Concerns have been expressed that private companies may seek a profit even at the public's expense-for example, by skimping on maintenance and repairs to boost profits, requiring compensation for lost revenues due to competing public transportation facilities (see Loss of Public Control and Flexibility, above), or reaping excessive profits through ever-higher tolls and fees.59 Contract provisions related to performance standards, limited compete or compensation clauses, and limits on tolls and fees have been used to address these concerns. Some stakeholders, however, believe that contractual restrictions on tolls and fees still leave private concessionaires too much discretion to raise rates (see also Principle 3).60
Another related concern has to do with unsolicited proposals, which allow the private sector to propose projects outside of state and local transportation plans. Some stakeholders argue that unsolicited bids encourage public agencies to consider projects that are profitable to private developers before those that are a greater priority for the public.61 Others, however, argue that unsolicited bids can be a source of innovation.62 This concern has been addressed by some state statutes that require PPP projects to be consistent with transportation plans, and by others that either prohibit unsolicited proposals or provide a review process for them (see also Principle 6).