Public-Private Education Facilities and Infrastructure Act

What is it? A tool that offers innovative alternatives to traditional procurement, financing, and transaction structures for public buildings and facilities. Modeled after Public-Private Transportation Act of 1995 (PPTA)

Why Was it Adopted? Public need for education and other government facilities Need may not be wholly satisfied by existing procurement methods Inadequate financial resources Demonstrated evidence that public- private partnerships can improve schedule and lower cost Financial incentives

Must Meet a Public Purpose Public need or benefit Estimated cost is reasonable Result in timely project delivery

What Kind of Projects? Education facility Facility for principal use by a public entity Improvements to enhance public safety and security of buildings Utility, telecommunications, and communications infrastructure Recreational facility Technology infrastructure

Not Just Bricks and Mortar Construction/Improvement/Renovation/ExpansionAcquisitionDesignEquippingMaintenanceOperation

The Lingo PPEA or PPEIA Public Entity Private Entity Qualifying Project Affected Local Jurisdiction Comprehensive Agreement

Two Ways Solicited proposals Unsolicited proposals

Proposal Content Act requires proposals to include certain information, including Topographical map Conceptual design/plan List of required permits/approvals Plans for financing User fees, lease payments, etc. Information requested by the public entity

Fees May charge a reasonable fee for processing, reviewing and evaluating the request, but not solicited proposals –reasonable attorney's fees – financial and other necessary advisors or consultants

What about the VPPA? The VPPA does not apply, but you must adopt procedures consistent with the VPPA for Evaluation and award of bids or proposals Discrimination prohibited Participation of small and minority- owned business

Must Justify Selection Process Advantageous to the responsible public entity and the public based on (i) the probable scope, complexity or urgency of the project, or (ii) risk sharing, added value, an increase in funding or economic benefit from the project that would not otherwise be available.

Still Competitive and Public Must post and publish notice that you are considering an unsolicited proposal for at least 45 days. Encourage competition Advertise in VBO State agencies - post on eVA

ADVANTAGES - PUBLIC Share Costs /Risks of Project Share Costs /Risks of Project Additional Revenue Sources / Financing Options Competitive Negotiation versus Traditional Bid Method

ADVANTAGES - PUBLIC Ability to Receive New, Creative, and Alternative Ideas Ability to Receive New, Creative, and Alternative Ideas Additional Method of Procurement Shorter Implementation Time Lower Project Costs

DISADVANTAGES - PUBLIC Loss of Traditional Control You Have a Partner Traditional Procurement Law does not Apply; Only Comprehensive Agreement Private Financing May be More Expensive Higher Risk of Public Criticism Less Competitive Procurement

ADVANTAGES - PRIVATE Ability to Present Unsolicited Proposals Working as Partner w/Public Entity Procurement by Competitive Negotiation versus Traditional Method Possibility of Diminished Competition

DISADVANTAGES - PRIVATE Considerable Investment of Time, Effort and Money More Diverse Staffing Required You Now Have a Partner Greater Risk Sharing

How to Get Started Before you can consider unsolicited proposals, the governing body must adopt and make publicly available procedures that are sufficient to enable the responsible public entity to comply with this chapter

What Others Have Done Model Guidelines Commonwealth of Virginia (Model) Fairfax County Norfolk Airport Authority (PPTA/PPEA) City of Richmond Loudoun County

QUESTIONS AND ANSWERS???