Exemption from state procurement laws.

States that choose to exempt PPP projects from procurement laws benefit the project by relieving private agencies from meeting labor, bidding, and other procurement-related requirements that public agencies must meet when building transportation facilities. Allowing exemption from procurement requirements may mean that innovative procurement methods will withstand legal challenges. Nine states exempt PPP projects from procurement laws while nine do not. Florida explicitly requires these projects to use state general procurement laws. These exemptions come at the cost of circumventing a public bidding process that ensures legitimacy of the process and obtain the best available deal from the private sector for the public benefits. States need to strike a balance between ensuring the validity of the procurement process and allowing for innovative ways of sponsoring PPP projects through lifting some state procurement requirements.

Table 4-4: Procurement and Project Management

Code

Provisions

AL

AK

AZ

CA

CO

DE

FL

GA

IN

LA

MD

MN

MO

MS

NV

NC

OR

SC

TN

TX

UT

VA

WA

4-a

Allows for Multiple Types of Project Delivery

 

N

N

Y

Y

Y

Y

Y

Y

Y

Y

 

Y

Y

 

Y

Y

 

Y

Y

Y

Y

Y

4-b

Exempts PPP Projects from State Procurement Laws

 

N

 

N

Y

Y

Y

Y

Y

N

N

N

Y

Y

 

Y

Y

N

Y

Y

Y

Y

Y

4-c

Allows for Outsourcing of Operations and Management

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

4-d

Requires Public to Maintain Comparable Non-Toll Routes

 

 

Y

N

N

N

N

N

N

N

N

N

N

 

 

Y

N

N

 

N

N

N

 

4-e

Requires Non-Compete Clauses

Y

N

N

Y

N

N

Y

N

N

N

N

N

N

Y

 

Y

N

N

N

Y

N

N

N

4-f

Allows for Long-Term Leases to Private Sector

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

 

 

Y

Y

Y

Y

***A cell left blank indicates state legislation does not make an explicit provision regarding that category.