Public-Public-Private Partnerships

Several agencies found that the structure of their PPPs enabled public-public interactions that facilitated implementation of the project:

•  Portland's MAX Airport Extension benefited from cooperation between FTA, which was experienced with transit capital program oversight, and the Federal Aviation Administration ("FAA"), which has regulatory oversight over projects funded with Passenger Facility Charges ("PFCs"). FTA officials in particular took an interest in the project's success as a model for funding transit projects without a New Starts grant. FAA insisted that the cost-effectiveness of the project be evaluated, but had little experience with transit projects. FTA assisted FAA with examining the project's cost-effectiveness, which ultimately resulted in FAA's approval of the application of PFC revenues towards the on-airport elements of the project. The project, which included a design-build component, was ultimately the first successful application of PFC fees to an off-airport transit project, and was the first in which the cash flow from PFC fees was bonded.

•  Denver's T- REX project successfully united highway staff from CDOT and transit staff from RTD. The project staff from both agencies were interrelated and co-located in the same building along with contractors' staff, which enabled communications between the public and private sector partners. This facilitated a collaborative working relationship between team members throughout the project. In fact, no issues arose between partners that needed to be escalated to the senior management of either agency. The $1.2 billion project finished without any claims from the contractor, and met all of its goals, finishing ahead of schedule, on budget, with a quality, award-winning project that successfully minimized inconvenience to the traveling public, according to surveys.

•  The Hiawatha Corridor LRT project had a similar experience with co-locating its design-build team in the same building as the sponsor's project office, which included both MnDOT and Metro Transit officials. Metro Council found that having proximity and a close, collegial working relationship between partners was useful so that they could coordinate and answer design questions. This arrangement provided both technical and time benefits.