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Gate 06 of 06
Decision Gate · DG6 · Long-Term Operations

O&M governance, asset performance, reporting cadence, lifecycle optimization.

The longest line on the pro forma. DG6 either protects or erodes the IRR underwritten at financial close, and most O&M failures are written into the contract long before they show up in the operating data. Twenty years is a long time to live with a structural problem.

Gate at a glance

Key decisions
  • Pricing structure: fixed, T&M, performance-based, or hybrid?
  • KPI framework with measurable thresholds and LD consequences?
  • Smart asset stack: controller, forecasting, predictive maintenance?
  • Exit readiness designed in from day one?
Bankable artifacts
  • KPI matrix + SLA schedule with LD consequences
  • Service contract with twenty-year sensitivities
  • Labor and consortium model with FTE plan
  • Lifecycle cost + spares plan
  • Performance guarantee package + true-up worked example
  • Reporting and governance framework
  • Transition and exit readiness playbook
Common failure modes
  • Lowest-fee selection without lifecycle cost analysis
  • Vague service agreements with undefined obligations
  • Spreadsheet-based asset management (can't enforce what isn't measured)
  • Vendor lock-in via black-box smart-asset platforms
Kill bar
  • O&M cost trajectory exceeds pro forma reserve
  • Provider performance breaches LD cap, project termination triggered
  • Smart-asset platform fails IE-grade validation
  • Repower decision or end-of-life capital event

Sub-gates within DG6

DG6.1
Program design lock
Scope, KPIs, SLAs, and pricing model frozen before RFP issuance or proposal submission.
DG6.2
Provider alignment
Selection (owner side) or submission (provider side) complete on common-basis evaluation.
DG6.3
Contract execution
Service agreement signed with bankable LDs, security package, and reporting infrastructure.
DG6.4
Mobilization & baseline
Handover from EPC closed, baseline KPIs locked, steady-state operations begin.

Deep-dives for DG6

Have an O&M RFP, an existing contract under renewal, or a portfolio under performance review?

Initial scoping calls are complimentary. Conflict cleared on engagement, fee from the client only.

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