Addendum 1: Addendum 1 serves to answer questions from potential offerors.

Key Elements of the Carbon Offset Project Development RFP

(1) Purpose

This RFP seeks to engage qualified contractors with the experience and resources to develop and register forest-based carbon offset projects on State land (as authorized under AS 38.95.400 - AS 38.95.499 and 11 AAC 78) and market and sell the State's carbon offset credit portfolio.

Project areas may include the Tanana Valley State Forest, Haines State Forest and State forestlands in Mat-Su and Kenai.

(2) Cost

Designed to be at no upfront cost to the State.

Commission-based: contractor bears project costs in return for a share of project revenues (not to exceed 30%); contractor reimbursed for State’s share of project costs upon credit sales.

If a project doesn't achieve credit sales, the contractor is compensated at an hourly rate (not to exceed $50,000 total).

(3) Scope of Work

Nine key tasks to be completed by the contractor:

1. Feasibility study
2. Selection of a carbon crediting program and methodology
3. Forest carbon inventory
4. Project validation, verification, and registration
5. Public and stakeholder outreach
6. Market and sale of credits
7. Recommendations on third-party credit ratings and market integrity labels
8. Reporting of credit sales to the registry
9. Ongoing project monitoring, reporting and verification

(4) Project Schedule

* Offerors may propose an alternative schedule

(5) Evaluation Criteria

Experience (35%)
Favors contractors who have experience with similar types of projects, the resources to deliver on time and within credit estimates and knowledge of Alaska's unique opportunities and challenges.

Understanding of the Project (20%)
Favors proposals that show an understanding of the RFP's purpose, requirements and deliverables and highlight project benefits, including revenue, co-benefits and alignment with the State's management objectives.

Cost Proposal (20%)
Favors proposals that provide the greatest benefit to the State based on the contractor's proposed share of revenue.

Project Plan (15%)
Favors proposals that demonstrate a comprehensive and logical approach to accomplishing the scope of work, schedule, deliverables and specific project milestones.

Alaska Preference (10%)
Preference awarded to offerors with a valid Alaska Business License and who have maintained a place of business within the state for at least the preceding six months.

(6) Selection

Proposals are evaluated by a committee selected by the Department of Natural Resources.

The winning proposal is the highest score based on the evaluation criteria.