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Load Management System” to FPL for a total price of $11,477,432.
One of the terms included in the LMS contract was a price
guarantee:
Prices for all parts of the Work shall remain firm
throughout Phase I except as otherwise indicated in
Base Bid Schedule Appendix I.
It is FPL’s intent to competitively bid its
requirements for Phases II and III. However, Contractor
agrees that the maximum price it will charge FPL during
Phases II and III will be the lowest price the Contractor
then currently charges its other customers of Contractor’s
load management system equipment of the same model, type,
system size, quantity purchase and similar contractual
terms. * * *[50]
Under the LMS contract, FPL purchased an entire system, including
hardware, software, etc.51 The LMS contract contemplated the
purchase of, inter alia, 10,000 plug-in transponders, 2,000
surface mount transponders, central computers, software licenses,
50 Concerning the LMS contract, Mr. Garcia testified:
There was no commitment to the work on FPL’s part
at that time to purchase any equipment beyond what is
described here as Phase I.
* * * * * * *
* * * [However, it] was made clear to the vendor
throughout the document that our intention was to do
the whole LMS project. * * *
51 The LMS contract refers to “phase I” but apparently that
term is not defined within the body of the voluminous contract.
Given the description of the items to be provided by A.B. Chance
and those which are described in FPL’s budget items, see infra,
we assume that “phase I” for the LMS contract is the same as
“phase I” for budget item purposes.
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