Once the project is declared a commercial operation, the department stewards all financial aspects of the agreement.

Information on the OPA's Contract Management can be found here.

Sole Sourcing
The OPA will procure generation resources on a competitive basis wherever competition is likely to produce an efficient outcome. Individual project negotiations will only be undertaken where a competitive process is:

• Unlikely to produce an efficient or cost-effective outcome;
• A solid business case is approved by the OPA Board of Directors;
• Adequate controls, procedures and review mechanisms ensure a fair, reasonable and cost-effective outcome for electricity ratepayers.