Puerto Rico’s Power future hinges on 1 document: The RFP
Puerto Rico’s push to unwind the current transmission and distribution operator arrangement with LUMA is more than legal or political development, it is a procurement test. The island is about to, once again, make one of the most consequential vendor selections in its modern economic history: who will operate the backbone of commerce, healthcare, public safety, and daily life.
A decision of this magnitude cannot be governed by press conferences, sliding timelines, or “we’ll fix it later” contract language. It must be governed by a disciplined Request for Information (RFI) and Request for Proposal (RFP) process designed for accountability, comparability, and execution certainty. In critical infrastructure, an RFI/RFP is not bureaucracy, it is risk management.
RFI vs. RFP: learning versus committing
RFI is the market intelligence step. It is how a buyer tests assumptions and discovers what is realistically available: operating models, transition timelines, workforce strategies, technology and cybersecurity capabilities, and typical performance frameworks. A good RFI is focused, specific and practical. It helps translate broad goals (more reliability, faster restoration, better customer experience) into requirements that can be measured and enforced.
RFP is the commitment step. It is where the buyer defines scope, success metrics, pricing structure, governance, remedies, and contractual obligations. It is also where vendors must put substance behind claims: documented experience, implementation plans, staffing models, references, and credible financial terms amongst other critical and specific relevant topics.
If Puerto Rico shortchanges the RFI phase, it risks producing an RFP that is either too vague (inviting proposals that cannot be compared) or too rigid (locking the government into unrealistic specifications). Either path increases the probability of procurement disputes, change orders, and underperformance after award taking us back to square one.
What “structure” delivers
A well-structured RFI/RFP process produces four tangible outcomes:
First, it forces internal alignment. Grid operations touch multiple stakeholders, each with legitimate priorities. Procurement discipline creates a single definition of the problem, the constraints, and the target outcomes.
Second, it makes vendor responses comparable. When proposal formats, assumptions, and data requirements are standardized, decisions become evidence-based rather than presentation-based.
Third, it creates a defensible selection record. That matters in any procurement, but it is essential when the decision is scrutinized by regulators, oversight bodies, and the public.
Fourth, it reduces downstream surprises. A strong RFP flushes out integration complexity, data readiness, workforce constraints, transition risks, and the true lifecycle cost of operations before the contract is signed.
Gov’t versus corporate RFI/RFP: Same purpose, different constraints
Both public and private buyers want value, capability, and reliability. The differences are in accountability and degrees of flexibility.
In a public-sector RFI/RFP, transparency and equal access are not optional. The process must demonstrate fairness: clear eligibility rules, formal timelines, published evaluation criteria, and a documented decision trail. The government must also anticipate protests and litigation risk, which means requirements and scoring must be disciplined and consistent from start to finish.
Public procurement also must prioritize continuity of an essential service. The RFP must address transition planning at a depth most corporate procurements do not: data ownership and handover, step-in rights, workforce continuity, subcontractor arrangements, safety compliance, and public reporting.
In the private sector, corporate procurement typically moves faster and negotiates later. Companies can run pilots, iterate requirements, and keep commercial terms confidential. That flexibility can be an advantage, but it can also become a governance weakness if the process lacks structure. Without objective scoring and clear requirements, corporate procurements can devolve into “selection by preference,” shifting scope, and contracts that are hard to enforce once implementation begins.
What about the next RFP?
If Puerto Rico is serious about replacing controversy with performance, amongst the myriads of specific technical items the next RFP should be explicit about the following:
Measurable reliability and restoration KPIs, including baseline definitions, reporting cadence, and remedies when performance falls short.
A transition plan that proves day-one readiness: staffing, training, operational playbooks, call center and customer service continuity, and a cutover governance structure with named accountable leaders.
Demonstrated capability to execute federally funded work with strong controls, documentation discipline, and audit readiness, not just aspirational plans.
A mature asset management and vegetation management program with measurable outputs and a credible workforce and contractor strategy.
Cybersecurity and operational technology resilience requirements, including incident response, system hardening, data governance, and exit provisions that ensure portability and continuity.
Total cost of ownership modeling, including service levels, performance incentives/penalties, and long-term cost drivers, so decisions are not distorted by headline pricing.
A proven utility restructuring experience and managerial “know how” related to the specific challenge at hand; a difficult “turn around” project with guardrails around capital, timeline and public trust.
The bottom line
The question is not whether Puerto Rico can find vendors willing to bid. The question is whether Puerto Rico can run a procurement process that selects a provider based on experience, evidence, enforceable commitments, and a transition plan that protects the economy and the public.
A disciplined RFI/RFP process will not guarantee success by itself. But when combined with a well-structured agreement and strong enforcement it provides the best chances for success. But an undisciplined process guarantees recurring disputes, slow execution, and another cycle of disappointment. Our next grid operator needs to be judged on performance. Thus, we require the right structure from day one to ensure the optimal scenario for delivering the best service to our island.
Author Raúl Burgos with more than 30 years of business experience is president and managing partner of Global 1080 Business Solutions, a business consulting firm specializing in Latin America, C-level advisory, strategic growth, and operational improvement and G1080 Consulting, a firm focusing on SMB’s and Startups. He is also the founder of the Puerto Rico Business Group on LinkedIn; a network of over 30,000 professionals committed to Puerto Rico’s business environment.
