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

2. 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

3. What is PPEA?
Public Private Education Facilities and Infrastructure Act

4. 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

5. 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

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

7. 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

8. PPEA Success Stories

9. NCPPP National Award

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

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

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

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

14. THE END
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