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Volume 8, Issue 12 - June 15, 2016
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Traveling this summer? Better bring along a little extra patience
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| Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc. |
 An estimated 231 million travelers will take flight this summer on U.S. airlines alone - up 4 percent from last summer's high of 222 million passengers. International flights will add about 30 million additional travelers. While exciting times may begin once passengers step off the planes, getting inside the airplanes to take off will require patience.
This spring, travelers waited an average of 60-90 minutes in airport security lines. The wait time in many locations is longer now. The Transportation Security Administration (TSA) has lost 10 percent of its front line staff since 2013 - and TSA officials claim that hiring has been curtailed because of current budget appropriations.
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Strategic Partnerships, Inc. provides opportunity
identification for all 50 states.
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Government Contracting Pipeline Archives
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| View our other newsletter, Texas Government Insider |
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Seven Smart City finalists present formal applications
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USDOT competition offers $50 million to build transportation system of future
 Mayors from seven cities traveled to Washington, D.C., last week to present their cities' applications for the U.S. Department of Transportation's (USDOT) Smart City Challenge. The competition will award the winning city a $40 million federal grant and at least another $10 million from the private sector to jump-start its efforts to build a modern transportation system.
The finalists are Austin, Texas; Columbus, Ohio; Denver; Kansas City, Mo.; Pittsburgh, Pa.; Portland, Ore.; and San Francisco. All of them presented ideas that covered similar ground, which fall in line with the purpose of the challenge: to use technology to improve a city's transportation system for all of its residents.
The goal of the contest is to affect a wide range of social issues through improvements to the transportation system. If a city can make it easier and cheaper to get to a job, then residents will have more choice of where to live and work. They won't be as tied to one neighborhood or section of town, and those areas of the city won't be so cut off from the rest of the population. Similarly, if a city can make it easier for residents to have access to mobile technology and make that technology more useful to their daily lives, those lives will improve. That mobile technology won't just offer access to transit options; it also opens up new modes of employment, of commerce and of communication.
The USDOT's intention is to integrate all of a city's residents more fully into the life, commerce and business of the city - all through its transportation system.
Kansas City Mayor Sly James made the case that his city already has spent years developing smart corridors and would be able to do more with the grants than the other finalists because Kansas City's leaders have the requisite experience. Its KC Streetcar system opened May 6 and is free to ride for the length of its two miles through the downtown area. The city's application was built around the streetcar and presented ideas to build out the system and its network of sensors.
Denver's focused on an integrated data system that would draw real-time information from many sources, connecting smart vehicles to the street grid. City officials hope to build a network of ridesharing services and, eventually, autonomous vehicles that will serve Denver's entire population. They intend for the city to pay for rides that start in underserved, usually poorer, neighborhoods. Portland's application suggested the city would offer residents a variety of transportation and transit options and let them choose from the alternatives, make arrangements and pay fares all from within a single smartphone app. The city's planners called their program "Ubiquitous Mobility for Portland," and it would tie into a networked system various forms of transit and transportation that inform each other and respond to circumstances as they present themselves..
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San Diego voters approve infrastructure funding
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Proposition H to reserve up to $4.5 billion for city's roads, water, parks
 Voters in San Diego last week overwhelmingly approved passage of Proposition H in an effort to fund repairs and improvements to the city's infrastructure. Almost two-thirds of voters OK'ed the measure.
Prop H won't add any new taxes but will assign several streams of revenue to a new infrastructure fund. The ballot measure will, for the next 25 years, reserve any growth in the sales tax above the rate of the Consumer Price Index for infrastructure repairs. Additionally, as the municipal government pays down the city's pension fund deficit, any savings from reduced payments will go toward Prop H funding. And, finally, it would also devote half of any revenue increases from property taxes, hotel taxes and franchise fees to infrastructure needs for five years. It will go into effect July 1, 2017.
The initiative has been named "Rebuild San Diego," and its backers expect it to generate between $3 billion and $4.5 billion. City leaders have identified the difference between San Diego's backlog of infrastructure projects and funding on hand to cover those costs is about $1.4 billion. Prop H funding will help make up the difference.
The infrastructure fund will be used to pay for projects that will repair existing roads and build new streets. As well, parks, libraries and emergency service facilities will see new projects completed via the new fund. A 2015 review of that infrastructure backlog found that the city requires more than $2.2 billion in upgrades to water, wastewater and stormwater infrastructure. Nearly 3,900 streetlights will need to be replaced by 2026, and sidewalks and bike paths are scheduled to see more than $45 million in upgrades.
One criticism of the measure is that moves such as this one often can serve to tie the hands of budget-makers for years afterward, taking away any flexibility they may need. However, written into the proposition's language was the ability of the mayor to suspend Proposition H's revenue diversion for one year if two-thirds of the city council agrees to the move.
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Upcoming contracting opportunities
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Illinois DOT releases 6-year infrastructure plan
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The Illinois Department of Transportation (IDOT) last week released a six-year, $11.2 billion transportation infrastructure plan. The costs for the FY 2017-22 Proposed Highway Improvement Program are a 33 percent increase over the previous multiyear plan. The 2015 congressional transportation bill, the Fixing America's Surface Transportation (FAST) Act, added about $135 million annually to the plan compared to previous levels, according to officials. "Our latest multiyear highway program is more promising than a year ago, but we still have our work cut out for us," said IDOT Secretary Randy Blankenhorn. "Revenue projections for transportation do not meet the needs of the state, and the condition of our system will continue to deteriorate." Planned projects include nearly $115 million to widen Interstate 55 and construct an interchange in Will County, $68 million for 38 bridge projects in the Chicago interstate system and $478 million to replace the I-74/US 6 bridge in the Quad Cities near the Illinois-Iowa border. Fiscal Year 2017 begins July 1, and $2 billion has been set aside for projects in that first year of the improvement program.
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Nevada board approves highway expansion project
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The Nevada Department of Transportation Board of Directors last week approved a $60 million project that will expand a portion of US 93 near the site of a soon-to-be-built manufacturing facility. The board members approved the use of the design-build method of procurement for the project, which will go out to bid soon. The project will widen a 5-mile stretch of the highway from two lanes to four. Plans also call for the construction of a flyover exit from US 93 directly into the site of the manufacturing plant, which began construction in April. Preliminary design, engineering and environmental work has commenced on the project, which is scheduled to begin construction by June 2017.
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Port Tampa Bay plan includes $1.5 billion in projects
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Officials with Port Tampa Bay began the process of developing a long-range development plan in 2014. Called Port Vision 2030, it includes dozens of projects that add up to $1.5 billion in cost. That money, to be divided more or less evenly over five-year increments, will buy heavy equipment, dredge and deepen the Big Bend channel and expand a landfill and cargo yard. Port revenue and state funding will provide the capital to complete the projects. Between 2017 and 2021, the improvement plan calls for $324 million to $502 million worth of projects, while up to $578 million would be spent between 2022 and 2026. For 2027 and after, Port Vision 2030 calls for another $500 million in projects. Florida law requires the state's ports to update their master plans every 10 years. Port Tampa Bay's plan was last updated in 2008. The portside projects included in the plan are in addition to the $1.7 billion planned to be spent redeveloping the channelside of the area. That project will add waterfront parks, a marina and two 75-story residential towers.
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Rhode Island applies for grant for $595M highway cap
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Transportation officials in Rhode Island are planning a $595 million project that will construct a cap atop the interchange of Routes 6 and 10. They assert that seven of the roadway's nine bridges are structurally deficient and in urgent need of replacement. The proposed solution is to build a deck over the highway, followed by the addition of city streets on top of the tunneled Route 6. The process wouldn't require the tunnel to be dug, because the highway is already depressed below street level as it travels through Providence. State officials last week submitted a request for a $175 million federal grant to pay for a significant portion of the construction's costs. The remaining cost of the project would come from Rhode Island's 10-year transportation plan that lawmakers passed earlier this year. The interchange sees more than 90,000 vehicle trips daily. In addition to the urban boulevard that would be constructed on top of the decked highway, officials plan for a bus rapid transit system to be built above the tunnel.
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St. Louis funds study of light-rail system expansion
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MetroLink is the St. Louis metropolitan area's light-rail system, which consists of two lines that connect Lambert-St. Louis International Airport and Shrewsbury, Mo., on the western side of the city with Scott Air Force Base on its eastern edge. The system features 37 stations. Now, St. Louis Mayor Francis Slay (pictured) has presented a $1.5 billion plan to expand the system to run north and south, too. The expansion would increase transit options to the downtown area for both the populous southside of the city and its northside. Leaders hope to use the transit system as a method of drawing development to that portion of the city. The municipal government has committed $2 million to commence a study of the project, and the plan is to identify $45 million to fund the design phase. As for the construction phase, St. Louis officials have said that the city and county would work together to secure federal funding, which could cover as much as half of those costs. Preliminary plans suggest that construction would take about 10 years to complete.
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University of Iowa begins work on art museum
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After first considering and then rejecting the use of a public-private partnership (PPP/P3) to build an art museum, University of Iowa officials have decided to build the project on university-owned property. The former plan had called for the use of private land to construct a new art museum, but that idea was turned down by officials in March. The new plan will build the museum on the site of a parking lot near the campus's main library. The project would include renovations to the library, and support services for both the museum and library would be placed in the same location. That fact has helped officials to lower the expected costs of the project from $80 million when the PPP was being contemplated to an estimated $60 million. The construction project would be paid for with a combination of university and donor funding. An architecture firm has been selected to develop the museum's design, and construction is anticipated to be completed by 2019.
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ODOT to study options for Belle Isle Bridge's future
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Commissioners with the Oklahoma Department of Transportation (ODOT) last week approved spending about $2 million to study options for the Belle Isle Bridge. The bridge is an elevated stretch of Interstate 44 that runs through the Oklahoma City metropolitan area and is about 40 years old. ODOT has spent almost $15 million on the roadway in the past year to ensure that it is safe to use. However, during that construction work, ODOT officials discovered that the highway is structurally deficient. The $2 million study will conduct engineering and alignment work, as well as gather public input on the bridge's future. About 100,000 cars travel the Belle Isle Bridge each day. The study will be the commencement of long-range planning for the roadway and may include discussions around removing the bridge altogether.
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East Aurora board approves new high school stadium
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The East Aurora School District in Aurora, Ill., is preparing to undergo about $70 million worth of construction, including a $6.6 million project that will tear down Roy E. Davis Field and build a new stadium. School board members approved the project earlier in June. The new stadium will feature 3,500-seat bleachers, a small decrease from the 4,075-seat Roy E. Davis Field. It will have a new concession building and improved lighting infrastructure, and an artificial turf field will be installed. The project also will include a new 8-lane track that meets Illinois High School Association regulations, a standard the current track does not meet. Preliminary plans also include the construction of a plaza outside of the stadium that would serve as an entry point and public gathering place for spectators as they arrive at the stadium. Parking facilities would not increase but would be shifted from their current site, according to district officials. Demolition on the current athletics field could begin this summer.
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Highwood issues RFP for fire station redevelopment
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Voters in Highwood, Ill., selected to form a partnership with a neighboring town and receive emergency services from Highland Park instead of its own department. With that decision, the residents of Highwood left the city's fire station empty and available for potential redevelopment. City officials released a request for proposals (RFP) at the beginning of June to gauge interest in such a project. "Since the referendum, our staff has received numerous inquiries on the disposition of the fire station property and many creative ideas on how to best utilize the space," said City Manager Scott Coren (pictured). The RFP process, Coren said, enables his staff "to provide information to a variety of interested parties and begin a process for the city council and community to decide the best use for the historic property." Responses are due Sept. 1.
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Jasper County approves juvenile center project
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The Jasper County, Mo., Commission last week approved the provision of $7.5 million in funding for two projects. First, about $3 million will go toward the renovations of the Jasper County Courthouse, a project that has already commenced construction. What remains of this round of funding will be applied to a project to build a new juvenile center in Joplin. That project will demolish the current juvenile center before constructing its replacement on the same site. Officials expect that the project could cost as much as $12 million. Jasper County voters approved a one-quarter cent sales tax increase in April to help fund the two projects. Construction on the juvenile center project is expected to begin in 2017.
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News about public-private partnerships (P3s)
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LAX issues RFQ for construction of people mover
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 Los Angeles city officials have issued a request for qualifications (RFQ) connected to a project that will construct a tram system at the city's airport. The automated people mover will ferry passengers from Los Angeles International Airport (LAX) to the city's public transit rail system. Los Angeles World Airports (LAWA), the agency that operates the city-owned LAX, issued the RFQ last week. The system is expected to feature six stations along two miles of elevated track and is an integral piece of the city's plan to connect Los Angeles's light-rail system to the airport. LAWA has decided to complete the project using the Design Build Finance Operate and Maintain (DBFOM) procurement method. A short list of firms selected to receive an eventual request for proposals (RFP) will be developed in September, according to officials. Responses are due July 21. |
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Arkansas seeks private partner for irrigation project
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Officials with the U.S. Army Corps of Engineers (USACE) and the White River Regional Irrigation Water Distribution District (WRID) are preparing to solicit for a private partner to complete an agricultural irrigation project in eastern Arkansas. The project began in 1991 as an effort to reduce strain on the region's aquifers by diverting surface and river water for farm irrigation and habitat management. In that time, more than $200 million has been spent on the project, but federal funding has dried up for the time being. WRID officials have issued a request for information (RFI) to solicit responses about a potential 50-year partnership. The contractor would design, build, finance, operate and maintain the project, which would feature an electrical substation, two bridges, 50 miles of canal, 290 miles of buried pipelines and metering and data management systems. The selected developer also would be responsible for all water sales and fee collection and be compensated from project revenues, including user payments. Responses are due July 11.
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Pennsylvania to install fiber optic cable along turnpike
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The Pennsylvania Department of Transportation (PennDOT) needs access to fiber optic cable to allow the department's communications network to work properly. Last week, the state's Public-Private Partnership Board approved a Pennsylvania Turnpike Commission project that would lay the cable along the 550-mile highway. The project will be conducted through a public-private partnership (PPP/P3), through which a private partner will design, build, finance, operate and maintain the fiber optic cable. The private company will be able to monetize the remaining communications capacity after the state's needs are met. "Because of the limited expandability and increasing maintenance costs of our aging microwave backbone, it is imperative, from an operational viewpoint, to develop a fiber optic network for the future," said Pennsylvania Turnpike CEO Mark Compton (pictured). "The backbone is one of our most critical communications tools, carrying tolling data and connecting traffic management devices such as intelligent transportation systems." Turnpike Commission officials expect to release a request for qualifications (RFQ) in October and to be able to select a partner by June 2017. The goal is to have the first sections of the cable installed and operational in 2018.
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Broward County to seek developers for downtown site
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Members of the Broward County, Fla., Commission are considering the release of a request for proposals (RFP) in an effort to identify a developer for a vacant 1.1-acre site in Downtown Fort Lauderdale. The project would be enacted as a public-private partnership (PPP/P3), with the county signing a long-term ground lease with the developer. In turn, the chosen partner would be responsible for financing, designing, building and operating the project. County officials have expressed a preference for a mixed-use development that would include housing for residents making up to 120 percent of the area's median income. Broward County leaders had undertaken a previous attempt at developing the site in 2007, but that version of the project fell through amid the recession and economic downturn. Responses to the RFP will be due July 22.
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Arizona state hospital to use PPP for renovation
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The Arizona State Hospital has a capacity of 260 beds on its 93-acre campus in Phoenix. Officials have a goal of reducing the number of behavioral health patients who must stay as emergency room patients for longer than 24 hours due to lack of space at the state hospital. To that end, the Arizona Department of Health Services (ADHS) last week issued a request for information (RFI) seeking to identify private-sector partners that could expand existing buildings or construct new hospital facilities. The short-term goal is to expand capacity for in-patient mental health services. The long-range goal is to find a partner to join the ADHS in creating what would come to be called the Arizona Center of Psychiatric Excellence. ADHS officials state clearly in the RFI that they are uninterested "in any partnership that would lead to the privatization of current statutory required services provided" at the state hospital. The RFI identifies a number of buildings and parcels of land on the state hospital property that could be developed. Responses are due June 29.
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About Government Contracting Pipeline
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Note to media: Need expert commentary on procurement issues relating to public-sector entities, public-private partnerships (PPPs/P3s), state agencies or decision-makers? Give us a call at (512) 531-3900, and we'll arrange an interview for you with one of our experts.
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