Government Contracting Pipeline
Volume 7, Issue 9June 3, 2015
Big data responsible for some good things happening in government
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.

Mary Scott Nabers

French philosopher Voltaire said, "With great power comes great responsibility."  The same is true for data gathering - "with big data comes great responsibility." 


Data, especially metadata, is a hot topic. Congress is arguing about whether to allow governmental entities to collect and store phone records.  Some believe it infringes on the right of privacy, but others contend it must be done in the interest of national security. Governmental entities are now collecting an abundance of personal data and that frightens and frustrates some individuals. 




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Team chosen for $3B LaGuardia central terminal project


Work on largest public-private partnership in North America to begin next year
LaGuardia Gateway Partners It is being billed as the largest public-private partnership (P3) in North America. And, a consortium - LaGuardia Gateway Partners - led by a Swedish construction company and a Vancouver-based airport operator, has been selected to spearhead the project. 

The project is the $3.6 billion replacement of the five-decades-old central terminal at LaGuardia Airport in New York City. The team of private-sector firms will help finance, construct and manage the project. Bids for the project were sought nearly two years ago and only recently did the Port Authority of New York and New Jersey, which operates the city's three major airports, select the team for the project. 

In addition to the demolition of the existing central terminal and the construction of a new, 1.3 million square foot, 35-gate terminal building, the project will also include a new Scott Rechler aeronautical ramp, frontage roads to serve the new terminal, a new central heating and refrigeration plant and other utilities and site improvements. The project should provide a wide range of contracting and subcontracting opportunities. 

The need for redevelopment of the terminal is easy to see as LaGuardia has been consistently ranked among the worst in the United States regarding cleanliness, baggage handling, facility design and airport delays. The private-sector team hopes to change that with its redevelopment of the terminal. Port Authority Vice Chair Scott Rechler (pictured) said LaGuardia has long been the "stepchild or our region's airports," and that is something this $3.6 billion project hopes to change. Rechler noted that by choosing a team for the project, the Port Authority "took the first step in moving forward with a comprehensive master plan to redevelop LaGuardia into a 21st century, world-class airport that the State of New York deserves."

To finance the project, the consortium will issue $2 billion in bonds that will be backed by airport revenue as well as contribute $200 million. The transit agency will throw in up to $1.5 billion in revenue from assessed passenger fees. 

Look for construction to begin in the first quarter of next year. Because a public-private partnership method is being used for the project, Port Authority officials expect to complete the project five to six months sooner than anticipated. 

The central terminal is expected to serve 17.5 million passengers annually by 2030, according to the Port Authority. 

South Carolina in enviable spot - with $400M surplus

Officials hopeful funds will be spent on much-needed transportation projects

Signs South Carolina finds itself in an unusual - and enviable - position. The state is expecting to have a $400 million budget surplus. And, while lawmakers' hands are already out waiting for some of those funds to drop into them, Gov. Nikki Haley (pictured) is calling on legislators to be smart - and frugal - in how those additional funds are allocated.


Haley listed her top three priorities for use of the surplus funds as tax relief, paying down debt or addressing some of the state's many transportation needs.


However, Haley said she has no preference on which of her three priorities are funded.


"We are looking at a situation that is a great problem to have," said Haley of the surplus funds during a recent press conference. "Our state didn't get to this point by just throwing money Nikki Haley out - we got here by being smart." The governor also predicted that this would not be the last time the state had this additional money to spend. And, when it comes to transportation spending from the surplus, she added, "We can fix a lot of roads and a lot of bridges."


The governor was flanked by two members of the Legislature - Sen. Tom Davis and Rep. Tommy Stringer, both of whom are pushing for the surplus funds to be spent on transportation so the state might avoid a transportation plan previously put forward that would increase the state's gas tax.


Haley has been supporting a long-term transportation funding plan but did not say if the surplus funds would affect that effort if they are spent on transportation needs. Some are wary of spending all the surplus on transportation projects with an expectation that future surpluses will be used for the same thing. They note that depending on an unknown surplus amount is not a good long-term solution.


Officials will begin this week to discuss how the surplus funds should be spent.


May 2015 Texas Bond Results

Nabers to attend CGI America 2015, AIAI annual meeting 


CGI LogoMary Scott Nabers, president and CEO of Strategic Partnerships, Inc., will participate in two meetings next week whose outcomes will affect Americans nationwide as well as the business end of both the public and private sectors in this country. 

Nabers will again participate as a member of the "Infrastructure for Cities and States" working group at the Clinton Global Initiative (CGI)-sponsored CGI America 2015 event in Denver. The annual event brings together representatives of business, government and the philanthropic community with public-sector representatives. AIAI Logo Their task is to work collaboratively toward solutions to problems and challenges facing the United States - from infrastructure to education to renewable energy.

Nabers, a recognized expert in public-private partnerships (P3s) and author of Collaboration Nation How Public-Private Ventures Are Revolutionizing the Business of Government, will be among other P3 experts who advocate for P3s as well as seek to expand the understanding of this alternative funding mechanism and its benefits at the Association for the Improvement of American Infrastructure (AIAI) annual meeting in New York. 

Through the AIAI's education efforts, the group is making headway in ensuring that potential P3 partners are aware of P3s' cost savings, their positive effect on economic development and their ability to affect the local economy through job creation.  


Upcoming opportunities


Minneapolis about to begin raising funds for $18M downtown park 

Betsy Hodges Design ready. But, where's the cash? That's the dilemma of the city of Minneapolis. Officials have the design for the $18 million Downtown East Commons park, but need to find funding. Unfortunately, one of the proven ways to realize a funding source - a naming-rights deal - is prohibited by contractual restrictions. The design for the park features a large grassy area for thousands of people, a cafe, water feature and tree-lined walks. The park is one of the components of the redevelopment of the area around the new Minnesota Vikings stadium. The NFL team has promised a $1 million contribution if the park is not named after a corporate sponsor, which could conflict with the naming rights of its stadium. So, the fundraising committee is looking to raise $22 million for construction and other costs.  Plans call for a water feature on the western side of the park that will provide mist and fog and that can be turned off during the winter and perhaps replaced by a skating rink. The opposite side of the park would include a café and patio and areas for programs such as art, curling, children's play equipment and adult fitness classes. Minneapolis Mayor Betsy Hodges (pictured), who co-chairs the fundraising efforts, said she is confident the committee will be able to raise the funds needed for the project. Hodges said there is "a whole range of stakeholders" the committee is addressing.


CMS to seek bids for new Web site that will better track incidents of fraud

A contractor is being sought by the Centers for Medicare & Medicaid Services (CMS) to build and maintain its Provider Compliance Reporting system, a system to track enforcement actions against Medicare providers regarding questionable claims. The system's goal will be to help curb the $60 billion to $90 billion suffered by the federal government in fraud costs every year. Currently, CMS uses several private companies to protect the Medicare trust fund against fraud by examining claims. The agency is seeking a system that is accessible both to Medicare review contractors and CMS staff so they can view a provider profile. Such a system will show things like which claims have been flagged for review. The bid solicitation will also require an outreach campaign to be developed around a Web site that will allow the public to review information in the site. Proposals are due June 18, and award of a two-year contract is expected by the end of September.


County in Texas to seek bids for $1.5 million upgrade to airport sewer system
Jason Milewski Victoria County, Texas, commissioners recently agreed to seek bids for a $1.5 million project to upgrade the sewer system at the Victoria Regional Airport. One of the sewer replacement projects is expected to cost about $824,000 and the second, $624,000, noted Airport Director Jason Milewski (pictured). A large part of the first phase of the project came from a $660,000 grant from the Coastal Impact Assistance Program, but Milewski expects to be unable to secure a grant for the second phase of the project. County officials also noted that funding for the airport sewage project is not included in the bond proposal approved by voters in 2014. Even if bids are opened, the county is not obligated to continue the sewer system upgrade at the regional airport, a commissioner said.

Annetta to seek sealed bids for new wastewater treatment plant
Annetta, Texas, Town Council members recently agreed to seek sealed, competitive bids from companies to build a new wastewater treatment plant. The council also authorized city officials to select an engineer to help oversee the construction project. Council members appointed Mayor Bruce Pinckard, the city administrator and city engineer, to a committee responsible for preparing and requesting the sealed bids as well as opening, ranking and evaluating each bid. City officials rejected two qualified bidders in April, Pinckard said, citing the fact that both companies offered different solutions. The city also did not have information to correctly evaluate the two bids, an $859,000 proposal and a $729,000 proposal, Pinckard said.

North Dakota preparing to raze governor's residence for complete rebuild

Drew Wrigley The current North Dakota governor's residence will soon be demolished. The state legislature last month appropriated $4 million in state funds to raze the 55-year-old residence and rebuild at the same location. But, before that can happen, another $1 million in private donations must be raised. The Capitol Grounds Planning Commission is hoping to have a design for the new residence in hand no later than Dec. 1. That would allow construction to begin next spring. Saying there is a lot for consideration, Lt. Gov. Drew Wrigley (pictured), who serves on the committee, noted, "Time is ticking away." A three-member committee from the Office of Management and Budget will release a request for qualifications for architect and engineering services. The design team is expected to be selected by mid-July. There will be three preliminary designs that will be presented at a public meeting. Half a million dollars in private funds must be raised before construction can begin. Officials are hopeful to have the new residence ready for move-in by Thanksgiving 2017.

Funding approved by city council for new $42 million judicial center

A new $42 million judicial center that will house seven courtrooms and judicial support offices is in the cards for the city of Florence, South Carolina. The Florence City Council recently approved the funding for a new facility. The current complex was built in 1969. Final costs will be determined once the term, interest rate and other details of the installment purchase revenue bonds are finalized. The total cost of the building, expected to be around 120,500 square feet, will be about $66 million. 


Bridge project as part of Central Susquehanna Valley Thruway to be bid

A massive bridge project as part of the $669 million Central Susquehanna Valley Thruway Project in Pennsylvania is nearing startup. A contract is expected to be awarded in August for the project that will result in a four-lane, 13.5-mile thruway. The project has been divided into two phases. The first is the construction of the main bridge over the Susquehanna River, which is expected to begin next year. Work on smaller spans on the northern end of the project will begin in summer 2016, with a separate contract. Paving will occur in 2017. Total completion is expected in 2014. Officials expect the bridge itself to take four years to complete. The state's gas tax and increased motor vehicle fees, brought about by legislation passed in 2013, will ensure a long-term funding source to complete the project. 


Bridge in Concord, New Hampshire, out for bid; to begin construction in July

Thomas Aspell Bids are being sought in Concord, New Hampshire, for the demolition and rebuilding of the Sewalls Falls Bridge. The bridge was closed in December in anticipation of a proposed construction start in early spring. But, federal grant funding that was to pay for 80 percent of the $10 million project was delayed as the federal government was running out of money for transportation projects. For that reason, no contractor has been hired yet. However, City Manager Tom Aspell (pictured) has met with state Department of Transportation officials and the two have come together on an arrangement to let the project go forward. Because the bridge is third on the state's list of priorities for where the federal grant funds will be spent, the state will agree to $5.5 million for the project. That amount will pay for 2015 construction costs. Beyond that, the city will have to cover any funding gap that exists until the federal funds arrive. Aspell said the bridge is "critical" to the community to ensure a safe and convenient crossing of the Merrimack River and allow emergency responders a reliable route for reaching emergencies. 


Contracting Opportunities

Who's winning government contracts?


Check out these recent awards:  

  • Kirila Contractors has been awarded a $4.587 million contract by the Western Reserve Port Authority to make improvements to the Midfield Taxiway at the Youngstown-Warren Regional Airport in Ohio. The project includes removal of pavement that has various angles, removal of a grade on a taxiway and creation of a section of taxiway that provides a turn where planes can approach one of the runways.
  • Colorado River Constructors, a team of several design and engineering consultants led by Fluor Corp. and Balfour Beatty Construction, has won a $581.5 million design-build contract from the Central Texas Regional Mobility Authority for a toll project on US 183 South to improve access to the Austin-Bergstrom International Airport.
  • Pennsy Supply Inc. won a $1,792,987 contract from the Pennsylvania Department of Transportation for repair of 2.86 miles of US Route 11 from the intersection of North Hanover and Penn streets in Carlisle to just north of the Pennsylvania Turnpike bridge construction project over Harrisburg Pike in Middlesex Township, Cumberland County. 
  • Sherwood Construction Co. was awarded a base bid contract of $13.5 million by the Oklahoma Department of Transportation for repairs under the Interstate 44 Belle Isla Bridge. The contract calls for the repair of extensive deterioration on nearly half of the bridge's 95 piers.
  • Prater equipment company won a contract worth $78,000 from the city of Brownwood, Texas, for a makeover of Coggin Avenue that includes a layer of asphalt over the road from Austin Avenue to 13th Street. The road will also be re-striped.
  • Deblin Inc. was awarded a $2,915,647 contract from the Pennsylvania Department of Transportation to perform work on the Route 896 bridge over Pequea Creek. The project includes shoulder widening, drainage improvement, guiderail updates and rehabilitation of the bridge superstructure.
  • Walsh & Kelly Paving Contractors won a contract for slightly less than $1 million from the city of LaPorte, Indiana, for paving projects on about eight miles of roads in the city. The city has agreed to pay up to $1.5 million for the project that will result in about four more miles of roadway being paved.
  • Ferguson Construction Co. was awarded a contract of about $2.3 million from the city of Canal Winchester, Ohio, to build a new public works facility.
  • North Valley Inc. won a $5.49 million contract from Anoka County, Minnesota, for an overlay project on 12 county highways.
SPI Training Services

News about public-private partnerships (P3)


Ohio's transportation P3 project, largest in state history, to start this month

Ohio's largest road construction project and its first public-private partnership (P3), the Southern Ohio Veterans Memorial Highway - known as the Portsmouth Bypass - will carry a hefty price tag. A consortium has already been approved to construct the highway and it will also maintain the highway for 35 years after it is completed. One of the benefits of a P3 is that most such projects are completed in less time. This particular partnership will result in the highway being completed 17 years ahead of a traditional design-build method of construction. The total price tag for the highway shows it will cost the state about $1.2 billion. The roadway is being constructed to complete the Appalachian Highway System in Ohio. It will be a 16-mile stretch of four-lane divided, limited access highway. It will also include five interchanges, two partial interchanges and 22 bridges. Expected daily traffic is 14,500 vehicles. Construction is expected to begin this month. That start date would not have been possible had the public-sector partner waited until it had funds available, another benefit of a P3 and a private partner's upfront funding.  


University of Iowa using P3 to construct second phase of housing complex

David Kieft The University of Iowa and its private-sector partner plan groundbreaking ceremonies this month on the second phase of a graduate student housing complex that is being built through a public-private partnership. The university partnered with a private developer for the student housing project, the second phase of which will cost $35 million. The first phase of the project - a five-building complex - was opened last August and includes 270 units to be occupied by graduate students and university faculty. This second phase will include 252 more units in three four-story facilities for graduate students. The land on which the projects are located belongs to the university, which will be leased to the developer for 41 years. The developer will manage and maintain the properties once they are completed and the university will provide marketing of the facilities as well as security services. "Phase two was always contemplated as part of the original agreement, and it was done in phases so they could measure the success of it before moving into the second phase," said UI Business Manager David Kieft (pictured).  


New Mexico county to partner with construction firm on gas processing plant

New Mexico's Eddy County recently approved a $600 million industrial revenue bond that will benefit a construction company that specializes in oil refinery construction. The funding from the bond will be used to build a natural gas processing plant close to Loving, New Mexico. Of the $600 million in revenue, $412 million will be used for construction costs and the remaining funds will be dedicated toward payment of interest. The partnership specifies that Eddy County will be the owner of the plant, which will then be leased back to the construction firm, which will benefit from the fact that it will be exempt from certain taxes. The developer also will be responsible for paying back the bond. Although exempt from property taxes, the private firm will pay 20 percent of its gross receipts taxes from construction of the project - more than $1 million. The firm will also pay to area schools the amount of money they would have collected from the plant had it not been exempt from property taxes.   


Miami-Dade County considering public-private partnership for courthouse

Miriam Singer Miami-Dade County officials recently solicited services from legal and financial advisors to help determine the best option for paying for a new civil courthouse. Among the financing methods under consideration are public-private partnerships (P3s). Miriam Singer (pictured), chief purchasing officer and senior assistant director of the county's Internal Services Department, said the proposals should be returned later this month and read for evaluation. Once these contracts for advisory services are awarded, the county will issue a request for qualification from P3 firms that are interested in designing, building, financing, operating and maintaining the county's civil and criminal court and jail facilities. The advisor contracts are expected to be awarded in July, according to county officials. In addition to the court and jail facilities, county officials also made part of the resolution they adopted address the substantial repairs needed by the courthouse on W. Flagler Street. The building is overcrowded and has wide-ranging problem, from leaking roofs to air quality issues. Officials hope the advisors will also be able to offer some solutions to those problems. Within six months, a county-hired consultant will complete updates to the master plan that relates to the operational needs of the civil courthouse. That information will be added to the 2008 master plan that recommended the facility for replacement. 


California city could use P3 for improvements to public housing facilities

Residents of a public housing complex in Marin City, California, are a little nervous about the county's impending analysis of their homes. It's part of the county's effort to decide what might be best in the future for the more than 50-year-old complex. No matter what the county chooses to do - to rebuild and refurbish or demolish and build a new facility - federal law requires that 296 low-income units must be made available to the public. Officials have determined that close to $17 million in repairs is needed to the units and buildings, but the only source of funds to meet those needs is $500,000 in annual federal funding. Those funds are also for other properties outside Marin City that are managed by the housing authority. Among the needs of the decades-old Marin facility are replacement of sewer and water lines, new paint, kitchen cabinets and fencing. If a P3 is incorporated into the mix, a private-sector developer could either rebuild the existing facility or upgrade it. Such a plan, which also includes addition of units in a mixed-income community, has been instituted in Oakland, San Mateo, San Diego, Los Angeles and other cities in California.


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 and let us know about your previous job and where you are now. This week we feature Nelson Moe. 


Nelson Moe Nelson Moe (pictured), former information technology chief of the U.S. House of Representatives, has been named by Gov. Terry McAuliffe to run the Virginia Information Technologies Agency (VITA). Moe will replace Eric Link, VITA's executive director of legal and legislative services, who has been serving as interim director since March. Link replaced former VITA Director Sam Nixon, who left to become chief administrative officer of the State Corporation Commission. Before taking on his job in the House, Moe spent 17 years in the U.S. Navy and was a nuclear submarine officer. He also previously was involved in several IT startups in the private sector. VITA was reorganized in 2010 and the governor now appoints the CIO, who reports directly to the governor's chief of staff and the secretary of technology. Moe will begin his new job on June 8. VITA serves 86 state agencies. Moe will be charged with making IT in all agencies more efficient and also keeping a focus on cybersecurity.


Collaboration Nation

Opportunity of the week...

An Oregon school district recently approved a $125 million bond issue that will result in the complete rebuild of three elementary schools, an expansion of a high school and safety upgrades for every school in the district. Want to know more? Contact our Sales Team at 512-531-3900 or

Ed Toner Cindy Pollard Maria Thompson
Ed Toner (top left), IT director of global infrastructure for First Data Corp., has been appointed by Nebraska Gov. Pete Ricketts as the state's new chief information officer, replacing Brenda Decker, who had been state CIO since 2005. Cindy Pollard (top center), former vice president of the University of Missouri System's Office of Strategic Communications and a principal in a higher education consulting firm, has been named associate vice president of marketing and communication for Texas Woman's University. Evelyn Maria Thompson (top right), provost and vice president for academic affairs at the State University of New York at Oneonta, has been tabbed by the University System of Maryland as the new president of Coppin State University, replacing Mortimer H. Neufville, who has served as interim president since 2013. The California Public Employees' Retirement System (CalPERS) has named Beliz Chappuie, who has been with the Department of Finance Office of State Audits and Evaluations, as CalPERS' chief auditor, replacing Margaret Junker, who is retiring. Daniel J. Pugh, Sr., vice provost for student affairs at the University of Arkansas, recently won selection as the new vice president for student affairs at Texas A&M University, where on Aug. 1 he will replace Joe Weber, who resigned to accept a job as chief executive officer of the Texas Department of Transportation. Brian Dale, a member of the Salt Lake City Fire Department since 1986 and former deputy chief, has been approved as Salt Lake City's fire chief and will replace Chief Kurt Cook, who Susannah Fox Alan Spicciati Jianpin Wang retired last month after 30 years. Susannah Fox (bottom right), who served as entrepreneur in residence at the Robert Wood Johnson Foundation after 14 years at the Pew Research Center, has been chosen as the next chief technology officer for the U.S. Department of Health and Human Services, and will replace Bryan Sivak, who left that post in April. Dr. Alan Spicciati (bottom center), chief accountability officer at Highline Public Schools as well as a teacher, principal and administrator at Highline and in New York, has been chosen as the new superintendent of the Auburn, Washington, schools, replacing Kip Herren, who is retiring later this month. Dr. Jianping Wang (bottom left), a vice president at Ocean County (California) College, was recently named president of Mercer County Community College, where she will succeed Patricia C. Donohue, who is retiring at the end of the school year. Tammy Hooper, deputy chief of the Alexandria, Virginia, Police Department and a 16-year veteran law enforcement officer, will serve as the new chief of police for the city of Asheville, West Virginia, replacing former chief William Anderson, who resigned last year. Nicholls State University in Louisiana has chosen Lynn Gillette, former president of Sierra Nevada College at Incline Village, Nevada, as its new provost, effective July 1, if approved by the University of Louisiana System Board of Supervisors. Benjamin M. Lawsky, superintendent of the New York State Department of Financial Services since it was organized four years ago, has announced he is stepping down.

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Calendar of events

VIA Rail Canada CEO to address multi-billion-dollar P3 project
Yves Desjardins-Siciliano, president and CEO of VIA Rail Canada, will be the speaker for the June 4 Canadian Council for Public-Private Partnerships luncheon event focused on "VIA Rail's P3 Solution to Ever-Increasing Taxpayer Subsidies." The event will be at the Toronto Hilton Hotel (Toronto Ballroom), 145 Richmond Street West, Toronto, Ontario. Desjardins-Siciliano will discuss VIA Rail's strategy to raise $2 billion in private funds, likely through a public-private partnership. The money will be used to build dedicated passenger tracks as part of a $3 billion endeavor to provide high-frequency, reliable service from Toronto in Ottawa, Ontario, and Montreal, Quebec. More information is available at Registration is now open and seating is limited.

National State Auditors Association plans conference in early June
The National State Auditor's Association Annual Conference is scheduled for June 9-12 in Little Rock, Arkansas. The event will be at the Little Rock Marriott Hotel, Three Statehouse Plaza. Included in the event will be a presentation on the "State of the States" by Scott Pattison, executive director of the National Association of State Budget Officers. Other session topics address ethics, IT security and more. Up to 16 credits for continuing professional education (CPE) are available for attendees. The draft program is available and registration is open. 
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