PUBLIC-PRIVATE PARTNERSHIP (P3): Facilities and Infrastructure

Transcription

1 Public Procuremet Practice Facilities ad Ifrastructure This practice provides guidace to the public procuremet professioal who is cosiderig a Public-Private Partership (P3) as a appropriate solutio to a stated eed or requiremet. This documet defies P3s i the cotext of the costructio of public facilities ad ifrastructure. The practice is also iteded as a referece, to be shared with elected public officials, govermet executives, ad private sector executives o the use of ad procuremet through P3 cotracts. STANDARD P3s are procuremets that combie desig ad build compoets uder oe cotract betwee the public sector ad the private sector. The ivolvemet of Procuremet is crucial to the success of a project that uses a P3. If cosiderig a P3 cotract, the etity should esure specialized expertise (e.g., fiace, real estate, techology) amog the team assiged to the project. A certai amout of flexibility must be icorporated ito P3 cotracts to address how future issues will be approached, icludig a process for resolutio. While the private parter may share i fiacig the project, the govermet will always be held resposible for the outcome of the project. Defiitio A public-private partership (P3) is a broad term used to describe public facility ad ifrastructure cotracts that miimally iclude compoets of desig ad build (e.g., costructio, reovatio, rehabilitatio) i a sigle cotract. Compoets of fiacig, operatios, maiteace, or maagemet may be icluded withi this sigle cotract. A P3 cotract allocates risks to the party (the govermet or the cotractor) best able to maage the risks ad may assig a higher level of resposibility for meas ad methods to the private parter. Elemet 1: P3s iclude Desig (D) ad Build (B) elemets i a sigle cotract for the costructio of public facility or ifrastructure projects. Traditioal costructio cotractig separates desig elemets from build elemets ito two distict cotracts. Whe desig ad build are combied ito oe cotract, partership characteristics may be exhibited (e.g., the trasfer of more decisio resposibility away from traditioal govermet decisio processes). Desig-Build (DB) cotracts costitute the foudatio of a P3. Addig the compoet of Maiteace (M) ito the same cotract icreases the complexity of a cotract ad would be referred to as a desig-build-maitai (DBM) P3. Operatios (O) ad Maiteace (M), separately or i combiatio, do ot costitute a P3 uless combied with Desig ad Build. Although acillary services that support the facility or ifrastructure project may be ivolved withi a P3, for the purposes of this documet, the actual P3 refers oly to the facility or ifrastructure project, icludig reovatio, rehabilitatio, ad expasio of existig facilities as well as ew facilities. Some examples of public facility ad ifrastructure projects that might use a P3 cotract are: Public-Private Partership (P3) 1

2 Public Procuremet Practice Facilities ad Ifrastructure Roads, highways, tuels, ad bridges Civic ceters ad areas, sports stadiums, recreatio sites ad facilities Water/Wastewater systems Idustrial parks Museums, theaters, libraries Housig projects, dormitories, detetio ceters Hotels, coferece ceters, parkig garages Commuicatios ifrastructure (Cot d) Elemet 2: The cotiuum of P3 cotract types rages from simple to complex. P3 cotracts rage from simple to complex alog a cotiuum that icludes Desig (D), Build (B), Fiace (F), Operatios (O), ad Maiteace (M). Desig-Build (DB), the foudatio of P3 cotracts, features the least umber of compoets with private sector resposibility. As additioal compoets (F, O, M) are added ad the cotract becomes more complex, the resposibility for meas ad methods moves toward the private sector (See Figure 1). Figure 1: Resposibility i P3 Cotracts Public-Private Partership (P3) 2

3 Public Procuremet Practice Facilities ad Ifrastructure (Cot d) Elemet 3: Establish ad apply etity priciples ad criteria for the use of a P3 Cotractig priciples should reflect the values ad missio of the etity. The P3 agreemet must provide better value, better quality, or exhibit practical advatages (e.g., access to private sector capital or acceleratio of costructio timeframes) that caot be achieved solely by the public sector. The decisio to use a P3 must be justified by a thorough aalysis of all project delivery alteratives, with a decisio process that must iclude ad be trasparet to the public. Core competecies of the public ad private parters must be complemetary, thus makig the partership ecessary ad stroger. The cotract must iclude adequate safeguards to protect the public from additioal costs or service disruptios i the evet of material default or cacellatio of the agreemet by either party. A P3 must ot be used to avoid the ormal budget process, voter approval, or legislative/goverig board approval. If access to private capital is pursued as a meas to avoid debt limits or requiremets (e.g., voter approval), the public procuremet professioals are obligated to raise cocers. Reportig of such cocers ad justificatio (who is makig the decisio ad why) should be documeted i the public record. Criteria for choosig a P3 may iclude: Public regulatio of operatioal decisios regardig the use of facilities or ifrastructure by a private parter (e.g., for a parkig garage, the govermet would decide what percetage of parkig spots are desigated for employees versus shoppers). Public resposibility for determiig the optios, icludig the type of facility ad ifrastructure, that would best achieve the desired public fuctio outcomes (e.g., library access could be achieved by desigig ad buildig oe large library or several braches). Elemet 4: A P3 cotract follows the procuremet cycle ad requires Procuremet to costruct a formal pla for each stage. Due to the complexity ad importace of a P3, every stage of the procuremet must be carefully plaed. Procuremet must use a icreased degree of diligece ad expertise to fid a way to market the opportuity, seek full ad ope competitio, ad balace all the risks ad resposibilities associated with the project. The formal pla should esure all elemets of the procuremet cycle, from eed to disposal, are addressed. Elemet 5: Assess feasibility of the project as a P3. A feasibility study reveals project requiremets ad alterative approaches for meetig the requiremets. The requiremets are the most fudametal ad critical factor i the success of the cotemplated project. The etity is resposible for plaig decisios, but plaig should ot be accomplished i isolatio. Determiig eeds, creatig a busiess case with alteratives, ad aalyses of the alteratives should follow a ope process that icludes relevat stakeholders, icludig potetial private sector parters. Procuremet staff are crucial to may of the feasibility assessmet tasks associated with P3s ad ca serve to form ad uify the team of specialists ad stakeholders. The iclusio of the potetial private sector parters throughout the feasibility assessmet phase is critical. Holdig pre-solicitatio coversatios ca provide ample opportuity to trasparetly share iformatio ad prevet ay misperceptios surroudig the process with potetial 3 Public-Private Partership (P3)

4 Public Procuremet Practice Facilities ad Ifrastructure (Cot d) parters. The chaces of success of the cotemplated project improve whe coversatios with prospective P3 cotractors ad stakeholders are collaborative ad ope to diverse perspectives ad expertise (Campbell et al., 2014). To make a iformed decisio regardig the type of procuremet method for the desig ad costructio of the facility or ifrastructure, the etity must first assess ad justify the eed for the project ad explai the desired outcome i detail. A descriptio of the challege or opportuity will provide clear coectios betwee the project objective ad possible solutios to achieve the ed result. Log-term fudig is ofte the basis, ad a primary limitig factor, for the public sector to proceed with major public facility or ifrastructure projects. Regardless of how a project is specifically fiaced, the total cost of the project will ultimately impact the public sector reveue source (New York, 2013). Durig the assessmet process, the etity must cosider whether the proposed project will garer the ecessary public ad political support. Public-Private Partership (P3) Procuremet must be kowledgeable of ad act i accordace with ay law that authorizes or prevets the use of a P3 (Rall, Reed, & Farber, 2010). A assessmet of how Federal, state, ad local regulatios may affect the cotemplated project should be coducted. Some factors that eed to be take ito accout may iclude: Legislative processes (e.g., whether goverig bodies must approve a P3 agreemet or award) Voter approval (e.g., debt) Tollig authorities Rate settig requiremets for system reveues Procuremet process requiremets Public owership of the facility or ifrastructure Restrictios o public debt Federal or state fiacig eligibility Tax exemptio requiremets Liability or isurace requiremets Atitrust statutes Public budgetig requiremets Collective bargaiig agreemets Ope meetigs ad public records laws Evirometal review processes A broad aalysis should be coducted durig the assessmet to idetify iteral ad exteral factors that may support or edager the project. A log-term project may be impacted by iteral fiaces, resources, ad capacity of the etity. A log-term project may be impacted by exteral factors, which may iclude: The iterests of curret politicias as carefully weighed agaist choices that should be left for the future. Chagig iterests of special iterest groups ad the public. Scrutiy by the public ad the media. Chagig user demographics. Social impacts the project will create. Shifts i the ecoomy. New, disruptive techologies that may appear. Force majeure evets. Defaults by ay private parter. 4

5 Public Procuremet Practice Facilities ad Ifrastructure Elemet 6: Determie whether a P3 cotract is the best alterative. (Cot d) Procuremet should develop a rage of feasible alteratives for deliverig the project. A busiess case should be used to compare, cotrast, ad explai alteratives to a P3. The busiess case ca be used to outlie timig of the project ad support budgetary plaig ad fudig requests. Whe private sector fiacig is beig cotemplated, a value for moey (VfM) aalysis should be coducted ad cotrasted with a public sector comparator (PSC) (Marti et al., 2013). These aalyses may iclude prelimiary projectios of potetial reveue sources (e.g., the umber of drivers expected to use a toll road or the umber of water system users who will pay for the charges). Early aalyses may be updated durig the selectio ad egotiatio stages. Regardless of whe the aalyses are completed, aalyses should be subjected to a idepedet ad impartial review process. Potetial beefits to the use of a P3 cotract may iclude: Accelerated project delivery timeframes ad improved ecoomic efficiecy. Creatio of ecoomic developmet beefits or social impacts. Improved quality ad savigs. Icreased public budget certaity. Operatio ad Maiteace compoets that act as a exteded warraty of quality ad workmaship. Improved asset coditios ad higher residual values by cotractig for Operatio ad Maiteace. Icreased staff capacity to work o other activities. Potetial challeges to the use of a P3 cotract may iclude: Offerig projects that are of commercial iterest to the private sector (especially whe pursuig private fiacig). Gatherig uified support (e.g., public, elected officials) for the project over a exteded period of time. Providig a sigle public sector voice for egotiatios, especially whe multiple public etities are ivolved. Developig realistic assumptios ad calculatios for log-term cotracts ad projects, based o ucertai uderlyig variables, that esure the public ivestmet is fair. Determiig how much flexibility to build ito the agreemet for issues that may arise durig the term of the agreemet (Europea PPP, 2014). Dealig with complexities that may icrease preparatio time ad trasactio costs. Gatherig sufficiet supplier refereces ad resources as compared to traditioal govermet cotractig. The private parter i a P3 cotract ofte seeks certaity ad advatage. This ca lead to less flexibility for the etity tha what is typically afforded through traditioal procuremets. Before movig forward with a P3 cotract, the etity must esure that sufficiet staff capacity ad expertise are available to maage the cotract throughout the plaed timeframe. The etity must develop a Pla B should the chose alterative fail at ay poit. Elemet 7: Pla for the solicitatio. Procuremet should cosider the impacts of the solicitatio method, requiremets, ad criteria o full ad ope competitio. Oce a P3 cotract is determied to be feasible, Procuremet should develop a procuremet pla with project objectives, critical success factors, evaluatio criteria, procuremet process steps, ad milestoes. Plaig focuses o how to build ad issue a solicitatio for private parters. Full ad ope competitio should be promoted wheever possible, recogizig that sometimes limited or o competitio is justified. 5 Public-Private Partership (P3)

6 Public Procuremet Practice Facilities ad Ifrastructure By defiig critical success factors for the etity, the project will be more attractive to the private sector ad lead to the selectio of the best parter. These factors also will cotribute to buildig public support while complyig with the jurisdictioal law ad affirmig values ad guidig priciples of public procuremet. Procuremet should develop a formal commuicatio pla for potetial proposers that balaces trasparecy ad cofidetiality. Cosideratio should be give to the impact o competitio ad o social values, especially for miority-owed, woma-owed, ad small busiesses. Cosideratios may iclude: Should certai project aspects suitable for small to mid-sized firms be procured separately? Should requiremets for subcotractor participatio be icluded? Do applicable laws allow requiremets for subcotractor participatio? Is there sufficiet availability of potetial P3 cotractors ad subcotractors? Would a advertisig pla attract more competitio? Is there sufficiet time for private parters to orgaize ad respod? (Cot d) Public-Private Partership (P3) Durig this phase of the plaig process, procuremet should: Be prepared to respod to public scrutiy ad media iquiries. Appoit a project team ad techical evaluatio committee with relevat expertise (e.g., fiacial, desig, real estate) to support the pla ad scope the procuremet. Be aware of the political eviromet ad outside pressures that might impact the process. Keep the focus o achievig the busiess objectives of the prospective P3 cotract ad build relatioships with stakeholders ad costituecies. State the defied public eed ad desired outcomes. Utilize performace-based cotractig priciples to defie requiremets ad stadards that allow potetial parters to propose their best approach. Be aware of electio timelies or budgetary periods that may impact procuremet milestoes. Elist prospective offerors to help defie a evaluatio framework that ca be used to fairly compare disparate project approaches. Whe a P3 project icludes a fiacig compoet (DBF, DBFO, DBFM, DBFOM), the private sector parter may operate as a special purpose vehicle (SPV) or joit veture (JV). A SPV is a separate legal corporate etity created solely for the purpose of servig as the P3 private sector parter. A SPV may be comprised of a private bak or ivestor, a egieerig ad architectural firm, a costructio firm, ad a operatios ad maiteace firm, i additio to specific subcotractors. The separate corporate structure focuses the activities of the SPV solely o the P3 project ad limits the fiacial exposure of the paret compaies of the SPV. I a joit veture (JV), each of the participats is resposible for profits, losses, ad costs associated with the project. Both SPVs ad JVs are separate arragemets outside the usual busiess iterests of ay oe firm. To pla for the solicitatio whe a SPV or JV is ivolved, the govermet should ask for a complete descriptio of all the busiess ad goverace relatioships betwee the private parters, as well as ay legal/fiacial limitatios (e.g., limited liability, limited capitalizatio). 6

7 Public Procuremet Practice Facilities ad Ifrastructure (Cot d) The fiacig packages offered by the proposers are a critical selectio factor. A outside fiacial cosultat may be hired to evaluate the proposed fiacig packages. The cosultat must have o coflicts of iterest with respect to the procuremet or ay fiacial dealigs with ay of the firms that comprise the potetial SPV. At a miimum, the proposal should: Idetify each proposed source of fiacig (e.g., debt, equity, govermet grats, govermet loas, govermet loa guaratees, private activity bods, tax icremet fiacig, PILOTS (Paymet I Lieu Of Taxes), tax abatemets). Idetify the method of paymet preferred by the proposer (e.g., tolls, availability paymets). Documet firm commitmets from each source of fiacig i the solicitatio requiremets. Elemet 8: Coduct the solicitatio ad select a private parter. Whe cosiderig the most appropriate selectio method for a P3, several factors should be cosidered, icludig the complexity of the project, overall risk, ad project completio deadlies. A method that utilizes qualitative ad quatitative factors i the evaluatio process is recommeded. Request for Solutios or iovative approaches A etity may choose to ope a P3 dialog with the potetial parter through a publicly advertised solicitatio requestig iformatio or solutios to the defied challege. Resposes will cosist of upriced proposals or techical solutios that ca be used to assist i assessig the feasibility of a project ad to determie whether the project should be procured as a P3. Request for Proposals (RFP) Whe usig a Request for Proposals (RFP), the iclusio of qualitative ad quatitative evaluatio factors will help to esure the successful selectio of a qualified cotractor(s). The RFP method should iclude madatory requiremets that are evaluated o a pass/fail basis. Multi-Step Process A Request for Qualificatios (RFQu) is developed as a meas of prequalifyig prospective cotractors. The first step of this process uses qualitative factors to prequalify offerors. The secod step uses price as the primary determiig factor. Fially, a evaluatio team reviews ad evaluates each respose accordig to subjective evaluatio criteria cotaied i the RFQu. The top-raked firms are the ivited to respod to either a Request for Proposals (RFP) or a Ivitatio for Bids (IFB). Competitive Dialogue Competitive Dialogue was itroduced ito the Europea Uio public procuremet system i 2004 to provide a improved ad more flexible method for awardig complex cotracts. The method allows for collaboratio betwee buyers ad suppliers, i order to allow suppliers to offer iovative solutios ad ideas for public projects. Competitive Dialogue is ow a firmly established method i Europe ad is commoly used i awardig cotracts for public projects. Discussios are held with selected suppliers i successive stages util a solutio is idetified. All participatig suppliers are the requested to submit fial proposals o the basis of the solutio resultig from the competitive dialogue. Whe usig this method, the etity esures equality of treatmet for all participatig suppliers. No submissio is made available to other proposers. Public-Private Partership (P3) 7

8 Public Procuremet Practice Facilities ad Ifrastructure Joit Solutios Procuremet (JSP) This multi-step method is similar to Competitive Dialogue. JSP is more commoly used i the procuremet of high dollar, complex projects with a high degree of risk. Steps i the JSP solicitatio method: 1. A Request for Iformatio (RFI) is issued. Suppliers respodig to the RFI are eligible to participate i ay subsequet discussios or solicitatios related to the project. 2. Submissios are evaluated by a evaluatio team. Rakigs are based o the proposed solutio ad the ability of the supplier to meet the requiremets of the project. Qualified suppliers are ivited to make formal presetatios, icludig sharig of techical data ad proposed solutios. 3. A formal Request for Proposals (RFP) is the issued to the suppliers that have offered acceptable solutios. Negotiatios are coducted ad best ad fial offers are requested from suppliers respodig to the RFP. Usolicited Proposals Usolicited proposals are sometimes received from a potetial private parter. After receivig a usolicited proposal, the etity should assess the proposal for feasibility ad determie if the project is appropriate for a P3 cotract. If the govermet elects to proceed, the procuremet process is iitiated. Although full ad ope competitio is the primary method of procuremet, if the usolicited proposal is accepted, a sole source procuremet method may be appropriate. Procuremet must follow the existig policies that address submissio, acceptace, ad cosideratio of usolicited proposals. Elemet 9: Coduct detailed cotract egotiatio. (Cot d) Together, the etity ad the private parter develop detailed project plas i order to esure successful outcomes of the project. The etity bears the ultimate resposibility for success. Public-Private Partership (P3) Oce the parter has bee selected, the etity must pla the approach to egotiatios ad cotract developmet. Good egotiatios are key for esurig successful outcomes that are i the best iterest of the public. With multiple proposers, egotiatios prior to best ad fial offers ad selectio provide for competitio ad lead to more completely developed proposals. Whe allowed by the jurisdictio, egotiatios with multiple proposers, though requirig more time ad effort, are cosidered a P3 best practice. Negotiatio May aspects of the cotract are subject to egotiatio. The complexity ad itesity of the egotiatio may be elevated durig the P3 process. Negotiatios should address approval authorities, plus the level of commuicatio ad ivolvemet of other stakeholders. Both parties should agree o the actios to be take ad who will be resposible for particular elemets of the agreemet. The relatioships established durig the egotiatio phase will be reflected i the developmet ad admiistratio of the cotract. 8

9 Public Procuremet Practice Facilities ad Ifrastructure (Cot d) Cotract developmet A P3 cotract may iclude: Performace-based cotractig priciples. Milestoes ad key performace idicators (KPIs). Strog maiteace ad safety stadards for cotracts ivolvig operatios or maiteace. Public satisfactio measures may be used to trigger chages to operatioal procedures. Processes for esurig high quality. The idetificatio of risk ad who will maage the fiacial burde (e.g., cost overrus, delays). Accoutability metrics to be used oce the cotract is put ito place. Accommodatios for chages i the public eeds. The ability to adjust the physical attributes ad operatio of the project due to chagig coditios. Cotract laguage that allows for a high level of opeess ad commuicatio betwee the parters. Laguage that outlies the process to be followed at the time of uexpected evets with directios for resolutio. A commuicatios pla that describes how stakeholders, icludig the media ad the geeral public, should be iformed durig all phases of the project. Provisios that outlie the parter s rights ad obligatios regardig commuicatios with stakeholders (e.g., public, ewly elected officials, ivestors). A appropriate goverace structure if multiple parties are ivolved with clear defiitios of the Cotractor ad the Buyer or the Ower. A extesive risk maagemet pla. Updated ad refied ecoomic assumptios that may affect the project outcome. Provisios for reportig o progress ad documetig key decisios by the cotractor. Joit decisio makig process to be implemeted durig the project. How savigs will be accrued ad distributed. Cotract trasitio ad close out. Cotractor paymet optios for log-term P3s with a fiacig (F) compoet Cotractor paymets for log-term P3s with a fiacig (F) compoet (DBFO, DBFM, DBFOM) usually ivolve oe or more of the followig ad should be detailed i the cotract: Tolls (fees collected directly by the private parter from users of the public facility or ifrastructure). Tolls should be explaied thoroughly i the cotract. The cotract should esure that the govermet either has sole discretio over the establishmet ad icrease of fees, or has fial approval of fee icreases proposed by the parter. Availability or periodic paymets (e. g., mothly lump sum paymets) made by the govermet to the private sector parter whe the facility or ifrastructure is ope ad available for use. The source of fudig for availability paymets may come from moies paid by users directly to the govermet or from other sources of fudig (e. g., geeral fud). Bous paymets or fies tied to KPIs. Provisios to adjust or reegotiate paymets to the private parter. Established maximum paymets. Cotractor (private parter) paymet guaratees should be calculated agaist the total price paid ad alig with public eed, usage, ad sources of reveue. Public-Private Partership (P3) 9

10 Public Procuremet Practice Facilities ad Ifrastructure Elemet 10: Admiister the cotract ad coduct assessmet. (Cot d) Procuremet should costruct plas for admiisterig the cotract ad assessig the project throughout the life of the facility or ifrastructure. Followig the award of a P3 cotract, the cotract admiistratio team coducts progress meetigs ad admiisters the paymet schedule, performace milestoes, key performace idicators, chage maagemet, dispute elevatio, ad risk mitigatio. The procuremet cycle icludes assessmets that occur throughout the project ad help to refie curret or upcomig project phases. Lessos leared o oe project should be iteralized ad applied to future procuremets. Backgroud Public-Private Parterships, also kow as P3s or PPPs, are viewed by may as a ew ad iovative tred i govermet cotractig; a risk sharig relatioship betwee govermet ad idustry; a product of leaer govermet followig the 2007 recessio. P3s may be iovative, but they are ot ew. The term Public-Private Partership emerged i Europe ad Asia i the 1990s ad i the Uited States i the mid-2000s. The combiatio of elemets commo to P3s ca be traced back to aciet Roma roads, feudal castles, 14th cetury water systems, ad some early America public works projects. Although most Public-Private Partership defiitios avoid the words procuremet ad cotract, P3s are cotracts ad are best sourced ad formed through full ad ope competitio. P3s are ot true parterships as defied by commo law ad statutes. P3s are ofte viewed as a alterative source of debt or equity fudig. Recogizig the true cost to the govermet for private sector debt or equity is critical. Tappig private sector equity or debt must oly be used whe the beefits outweigh the costs, as compared to other budgetig or fudig alteratives. Public-Private Partership (P3) P3 cotractors require a retur o ivestmet or debt i the form of shared reveue, availability paymets, or cocessio paymets. The total cost to the govermet may far exceed other forms of fiacig. This retur o ivestmet or debt to the private parter ca burde a govermet for decades with paymets, reduced bodig capacity, lower credit ratigs, icreased user fees, or costly cosequeces. Examples Atlata Braves ad SuTrust Park (DBFOM) The Atlata Braves ad Cobb Couty Govermet, Georgia, established a public-private partership for costructio of SuTrust Park ad are utilizig a desig-build-fiaceoperate-maiteace (DBFOM) P3. The total budget for the project is $672 millio with $300 millio beig fuded by Cobb Couty ad the Cumberlad Commuity Improvemet District. The partership will cotiue through 2046, durig which time the Braves will have exclusive rights to operate ad maage the stadium. The Couty ad the Braves will make equal aual cotributios to a Capital Maiteace Fud for capital improvemets ad repairs for the stadium ad parkig areas. Durig the cotract, the stadium will be owed by the Cobb-Marietta Coliseum ad Exhibit Hall Authority. The Authority is a body corporate ad politic created by the Georgia Geeral Assembly i At the ed of the cotract, the Atlata Braves have a optio to purchase the stadium. If the Braves elect ot to purchase the stadium, Cobb Couty would assume full owership. 10

11 Public Procuremet Practice Facilities ad Ifrastructure The couty awarded a cotract to a project maagemet firm to oversee ad moitor the costructio cotract. The Braves hired the primary costructio maagemet firm. However, with so much public moey beig ivested, the Board of Commissioers hired a idepedet firm to protect the iterests of the couty. The role of the firm is to review plas, costructio timelies, ad pay applicatios while providig assurace to the public that fuds are beig spet wisely. The project is scheduled for completio i early The Braves will ope their 2017 seaso i the ew stadium. Pesylvaia Bridge Rehabilitatio (DBM) The state of Pesylvaia leads the atio i structurally deficiet bridges. Addressig this problem, the Pesylvaia Departmet of Trasportatio (PeDOT) is utilizig a desig-buildmaitai (DBM) P3 to rehabilitate or replace over 500 of these bridges. The early $900 millio P3 cotract calls for all costructio work o the 500 bridges to be completed withi three years, by the begiig of 2018, after which the cotractor will maitai the bridges for aother 20 years. Average aual PeDOT paymets to the cotractor will be $65 millio. By utilizig the DBM P3 approach, PeDOT estimates that they will reduce costructio costs by 30 percet ad advace costructio times by 3 years. The Port of Miami Tuel (DBFOM) (Cot d) The Port of Miami Tuel (POMT) is a example of a desig-build-fiace-operate-maitai (DBFOM) P3 for trasportatio ifrastructure. The Port of Miami is located o a islad. Prior to the opeig of the POMT, traffic eterig ad exitig the Port of Miami, particularly large trucks, were forced to use city surface streets, creatig cosiderable traffic cogestio. The motivatig issue i the costructio of the POMT was to divert this commercial traffic away from city streets. The idea of the POMT was first proposed i the 1980s, but the fiacig could ever be secured. The POMT P3 project bega i 2009 ad was completed i The total cost of desig ad costructio was approximately $600 millio. The private sector parter arraged for a substatial proportio of the upfrot capital for the desig ad costructio phases ad will be operatig ad maitaiig the tuel util The private sector parter receives availability paymets ot to exceed $32.5 millio per year over the term of the cotract. No vehicle tolls, which might discourage use of the tuel ad subvert the purpose for costructio, are beig charged for use of the tuel. However, the Florida Departmet of Trasportatio collects cotaier ad passeger fees that provide the reveue stream to fiace the availability paymets. The POMT opeed i August 2014 ad is a example of how private sector fiacig i the form of a DBFOM P3 ca be used to advace the costructio of a trasportatio asset whe public fudig is ot available. The Goveror George Deukmejia Courthouse (DBFOM) The Goveror George Deukmejia Courthouse i Log Beach, Califoria, is a example of a desig-build-fiace-operate-maitai (DBFOM) P3 for a govermet office buildig. The Judicial Coucil of Califoria, Admiistrative Offices of the Courts, coducted a procuremet to select a private sector parter that would desig-build-fiace-operate-maitai the $492 millio courthouse. The ew courthouse comprises 531,000 square feet ad accommodates 31 courtrooms. Public-Private Partership (P3) 11

12 Public Procuremet Practice Facilities ad Ifrastructure Log Beach Judicial Parterships (LBJP), a cosortium of several private sectors firms, is the cotractor. All fiacig was provided by LBJP. The term of the P3 cotract is 35 years. Costructio bega i 2011 ad was completed i The cotractor is compesated through availability paymets. Resources ad tools (Cot d) Public-Private Partership (P3) Australia. Ifrastructure Australia. Natioal Public Private Partership Guidelies Volume 1: Procuremet Optios Aalysis. Sydey: Australia Govt., Dec Caada. PPP Caada. Idetifyig P3 Potetial: A Guide for Federal Departmets & Agecies. Ottawa: PPP Caada, 19 Ja Florida. Dept. of Maagemet Services. Partership for Public Facilities ad Ifrastructure Act Guidelies Task Force: Fial Report ad Recommedatios. Tallahassee: Dept. of Maagemet Services, 1 July Holeywell, Rya. Public-Private Parterships Are Popular, But Are They Practical? Goverig Magazie, Nov Hog Kog. Efficiecy Uit. A Itroductory Guide to Public Private Parterships (PPPs). 2 d ed. Hog Kog: Efficiecy Uit, Mar Marti, Lawrece & Wedell Lawther. Trasportatio Ifrastructure Fiacig Public- Private Parterships (TIF-P3s) i the Uited States: Issues of Goverace ad Trasparecy. Public-Private Parterships Coferece Series CBS-Saders-Moash. 7-9 Oct. 2014, Melboure, Australia. Provice of British Columbia, Caada. Parterships BC. Methodology for Quatitative Procuremet Optios Aalysis Discussio Paper. Victoria: Parterships BC. Apr Sabol, Patrick & Robert Puetes. Private Capital, Public Good: Drivers of Successful Ifrastructure Public-Private Parterships. Brookigs. Brookigs Istitutio Metropolita Ifrastructure Iitiative, Dec State of Victoria, Australia. Dept. of Treasury ad Fiace. Parterships Victoria. Disclosure ad Maagemet of Coflict of Iterest for Advisors. Melboure: Victoria, Dept. of Treasury ad Fiace, Oct Uited Kigdom. HM Treasury. Value for Moey Assessmet Guide. Crow copyright Nov Uited Kigdom. HM Treasury. Office of Govermet Commerce. Competitive Dialogue i 2008: OGC/HMT joit guidace o usig the procedure. Norwich: Office of Govt. Commerce, Uited States. Govermet Accoutability Office. Highway Public-Private Parterships: More Rigorous Up-frot Aalysis Could Better Secure Potetial Beefits ad Protect the Public Iterest. (GAO-08-44) Washigto, D.C.: Govt. Accoutability Office, 8 Feb Uited States. House of Represetatives. Committee o Trasportatio ad Ifrastructure. Pael o Public Private Parterships. Public-Private Parterships: Balacig the eeds of the public ad private sectors to fiace the atio s ifrastructure. Washigto D.C.: House of Represetatives. Committee o Trasportatio ad Ifrastructure, 17 Sept Virgiia. Office of Trasportatio Public-Private Parterships. PPTA Risk Aalysis Guidace. Richmod: Office of Public-Private Parterships, Sept Virgiia. Office of Public-Private Parterships. P3 Risk Maagemet Guidelies. Richmod: Office of Public-Private Parterships, Sept

13 Public Procuremet Practice Facilities ad Ifrastructure Fiacig optios resource (Cot d) Uited States. Dept. of the Treasury. Office of Ecoomic Policy. Expadig the market for ifrastructure public-private parterships: Alterative risk ad profit sharig approaches to alig sposor ad ivestor iterests. Washigto D.C.: Dept. of the Treasury, Apr VfM aalysis resource Europea PPP Expertise Cetre. The No Fiacial Beefits of PPPs: A Overview of Cocepts ad Methodology. Luxembourg: EPEC, Europea Ivestmet Bak, Jue Busiess case resource Schmidt, Marty J. The Busiess Case Guide. 2 d ed. Bosto: Solutio Matrix, Example Sources Atlata Braves ad SuTrust Park (DBFOM) Cobb Couty, Georgia. Board of Commissioers. Cobb Marietta Coliseum ad Exhibit Hall Authority. Cobb/Braves Memoradum of Uderstadig. Braves Stadium FAQ Cobb Couty. 26 Nov Pesylvaia Bridge Rehabilitatio (DBM) What is the Pesylvaia RBR Project? parapidbridges. Pleary Walsh Keystoe Parters, Pesylvaia. Dept. of Trasportatio. Team Selected to Replace 558 Bridges through Public- Private Bridge Project. (Press Release) Harrisburg: PeDOT, 24 Oct The Port of Miami Tuel (DBFOM) Marti, Lawrece & Wedell Lawther. Private Fiacig of Public Trasportatio Ifrastructure: Utilizig Public-Private Parterships. p. 22. Laham: Lexigto, The Goveror George Deukmejia Courthouse (DBFOM) Califoria. Judicial Coucil of Califoria. Admiistrative Office of the Courts. Fact Sheet: Goveror George Deukmejia Courthouse. Sa Fracisco: Admi. Office of the Courts, Aug Marti, Lawrece & Joe Saviak. Cotractig & Public-Private Parterships (P3s): A Guide for State & Local Govermet Officials & Admiistrators. p. 21. Govermet Services Partership Istitute (GSPI), May Public-Private Partership (P3) 13

14 Public Procuremet Practice Facilities ad Ifrastructure Refereces (Cot d) Campbell, Paul J., D. F. DiSesa, S.Dhakal, & D. Jegede. Promisig Practices: A Paradigm Shift for Public-Private Parterships (Promisig Practices for Public Officials ad Private Compaies Workig Across Sectors). Philadelphia: Fels Ist. of Govt. Uiversity of Pe, Dec Europea PPP Expertise Cetre. Maagig P3s Durig Their Cotract Life: Guidace for soud maagemet. Luxembourg: EPEC, Europea Ivestmet Bak, Mar Marti, Lawrece, W. Lawther, G. Hodge, & C. Greve. Iteratioally Recommeded Best Practices i Trasportatio Fiacig Public-Private Parterships (P3s). Public Admiistratio Research, 2.2: (29 Sept. 2013) Licesed uder CC BY 3.0. doi: dx.doi.org/ /par.v22p15 New York. Office of the State Comptroller. Private Fiacig of Public Ifrastructure: Risks ad Optios for New York State. Albay: Office of the State Comptroller, Jue Rall, Jaime, James B. Reed, & Nicholas J. Farber. Public-Private Parterships for Trasportatio: A Toolkit for Legislators. Washigto, D.C.: Natioal Coferece of State Legislatures, Oct CIPS ad NIGP Public-Private Partership (P3) 14