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Ippc2014
1. Dr. Joe Saviak, Dr. Wendell Lawther & Dr. Lawrence Martin IPPC6 2014
Public-Private Partnerships for Transportation Infrastructure
Challenges for State & Local Government Public Procurement in the United States
2. P3 & DBFOM Challenges
for U.S. Public Procurement
• Majority of U.S. infrastructure
“mediocre” or “poor”
$3.6 trillion needed
• Benefits of P3s
• Types of P3s - DBFOM
• State Enabling Legislation – type of
authority, unsolicited proposals, availability
payments & shadow tolls, lower level
authority, prior legislative approval &
non-compete clause
3. P3 & DBFOM Challenges
for U.S. Public Procurement
• Use of SPV
• 3 Case Examples:
Port of Miami Tunnel
I-495 Capital Beltway
Texas State Highway
• Need to re-design public procurement
policies & procedures in the U.S. to
facilitate greater use of P3s & DBFOMs &
ensure their success
4. • P3s & DBFOMs do not fit neatly into
traditional public procurement
policies and procedures in the U.S. –
pose specific set of challenges –
draw upon international experience
for solutions
• Institutional capacity
• Adapting traditional public
procurement to the partnership
model for P3s – private sector
partner providing the $ in DBFOM
P3 & DBFOM Challenges
for U.S. Public Procurement
Specific Challenges
5. • Project size must be sufficient to attract
private sector partners (e.g. US $100M)
– use of bundling
• Competitive dialogue instead of
traditional RFQ and RFP processes
• Designing/implementing long term
contracts (e.g. 30-50-99 years) – treat as
“incomplete contracts” - enhanced
flexibility, periodic review by partners,
user-friendly contract amendment
process, dispute resolution mechanism,
emphasis on PBC
P3 & DBFOM Challenges
for U.S. Public Procurement
Specific Challenges
6. • No progress payments – don’t
change the incentive structure
of the P3
• Need to utilize international
best practices for public
procurement & P3s to rethink
& re-engineer traditional
public procurement policies &
procedures among state &
local govts. in the U.S. to
ensure positive outcomes with
P3s and DBFOMs
P3 & DBFOM Challenges
for U.S. Public Procurement
Specific Challenges
7. [1] New York Times (2013). “In Collapse of Bridge, Vulnerability is Highlighted.” Saturday, May 25, p. A10.
[2] American Society of Civil Engineers (ASCE). “ASCE’s New Report Card Bumps the Nation’s Infrastructure up to a
D+.” ASCENews. www.asce.org/ascenews/featured.aspx. (accessed April 6. 2013).
[3] U. S. Government Accountability Office (USGAO) (2013). State & local Governments’ Fiscal Outlook (April 2013
Update). Washington DC: USGAO.
[4] L. L. Martin, R. Levey & J. Cawley (2012). “The New Normal for Local Government.” State & Local Government
Review 44 (IS):17-28.[5] National Council for Public-Private Partnerships (NCPPP). (2013). Public-Private
Partnerships Defined. http://ncpp.org/howpart/ (accessed April 9, 2013).
[5] National Council for Public-Private Partnerships (NCPPP). (2013). Public-Private Partnerships Defined.
http://ncpp.org/howpart/ (accessed April 9, 2013).
[6] W. Eggers & T. Dovey (2007). Closing America’s infrastructure gap: The Role of Public-Private Partnerships. New
York: Deloitte Research.
[7] Yescombe, E. (2007). Public-Private Partnerships: Principles of Policy and Finance. Oxford, UK: Butterworth-
Heinemann.
[8] J. Evans & D. Bowman (2005). “Getting the Contract Right.” In G. Hodge & C. Greve (Eds.) The Challenge of
Public-Private Partnerships: Learning from International Experience (pp. 62-80). Cheltenham, UK: Edward Elgar.
[9] S. Araujo & D. Suterland (2010). Public-Private Partnerships & Investment in Infrastructure. Paris: Office of
Economic Cooperation & Development (OECD).
[10] L. L. Martin, W. Lawther, G. Hodge & C. Greve, G. (2013). “Internationally Recommended Best Practices in
Transportation Financing Public-Private Partnerships (P3s).” Public Administrate Research 2 (2):15-25.
References
8. [11] J. A. Parker & Associated (2010). The Port of Miami Tunnel and Access Improvement Project.
Tallahassee: Florida Department of Transportation.
[12] L. L. Martin, L. & J. Saviak, J. (2014). Contracting and Public-Private Partnerships: A Guide for State and
Local Government Officials and Administrators. Jacksonville, FL: Government Services Partnership Institute.
[13] New York Times (2013). “Obama Pushes Plan to Build Roads and Bridges.”
http://www.nytimes.com/2013/03/03/us/politics/obama-promotes-ambitious . . . (retrieved April 10,
2013.
[14] J. Lynch (2010). “Virginia Megaprojects.” http://www.vamegaprojhects.com (accessed April 20, 2013).
[15] T. Craig (2007). “Deals Clinched on HOT Lanes.” The Washington Post, December 21.
[16] B. Wear (2013). “TXDot Mum on Use of New Tollway Section.” Austin American Statesman (January
27). http://www.reformandfreedom.org. (accessed April 21, 2013).
[17] State Highway 130 (undated). “Project Profiles: SH 130 Segments 5 and 6.”
http://www.fhwa.dot.gov/ipd/project.profiles/tx_sh130.htm (accessed April 21, 2013).
[18] Public Works Financing (February, 2008). “Texas SH 130 Toll Road First PPP in Texas.”
www.PWFinance.net (accessed April 26, 2013).
[19] National Conference of State Legislatures (NCSL). (2010). 2010 State Legislation Concerning PPPs for
Transportation Projects. Appendix B. “State PPP Enabling Statutes for Transportation Projects as of October
2010.” Washington, DC: NCSL.
[20] National Conference of State Legislatures (NCSL) (2013). Public-Private Partnerships for Transportation:
A Toolkit for Legislators: January 2013 Updates and Corrections. Washington, DC. NCSL
References
9. [21] U. S. Department of Transportation (USDOT) (2013). Federal Highway Administration, “State legislation –
Key elements.” http://www.fhwa.dot/ipd/p3state_legislation/ state-legislation_key_elements.htm (accessed
Jul 1, 2013).
[22] Pew Center on the States (2009). Driven by dollars: What States Should Know When Considering Public-
Private Partnerships to Fund Transportation. Washington, DC: Pew Center on the States.
[23] PriceWaterhouseCoopers (2010). Public-Private Partnerships: The US Perspective.
http://www.pwc.com.en-US/us/capitalprojects (accessed January 12, 2012).
[24] Public Works Financing (October, 2011). “2011 Survey of Public-Private Partnerships Worldwide.”
www.PWFinance.net (accessed December 21, 2011).
[25] R. Istrate, & R. Puentes (2011). Moving Forward on Public Private Partnerships: U.S. and International
Experience with PPP Units. Washington, DC: The Brookings Institution.
[26] P. Kettner, R. Moroney, & L. Martin (2013). Designing and Managing Programs (4th Edition). Los Angeles:
Sage.
[27] U.S. Department of Transportation (USDOT). (2009). Public-Private Partnerships for Highway Infrastructure:
Capitalizing on International Experience. Washington, DC: USDOT.
[28] S. Arrowsmith & S. Treumer (2012). “Competitive Dialogue in EU Law: A Critical Review.” In their
Competitive Dialogue in EU Procurement (pp. 3-143). Cambridge, UK: Cambridge University Press.
[29] European PPP Expertise Center (EPPC). (2010). Procurement of PPP and the Use of Competitive Dialogue in
Europe: A Review of Public Sector Practices Across the EU. Luxembourg: EPEC.
[30] HM Treasury (2007). Operational Task Force Note 2: Project Transition Guidance. London: HMSO.
[31] G. Rausser, & A. Ameden (2013). “Incomplete Contracts and Public-Private Partnerships.” In P. de Vries & E.
Yehouse (Eds.) The Routledge Companion to Public-Private Partnerships. New York: Routledge, pp. 127-147
References
10. Dr. Joe Saviak
Flagler College
jsaviak@flagler.edu
Dr. Lawrence Martin
University of Central Florida
lawrence.martin@ucf.edu
Dr. Wendell Lawther
University of Central Florida
wendell.lawther@ucf.edu
Contact Information
11. Dr. Joe Saviak, Dr. Wendell Lawther & Dr. Lawrence Martin IPPC6 2014
Public-Private Partnerships for Transportation Infrastructure
Challenges for State & Local Government Public Procurement in the United States