Volume 10, Issue 49- Wednesday, December 19, 2018
Mary Scott Nabers, President/CEO, Strategic Partnerships, Inc.

Looking back - 2018 brought both turmoil and innovation to government contracting. A string of cyber-attacks, such as the ransomware attack on Atlanta, left public officials focused on increasing cybersecurity. Hurricane Florence in North Carolina and fires in California brought resilience and climate change to the forefront of many agendas. Start-up and disruptive new offerings radicalized the transportation market as motorized scooters and autonomous vehicles forced transportation planners to re-think options. 2018 was a year of change. 

However, as Q4 comes to an end, government officials and contractors alike are shaking off the past and setting their sights on 2019. Undoubtedly, there will be new changes, more innovation and other disruptive trends but, there will be an abundance of upcoming opportunities. 

Here's some interesting data about the state, local and education (SLED) market sectors:  

* The largest number of procurements in SLED procurements in 2018 fell into categories related to construction, operations and professional services. Those industry sectors will continue to see significant contracting opportunities in 2019. 
* The federal government recently rolled out programs that provide new funding to state and local entities, but alternative funding will likely be required for large projects. 
* Environmental, water and architecture may join a list of the fastest growing SLED markets. 
* Contracting opportunities related to technology will come from every governmental jurisdiction. 
* New funding from the federal level of government will be available for education security. 
* Opportunity Zone designations now provide incentives for private-sector investments in public projects. Government officials whose regions fall into this category could not be happier about the incentives. 
* Cybersecurity and supply chain security will continue to be top-of -mind issues. 
* Infrastructure may finally get the focus of Congress in 2019. At least the promises are rampant. In 2018, 64 of the 73 candidates running for governor across the country made infrastructure reform central to their platform. 
* The U.S. is currently investing only 50 percent of what it spent on transportation infrastructure 50 years ago. The nation's crumbling infrastructure situation has moved from significant to critical. If not reversed, the country is expected to lose $4 trillion in gross domestic product (GDP) by 2025. That could cancel out 2.5 million jobs. Transportation will be better funded in 2019. 
* Indiana has dedicated $1 billion for infrastructure projects in 2019 and other state leaders have indicated they will not wait for Congress to act on infrastructure. Funding will be obtained from outside sources if necessary. 

Problems and issues that concern public officials always generate opportunities for contractors. Here are a few to monitor.

Check out the latest article from our Texas Government Insider Newsletter!
California and Oregon- The Iron Gate, Copco No. 1, Copco No. 2 and J.C. Boyle dams, located on the Klamath River at the California and Oregon border, were built between 1903 and 1962 to provide hydroelectric power. Now they are being demolished at an estimated cost of $398 million. The Federal Energy Regulatory Commission (FERC) is reviewing Transfer and Surrender applications submitted by the Klamath River Renewal Corp. (KRRC). KRRC plans to take ownership of the dams from its current owner - PacifiCorp - then remove them, restore formerly inundated lands and implement required mitigation measures in compliance with all applicable regulations. The corporation has performed site assessments and engineering studies leading to the development of the Definite Plan for the Lower Klamath Project, filed with FERC on June 28, 2018. The 2,300-page plan provides comprehensive analysis and detail on project design, dam removal, reservoir restoration and other post-deconstruction activities. 

The KRRC is securing the engineering and construction resources needed for dam removal and site restoration. KRRC will soon issue a request for qualifications (RFQ) for the dam removal design-build contract, followed by a request for proposals at the end of the year. The selected firm will operate under a progressive design-build delivery method. Pending regulatory approval, this massive project will take place in phases, beginning with site preparation in mid-2020 and deconstruction expected to begin in 2021.
Illinois- The school board at Oak Park and River Forest (OPRF) High School District 200 discussed the initial steps of its $219 million master facilities plan. The board provided construction recommendations for the first phase of work including remaking classrooms, science labs, special education spaces and student gathering spots. The Imagine OPRF plan may take a decade to fully implement but the administration's initial recommended components are an estimated $32.6 million in projects. 

Some of those components will be 76 general education classrooms, three science labs, daycare facilities and all-gender restrooms. The board is expected to release a request for qualifications (RFQ) for the design phase of those initial recommendations. Another $65.4 million will be used in the future to replace aging pools, construct or renovate locker rooms, install an Americans with Disabilities Act-compliant elevator and other projects.
New Jersey- The New Jersey Economic Development Authority provided approval to the city to use $30 million in state tax credits toward a multi-use development. Funding comes from a $130 million tax credit package that the state Legislature awarded the city several years ago. The project will seek to revitalize an area around the city's train station by constructing housing, offices, retail space and a new parking garage. The site of the project currently contains a 735-space parking garage. 

The $30 million in tax credits could be used by Paterson Parking Authority for a new 940-space garage along with office space and retail. The mayor's administration is in the process of crafting other plans, that are due by June 30, for the remaining $100 million in state tax credits. A request for proposals for development of the parking garage and business space is expected soon.
Maryland- The city of Baltimore is weighing their options in order to retain the Preakness Stakes. The Pimlico race course facility has been found in a woeful state of repair. A recently released study by the Maryland Stadium Authority recommends demolishing the entire Northwest Baltimore site and rebuilding the race amenities as well as other non-racing related facilities that could be used year-round. 

The study estimates the cost of demolition and the construction of a new clubhouse, tracks and infield at $424 million. Funding would likely require a public-private partnership in order to come to fruition. City officials have stated that keeping the Preakness in Baltimore is a top priority and moving the race will be a last-ditch option. Pimlico's redevelopment will be a topic of discussion during the upcoming state legislative session, which starts in January.
Illinois- The University of Illinois at Urbana-Champaign will be undertaking a second solar farm project. Officials say that the second farm will make the university the number one solar energy producing campus in the country. The 55-acre installation will be located in Savoy Illinois about a mile South of the first 21-acre solar farm. 

The campus will be closer to meeting the goal of producing 5 percent of its energy needs when the new farm comes online generating 25,000 megawatt hours a year. The university plans to put out a bid for private companies to build the solar farm and then the firm will produce energy and sell the power back to the university.
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New Hampshire- The state of New Hampshire is calling for the forging of new public-private ventures. The state's Public-Private Partnership (P3) Infrastructure Oversight Commission has issued a call for new projects in 2019. The commission is moving forward with looking for candidates for projects involving sharing of resources to finance, design, build, operate and maintain transportation infrastructure projects.

The first round of proposals will be requested this spring, the state has announced interest in building a full-service rest area at Exit 23 in New Hampton. The New Hampshire Department of Transportation will be soliciting the proposals for design, build, operate and maintain contracts.
Florida- Miami-Dade County is moving closer to building a new jail facility financed through a public-private partnership (P3). The Chairman's Policy Council voted unanimously to have the mayor's staff provide a recommendation on whether to bring in a private investor. The county intends to replace outdated jail facilities with new buildings through a P3 because the county does not have enough funding for all of its potential infrastructure projects. 

An exact concession model for the arrangement has not yet been worked out and whether or not the operations of the jail will be done privately is still under debate. The next step in the process will be for the mayor's office to provide a recommendation.
Photo courtesy: Washington Metropolitan Area Transportation Authority
Washington, D.C.- The Washington Metropolitan Area Transportation Authority (WMATA) is preparing to outsource the majority of its maintenance and operations for the Silver Line rail expansion. The expansion will cover the length of track required to connect existing services to the Dulles International Airport. WMATA has released a request for proposals for a private company to take over the maintenance across the rail system that is currently handled in house. 

The adoption of service contracting will not preclude the unionized workforce. The request for proposals states that the contractor must pay at least the WMATA $13.85 hourly living wage, including health benefits. In its evaluation, the agency could reward a bidder with a higher score if it promises to pay a higher wage and contribute to a pension plan. Contractors will also be evaluated on delays, safety and elevator and escalator availability.
   View our Government Contracting Pipeline and Texas Government Insider newsletter archives
Virginia- The city of Alexandria is seeking to increase public-private opportunities by hiring a full-time staffer to focus on public-private partnership (P3) development. Officials hope to enhance and grow the city's use of P3s and use of alternative financing mechanisms. 

The city has a long list of capital needs and with limited funding in the current budget, working with private entities to build facilities and infrastructure would be in the city's long-term financial interest.
Photo courtesy: Los Angeles County Department of Public Social Services
California- Los Angeles County has issued a request for proposals (RFP) for the redevelopment of two properties in the Arts District. The two sites total approximately 1.5 acres at the intersection of East 4th Place and Hewitt Street. On the land is a two-story office building and a parking structure that houses the Department of Public Social Services (DPSS). 
The county is now seeking a replacement for the office building and parking structure, both of which were built in the 1960s. The RFP calls for a replacement of the building and parking structure that were built in the 1960s. The developer will feature a minimum of 40,000 square feet of new Class A office space and associated parking, all the while maintaining existing operations for DPSS. 

Construction costs for the replacement facility would be covered by the private developer in this arrangement. In order to achieve this, the county would allow applicants to incorporate other uses into their proposals to provide sufficient income to finance construction. The development would be expected to provide affordable housing, use design elements which complement the existing aesthetics of the Arts District and provide parking accommodations for use by Art Share L.A. - a non-profit organization which neighbors the DPSS sites. Proposals are due by Feb. 7, 2019.
Photo courtesy: City of St. Cloud
Tech High School
Minnesota- The city of St. Cloud plans to issue a request for qualifications (RFQ) for the redevelopment of the Technical High School. The site plan breaks the school campus into two main parcels. The proposal for Site A, where the district has its media services building, is a mixed-use building with retail facing Highway 23, but could accommodate a range of commercial uses. The redevelopment concept for Site B, which encompasses the main campus of Technical High School, proposes three distinct projects. This includes the redevelopment of the historic 1917 and 1938 tech buildings for a combination of uses, a lower density multi-family residential project and a mid-rise tower along 12th Avenue that could include ground-floor retail. 

In January, the council approved a resolution to accept a letter of intent to transfer ownership of Tech and St. Cloud school district's media services building from the district to the city when the district leaves the two buildings, anticipated to be in June.
Alabama- The executive director of the Birmingham-Jefferson Convention Complex is ready for the preparation of a request for proposals to hire a firm that will create a parking plan for the central business district in downtown Birmingham. The parking plan will help accommodate thousands of drivers, many of whom may be commuting to the new 55,000 seat downtown stadium expected to be completed in 2021. 

The stadium site has 7,500 parking spots on site but that will change once the stadium is built. The stadium will use a combination of on-site parking and shuttles for events at the new stadium. City officials state that they want to partner with existing parking facilities in any newly-developed plan.
Florida- The Sarasota County School Board is addressing overcrowding at Venice High School by proposing a variety of options. The high school currently has 2,250 students enrolled, 150 over its capacity. To combat the overcrowding, officials have announced six potential plans: construction of a new wing of Venice High School; a new elementary; a middle and high school project; building a new high school through district funds; sending some students to surrounding districts; or entering into a public-private partnership. 

The community wants the district to solve the problem immediately and several parents are requesting a new campus to meet the needs of students. The new school timeline is likely 12 to 15 years if fully funded by public money; but this project could be delivered within 5-7 years if alternatively financed by a (P3). The community has expressed the desire for a quick fix to the situation and securing funding will be the board's first hurdle.
New York- The town of Rhinebeck will issue a request for proposals for a study on consolidating court systems with the neighboring village of Red Hook. Rhinebeck and Red Hook each have two elected justices for each community. The RFPs would be issued simultaneously, but the communities would be studied separately. 

The study will review what costs can be saved by redundant use of facilities, staffing, budgets, security, records, technology and other services. Town officials said that the cost of seeking proposals would be split with Red Hook.
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Photo courtesy: City of Beverly
Briscoe Middle School
Massachusetts- City of Beverly is expected to put out a request for proposals (RFP) around the start of the new year for the former Briscoe Middle School. The 95-year-old, 144,000-square-foot facility will be put up for sale. The city wants the new owner to preserve the building and received feedback from the community in June to weigh in on the core objectives that Beverly should consider when developing an RFP. 

Two overarching objectives that were identified were preservation and rehabilitation of the building and preservation of some open space and community access within the property. City officials say it would be difficult to find a reuse by a single-user for that building, so they are looking at a mix of uses for the rehabilitation of the facility. Some potential reuses could be senior housing with an affordability component, artist live-work space, lodging facility, co-working space or makerspace, commercial office space, programming space for community and senior events and activities.
West Virginia- Morgantown city officials are targeting September 2019 to begin moving dirt on the Morgantown Municipal Airport's 1,001-foot runway extension. City officials plan to go through a private contractor to complete the project in a more reliable amount of time. 

City administration is in the process of finalizing its application to the Federal Aviation Administration (FAA), which will use a benefit cost analysis to determine what percentage of the project it intends to fund of the $31 million project. The city expects to hear how much the FAA plans to invest by the end of March 2019. Also creating a tax increment finance (TIF) district would generate funding for the improvements, which would be completed and funded over multiple years.
New York- In the city of Rome, there are three areas in need of developers for its long-term urban growth plan. The three zones are located at an empty lot on West Dominick Street across from the Griffo Green, Woodhaven-Wright Park Manor and an 18-acre site on Griffiss. A request for expression of interest (RFEI) has been released, that outlines the envisioned projects for each site and provides a submission process for project proposals. The RFEI sets a Jan. 24, 2019 deadline for developer submissions. After receiving applications, the city will interview and tour sites with developers before selecting final plans next March. 

 At the West Dominick lot, the city plans for a "high density" row building similar to others on the street, with commercial space on the first floor and residential space above. The 84-acre, former Woodhaven-Wright Park Manor in east Rome is envisioned as having a mixed residential and commercial space anchored by the waterfront. The Griffiss lot is slated for high-density buildings with commercial space at ground level and "upper-story market-rate, amenity-rich apartments," according to the RFEI.
CALENDAR OF EVENTS

March 4-6 / Dallas, Texas
The 7th Annual Public-Private Partnership Conference & Expo will be held March 4-6 at the Sheraton Dallas Hotel. Government Contracting Pipeline readers can use promo code 100GCP to receive $100 off their registration. Register for the event here. 

Join over 1,250 senior representatives from governments, higher education institutions and leading firms in the global construction and financial markets. The conference attracts professionals from all corners of the industry and provides a valuable opportunity to facilitate new partnerships with industry peers and public sector partners. Attendees will discover new alternative project delivery methods, strategies for implementing successful P3 projects, the nuts and bolts of how deals work, and how to manage risks associated with legal and financial frameworks. Attendees will participate in interactive panels, workshops, and conversations specifically tailored to the needs of public agencies evaluating P3s. The conference is designed for all levels in the market including those beginning to explore P3s and seeking to better understand where alternative and accelerated project delivery methods can be applicable.

Attendees will participate in interactive panels, workshops, and conversations specifically tailored to the needs of public agencies evaluating P3s. The conference is designed for all levels in the market including those beginning to explore P3s and seeking to better understand where alternative and accelerated project delivery methods can be applicable.
PEOPLE ON THE MOVE

- Stephanie Wiggins has been chosen as the chief executive officer for the Los Angeles County Metropolitan Transportation Authority. Wiggins will succeed Art Leahy, who announced earlier this year that he would retire Jan. 4, after 48 years in transportation. Wiggins has held high-level positions at three of the five-member agencies that comprise Metrolink. She oversaw the departments of vendor and contract management, congestion reduction, human capital and development, management and audit services, and systems security and law enforcement. 
- Hawaii Chief Information Officer (CIO) Todd Nacapuy will resign at the end December after more than three years leading the state government's technology agency. Nacapuy, who served in the role since 2014, will be making a return to the private sector. Under Nacapuy's leadership, the Office of Enterprise Technology Services has taken on several large-scale IT projects, including upgrading the state's 50-year-old payroll system. Nacapuy has been the second CIO to be appointed in Hawaii. 
- Shannon Lewis has been selected as the city manager of Melbourne-Eau Gallie. Lewis had served as interim city manager since Nov. 27, after the former city manager Mike McNees stepped down. Lewis has served as Melbourne's deputy manager since September 2014 after working as assistant city manager in Port Orange the previous seven years. City council members will likely vote on Lewis' employment contract on Jan. 8. 
- Birmingham Fire Department Chief John Connaughton plans to retire after 38 years of service. Connaughton became fire chief in 2015 after serving as assistant chief since 2009. He replaced Mike Metz who retired in May 2015. Connaughton began as a firefighter/paramedic, was promoted to emergency medical services coordinator within a few years, and then joined the command staff as lieutenant and eventually assistant fire chief. 
- Amanda Lee will become the next president of Bladen Community College. Lee was the president of Cape Fear Community College (CFCC). In October 2017, she abruptly resigned as president of CFCC. Jim Morton was selected as Lee's successor at CFCC. Lee had been with CFCC for more than a decade, starting as an instructor in 2003. She is currently the chief of staff and vice president of Academic Affairs at Union College. Lee is expected to assume her new position on Feb. 1. 
- Upper Arlington officials announced Steven Farmer as the city's next police chief. Farmer, who will start his new job in January, serves as operations bureau commander lieutenant for the Dublin Police Department. Farmer has been with the Dublin Police Department since 1997. Farmer replaces former Upper Arlington Police Department Chief Tracy Hahn, who resigned Sept. 22 to become deputy chief of the Ohio State University Police Department. 
- The University of North Carolina (UNC) Board of Governors has named Karrie Gibson Dixon as chancellor of Elizabeth City State University (ECSU). Dixon has served as interim chancellor since April. Prior to her appointment as interim chancellor on April 9, 2018, Dixon served as co-lead on the ECSU New Directions Phase 2 Operational Team since early 2017. Dixon has served as a senior administrator at the UNC System since 2008. In 2014, she was promoted to vice president for Academic and Student Affairs. Dixon was responsible for overseeing the Division of Academic and Student Affairs for the System's 17 institutions. 
- Boulder City has a new public works director. Keegan Littrell started his new position Dec. 10. He replaced former director Scott Hansen, who resigned in June. Littrell was the public works director and city engineer for Bullhead City, Ariz., before coming to Boulder City. The public works department directs, manages and oversees infrastructure design and construction, fleet management and facilities maintenance. 
- The Coconino County Board of Supervisors confirmed the appointment of Marie Peoples as the deputy county manager. She has experience as the Coconino County Public Health Services District (CCPHSD) chief health officer - a position she has held since October 2013. Peoples began her new role at the end of November following the confirmation of her appointment. 
- Andrew Moore, interim director of the Greater Rochester International Airport for more than a year, has been appointed to fill the job permanently. Moore had served as deputy airport director for four years before he became interim director in October 2017 after his predecessor Michael Giardino left for a new position in Virginia. 
- The California Department of Motor Vehicles Director (DMV) Jean Shiomoto has announced she is retiring. Shiomoto, who has 38 years in state service, previously served as an auditor at the California Department of Developmental Services and had a wide range of responsibilities at the DMV. She took over as acting director in January 2013. Gov. Jerry Brown appointed her as the department's full-time director in November 2013. 
- Demitrous Cook has been appointed as the city of Evanston's new police chief. He started his career in law enforcement as a University police supervisor, before joining the Evanston Police Department as a patrol officer in 2004. In 2010, he became chief of police at the Glenwood Police Department. He will replace current Police Chief Richard Eddington, who earlier this year announced his retirement after 12 years in the role. Cook will assume the position effective Jan. 2.
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