1. CONFIDENTIAL www.mcguirewoodsconsulting.com Christopher D. Lloyd SMPS – Southeastern Regional Conference March 11, 2009 PPP 101: A Primer on Public Private Partnerships

2. 2 What is a PPP? Another way for public bodies to procure needed infrastructure and services Qualifications based, best value selection process Often allows for joint development of project scope Provides opportunities for non-public sources of revenue Does not compromise quality or safety

3. 3 History of PPP Colonial waterworks and turnpikes Low-bid emerged as preferred contracting method by 1920s Design-build and C/M practices emerge in private sector by 1970s “One off” entities – such as authorities – used to skirt procurement and financing requirements Virginia pioneers legislative framework approach – 1995 for PPTA, 2002 for PPEA

4. 4 Why a PPP? Shifts risk from the public to the private sector Provides budget certainty Staff augmentation Tight budgets/limited ability to issue more debt Limit change orders Opportunity for creative project approaches Use process to seek public buy-in

5. 5 PPP Implementation – the Virginia PPEA Allows for solicited and unsolicited proposals Statute requires written finding of public benefit before departing from traditional procurement methods Begins with conceptual proposal where qualifications and public benefit are more important selection factors Shortlisted teams proceed to detailed proposals Final team is selected and comprehensive agreement is negotiated

6. 6 PPP Project Examples Fredericksburg parking garage Virginia medium security prisons Southampton water and sewer Stafford Learning Village Kingstowne Library 495 Capital Beltway HOT Lanes

7. 7 The Role of the Public in a PPP Proposals and all agreements are public Public hearing must be held Education of public about the benefits of the PPP Competing projects may have a higher priority in the mind of the public

8. 8 Marketing a PPP Another tool in the toolbox – not a backroom deal Explain inclusive nature of the process Polling/focus groups/public forums Development of promotional materials

9. 9 Marketing a PPP http://virginiahotlanes.com http://www.webtidepartners.com http://www.28freeway.com

10. 10 Why PPP Matters to You Emerging as trend in how public infrastructure is procured Creates significant marketing and strategic PR opportunities “Selling” of a PPP is now accepted as vital by developers Many Southeastern states are adopting PPP legislation

11. 11 Business Expansion | Federal Public Affairs | Strategic Communications & Grassroots Mobilization State & Local Government Affairs | Emerging European Markets Atlanta Charlotte Charlottesville Chicago Norfolk Raleigh Springfield Tyson’s Corner Washington, D.C. | Bucharest, Romania www.mcguirewoodsconsulting.com