ART - Contracting & Public-Private Partnerships (P3s) 2014

This document discusses the use of public-private partnerships (P3s) as a solution to the financial problems faced by state and local governments in the United States. It explains that many governments have been deferring maintenance on existing infrastructure and delaying the construction of new infrastructure to address their short-term financial problems, but this has created longer-term financial problems and degraded service levels. P3s are presented as a way to accelerate infrastructure construction and rehabilitation by spreading the costs over the life of the asset and transferring a substantial portion of the risk to the private sector partner. The document also highlights a provision that allows state and local governments to enter into P3 agreements without a formal procurement process. This provision aims to encourage private sector participation and expedite infrastructure projects. Examples of successful P3 projects, such as the Long Beach California Court House and the Port of Miami Tunnel, are provided to illustrate the benefits of P3s, including cost savings and improved project duration, cost, and quality. Furthermore, the document mentions that as of 2011, 377 P3s had been initiated in 24 states, with transportation infrastructure being the most common type of project. It concludes by stating that 33 states had enacted laws authorizing some form of P3s by 2013, and that enabling legislation is important to attract private sector firms and remove uncertainty and risk for both the public and private sector partners.