handshakeWEB 300x200 Changes in government procurements should be recognized

Public-private partnerships (P3s), or collaborative initiatives as they are sometimes called, are becoming more common – so common in fact, that it’s hard to find any state where collaborative partnerships that include funding options are not being used to deliver public projects. With limited budgets, public officials are being forced to seek alternative funding sources.

There’s an abundance of available investment revenue, and companies that contract with government should be prepared to either offer their own investment revenue for projects they seek or pursue contracting opportunities with an investment partner.

Regional banks, insurance firms, foundations, investment companies, and pension funds are all interested in investing in government projects. Many 501(c)(3)s are now offering revenue at tax free rates. The examples that follow make it clear that all types of contracting opportunities will involve partnerships.

New York
Officials at Metro are prepared to deliver projects through P3 engagements. Two months ago, Metro approved a P3 for the construction of a rail project with a projected cost of $65 million. Planning documents related to the project indicate that it will include the station, two 12-car platforms, a pedestrian overpass, lighting, elevators, and an audio and visual announcement system.

The Hudson’s Downtown Revitalization Committee received $10 million to refurbish the historical Dunn Warehouse. Once repairs are completed on the roof, the city will seek a private sector partner to help with reuse projects in the large facility. The revitalization committee is currently drafting a solicitation document and intends to select a partner by May 2020. An architectural firm has conducted a redevelopment analysis and master plan of the project.

The city of Kissimmee owns 25-acres of land and plans to expand its Medical Arts District and offer leased office space on the property. Officials have said the project will probably be delivered through a P3. With a conceptual site plan now finalized, the city will select a master developer. A definite timeline is yet to be announced, but the project’s projected start time is 2021.

The Nebraska Department of Correctional Services plans to issue a request for information (RFI) in March 2020 to identify possible P3 options for the construction, maintenance, and creation of a proposed $200 million prison. Some plans being considered include a 1,600-bed facility for both medium and maximum security. In 2019, the state had 2,140 more inmates than its prisons could accommodate, and there is a court order for state officials to address the overcrowding problem.

Officials in Stamford plan to replace all of their outdated school buildings because they are plagued by mold due to poor maintenance. A private developer or construction firm will be selected to deliver the project through a P3 engagement. Old buildings will be torn down as new construction is completed.

The city of Missoula is seeking a private sector partner to deliver a project that includes construction renovation and oversight of new occupancy for the former Missoula Public Library. The Missoula Redevelopment Agency has provided funding for a study that is currently underway. A Downtown Master Plan outlines options for the project that include the development of parking, housing, and nearby office space.

State officials have expressed interest in following 10 other states that have a state-sponsored retirement savings plan. The state’s treasurer is seeking a private sector partner able to provide the state with an IRA program plan for Delaware residents.

President Trump’s fiscal year 2021 budget includes plans for the construction of a $120 million inpatient facility in Tulsa and a $29 million capital investment at the Jack C. Montgomery VA Medical Center. If the budget is approved by Congress, a portion of the funding would be available from a federal program, Communities Helping Invest through Property Improvements Needed that provides funding for construction of VA facilities through P3s. Plans call for the building to be completely renovated and also expanded. The Jack C. Montgomery VA Medical Center in Muskogee would receive a makeover and re-emerge as a VA behavioral health facility.

City officials in Odessa plan to issue a request for proposals (RFP) in March 2020 for projects on four public sites. The plan calls for the sites to be used for housing. Because Odessa’s housing shortage is critical, the city also wants to find a private sector partner to construct another 45 single-family homes.

Public officials at every jurisdictional level of government are interested in collaborative initiatives and alternative funding sources. This is not a new concept, but this model of contracting is gaining strength rapidly now because of inadequate funding. Companies that contract with government are wise to look for ways to offer alternative funding options along with their services.

SPI’s team of experienced procurement consultants have a long track record of identifying and winning public sector business. Contact them today!

Mary Scott Nabers

As President and CEO of Strategic Partnerships, Inc., Mary Scott Nabers has decades of experience working in the public-private sector. A well-recognized expert in the P3 and government contracting fields, she is often asked to share her industry insights with top publications and through professional speaking engagements.