Public-Private Public-Private Education Facilities and Education Facilities and

Infrastructure ActInfrastructure Act

What is it?What is it?

A tool that offers innovative alternatives to A tool that offers innovative alternatives to traditional procurement, financing, and traditional procurement, financing, and transaction structures for public buildings transaction structures for public buildings and facilities.and facilities.

Modeled after Public-Private Modeled after Public-Private Transportation Act of 1995 (PPTA)Transportation Act of 1995 (PPTA)

Why Was it Adopted?Why Was it Adopted?Public need for education and other Public need for education and other government facilities government facilities

Need may not be wholly satisfied by Need may not be wholly satisfied by existing procurement methodsexisting procurement methods

Inadequate financial resourcesInadequate financial resources

Demonstrated evidence that public-Demonstrated evidence that public-private partnerships can improve private partnerships can improve schedule and lower costschedule and lower cost

Financial incentivesFinancial incentives

Must Meet a Public PurposeMust Meet a Public Purpose

Public need or benefitPublic need or benefit

Estimated cost is reasonableEstimated cost is reasonable

Result in timely project deliveryResult in timely project delivery

What Kind of Projects?What Kind of Projects?

Education facilityEducation facility

Facility for principal use by a public entityFacility for principal use by a public entity

Improvements to enhance public safety Improvements to enhance public safety and security of buildingsand security of buildings

Utility, telecommunications, and Utility, telecommunications, and communications infrastructurecommunications infrastructure

Recreational facilityRecreational facility

Technology infrastructureTechnology infrastructure

Not Just Bricks and MortarNot Just Bricks and Mortar

Construction/Improvement/Construction/Improvement/

Renovation/ExpansionRenovation/Expansion

AcquisitionAcquisition

DesignDesign

EquippingEquipping

MaintenanceMaintenance

Operation Operation

The LingoThe Lingo

PPEA or PPEIAPPEA or PPEIA

Public EntityPublic Entity

Private EntityPrivate Entity

Qualifying ProjectQualifying Project

Affected Local JurisdictionAffected Local Jurisdiction

Comprehensive AgreementComprehensive Agreement

Two WaysTwo Ways

Solicited proposalsSolicited proposals

Unsolicited proposalsUnsolicited proposals

Proposal ContentProposal ContentAct requires proposals to include certain Act requires proposals to include certain

information, includinginformation, including

Topographical mapTopographical map

Conceptual design/planConceptual design/plan

List of required permits/approvalsList of required permits/approvals

Plans for financingPlans for financing

User fees, lease payments, etc.User fees, lease payments, etc.

Information requested by the public entityInformation requested by the public entity

FeesFees

May charge a reasonable fee for processing, May charge a reasonable fee for processing, reviewing and evaluating the reviewing and evaluating the request, request, but but not solicited proposalsnot solicited proposals– reasonable attorney's feesreasonable attorney's fees– financial and other necessary advisors or financial and other necessary advisors or

consultantsconsultants

What about the VPPA?What about the VPPA?The VPPA does not apply, but you must The VPPA does not apply, but you must

adopt procedures consistent with the adopt procedures consistent with the VPPA forVPPA for

Evaluation and award of bids or Evaluation and award of bids or proposalsproposals

Discrimination prohibitedDiscrimination prohibited

Participation of small and minority-Participation of small and minority-owned business owned business

Must Justify Selection Must Justify Selection ProcessProcess

Advantageous to the responsible public Advantageous to the responsible public entity and the public based on entity and the public based on

(i) the probable scope, complexity or (i) the probable scope, complexity or urgency of the project, or urgency of the project, or

(ii) risk sharing, added value, an increase (ii) risk sharing, added value, an increase in funding or economic benefit from the in funding or economic benefit from the project that would not otherwise be project that would not otherwise be available. available.

Still Competitive and PublicStill Competitive and Public

Must post and publish notice that you are Must post and publish notice that you are considering an unsolicited proposal for at considering an unsolicited proposal for at least 45 days. least 45 days.

Encourage competitionEncourage competition

Advertise in VBOAdvertise in VBO

State agencies - post on eVAState agencies - post on eVA

ADVANTAGES - PUBLICADVANTAGES - PUBLIC

Share Costs /Risks of Project Share Costs /Risks of Project

Additional Revenue Sources / Additional Revenue Sources / Financing OptionsFinancing Options

Competitive Negotiation versus Competitive Negotiation versus Traditional Bid MethodTraditional Bid Method

ADVANTAGES - PUBLICADVANTAGES - PUBLIC

Ability to Receive New, Creative, and Ability to Receive New, Creative, and Alternative IdeasAlternative Ideas

Additional Method of ProcurementAdditional Method of Procurement

Shorter Implementation TimeShorter Implementation Time

Lower Project CostsLower Project Costs

DISADVANTAGES - PUBLICDISADVANTAGES - PUBLIC

Loss of Traditional Control

You Have a Partner

Traditional Procurement Law does not Apply; Only Comprehensive Agreement

Private Financing May be More Expensive

Higher Risk of Public Criticism

Less Competitive Procurement

ADVANTAGES - PRIVATEADVANTAGES - PRIVATE

Ability to Present Unsolicited Proposals

Working as Partner w/Public Entity

Procurement by Competitive Negotiation versus Traditional Method

Possibility of Diminished Competition

DISADVANTAGES - PRIVATEDISADVANTAGES - PRIVATE

Considerable Investment of Time, Effort and Money

More Diverse Staffing Required

You Now Have a Partner

Greater Risk Sharing

How to Get StartedHow to Get Started

Before you can consider unsolicited Before you can consider unsolicited proposals, the governing body must adopt proposals, the governing body must adopt and make publicly available procedures and make publicly available procedures that are sufficient to enable the that are sufficient to enable the responsible public entity to comply with responsible public entity to comply with this chapterthis chapter

What Others Have DoneWhat Others Have Done

Model GuidelinesModel Guidelines

Commonwealth of Virginia (Model)Commonwealth of Virginia (Model)

Fairfax County Fairfax County

Norfolk Airport Authority (PPTA/PPEA)Norfolk Airport Authority (PPTA/PPEA)

City of RichmondCity of Richmond

Loudoun CountyLoudoun County

QUESTIONS AND QUESTIONS AND ANSWERS???ANSWERS???