The two leases will be offered for bidding online at the same time using a multiple factor auction format. In this format, BOEM may consider a combination of monetary and nonmonetary factors in determining the outcome of the auction. There will be two such factors considered by BOEM in this auction – (1) a cash bid, and (2) whether a bidder holds a Joint Development Agreement (JDA) or a Power Purchase Agreement (PPA). The cash bidding component will follow a process that allows bidders to bid up the price for each lease as the auction progresses using a procedure that has been used to address similar market conditions in spectrum and power markets.
The Final Sale Notice provides a complete description of how this auction format will be used to conduct the RI/MA lease sales and explains the procedures for determining the winners.