In October 2003, the FHWA formed a Public-Private Partnership Task Force, headed by the FHWA's Chief Counsel, to explore ways the FHWA could address impediments to the formation of public-private partnerships and actions the FHWA should take to encourage their formation. The Task Force consists of representatives from FHWA program offices and the policy office, and it has explored opportunities to assist States interested in developing the use of public-private partnerships to meet growing demands for highway infrastructure.
State departments of transportation and the FHWA are structured generally to oversee highway contracts developed and bid under the traditional design-bid-build model. The vast majority of highway construction continues to be carried under this contracting model. Although this model is very efficient in monitoring traditional procurement methods, it allows little flexibility for projects that do not fall within the standard project requirements, and thus does not encourage innovation. The FHWA is rethinking its approach to innovative contracting and how it should oversee projects that are not procured under the traditional model. Issues that have been identified by the Task Force as potential impediments to public-private partnership formation that the FHWA should address include:
∙ Federal procurement rules that discourage the use of proprietary products;
∙ The requirements of FHWA's Design-Build regulation that prevent States from issuing requests for proposals until after the signing of a record of decision or other documents including the NEPA process;
∙ The organizational structure of the FHWA that does not provide a single point of contact for States advancing a public-private partnership;
∙ Improving training and communication to FHWA Division Administrators regarding the innovations allowed under current law and regulations, especially regarding the financing of projects and the environmental permitting and review process; and
∙ The need for high-level Federal support and endorsement of public-private partnerships to encourage States to experiment with these concepts.
The Task Force continues to explore ideas for improving the FHWA's support for public-private partnerships and plans on developing several new products by the end of 2004.