ICANN announced tonight that it was updating its agreement with Power Auctions LLC, the company ICANN contracted with to operate auctions of Last Resort for new gTLD’s that received more than one application and were not able to settle the contention amongst themselves.
ICANN announced today that it has Updated its agreement today with Power Auctions to provide for Indirect Contention Sets for which PowerAuctions will get paid another $120,000
We wrote about ICANN agreement with Power Auctions, LLC back in February and you can read about the detail of the agreement here
In September 2014, ICANN amended its agreement with Power Auctions LLC to add the scope of work and fees associated with auctions for “indirect contention sets,” as defined in section 4.1.1 of the Applicant Guidebook (AGB).
The period of performance began 5 September 2014 and concludes two years from the first auction conducted by Power Auctions for “indirect contention sets.” If no auction for “indirect contention sets” has been conducted on or before 5 September 2016, the final date of performance shall be 13 September 2016.
Similar to the previous version of Auction Development and Management services scope, Power Auctions will provide end‐to‐end support from design to execution of auctions for “indirect contention sets.” The services in support of “indirect contention sets” will be provided in addition to those listed in the original agreement (as described above in the “Summary of Auction Development and Management”) and shall include:
Rules will be created for the bidding process (“Indirect Contention Set Auction Rules”) between participating applicants in “indirect contention sets,” which will conclude upon an auction round being completed with at most a single “feasible set” remaining. The feasible set is defined as a single or multiple applications within a contention set that are not in “direct” contention with one another. The feasible set with the highest bid will win the auction, and each application in this feasible set will be responsible to pay the price established for the winning application in accordance with the exact procedures of the
Auction implementation based on the Indirect Contention Set Auction Rules: Services and deliverables will be provided in accordance with the original agreement with the addition of a functioning auction system approved by ICANN to accommodate the Auction Rules for indirect contention sets.
Power Auctions will receive both a fixed fee and variable fees for the auction management services for “indirect contention sets.”
The up‐front, fixed fee of USD 120,000 is to be invoiced to ICANN following a system acceptance demonstration and before the occurrence which is intended to cover the development of a suitable solution, the writing of the Indirect Contention Set Auction Rules, support to the ICANN public comment process, customization of the software platform to account for “indirect contention sets,” and all preparatory steps to facilitating an Auction.
The variable fees shall remain as indicated in the original agreement, but shall be applied per contention set, i.e. fees will be paid to Power Auctions for each contention set in the winning “feasible set,” as defined above.””