Early Involvement of Private Developers in the Consideration of Long-Term Public- Private Partnership Concession Options

Federal Highway Administration2017PDFTech ReportGreene, SharonAmos, AlbertVandegrift, AmandaOmay, MuratFrawley, ThomasHenkin, TamarBattelle Memorial InstituteHDRThomas E Frawley Consulting (TEFC)High Street Consulting Group (HSCG)United States. Federal Highway Administration. Office of Innovative Program DeliveryDeCorla-Souza, PatrickUnited States. Federal Highway Administration. Office of Innovative Program DeliveryUnited StatesPublic private partnershipsProject deliveryProgramming (Planning)ContractsPPPP3DBFOMDBOMConcessionFHWA-HIN-007DTFH61-13D-00014DeCorla-Souza, PatrickThis discussion paper was developed for transportation professionals who may be involved in a Public-Private Partnership (P3) concession project. P3 concessions are an integrated service delivery approach where a public transportation agency enters a contractual agreement with a private sector entity to deliver a service and/or facility for a specific period. Under the P3 approach, the private sector entity is singly responsible for the design, construction, finance, operations, and maintenance of facilities for a specified concession period. This document draws upon past and current experience to examine different mechanisms used by public agencies for involving private developers during the early stages of a project delivered through a P3. The document provides an overview of the experiences of state departments of transportation (DOTs), Metropolitan Planning Organizations (MPOs), local agencies, private developers, and financial institutions in soliciting potential innovations of private companies during project planning and procurement. The document also evaluates consultative mechanisms used during project procurement and after contract award, and considers introducing these types of activities earlier in the project development and programming process to encourage private sector input. The findings are used to identify approaches that have been effective in securing early input from the private sector to enhance opportunities for P3s.143