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![Page 1: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/1.jpg)
Solving Challenges Others Cannot
Virginia’s Public Private Partnership
LawToyo University
Tokyo, JapanChristopher D. LloydSeptember 29, 2008
![Page 2: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/2.jpg)
What is a Public Private Partnership?What is it?
- An alternative procurement tool that allows public entities to more efficiently develop infrastructure and achieve better value for the taxpayer- Vehicle to use design-build contracting practices- Leverage private sector expertise to meet public goals- Opportunity to foster innovative financing
What it is NOT?- A panacea that resolves all procurement issues- A way to get something for nothing- Privatization
![Page 3: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/3.jpg)
What is PPEA?
Public Private Education Facilities and Infrastructure Act
![Page 4: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/4.jpg)
Virginia’s PPEA - Background • State and local governments must follow
the Virginia Public Procurement Act
• This law requires government to follow a step-by-step process to purchase goods and services
• Contractor selection is based solely on lowest price
![Page 5: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/5.jpg)
PPEA Process• PPEA is a new law that allows for creativity and
innovation in how government buys goods and services
• PPEA allows a private company to describe how the company would solve the government’s need
• PPEA allows the government to select the company it thinks is most qualified, not just the one with the lowest price
![Page 6: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/6.jpg)
PPEA Process• Public body adopts guidelines• Private entity submits proposal to public body or public
body issues a solicitation for proposals• Public body makes a written determination whether the
project is developed using competitive bid or competitive negotiation
• Competitive negotiation can proceed if the public body determines that this method is “likely to be advantageous” because of the “probable scope, complexity or urgency of the project” or “risk sharing, added value, an increase in funding or economic benefit from the project that would not otherwise be available”
![Page 7: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/7.jpg)
PPEA Process• Private entity secures confidentiality agreement for FOIA
protection• Private entity submits a conceptual proposal for review
(qualifications and experience, conceptual schedule and cost, public benefit)
• Private entity pays up to $50,000 proposal review fee• Open competition period of not less than 45 days (no
minimum for solicited projects)• If public body moves forward, asks for a detailed
submission (accelerated process permitted)• At this phase, schedule and price become locked in• One proposer is elevated to the interim/comprehensive
agreement stage
![Page 8: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/8.jpg)
PPEA Project Structure
• “Turn-key” project delivery• Contractor assumes project cost and schedule
risk• Opportunity for other revenue generating
activities to reduce government cost• Team members provide free advice that helps
the government even if project is not developed• Often achieves project cost savings through
value engineering and faster schedule• Innovative financing permitted, but government
owns in the end
![Page 9: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/9.jpg)
PPEA Success Stories
![Page 10: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/10.jpg)
NCPPP National Award - 2005
![Page 11: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/11.jpg)
Stafford County Schools• Sale of land for Senior Living
Center generates $2 million• New YMCA – shared facilities• Savings from shared utility
infrastructure
![Page 12: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/12.jpg)
Northrop Grumman IT
•$1.9 billion, 10 year contract to modernize state IT infrastructure
•New data center
•Replaced computer equipment across state government
![Page 13: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/13.jpg)
Northrop Grumman IT
•Support center built in poor community
•Created high-tech jobs
•$500 million savings estimated
![Page 14: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/14.jpg)
Western State Hospital
• Virginia needs new mental hospital • Current facility built in 1950s to
house 2000, now only holds 246• Has 350 acres on interstate
highway, needs 40 acres• Treatment practices have changed
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Western State Hospital
• State hires advisor to help shape proposal
• Partner with local government regarding surplus property to generate money for project
• Financed with state bonds, contractor may offer “gap” funding to meet total need
• Fixed price, guaranteed schedule
![Page 16: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/16.jpg)
Fredericksburg Parking Deck
NCPPP Award Winner - 2006
•Savings in land cost
•Community input in design during contract negotiations
•Guaranteed price – no change orders
![Page 17: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/17.jpg)
PPEA Success Stories
Prince William Service Authority – H.L. Mooney Water Reclamation Facility
•Allowed selection of best contractor, not cheapest
•Incentives for early project completion
•Avoid government environmental fines
![Page 18: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/18.jpg)
Virginia Department of Corrections
Pocahontas Chatham
$150 million+ delivered on-time, on-budget
![Page 19: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/19.jpg)
PPEA Trends
• 100+ projects completed or under review• 2/3 unsolicited, 1/3 solicited• First submission usually wins in
unsolicited, but competition helps reduce price
• More innovative financing• Focus on use of surplus land or facilities
![Page 20: Solving Challenges Others Cannot Virginia’s Public Private Partnership Law Toyo University Tokyo, Japan Christopher D. Lloyd September 29, 2008.](https://reader030.fdocuments.net/reader030/viewer/2022032708/56649e5e5503460f94b57969/html5/thumbnails/20.jpg)
PPEA Resources
• www.mwcllc.com/news (look for Public Private Partnerships Bulletin)
• www.ncppp.org• www.dbia.org• www.dgs.virginia.gov/PPEA/tabid/
62/Default.aspx
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