The total amount of pre-auction security required with the Part 2 Application for the BGS-RSCP Auction is $2.4M per tranche of the indicative offer at the maximum starting price.  A Pre-Auction Letter of Credit in the amount of $0.5M per tranche is always provided and the Notification of Qualification states for each bidder how the remaining $1.9M per tranche should be provided.  If a bidder is asked to provide a Letter of Reference from a bank, this Letter of Reference is simply to state that as of the date of the letter, there is a sufficient unused credit facility between the bidder and the bank to cover the $1.9M per tranche of the indicative offer at the maximum starting price. The Letter of Reference has two portions: a statement from the bank; and a certification from the bidder.

Three (3) samples for the Letter of Reference are made available to bidders on the Contract and Credit page of the BGS Auction website.  A bidder that uses any of these samples can be assured that the Letter of Reference will be acceptable to the EDCs.  If a bidder uses a different Letter of Reference and it is not acceptable to the EDCs, the bidder will have two business days to provide a replacement document.

Please note that a bidder always has the option, instead of providing a Letter of Reference for $1.9M per tranche of the indicative offer at the maximum starting price, to increase the amount of the Pre-Auction Letter of Credit to $2.4M per tranche of the indicative offer at the maximum starting price.