Government Contracting Pipeline
Volume 5, Issue 44February 26, 2014
Funding cuts push states to social impact bonds
Money that once flowed from the federal government to states has diminished significantly. In 2013, states faced more than $85 billion in cuts from federal grant programs. That includes $37.8 billion in education grants, $32.5 billion in social services, $3.5 billion in community development and $3.6 billion in employment and job training, according to research by the Rockefeller Foundation.

 

That money represents a huge majority of what states spent on social programs. Most of these programs will simply fall by the wayside. If the public sector is unable to fund them, what happens next? The answer could lie in an innovative funding mechanism that's gaining steam around the nation.

 

[more]

 

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IN THIS ISSUE
Kentucky could be next to OK P3s
PennDOT approves rail project funding
Upcoming education opportunities
Other upcoming opportunities
Who's winning contracts?
News about P3s
Where are they now?
Opportunity of the week
People
Calendar of events

Strategic Partnerships, Inc. provides opportunity

identification for all 50 states.

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Kentucky could be next to OK public-private partnerships

 

May join more than three-dozen other states with legislation allowing P3s

Leslie CombsKentucky could be the latest to join almost three-dozen other states to pass legislation allowing public-private partnerships (P3s) in the state. Legislation was recently filed by Rep. Leslie Combs (pictured) of Pikeville that would allow both state and local governments to engage with the private sector in these types of partnerships.

 

Combs said her legislation will allow for the best possible return on tax dollars and will "create a way to enhance those returns by increasing the involvement of the private sector in public projects, and in effect, promote job growth." The proposal has seen widespread support - from the state's chamber of commerce, the Kentucky Association of Highway Contractors, the Associated General Contractors of Kentucky (AGC) and nearly 20 local chambers of commerce.

 

Among the provisions of the public-private partnership legislation are: encouraging competition for private-sector investments in state and local projects, establishing policies and procedures that would encourage the use of P3s and promoting both transparency and accountability during the life of a contract.

 

Calling P3s "a tool in their toolbox" for local and state governments, AGC of Kentucky President Ellis Hefner

said the legislation "will provide public entities an opportunity to engage the private sector for their construction expertise and financing availability." Others in the construction industry say P3s will create jobs and show how the state is open to new and creative funding solutions.

 

More than 30 other states, including those surrounding Kentucky, have approved P3 legislation and in many cases for both state and local government. Most P3s save the government entities both time and money. 

 

PennDOT approves millions toward rail freight projects

 

Funding will complete necessary projects, sustain 43,000 jobs in state

Tom CorbettWith more operating railroads than any other states, Pennsylvania recently approved funding for 33 rail freight improvement projects. Gov. Tom Corbett (pictured) said not only will the funding complete necessary projects, but it is also expected to sustain more than 43,000 jobs throughout the state.

 

"Investing in our rail freight network keeps these invaluable assets in prime position to generate economic growth and jobs," Corbett said of the rail projects. "Improving rail networks not only spurs our economy, it also increases safety by helping to ease traffic on our highways."

 

Three Pennsylvania Department of Transportation (PennDOT) programs provided the millions of dollars in funding. The Rail Transportation Assistance Program will provide $33.4 million for 15 of the projects. Another 14 will be funded by the Rail Freight Assistance Program. And, $1.3 million was approved for four projects from Marcellus Shale impact fees designated for distribution through PennDOT's Bureau of Rail Freight, Ports and Waterways.

 

Some of the rail projects and the amount of state funds appropriated to these projects include:

  • $1.2 million in Allegheny County for the Allegheny Valley Railroad Co., to build 4,500 feet of track for a new interchange siding with the Wheeling & Lake Erie Railway at Bruceton;
  • $700,000 in Schuylkill County for the Reading Blue Mountain and Northern Railroad, to rehabilitate track in the Buck Mountain tunnel, including replacing 2,478 ties;
  • $4 million to the Economic Progress Alliance of Crawford County to build a 7,000-foot unit train loop track and a 400-foot industrial track siding for a new tenant in the Keystone Regional Industrial Park;
  • $732,200 in Lancaster County for the Columbia and Reading Railway Co. LLC to add five new tracks, five new turnouts, realign 390 feet of mainline track, add four new turnouts and 1,350 feet of new track;
  • $1.1 million to the Westmoreland County Industrial Development Corporation for phase one of three phases for a project replacing 2.4 miles of worn rail with rail that will eliminate joints; and
  • $25 million in Clinton County for South Avis Realty, to reconstruct the existing rail yard and construct additional track.

To view the complete list of projects and appropriations, click here.

 

Contracting Opportunities

Upcoming education opportunities

 

Tennessee school district issues bonds for new school construction

The city of Jacksonville, Tennessee, has more than $12 million in hand to build a new elementary school. That includes $8.6 million from a recent bond sale as well as $4 million that city officials set aside last year for school construction. An investment banker working on the school's behalf said school officials were expecting between $1 million and $2 million less money from the bond deal. The school system's new bond debt will be paid back in $270,000 annual payments. About $170,000 of that amount will be paid by the city, and about $100,000 will be paid with state money the schools receive for construction and repair projects.
 

Illinois schools applying for grants for variety of security enhancements

Johnathon MonkenThe Illinois School Security Grant Program, administered by the Illinois Emergency Management Agency (IEMA), will be providing grants to public elementary and secondary school districts, community colleges and state universities. There is $25 million in grant funds available. Calling student safety a "top priority" for public school and college campuses throughout the state, IEMA Director Johathon Monken (pictured) noted, "Through these grants, we can support efforts to enhance school and campus security throughout the state." Each eligible public K-12 school district, inter-district special education cooperative, community college and university system in the state recently received information from IEMA about the grant program. The state prioritized security measures for schools, from installing reinforced doors to physical locks for primary public entrance at schools. Schools that already have installed those kinds of security measures will be allowed to use the grant funds for other security measures at public schools. Public community colleges and universities can request grant funds for physical security enhancement equipment, inspection and screening systems, information technology and interoperable communication equipment for classroom buildings. Grant awards are expected to be awarded in the spring.

  

Cloudcroft schools prioritizing list of 44 projects after bond passage

Officials in the Cloudcroft Municipal Schools are currently prioritizing a list of 44 projects to decide which to move on first after district voters recently passed a $3.75 million bond issue. The proceeds of the bonds are for district facility improvements. Top projects for the elementary school include electrical upgrades, security for doors, snow guards, relocation of the fire main panel and emergency lighting upgrades. Total cost for these projects is estimated at more than $209,000. Highest ranked projects for the high school, with a total cost of more than $917,000, are increased security cameras, Americans with Disabilities Act (ADA) improvements, security improvements to the building entrance, addition of a field house and an HVAC study and commissioning. Four projects were identified at the administration building - ADA upgrades, upgrades to the interior at the central office and IT room and district bus barn and electrical and air conditioning upgrades in the IT room.

 

University of Mississippi about to build new $18 million on-campus dormitory

Dan JonesUsing internal funds, the University of Mississippi is planning to build a new $18 million dormitory as it continues to face an on-campus housing shortage. The facility is expected to be either four or five stories and will likely be of the same design as three dormitories finished in 2013, thus hoping to save design fees. Those facilities house 250-300 students. According to Chancellor Dan Jones (pictured), 5,000 of the university's 18,000 students currently live on campus. Like many other universities, Ole Miss mandates that freshmen students live in dorms. Research shows that students who live on campus are less likely to drop out and are more engaged in university activities. With a growing population and some freshman students currently in dorms on campus seeking to stay in those dorms, the university saw the need for additional student housing. Jones said the university sees on-campus living as "healthy and good." The architectural fees for the project are projected at $845,000. Construction is expected to be $13.6 million. Furniture and equipment will cost $480,000 and other costs will total $728,000.

  

Michigan school district approves bonds for school improvements

Up to $3.3 million in bonds will be issued by the School District 158 in Lansing, Michigan, to pay for school improvements. The improvements are for the Reavis Elementary. The bonds are expected to be issued in March, putting money in the hands of the school district in April to start planning for contracts for the planned improvements. 

 

Need Federal Contracting?

Other upcoming contracting opportunities

 

County in Wisconsin to use loan funds for capital improvement projects

Funding for projects from the Portage County, Wisconsin, Capital Improvement Plan will benefit from funding from a $9.8 million loan approved by the county's Board of Supervisors. The board had originally considered a loan of $12.1 million, but the amount was reduced when the cost of one of the projects was reduced. The projects that will benefit from the loan funds are repairs of County Road X, addition of an Enterprise Resource Planning System and a radio upgrade for the county's simulcast system.

 

Scott proposes transportation hub, rail line for Orlando

Buddy DyerIf Florida Gov. Rick Scott has his way, Orlando will be home to a $213 million transportation hub that includes a rail line to Orlando International Airport. The governor said the South Airport People Mover Complex he has proposed would mean nearly 2,000 construction and 380 permanent jobs. Scott said the project, if approved for funding by the legislature, would join other projects in making Florida's airports among the best in the country. The project would link the new hub to the Orlando airport with the private All Aboard Florida rail line that is scheduled to run from South Florida to central Florida as early as 2015. It would also mean links to air and ground transportation, such as rental cars, cabs, buses and private vehicles. Orlando Mayor Buddy Dyer (pictured) said the South Terminal Expansion "will position Orlando International Airport to be among the first international airports in the U.S. to have air travel, ground transportation and rail - all in one location."

 

Boston to issue RFP for transforming abandoned historic building

A building that has been abandoned since 1977 could get a facelift and a new purpose in Boston. The 1,200-square-foot building on a 2,300-square-foot lot was built in 1912 and has had many purposes, from office space to public restrooms. The land and structure are valued at $84,000 and neighbors and community advocates are exploring possibilities for the building. The building is managed by the Department of Neighborhood Development, which would be happy selling the property for a new use. A request for proposals will be developed and will include information on how neighbors would like to see the property used. Some of the possibilities suggested are a cafe, bike shop, visitor center or restaurant.

 

California city receives funding to construct wastewater recycling plants

Logan OldsWater projects in Victor Valley, California, have received $1.5 million in funding from the California Department of Water Resources to help construct wastewater recycling plants. The funds are from Prop. 84, which authorized $5.388 billion in general obligation bonds to fund safe drinking water, water quality and supply, flood control, waterway and natural resource protection, water pollution and contamination control, state and local park improvements, public access to natural resources and water conservation efforts. The projects are in Apple Valley and Hesperia and have already received $2 million in federal grant money from the Bureau of Reclamation. Those funds will go toward the total $51 million cost of the two projects. The sub-regional treatment plants will expand the use of recycled water in the Victor Valley. Both plants will have the capacity to recycle 1 million gallons per day and will have the future potential to recycle up to 4 million gallons per day, enough to offset the potable water usage of nearly 9,000 High Desert homes. The recycled water can be used for landscape irrigation. Victor Valley Wastewater Reclamation Authority General Manager Logan Olds (pictured) said the water from the plants "is a vital drought-proof resource that will further bolster the Victor Valley's water supply needs far into the future."

  

New Hampshire city's CIP includes $1.7 million in spending in coming year

The city of Portsmouth, New Hampshire, will see $1.7 million in general fund expenditures during the coming year, thanks to the City Council's recent approval of a capital improvement plan. The six-year plan includes a number of outside funding sources - from public-private partnerships to federal funding and bonds. While there was some opposition to the cost of the plan, City Manager John Bohenko said the original request from city department heads totaled $2.86 million and was pared down. For Fiscal Year 2015, the plan includes a request of $54.9 million, $1.7 million of which will be from the general fund.

 

Stewart International Airport could benefit from Port capital plan

The Stewart International Airport could see 24 projects funded if the Port Authority of New York and New Jersey's capital plan is adopted. Included in the10-year plan is $262 million for the airport. Half of the money would likely be spent between this year and 2018, with the remainder spent between 2019 and 2023. The main project for the airport would be the continued rehab of its two main runways, with a price tag of an additional $71 million over the next three years. Other planned projects are taxiway rehab, signage replacement and runway incursion mitigation. For 2014, the plan budgets $43 million for the runway and taxiway projects, $2.4 million for a regional crime laboratory and $625,000 to expand the terminal. Security projects are also on tap in the future, as is a new fire alarm system and emergency generator in the terminal, roof replacement at Hangar A and rehab of the operations control center. 

 

Research Analysts 

 

Who's winning government contracts?

 

Check out these recent awards:

  • Apex Paving Co. won a $1,730,618 contract from the Missouri Highways and Transportation Commission for resurfacing Route Z from Route 25 to Route 153 in Stoddard County, resurfacing route H in New Madrid County from the beginning of state maintenance to Route 61, resurfacing Route E in Stoddard County from Route 25 to Route N and resurfacing Route AF in Stoddard County from the beginning of state maintenance to Route 25.

  • PNCI won a contract for just over $1 million from Rifle City, Colorado, to build a new concession stand, press box and restroom facility and elevated bleachers at Cooper Field in Deerfield Park.

  • Great Lakes Dredge and Dock Corporation won a $31.6 million contract from the U.S. Army Corps of Engineers for the Miami Harbor Deepening Project, which will result in dredging of one million cubic yards of material to deepen the channel and berthing area.

  • McMenamy Ventures LLC has won a contract from the Missouri Office of Administration in conjunction with the Missouri Department of Revenue for the Crane License Office management. Nearly 14,000 transactions were conducted at the Crane office last year generating more than $45,000 in agent processing fees McMenamy Ventures' contract includes an annual commitment to return 1 percent of future processing fees to the state.

  • Leidos has been chosen for a $1 million contract with the U.S. Army Program Executive Office for Simulation, Training and Instrumentation for developing a live virtual and constructive integrated training environment to be performed in Orlando, Florida.

  • GetInsured and Accenture have won contracts totaling $40.8 million from the Idaho Insurance Exchange to build and operate a state enrollment system to replace the federal software in place now. GetInsured gets $37.4 million to build and run the exchange through 2018 and Accenture gets $3.4 million to oversee the project.

  • Manhattan Road & Bridge Co. won a nearly $10.8 million contract from the Oklahoma Transportation Commission for emergency repairs to the bridge linking the towns of Lexington and Purcell.

  • CH2M Hill Engineers was awarded a $339,000 contract from the city of Amarillo, Texas, for engineering work on three projects for improvement at the River Road Wastewater Treatment Plan. The work includes lining an existing storm water basin, replacing rakes in three water clarifiers and piping improvements.

  • Rolls-Royce has won a $182.7 million contract with the U.S. Air Force to support the C-130J by supplying sustainment services for its AE 2100 engines, nacelles and propellers on the U.S. Air Force C-130J fleet.

  • Apex Paving Co. has been awarded an $8,911,025 contract from the Missouri Highways and Transportation Commission for grading, paving and adding shoulders to Route 34 from Route 51 in Marble Hill in Bollinger County to the Route 72/34 intersection in Cape Girardeau County.

Advertise in Pipeline 

 

News about public-private partnerships (P3)

 

Live Oak in negotiations with partner for hotel, convention center

Officials with the Live Oak (Texas) Economic Development Corp. have executed a memorandum of understanding with the Phoenix Hospitality Group to allow the private-sector firm to begin moving toward building a five-story hotel with a convention center in the city. City officials set aside the $1.62 million garnered from the sale of the former Live Oak Civic Center property and held it back in anticipation of partnering with a private-sector developer for a hotel-convention center. The city will also include some hotel occupancy tax (HOT) funding in the deal. The new hotel will be full-service and include a bar, restaurant, room service, catering and more, according to Assistant City Manager Scott Wayman. "It's all HOT money, money from the industry, going back into the industry, to promote the industry," Wayman explained.

 

University of South Carolina student housing complex gets city approval

Student HousingAn 878-bed student housing complex (as seen in the accompanying artist's rendering) that will be a public-private partnership (P3) between the university and Holder Properties has been approved for the University of South Carolina by the Columbia, South Carolina, design board.

  

The new complex is part of a major student housing effort by the university to keep up with the growing demand for on-campus housing. Although approved by the city, the $94 million project still must be approved by the state.

 

In addition to this facility, a 700-bed housing complex is planned. A 120-bed complex called Pulaski Square is also planned as well as an 800-bed complex at Blossom and Huger streets. The university's student housing project will include space for office, retail and restaurants. The development includes three-story and a five-story parking garages.

 

City in Texas signs development agreement for hotel, civic center

A 220-room Sheraton hotel and conference center is in the near future for the city of Georgetown, Texas, after city officials finalized development agreements to build the $65 million facility. Ground is expected to be broken this fall with a completion date of the end of this year. Williamson County will contribute $11.7 million toward the project and the developers - Novak Brothers and Hines Georgetown Hotel - will spend $3 million for infrastructure improvements.

 

The city, the Georgetown Economic Development Corp. and the Georgetown Transportation Enhancement Corp. will pony up some $13.3 million to build a parking garage for the facility, make improvements in Rivery Park and build public utilities and infrastructure. The incentives for the developers are said to be $25 million. The Rivery Park project in the future will include retail stores, restaurants and single- and multi-family housing. The project overall will be worth $150 million. A tax increment fund created in 2007 will reimburse the city and economic development groups and the city will allocate 1 percent of city sales tax generated in the area to Williamson County.

  

Success of Brent Spence Bridge project dependent on Kentucky legislation

Brent CooperFunding and building a new Brent Spence Bridge in Kentucky could come down to whether legislation recently filed in the state regarding public-private partnerships (P3s) is passed. Another state - Ohio - is involved in the proposed project and already has P3 legislation in place. The project would be a partnership between the two states and a private company. Approval by the Kentucky legislature would ensure the possibility of the two states sharing some of the costs of the $2.6 billion project.

 

"P3 is a way to build a bridge," said Northern Kentucky Chamber of Commerce President Brent Cooper (pictured). Because P3 agreements generally are completed faster than a project solely involving government, officials are hoping to speed up the building of the bridge. Also, because it would be built by the private sector, the costs could be reduced by about $500 million. Cincinnati Mayor John Cranley said the project is key not only to the two states, but to the entire country. With hundreds of trucks crossing the bridge daily, locals say it is "critical" to doing business. 

 

Collaboration Nation

Where are they now?

 Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature Dr. Eric Barron.        

 

Eric BarronDr. Eric J. Barron (pictured) earned his bachelor's degree with honors in geology from Florida State University and holds both master's and doctoral degrees in oceanography from the University of Miami. From 1986 to 2002, Barron was employed by Penn State University as a professor of geosciences, director of the Earth System Science Center, director of the EMS Environmental Institute and dean of the College of Earth and Mineral Sciences. From 2006 to 2008, Barron was dean of the newly formed Jackson School of Geosciences at The University of Texas at Austin. From 2008 to 2010, he was director of the National Center for Atmospheric Research in Boulder, Colorado. In 2010, Barron was named president of Florida State University. While at Florida State, he oversaw a $1 billion dollar capital campaign, and spearheaded efforts to accommodate student-veterans with the establishment of a veterans center. During his time as president, the university was named one of the two pre-eminent universities in the state of Florida, as well as earning a U.S. News & World Report ranking as the most efficiently operated university in the nation. Barron was recently chosen to become president of Penn State University, Pennsylvania's largest university. Barron will replace current President Rodney Erickson, who is set to retire by June 1.
  
Opportunity of the week...
 

Voters in Wisconsin recently approved three school construction building projects in local referendums. As a result, one school district will receive $25 million for upgrades, one will get $16 million for remodeling and additions of two elementary schools as well as technology upgrades and another district will seek $24 million in borrowed funds for building work. Want to know more? Contact our Sales Team at 512-531-3900 or sales@spartnerships.com.

 

People

 

Ed ZuercherJim WeinsteinMaya WileyEd Zuercher (top left), who has worked for the city of Phoenix for more than 20 years, starting as an intern in 1993 and working his way up to assistant and then interim city manager, has been named the city's next city manager, replacing former city manager David Cavazos. Jim Weinstein (top center), executive director at New Jersey Transit, has announced his resignation, effective March 2, when Veronique "Ronnie" Hakim, head of the New Jersey Turnpike Authority, will replace him. New York Mayor Bill de Blasio has named Maya Wiley (top right), a civil rights lawyer and a co-founder of a nonprofit group called the Center for Social Inclusion, which advocates for racial equality, as his chief legal adviser. Patrick D. Gallagher, acting deputy secretary of the U.S. Department of Commerce and director of the National Institute of Standards and Technology, will become chancellor and chief executive of the University of Pittsburgh, succeeding Mark A. Nordenberg, who will step down on Aug. 1. John Nixon, director of Michigan's Department of Technology, Management and Budget for the last three years, will step down at the end of this month to take the post of chief business officer for the University of Utah. Albuquerque Mayor Richard Berry appointed Gorden Eden, the former U.S. Marshal for New Mexico who more recently headed the state Department of Public Safety, to be the city's new police Gregory Thornton Richard Land Kathryn Mallon chief. Milwaukee Public Schools Superintendent Gregory Thornton (bottom right) is returning to Maryland, where he will take over as head of the Baltimore City Public Schools, effective in July. Caltrans Chief Deputy Director Richard Land (bottom center), who has been with the agency for 36 years, has announced his retirement, effective around April 4. Kathryn Mallon (bottom left), head of New York City's Build It Back program and former assistant commissioner at the city Department of Environmental Protection in charge of capital projects, has announced her resignation. The executive director of Nevada's beleaguered health insurance exchange, Jon Hager, has announced his resignation, effective March 11, to pursue other opportunities. Durant, Oklahoma, Superintendent Jason Simeroth has announced his resignation to accept the superintendent job in Yukon, near Oklahoma City, effective July 1. Eric Metzger, who has served the Flower Mound, Texas, Fire Department for 28 years, the last 22 as chief, has announced his retirement.

 

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ASPA plans 75th anniversary celebration in March in D.C.

The American Society for Public Administration (ASPA) will hold its 2014 Annual Conference March 14-18, 2014, at the Mayflower Renaissance in Washington, D.C. One of the keynote presentations will be given by Elaine Karmark, a public policy expert who founded the New Democratic Movement that helped elect President Bill Clinton. She is also the founding director of the Center for Effective Public Management at Brookings Institution. This year's conference celebrates the 75th anniversary of the ASPA. The conference programming examines the challenge of managing and leading public service organizations in the 21st century, public human resource management, budgeting and finance management and policy formulation and service delivery. Featuring more than 150 panels led by public-service experts, the event will address changing public-sector ethics, how to create smarter government and working across levels of government and sectors. Conference registration is now open and additional information is available.
 
National Association of Counties preparing for Legislative Conference
The National Association of Counties will host its 2014 Legislative Conference March 1-5 at the Washington Hilton in Washington, D.C. The annual event brings together more than2,000 elected and appointed county officials from across the country to focus on legislative issues facing county government. Attendees hear from key federal officials and members of Congress and are offered a myriad of additional educational opportunities addressing current and hot topic issues. A day of lobbying on Capitol Hill the last day rounds out an information-packed Conference. Among the speakers for the event will be Mike Allen, chief White House Correspondent for Politico, and the honorary co-chairs of the No Labels organization, Gov. Jon Huntsman and Sen. Joe Manchin. They will discuss how to engage in a dialogue that delves further into breaking down the structural problems that push the nation's leaders apart and how the existence of common goals can drive across-the-aisle solutions. Registration is now open and the conference schedule is available.

 

National League of Cities to host Congressional City Conference

U.S. Education Secretary Arne Duncan and U.S. Secretary of the Department of Housing and Urban Development Shaun Donovan will be guest speakers at the upcoming National League of Cities 2014 Congressional City Conference. The event is slated for March 8-12 at the Marriott Wardman Park in Washington, D.C. The Congressional City Conference brings together more than 2,000 elected and appointed city leaders to focus on the federal policy issues that are important to local governments. Partnering with the National League of Cities ensures the nation's cities a seat at the decision-making table with members of Congress, the White House and federal agencies looking for solutions to addressing the nation's most pressing challenges. Additionally, attendees at the conference will learn about the federal programs, funding opportunities and resources available to implement the most innovative practices at the local level. More information is available and registration is now open.

 
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