Government Contracting Pipeline
Volume 6, Issue 37January 7, 2015
Cybersecurity - critical budget item, costly price tag
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.

MSN

A former Secretary of Defense said recently that a cyber-attack on the United States could be as destructive as the terrorist-attack of 9/11. That's a bold and disturbing statement. Indicating the truth in that statement, however, is the fact that the Pentagon last year proposed a $23 billion plan designed to protect federal networks and prepare the country for greater offensive capability related to cybersecurity.


Recent breaches of corporate networks made headlines for weeks. The cyber-attacks included private sector firms JP Morgan, Home Depot and Target, along with others. Each attack involved sensitive financial information about consumers, including credit card account information.


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IN THIS ISSUE
Missouri studies P3 options for interstate
Maryland Purple Line bids delayed
Upcoming education opportunities
Other upcoming opportunities
Who's winning contracts?
News about P3s
Where are they now?
Opportunity of the week
People
Let us help advertise your event
Calendar of events
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Missouri studying P3 options for Interstate 70 upgrades

 

State officials looking for ways to expand, improve busy thoroughfare

Jay Nixon When Missouri Gov. Jay Nixon (pictured) asked for an analysis of toll options that could result in the expansion and improvement of Interstate 70, he was looking for ways to ensure reliable transportation while also freeing up state funds for other transportation projects. His letter to Missouri Highway and Transportation Commission Chair Stephen Miller requested the analysis.

The Highway Commission recently delivered the analysis to the governor, outlining information on possible public-private partnership (P3) options. 


"A strong, safe and reliable transportation infrastructure is critical to our ability to create jobs and grow our economy, so I appreciate the Commission's work to complete this report," Gov. Nixon said. The governor said he plans to study the analysis to see how P3s, which are being used in many other states, can "free up Interstate 70 resources for road and bridge projects statewide, while minimizing the costs and inconvenience to drivers through technological advances."


Nixon said the analysis will be a starting point for future discussions regarding the state's most-needed transportation infrastructure.


Interstate 70, built between 1956 and 1965, already is beyond its designed capacity. It was constructed with capacity to carry 12,000 to 18,000 vehicles per day. Today, it carries 28,000 vehicles and 10,000 to 13,000 trucks in rural areas and up to 98,000 vehicles and 25,000 trucks per day in more urban areas. Not only is the interstate congested, but the roadway pavement is deteriorating and bridges on the highway will soon have to be replaced.


Officials estimate that it will cost $2 billion to reconstruct and expand I-70 and that is money the state does not have. Current costs to operate and maintain the highway in its current condition are estimated at $50 million to $60 million per year. The report notes that "some form of tolling could reduce some of these costs and result in a new and expanded highway, but it will not free up enough money to solve the overall transportation needs for Missouri." And, although Highway Department officials say the "simplest and cheapest" option would be a design-build method, the state does not have the necessary funds to go that route. The report lays out a number of tolling options for the highway, including several P3 options, the use of availability payments, and long-term lease concession.
 

Purple Line bids delayed until March by Maryland Transit

 

Newly elected governor Larry Hogan seeking time to evaluate P3 proposals

Larry HoganMaryland Gov.-elect Larry Hogan will not be sworn in until Jan. 21. So that he will have time to review proposals on the state's Purple Line light-rail project, Maryland Transit Administration officials have decided to move the deadline for bids to March 12. The original bid deadline was slated for Jan. 9.


Four international consortia that bid are on the short list for the project that includes a 16-mile route between northern suburbs of Washington, D.C., to New Carrollton in Prince George's County. 

 

The line includes 21 stations and will provide access to the Metrorail system of the Washington Metropolitan Area Transit Authority and to Amtrak's passenger rail. Officials are hopeful for a construction start this year and completion by 2020.

 

The private partner in the project will invest $500 million to $900 million in the line in return for a 35-year concession to operate and maintain the system. Availability payments will be paid up to $200 million per year.
 

Although a change in bid dates will not affect the overall project schedule, according to a Maryland Transit Administration spokesperson, Hogan during his campaign was an opponent of the Purple Line. He originally said that if he were elected, he would cancel it and a Red Line rail proposal. He has since backed down somewhat, now saying that although he prefers spending transportation funds on roads instead of rail, he finds the rail projects worth consideration.
 

Contracting Opportunities

Upcoming education opportunities

 

Mississippi school district ironing out details of $39.9M bond issue

Lynn Wright Following a meeting next week of the Lowndes County (Mississippi) School District board, more details of an anticipated $39.9 million school bond will be made official. LCSD Superintendent Lynn Wright (pictured) said that is when school officials will decide what projects to include in the bond election. After meeting with the school attorney and architect, Wright said the bond projects discussed include $25 million for a new high school in New Hope, $11 million for a career tech-center, $2 million for a football field house at Caledonia and a little less than $1 million for athletic facilities at West Lowndes High School. After a bond amount is set, voters will decide the fate of the bond in a Feb. 3 election. The new bond issue will follow a failed $47 million referendum last August. Among the projects in that bond issue that have been eliminated from the current bond vote under study are a $2.8 million renovation at New Hope Middle School, a new field house at New Hope High School and technology upgrades to provide either a laptop or notebook computer for every student in the district.

 

State College of Florida looking to build new library, learning center

The planning and design stages of a project to build a new Library and Learning Center at the State College of Florida (SCF) Bradenton is moving forward in 2015. The college is only $8.9 million away from having all the funding for the center. SCF benefited previously from an $8.7 million allocation from the Florida Legislature. SCF President Carol Probstfeld said the center has been the college's number one priority over the last few years. She said officials expect the remaining funding to come from the upcoming legislative session. "The new facility will be designed to meet the needs of our 21st century students who embrace collaboration and creativity in their learning as they take courses on campus and online," she said.  

 

Miami of Ohio planning millions of dollars' worth of projects

A $98.3 million renovation of the North Quad dormitories has been approved by officials of Miami of Ohio University. University officials are also looking to spend money, to the tune of $268 million, on other campus projects. Projects range from an indoor practice field to the multi-million-dollar dorm. Other projects are likely to require private funding through donations. That will leave projects such as a proposed $20 million Gunlock Family Performance Center, an athletic training facility that was recently announced, to be funded through donations.  

 

Ozark, Missouri, school district approves bond election for April ballot

Kevin Patterson Expansion, repairs, renovations and improvements are the focus of a proposed $20 million bond in the Ozark, Missouri, school district. School officials surveyed community members, school staff, parents and others before setting the election. "I feel like we've asked a lot of people and gotten a lot of input for this," said Superintendent Kevin Patterson (pictured). The superintendent said he was thus comfortable with putting the issue to a vote on an April ballot, citing more than 90 percent approval among those providing input. The bond language would allow for updates to current school facilities, but excludes purchase of either buses or land. No money can be allocated to any particular project without board approval.  

 

New school would result from successful bond issue in Oklahoma district.

A school bond issue in Jenks, Oklahoma, has been slated for February and a successful initiative would lead to construction of a new elementary school, the district's fourth. About $42.5 million of the $120.4 million bond election proceeds would be used for a new elementary and additional elementary classroom space. Intermediate schools would also get additional space, to the tune of $14.3 million. Two of the district's three elementary schools are overcrowded, with about 2,000 students each and the third has about 840 students. Close to $19 million would be for renovation of high school buildings 5 and 6. Expansion of the central campus cafeteria and remodeling of the kitchen would garner $6.7 million and $3.6 million would be used for technology upgrades and equipment. Transportation issues would garner $1.4 million and remaining funds would be used for maintenance and improvements at other facilities throughout the district. 

 

New College of Florida making plans for expansion of complex

One of the major projects on the campus of New College of Florida for 2015 will be expansion of the college's Heiser Natural Sciences Complex. Approved last November, the project will add 22,000 feet of laboratory, classroom and office space to a facility built in 2000. When the original building was constructed, one of the three wings that had been planned was eliminated because of funding cuts. The new additions are expected to cost $7 million, which officials hope would be funded by the legislature in its upcoming session. 

 

Public school, community college to share cost of new building on campus

Brad Winter Cost of a new building on a community college campus in New Mexico that will house two district schools will be shared by the Central New Mexico Community College and Albuquerque Public Schools. APS Interim Superintendent Brad Winter (pictured) called the project "a great partnership." Once completed, the building will house the Native American Community Academy and the College and Career High School. The building, expected to cost $35 million, would have APS contribute up to $12.7 million and the college would pay for demolition of the current building on the site where the new one would be built. The district and college would then share the remaining costs. But, before all that can happen, voters in both the school and community college districts will have to approve bond elections. Both must pass or the deal is off the table.

 

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Other upcoming contracting opportunities

Orlando International Airport projects online in coming years

Phil Brown Hoping to make travel easier and more enjoyable, officials with the Orlando International Airport are making current and future plans toward that goal. One of the biggest challenges, according to airport Executive Director Phil Brown (pictured), is making the terminals safe and easily accessible. Passenger pick-up and drop-off points have become congested as use of the airport grows. "As we grow more, we have to pay more attention to traffic on roadways," said Brown. Among the projects planned are construction of a new cellphone lot north of the airport aimed at mitigating curbside congestion. By waiting for travelers to arrive, those vehicles are parked in a special lot which ensure that traffic does not stack up. A new parking garage is planned for 2017 and a pilot program is under way to develop a valet service to include remote check-in for passengers and bags. 

 

Yosemite National Park seeks contractor to operate park businesses

Yosemite National Park in California is accepting bids this month for a private-sector firm to operate the park's major businesses. The contract will be worth nearly $2 billion and will include operation of the Ahwahnee Hotel, Badger Pass Ski Area and other retail operations. Yosemite has the largest single national park concession in the country, worth $120 million gross revenue every year. The contract has been held by Delaware North since the early 1990s. The 15-year contract ended in 2008, but extensions have been granted since then. The company has won other park contracts that include Grand Canyon, Sequoia and Kings Canyon. The contract for Yosemite is expected to be awarded in the middle of this year.  

 

Variety of projects on tap in 2015 in Waseca County in Minnesota

Mark DuChene As 2015 gets under way, residents of Waseca County, Minnesota, are likely to see various road construction and school projects on tap. One of the major road reconstruction projects will be on Elm Avenue in Waseca. City Engineer Mark DuChene (pictured) said construction should begin in 2016. The road will be completely reconstructed. In addition, the city will see projects related to replacing curbing, sidewalks, street lighting, storm sewers, water mains, pavement and sanitary sewers. DuChene said that in August, the city was informed that the Minnesota Department of Transportation will pay for 60 percent of the costs of the project. An additional $500,000 in street projects are also on tap. On the county side of things, officials are looking for revenue to make any repairs that are needed at the county courthouse. Public schools in the county can also look forward to change as the district begins working on its facilities plan. Superintendent Tom Lee said he hopes a school construction referendum will be put before the citizenry in November.  

 

City in Louisiana to continue downtown development in new year

The Downtown Development Authority in Lafayette, Louisiana, will soon commission a study to determine options to increase development along Congress Street in an effort to help attract residents and businesses into the downtown area. The development efforts are part of the city's Downtown Action Plan and this year much of their efforts will be directed to improving streets. City officials see Congress as a redevelopment opportunity. Not only will the study help identify ways to increase development, but it will also work on improving routes for cyclists. Parking in the downtown area will also undergo change, as the city will go from using meters fed with change to parking meters where drivers can use credit cards or smartphones to pay. Although there are no plans to build a parking garage this year, officials say a public-private partnership would likely be necessary for such a project to move forward. Other plans could include housing and public spaces such as playgrounds.

 

Capital improvement plan in Ohio city will mean slate of new projects

Ted Staton In Arlington, Ohio, the new year is expected to be a busy one in relation to economic development and capital improvement projects. Upper Arlington City Manager Ted Staton (pictured) said much of the emphasis will be on moving forward with the 10-year capital improvement plan. That plan, developed in 2013, identified $113 million in infrastructure projects needed in the city. The projects have been aided by last November's voter-approved income tax rate increase from 1 to 2.5 percent. Proceeds from that increase mean an additional $43.5 million in revenue that the city will be able to use for streets, stormwater systems, curbs, gutters and parks. "We will be implementing an aggressive capital-improvement program," said Staton. While a number of reconstruction, resurfacing, water line and bridge replacement projects are planned for more than two-dozen streets, a project valued at about $8.2 million is planned that will provide for reconstruction of Tremont Road. Other projects include the makeover of Northam Park to include new athletic fields, gardens and possibly a senior center. 

 

Research Analysts - Solutions

Who's winning government contracts?

 

Check out these recent awards:

  • E.R. Snell Contractor, Inc. won a $47.8 million contract from the Georgia Department of Transportation for widening and rebuilding nine miles of work on northeast Georgia 72 from Comer in Madison County across the Broad River and into Elbert County.
  • Harris Communication was awarded a $3.6 million contract for a new radio system for the Kaufman County (Texas) regional dispatch center.
  • Earle Asphalt was awarded a $2.7 million contract from the Lacey Township (Washington) to pave 1,700 feet between Lacey Road and Sunrise Blvd. The new road will replace part of the Lacey Rail trail, completing the new bypass road over the existing trail.
  • C.W. Matthews Contracting Co., Inc. won a $53.3 million from the Georgia Department of Transportation to widen, rebuild and extend some seven miles of Sardis Church Road, to include building five bridges
  • Plote Construction Inc./Dunnet Bay Construction Co. joint venture was awarded a $149 million contract from the Illinois Tollway for the I-90 rebuilding and widening project.
  • Dane Construction won a $2.3 million contract from the North Carolina Department of Transportation to replace the bridge on Frye Bridge Road over Muddy Creek in northwestern Davidson County.
  • Turner/PCL, a joint venture, won a $961.3 million design and construction project from the Los Angeles International Airport commissioners for a midfield concourse that will add 11 passenger gates to accommodate increasing air travel. The north concourse will include taxiways and a tunnel for passengers to reach the Bradley, where an annex will be added.
  • Swank Enterprises was awarded a $5.969 million contract from Flathead County, Montana, to construct a two-story South Campus Building for the county. 
  • Orion Marine Group, Inc. won a $16 million contract from the city of Seattle, Washington, for the installation of an upgraded drinking water pump station on Morse Lake. 
  • America 4G won a contract worth up to $4.6 million from the U.S. Army for utilities and housekeeping services.
Gemini Global Group

News about public-private partnerships (P3)

 

Capital improvements, transportation issues top agenda for Illinois county

Nick Palmer A bridge just might be the fix that is the catalyst for a regional effort to help mitigate the traffic problems related to the increasing semi-trailer traffic from two trucking intermodals in Will County, Illinois. Nick Palmer (pictured), chief of staff for County Executive Larry Walsh, said he expects talks to continue about the possibility of a high-level bridge to connect Interstate 80 to the intermodals in Joliet and Elwood. Palmer said the bridge would be a "huge shot in the arm" to the two facilities and not only would keep them viable, but would also move much of the traffic off the interstate and Route 53. 

 

The project would likely be a public-private partnership. The increasing truck traffic will be a topic of conversation at an upcoming conference this month that is expected to draw representatives of surrounding counties to discuss possible long-term solutions to the truck traffic.
 

Redevelopment efforts announced for $2.4B Brookridge project

In Overland Park, Kansas, the city council is considering creating two special districts that will lead to a partnership that will seek incentives for a proposed mixed-use redevelopment of a local 27-hole golf and fitness club. The council has voted to create districts that will make the project eligible for tax increment financing and Kansas sales tax revenue bond financing. The Overland Park Development Co. has indicated it is likely to seek public funding of more than $600 million, including $306 million in TIF funds, $130 million in sales tax revenue bond financing, $110 million in community improvement district financing and $27 million from the general fund. The project includes a 3,000-seat performance venue, a 330,000-square-foot retail village and 45,000 square feet of retail in office buildings and hotels. There will also be more Class A office space, more than 2,500 residential units to be sold or rented, three hotels, a central park and a luxury clubhouse.  

 

Staten Island project redevelopment product of public-private partnership

Vicki Been A development on Staten Island, New York, will depend on a public-private partnership to make the area what officials are calling a $75 million affordable showpiece. The project includes rehabilitation of the Arlington Terrace apartments and is part of New York Mayor Bill de Blasio's Housing New York plan. Housing development officials in the city have joined a joint venture of developers to announce the acquisition and rehabilitation of the apartments. They will be renamed North Shore Plaza. 


New York City Department of Housing Preservation and Development (HPD) Commissioner Vicki Been (pictured) said preservation of the North Shore Plaza will extend "the affordability of this development to allow existing tenants to stay in their homes without the risk of soaring rents." North Shore Plaza was able to take advantage of the Rental Assistance Demonstration (RAD) program through the federal Department of Housing and Urban Development.


The project includes 48 studio units, 239 one-bedroom units, 199 two-bedroom units, 26 three-bedroom units, 22 four-bedroom units, one superintendent unit and one office unit. Upgrades will include the roofing systems, painting and fresh cement on exterior walls, replacement of existing steam boilers and oil tanks, upgrades to kitchens that include cabinets, counter tops, stainless steel sinks and more. Bathrooms will get new toilets, sinks, vanities and shower bodies. Common areas will get a new paint job and replacement of floors and doors as needed.  

 

South Dakota rail projects get $56 million to expand system

Four rail projects in South Dakota will benefit from $56 million in public and private funds that will be used to help the projects give farmers better access to the marketplace. South Dakota Gov. Dennis Daugaard announced the funding. In addition to improving the rail system, a new $40 million grain-handling facility in Britton will be constructed and a $40 million shuttle-loading facility will be opened in Kennebec. 


Included in the projects are:

  • A $29.9 million project to reconstruct part of a Mitchell to Rapid City line. More than 40 miles of rail line will be upgraded to handle modern rail traffic.
  • A $7.5 million project to construct two new railroad sidings. The project includes a 10,000-foot siding in the Huron area and a 7,500-foot siding near Aurora. 
  • The state will partner with Dakota & Iowa Railroad to invest $7.3 million to upgrade the Sioux Valley Line in southeast South Dakota. The project will include upgrading nine bridges on the line, while a section of track that is in an area subject to landslides will be moved.
  • The Britton Line in northeast South Dakota will be upgraded and will include $5.25 million from the Dakota Missouri Valley & Western, $5.25 million in loans from the state Rail Board and $1 million in Future Funds. The $11.5 million project will add a section of line and replace 29 miles of light with heavy rail. 
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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 Natasha Henderson.


Natasha Henderson Muskegon Heights City Manager Natasha Henderson (pictured) has won a five-year contract to become the city administrator for the city of Flint, Michigan, effective Feb. 23. She was among 27 applicants for the post and was selected as the new administrator by the city's Emergency Manager Darnell Earley. Henderson has served as the Muskegon Heights city manager and chief administrative officer since 2008. She is also a former director of quality assurance and public relations for the city of Texarkana, Texas, serving in that position from 2006 to 2008 and was assistant to the city manager from 2001 to 2006. A graduate of the University of Arkansas-Pine Bluff and Texas A&M University, Henderson has bachelor's and master's degrees and has been a member of several boards and professional organizations, including the Michigan Local Government Managers Association. She will take over for former City Administrator Mike Brown, who was appointed by former Emergency Manager Ed Kurtz. 

       

Collaboration Nation

Opportunity of the week...
 
A city in Washington State will ask voters in February to approve a $5.8 million bond issue to completely rebuild a city pool and add a children's pool. Because voters have consistently said no to bond issues relating to aquatic centers and parks, city officials have eliminated any aquatic features to the pool. The project will instead include replacement of mechanical components, the addition of the children's pool and a changing house and non-pool amenities that include seating, shade and concession stands. Want to know more? Contact our Sales Team at 512-531-3900 or sales@spartnerships.com.
 
People

Chad Poppell James Peyser Eric Davis Chad Poppell (top left), former chief of staff of the Florida Department of Economic Opportunity and former chief of human resources under Mayor John Peyton, has been appointed by Gov. Rick Scott as Secretary of the Department of Management Services. James A. Peyser (top center), former chair of the Massachusetts Board of Education, former education advisor to Massachusetts Gov.'s Weld and Romney and current executive director of the Baker-Polito Transition Team, has been named Secretary of Education by Massachusetts Gov. Charlie Baker. North Carolina Gov. Pat McCrory has appointed Eric Davis (top right), a senior vice president with Wells Fargo Corporate Real Estate Group, to replace Marcella Savage as a member of the State Board of Education. Dr. Monica Bharel, chief medical officer for the Boston Health Care for the Homeless Program, has been named by Massachusetts Gov. Charlie Baker as the state's next commissioner of public health. Landon Fulmer, Kansas Gov. Sam Brownback's chief of staff, is stepping down to take a job in the private sector with an automobile industry group in Washington. California Gov. Jerry Brown has appointed Gareth Elliott, the governor's legislative affairs secretary since 2011, to the Board of Regents of the University of California, hoping to increase the Pamela Ahlin Thomas Madison Tom Glause governor's presents on the board. Pamela Ahlin (bottom right), who has served as chief deputy director and deputy director of the California Department of State Hospitals, has been chosen by Gov. Jerry Brown to serve as director of the California Department of State Hospitals, replacing Cliff Allenby, who has served as acting director since 2011. Thomas Madison (bottom center), executive director of the New York State Thruway Authority Board of Directors has resigned his post and Deputy Secretary for Transportation Karen Rae will manage the transition period while Jennifer McCormick, assistant deputy director of state operations, will take over operations of the agency until a new executive director is hired. Wyoming Gov. Matt Mead has named Paul Thomas "Tom" Glause (bottom left), vice chair of the Wyoming Board of Equalization as the state's new insurance commissioner, replacing Tom Persig, who resigned to become president and chief executive officer of Cheyenne Frontier Days. The Herricks Union Free School District in Long Island, New York, has selected Dr. Fino Celano, who previously served as assistant superintendent for personnel for the Garden City Public School District, as the new superintendent, replacing Dr. John Bierwirth. The new city manager of Dayton, Ohio, is Warren Price, general counsel to Stark County Sheriff and Human Resources Director, who will replace Tim Riordan, who is stepping down. Toledo, Ohio, Deputy Police Chief George Kral, who is a 24-year veteran of law enforcement, has been promoted by Mayor Michael Collins to the position of chief, succeeding Chief William Moton, who retired. 

Let us help advertise your event on our calendar
 
Does your organization or agency have an upcoming event that would be of interest to either vendors who do business with government or officials and workers in state and local government, higher education, public education or health care? Are you planning a webinar? A conference or seminar? The Government Contracting Pipeline invites government and nonprofits to send information regarding your events for consideration to be included in our FREE Calendar of Events section below. In addition to providing contact information, the day, date, time and a synopsis of the event, you may also include a link to additional information on your Web page and/or a link to online registration that we'll include. Please submit your event information to editor@spartnerships.com.

Calendar of events

Network at largest P3 event in country Feb. 23-25 in Dallas
The Public-Private Partnership Conference & Expo (P3C) is the leading annual event for the United States' public-private partnership market and attracts more than 800 government and industry development professionals from around the country. Project owners, industry executives and key decision-makers will gather for three days of in-depth public-private partnership learning, business development and networking opportunities. Next year's slate of more than 100 speakers will address the critical principles behind successful public-private partnerships. The 2015 program serves as a guide through the current trends, challenges and opportunities in the United States' P3 market for a variety of asset classes including social infrastructure, transportation, education, hospitality, mixed-use real estate development, economic development and more. The conference attracts senior management from the largest firms in the construction, engineering, architecture, legal and consulting industries as well as public leaders and development agency officials from the municipal, state and federal levels of government. More information on the event is available here.

Georgetown Law to host public-private partnership symposium
As a follow-up to the White House Rural Council's Rural Opportunity Investment Conference held recently, Georgetown Law is hosting a series of symposiums on public-private partnerships (P3s) during the 2014-2015 academic year. Each symposium will feature government officials, commercial practitioners and academic leaders in a neutral space, to encourage effective and innovative approaches to P3s. The first of the three full-day sessions was held on July 24, the second was on Oct. 31. Two 2015 events are also planned - "Partnering with State and Local Governments to Revitalize Critical Infrastructure" on Jan. 27 and "Uncovering Partnership Opportunities and Driving Toward Execution" on March 31. The January event will discuss paths for recognizing partnership opportunities, collaborations among state and local governments to share expertise and how to structure partnerships to reduce risks while ensuring value for taxpayer dollars. The March session, "Driving Successful Execution of Public-Private Partnerships," will identify challenges to implementation of P3s and factors that can lead to successful partnerships. For more information, click here.
 
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