Is there anything inherent about RFP that requires only large projects?
Admin costs balloon if there are a lot of projects, because it takes almost as much time for the administrator to work with a small project as a larger one – maybe more if they are inexperienced. Administrators simply won’t have the funds to manage many implementers – so they won’t be able to approve many small contracts.Almost all current CA programs are 1/2 million and above. With the Standard Offer there’s no need to micromanage, so there can be lots of small contracts. In Texas there are many $5,000 and $10,000 contracts. None are more than $2 m (and no party is allowed to tie up more than 20% of total funds). The experience in Texas and New Jersey has been that small projects tend to get people comfy and get a track record that enables them to get more financing – and then they expand.
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- Is there anything inherent about RFP that requires only large projects?
