The Procurement Approach

Executive agencies in some states are required to award contracts based on the lowest price; bidders also may be required to respond to a standard bid package. This traditional approach may not allow an agency to consider factors relevant to PPPs, such as the value of risks being transferred to the private sector, innovation and project quality, or public policy considerations that are more important than price.215 Enabling legislation can allow a wide range of approaches for PPPs, including calls for projects, competitive requests for proposals, qualifications review followed by review of proposer concepts, procurements based on best value rather than lowest price, or other appropriate mechanisms.216 As of December 2007, PPP legislation in at least 16 states allowed different types of procurements for PPPs; 11 states statutorily exempted PPP projects from general procurement laws.217 Legislation also can allow the executive agency to provide adequate time for preparation, submission and evaluation of competitive proposals.218