Getting Ready for Public-Private Partnerships (P3s)

Transcription

1 THE POWER OF PERFORMANCE 51 TH ANNUAL CONFERENCE MAY 22-26, 2018 ORLANDO, FLORIDA Getting Ready for Public-Private Partnerships (P3s) Lawrence L Martin, Ph.D., MBA University of Central Florida

2 TOPICS Infrastructure Crisis Types of Infrastructure NIGP Definition & Taxonomy of P3s ICMA White Paper on P3s Examples of P3s State & Local P3s: By the Numbers White House Infrastructure Plan How P3 Competitive is Florida? Public Procurement Professionals: Getting Ready for P3s

3 TOPICS Infrastructure Crisis

4 INFRASTRUCTURE CRISIS 60% of highways are in poor condition 25 % of bridges are in need of repair/upgrade American Infrastructure Rated D+ by the American Society of Civil Engineers

5 INFRASTRUCTURE CRISIS $170 billion needed annually for transportation $400 billion over the next 20 years to insure the water supply Overall cost to bring nation s infrastructure up to good condition = $4 Trillion

6 INFRASTRUCTURE CRISIS Where will the money come from? State & Local Government taxes: Federal Governments: the Trump Administration s $1.5 trillion Infrastructure Initiative Public-Private Partnerships (P3s)

7 TOPICS Types of Infrastructure

8 TYPES OF INFRASTRUCTURE Economic & Environmental Infrastructure Highways and Roads Bridges Tunnels Public Transit Rail (light rail, streetcars, etc.) Airports Seaports Waterways Water/Wastewater/Storm Water Solid Waste (collection and disposal) Others

9 TYPES OF INFRASTRUCTURE Social Infrastructure Hospitals & Health Care Facilities Schools (elementary and high school) Universities (classrooms, dorms) Correctional Facilities (jails, prisons, others) Parks & Recreation Housing Convention Centers Sports Facilities Libraries Museums Government Buildings (all types)

10 TOPICS NIGP Definition & Taxonomy of P3s

11 NIGP DEFINITION OF PUBLIC-PRIVATE PARTNERSHIPS (P3S) A public-private partnership (P3) is a broad term used to describe public facility and infrastructure contracts that minimally include components of design and build (construction, renovation, rehabilitation) in a single contract. Components of financing, operations, maintenance or management may be included... Source: NIGP Public Procurement Practice : Public-Private Partnerships (P3s)

12 NIGP TAXONOMY OF PUBLIC-PRIVATE PARTNERSHIPS (P3S) Design-Build (DB) Design-Build-Finance (DBF) Design-Build-Maintain (DBM) Design-Build-Finance-Maintain (DBFM) Design-Build-Finance-Operate (DBFO) Design-Build-Finance-Operate- Maintain (DBFOM)

13 NOT EVERYONE IS HAPPY WITH THE NIGP P3 DEFINITION & TAXONOMY What do you mean my Death Star is not a P3!

14 TOPICS ICMA White Paper on P3s

15 ICMA WHITE PAPER ON P3S PUBLIC-PRIVATE PARTNERSHIPS (P3S): What Local Government Managers Need to Know A Policy Issue White Paper for ICMA, International City/County Management Association ICMA Prepared by Lawrence L. Martin, Ph.D., MBA Professor of Public Affairs, University of Central Florida

16 ICMA WHITE PAPER ON P3S PUBLIC-PRIVATE PARTNERSHIPS (P3S): What Local Government Managers Need to Know ICMA White Paper Uses the NIGP Definition of P3s Uses the NIGP Taxonomy of P3s

17 TOPICS Examples of P3s

18 UNIVERSITY OF CALIFORNIA MERCED CAMPUS EXPANSION DBO P3 Cost = $1.3 billion Contract Term = 39 years

19 LONG BEACH, CALIFORNIA COURT HOUSE DBFOM P3 Cost = $492 million Contract Term = 35 years

20 PAINE FIELD (SNOHOMISH COUNTY) WASHINGTON AIRPORT DBOM P3 Cost =? Contract Terms = 30 years

21 TAPPAN ZEE BRIDGE (NEW YORK & NEW JERSEY) DB P3 Cost = $4 billion Contract term = 5 years

22 STATE OF PENNSYLVANIA RAPID BRIDGE REPLACEMENT DBFM P3 Cost = $1.2 billion Contract term = 27 years

23 CITY OF PHOENIX, ARIZONA LAKE PLEASANT WATER TREATMENT PLANT DBO P3 Cost = $350 million Contract term: 20 years

24 SOUTH FLORIDA I-595 HIGHWAY DBFOM P3 Cost = $1.2 billion Contract Term = 35 years

25 PORT OF MIAMI TUNNEL DBFOM P3 Cost = $492 million Contract Term = 35 years

26 CENTRAL FLORIDA I 4 ULTIMATE HIGHWAY DBFOM P3 Cost = $2.8 billion Contract Term = 40 years

27 TOPICS State & Local P3s: By the Numbers

28 STATE & LOCAL P3S BY THE NUMBERS P3 Types (Project Closures 96-16) # % Design-Build (DB) Design-Build-Operate (DBO Design Build-Maintain (DBM) Design-Build-Finance (DBF) Design-Build-Finance-Operate (DBFO) Design-Build-Finance-Maintain (DBFM) Design-Build-Finance-Operate-Maintain (DBFOM) US Total

29 STATE & LOCAL P3S BY THE NUMBERS (PROJECT CLOSURES 96-16) # % Transportation Other Total

30 TOPICS White House Infrastructure Plan

31 WHITE HOUSE INFRASTRUCTURE PLAN Legislative Outline for Rebuilding Infrastructure In America THE WHITE HOUSE

32 WHITE HOUSE INFRASTRUCTURE PLAN $200 billion over 10 years to leverage $1.5 trillion $100 billion for competitive grants $20 billion for transformative projects (cooperative agreements) $50 billion for rural infrastructure

33 WHITE HOUSE INFRASTRUCTURE PLAN Non-Federal Sources of Matching Funds State and Local taxes User fees Public-Private Partnerships (P3s)

34 TOPICS How P3 Competitive is Florida?

35 HOW P3 COMPETITIVE IS FLORIDA? To be Competitive: State P3 Legislation State P3 Legislation is Broad (Trans & Other) State P3 Legislation covers local governments State & Local Government experience with P3s Florida Yes Yes Yes Yes

36 P3 Type HOW P3 COMPETITIVE IS FLORIDA? US Total Calif Colo Florida North Carolina Texas Virginia DB DBO+ DBM State & Local P3 Project Closures (96-16) DBF DBFO + DBFM + DBFOM Total # Total %

37 TOPICS Public Procurement Professionals: Getting Ready for P3s

38 PUBLIC PROCUREMENT PROFESSIONALS: GETTING READY FOR P3S Become knowledgeable about: P3s NIGP P3 Practice Guidance ICMA White Paper White House Infrastructure Plan

39 PUBLIC PROCUREMENT PROFESSIONALS: GETTING READY FOR P3S Be ready to: Respond to P3 questions Think about how your government can get involved with P3s Seize the opportunity to raise the visibility of PROCUREMENT

40 TO LEARN MORE NIGP The Institute for Public Procurement (2016). Public Procurement Practice Public-Private Partnership (P3): Facilities & Infrastructure. Herndon, VA. Available at: /Public- rivate%20partnership%20%28p3%29%20 Facilities%20and%20Infrastructure.pdf Lawrence L Martin (2018). Public-Private Partnerships: What Local Government Managers Need to Know. Washington, DC: International City/County Management Association (ICMA). Available at: partnerships-p3s-what-local-government-managers-need-know. The White House (2018). Legislative Outline for Rebuilding Infrastructure in America. Washington, DC: Author. Available at: