Exhibit 29 lists the five key phases and steps in development and implementation of a surface transportation PPP. These five key phases lay out the sequence of events that should occur as the public sponsor determines whether a PPP approach is appropriate for the project, while the private sector providers determine if there is sufficient potential for adequate return to justify the assumption of responsibilities and risks associated with the proposed PPP approach.
These same phases and component steps are appropriate even when the PPP is for a public-public partnership involving multiple public agencies. This will increasingly be the case as highway, transit, and economic development agencies collaborate to expedite transportation improvements that promote personal mobility, accessibility, and economic development.
Exhibit 29 - PPP Implementation Steps for Public Agency Sponsors
| • Phase 1 - Perform Preliminary Project Planning - Determine transportation need - Develop preliminary project scope - Determine environmental constructability - Develop preliminary financial plan regarding project sources and uses of funds • Phase 2 - Establish Eligibility for PPP Status - Assess in-house capabilities to perform project using in-house resources or traditional approaches - Identify resource and functional capabilities required to deliver project in a timely manner - Determine procurement approach and type of projects to be considered in the PPP program - Establish legal authority to enter into PPP arrangements involving alternative approaches to project financing, development, delivery, and preservation - Develop preliminary allocation of roles, responsibilities, risks, and returns for the public and private partners to a potential project PPP - Develop and implement remedies to legal or regulatory impediments to PPPs and other alternative approaches to more cost-effective project development • Phase 3 - Explore Potential and Interest of Private Providers to Enter into a PPP for the Project - Request suggestions for structuring the PPP from interested private providers - Solicit letters of interest and qualifications to pre-qualify the most promising prospective providers • Phase 4 - Solicit Proposals from Prospective Private Providers and Select Best Value Team Using a Transparent Process - Develop and issue performance-based request for proposals from pre-qualified private providers for scope of services required by the private provider, with potential to improvise and offer innovative solutions to project financing, delivery, and preservation - Review and evaluate responses to RFPs based on pre-established criteria, providing a level playing field for prospective private partners - Begin negotiations with PPP team judged to offer the best value over the life-cycle of the project and finalize PPP contract terms of agreement when acceptable • Phase 5 - Establish and Nurture PPP Arrangements for Project Delivery as a PPP - Develop full understanding and capabilities among public sector staff responsible for managing the PPP contract - Ensure clear understanding of relative roles, responsibilities, risks, and rewards of PPP arrangements, as defined in the contract agreement - Establish full protocols for communication, coordination, and problem identification and resolution throughout contract term, involving clear lines of authority, responsibility, and communication - Work collaboratively and constructively to flexibly apply the terms of the contract within the performance requirements defined in the terms of agreement - Hold periodic meetings among team leaders from both public and private sectors, at the senior management level and tactical/technical implementation level, throughout the project contract term - Hold all parties to the PPP accountable for complying with the terms of the PPP throughout the duration of the contract through regular project reporting and review |