In recent years transit agencies have increasingly turned to PPP in order to procure new or expanded transit services. Agencies use PPP delivery approaches to obtain time savings, cost savings, and more innovative, higher quality projects with reduced risks. This section describes the types of project delivery approaches used for transit projects and the potential benefits associated with these approaches. By way of background, this section begins with a description of the traditional design-bid-build approach to project delivery.
Exhibit 2.1 summarizes some of the major types of PPPs applicable to transit projects, moving from the PPPs that have the greatest private sector role to those with the least private sector role.
Exhibit 2.1: Major Types of PPPs in Transit
| Greater Private Sector Role | • Build Own Operate (BOO) • Design-Build-Finance-Operate-Maintain (DBFOM) • Design-Build-Finance-Operate (DBFO) | |
| Lesser Private Sector Role | • Build-Operate-Transfer (BOT) • Design-Build-Operate-Maintain (DBOM) • Design-Build (DB) |