Synthesis of public-private partnerships : potential issues and best practices for program and project implementation and administration.

PDFTech ReportKTC-15-13/SPR15-500-1FSPR15-500Public private partnershipsPlan implementationBest practicesProcurementCase studiesLiterature reviewsConstruction projectsInfrastructurePrivatizationStatesKentuckyUniversity of Kentucky Transportation CenterGibson, BryanWallace, CandiceSturgill, RoyUniversity of Kentucky Transportation CenterKentucky. Transportation CabinetUnited States. Federal Highway AdministrationUS Transportation CollectionPublic-private partnerships (P3s or PPPs) offer an innovative procurement method for the public sector.P3s involve collaborations between the public and private sectors to finance, develop or maintain transportationinfrastructure. In an era of shrinking budgets and increased demand for transportation infrastructure, the KentuckyTransportation Cabinet (KYTC) can analyze experiences in other states to determine a best path forward on the issue ofP3s. During the 2014 regular legislative session, the Kentucky General Assembly passed Kentucky House Bill (HB) 407,which would empower KYTC through the Kentucky Public Transportation Infrastructure Authority (KPTIA), to fundprojects through P3 agreements. The governor eventually vetoed the bill. In the current 2015 legislative session, theGeneral Assembly is considering Kentucky HB 443, which would authorize transportation P3s in Kentucky. The objectiveof this study is to examine benefits and drawbacks of using P3s, current trends and past performance of P3s in theprocurement of state transportation infrastructure projects, and common legislative statutes relating to P3s.The team reviewed literature that broadly related to privatization. Then they defined P3s according to the parameters laidout by the Federal Highways Administration (FHWA). This report contains: 1) guidance and best practices that can beused to help ensure successful P3 implementation, 2) case studies that describe P3 experiences and lessons learned, 3) a listof factors that policymakers should consider as they deliberate on whether a P3 is the best procurement option for specificprojects.The research conclusively demonstrated that P3s have become more widely used for transportation infrastructure projectsin the United States in recent years. Policymakers must thoughtfully weigh risks and benefits before approving P3agreements. If Kentucky moves ahead with a transportation P3 program, future research would be geared toward studyingthe performance of projects and toward gathering lessons learned