Unsolicited proposals allow the private sector to initiate the PPP process for a particular project by proposing that a state or local authority procure the project as a PPP. Alternatively, a PPP procurement process can be initiated by the state or local authority soliciting proposals from the private sector. While states have very different attitudes towards unsolicited proposals, the public sector should be comfortable that unsolicited proposals will not frustrate planning processes because the decision whether or not to consider unsolicited proposals is made by the public sector, in its sole discretion. Unsolicited proposals provide an opportunity for public agencies to supplement traditional planning processes with private sector concepts for how best to improve transportation systems.
In some states, such as Texas, unsolicited proposals from the private sector have been an important feature of the PPP program.148 Other states have been more wary of unsolicited proposals because they can distract resources from projects that are included in the state and local plans and from projects that are of high priority. Some states have legislation that only authorizes the use of PPPs for specific projects. Indiana's PPP legislation, for example, only authorizes PPPs for the ITR concession and the I-69 expansion project. Other states only authorize PPPs that result from solicited proposals, not from unsolicited proposals. The North Carolina Turnpike Authority can solicit proposals, but is not authorized to accept unsolicited proposals. In Georgia, the first four PPP projects procured by the Georgia Department of Transportation were the result of unsolicited proposals, but the State Transportation Board recently voted to stop accepting unsolicited proposals and begin soliciting proposals for projects that Georgia wants to prioritize.
Still other states deal with the challenges presented by unsolicited proposals by limiting the types of projects that they might be submitted for. The Florida Department of Transportation ("FDOT") is authorized to accept unsolicited proposals, but only for projects that have legislative approval, as evidenced by prior inclusion of the project in FDOT's work program. California allows unsolicited proposals, but only authorizes two PPP projects in northern California and two PPP projects in southern California and each of the projects must be primarily for good movement and may not rely on tolls charged to noncommercial vehicles.
Each state considering PPPs should decide whether it wants to allow unsolicited proposals or not. From a national perspective, the experiences of other states will help inform states going forward as to what is the best practice with respect to unsolicited proposals.
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148 In Texas, each of the TTC-35, SH-121, US-281/Loop 1604, and SH-161 projects was initiated through an unsolicited proposal.