It sounds like more than one engineer didn't get his reality cheque in the mail last month.
If the genset does active synchronization then it should be a simple matter of setting the parameters of the proprietary gen-set control for active synchronization. This will avoid defaulting to an open transition anyway. If the set defaults to fast open transition, it may cause machine damage.
back to your original question, what is the difference between active and passive synchronization?
With active synchronization, the control adjusts the throttle setting to bring the set into sync with the bus as soon as possible.
Passive takes advantage of the fact that generator frequency is seldom exactly 60 Hz. If the set is running at 61 Hz. it will drift into sync once a second. The fast transfer is made at the moment that the set is in sync.
I doubt that the ATS can tell the difference between active and passive sync. Either way, when the generator is in sync, the ATS should recognize the synchronization and transfer.
Passive sync is often used on smaller residential and commercial sets with basic governors. The governors are usually running in droop mode and will drift into sync quite quickly.
If your vendor is supplying a set with an autogenous governor, and it is well set up, it may take so long to drift into sync that it defaults to open transition on virtually every transfer. If you have any large motors, you will probably eventually damage one, one day.
It may be that the vendor is trying to supply a "Cadillac" system and your engineer is desperately trying to get a "Volkswagen" system (at a Cadillac price).The engineer specifying passive sync. has probably copied someone else's spec. and is afraid to change it because he doesn't understand it. I have seen some expensive installations specified that way.
The challenge is to get the engineers to stop shouting "Active" "Passive" at each other and sit down and make the system work. As I suggested, if you let the set pull itself into sync when it wants to, the transfer switch will never know the difference.
If the gen-set has an active sync feature, you may have to run two or three wires to provide a grid reference voltage to the gen-set control. The gen-set controller may also need to send an inhibit signal to the transfer switch to delay transfer until the gen set is ready. That should not be a budget breaker.
Oh and by the way, if you are using motor operated breakers you definitely want active sync. With passive sync, the gen-set may be drifting too far out of sync. again before the motor completes closing the breaker. That's really bad, and that's an understatement.
respectfully