Virginia’s Public Private Partnership Law Virginia Economic Developers Association Christopher D. Lloyd September 25, 2008

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

What is PPEA? Public Private Education Facilities and Infrastructure Act

Virginia’s PPEA Allows for solicited and unsolicited proposals to develop or operate a qualifying project A qualifying project is: education facility (public school and higher ed) equipment to enhance public safety and security at public buildings utility and telecommunications and other communications infrastructure recreational facilities Technology infrastructure, services, and applications any building or facility that meets a public purpose and is developed or operated by or for any public entity any improvements necessary or desirable to any unimproved locally- or state-owned real estate

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) Open competition period of not less than 45 days (no minimum for solicited projects) Public body determines whether or how to proceed 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

PPEA Success Stories New education facilities State and regional correctional facilities Water and wastewater Public safety centers Information technology infrastructure IT services

Benefits of PPEA Delivery Private sector participation permits use of tax credits and other financing vehicles that have no value to the public sector PPEA and design-build are nationally recognized procurement tools with accepted contract structures Allows for more local government participation in the procurement decision – not managed by a “one-off” entity Public disclosure requirements may insulate against criticism of closed door negotiations

PPEA Success Stories

NCPPP National Award - 2005

Stafford County Schools Sale of land for Senior Living Center generates $2 million New YMCA – shared facilities Savings from shared utility infrastructure

Northrop Grumman IT/CGI Multi-billion effort to modernize state IT systems New data center Enhanced ERP systems

Northrop Grumman IT/CGI Support center built in SWVA community Created hundreds of high-tech jobs

Fredericksburg Parking Deck Savings in land cost Community input in design during contract negotiations Guaranteed price – no change orders NCPPP Award Winner - 2006

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