Local Firms Excluded

Local solar firms are losing their cool about being excluded from installation work on the new federal courthouse in downtown Richmond.

Several local contractors attended a meeting last week about the project, which is funded through the American Recovery and Reinvestment Act (known on the street as stimulus spending).

According to some Richmond solar companies, a stipulation on who may bid excluded any Virginian outfit from consideration. The guidelines require that the contractor have seven years’ experience performing photovoltaic solar installations and in that time have installed three 50-kilowatt systems.

“There aren’t three of those projects in the entire state,” said Bernie Stanley, who launched Shockoe Solar last year. “It precludes anyone from Virginia to even compete on this. We’re not even allowed to bid unless we meet the qualifications.”

Stanley estimates that the majority of interested vendors at the meeting were put out of the running by the qualifications, and only a handful of large out-of-state contractors will be able to meet them.

Stanley had planned to do a joint venture with Colonial Webb, another local contractor. But because neither company has the number of needed systems under their belt, he said he isn’t planning to spend any time putting a bid together.

Only 13 of 58 interested vendors listed on the FedBizOpp.gov site are from Virginia. Stanley said he spoke to a few out-of-state contractors who flew into Richmond for the meeting who said they wouldn’t be able to qualify, either.

Stanley said one of the few firms that would qualify was Maryland-based Sun Edison, which has been in the photovoltaic business for 20 years.

The proposed system is between 115kw and 200kw, which is relatively large compared with most installations. But Stanley and other local firms say that just because it is bigger doesn’t make it more complex.

“It doesn’t matter if you do one, 10 or 20. You’re just multiplying,” said Stanley.

“They’ve set these qualifications as if there is some sort of mysterious complexity involved in these large projects,” said Stanley. “It’s not easy, but it’s not rocket science, either.”

He believes they were set that way to make it easier for the GSA to review each contractor’s qualifications and check references, figuring that if they had done three large systems then they must be qualified.

But Stanley said that with such narrow qualifications it’s likely only two or three firms will apply, and that means less competition and a higher price.

According to the request for qualifications, the project cost is between $1 million and $5 million. The funding is part of a $1 billion stimulus appropriation to make green improvements to government buildings across the country.

“It would cost $1 million to $1.2 million if it was done by a local contractor. I guarantee it will cost at least $2 million if someone out of state does it,” said Stanley. “It will be considerably higher, and the taxpayer will have to pay for it.”

Stanley said he has written a letter to the GSA expressing his concern and said his input was received and would be discussed. But Stanley isn’t holding his breath that the qualifications will be amended before the Oct. 16 due date.

Stanley isn’t the only solar installer crying foul.

“At a time when stimulus funding is being distributed and intended to stimulate the local economy, it’s really discouraging that the qualifications are like this and it’s going to go to someone out of state,” said Blue Crump, founder of Cityspace Solar.

Crump said it appears as if the qualifications were tailored for a small group of particular companies.

He said his company still plans to bid the contract and is searching for an out-of-state contractor to partner with in order to qualify.

“At least trying to keep some of the federal dollars intended for Virginia here,” Crump said.

The winning company could send in their own crew and board them in town until the job was done, or it could end up sub-contracting a share of the work to a local company.

“What I do see often: Because out-of-state contractors can meet these specific qualifications, they are awarded the job, they get more funding and more money for the project, and still try to subcontract it,” said Crump.

The GSA official overseeing the project did not respond to requests for comment.

Also of note to BizSense readers who follow green energy, Gov. Tim Kaine will announced the details of a new stimulus-funded incentive for alternative energy systems available to businesses and individuals today.

Al Harris covers green energy for BizSense. Please send news tips to Al@richmondbizsense.com.