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Using Public Private Partnerships

Using Public Private Partnerships. Parkland Blue Ribbon Panel Christopher D. Lloyd October 22, 2007. Presentation Overview. PPP concepts Why use a PPP structure? National Experience Parkland Hospital opportunities and recommendations. McGuireWoods Consulting.

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Using Public Private Partnerships

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  1. Using Public Private Partnerships Parkland Blue Ribbon Panel Christopher D. Lloyd October 22, 2007

  2. Presentation Overview • PPP concepts • Why use a PPP structure? • National Experience • Parkland Hospital opportunities and recommendations

  3. McGuireWoods Consulting • Subsidiary of McGuireWoods law firm (800+ attorneys) • One of nation’s largest public affairs firms • Pioneers in policy development related to P3 legal and regulatory structures (VA, NC, GA) • Integrated services focus – bring together economic development, lobbying, PR

  4. PPP Concepts • PPPs are emerging as a nationally recognized and accepted development tool • PPPs exist to provide opportunities to develop infrastructure and provide other essential governmental services outside the standard, low-bid procurement process • PPPs provide an opportunity to leverage private sector expertise, third party financing and to shift project risk away from the public sector • PPPs provide an opportunity to utilize modern construction techniques such as design-build and construction manager at-risk

  5. PPP Concepts What Makes Projects Go Well • Open and collaborative process between public and private sectors • Atmosphere that encourages innovation and creativity • Include public, press and other stakeholders • Objectives (cost savings, time, limits on risk) are clear from the beginning

  6. PPP Concepts What Makes Projects Go Bad • Unnecessary closed door discussions • Public sector shifts all risk, not willing to pay for it • Staff objections to process • Cost overruns and scope creep • Public sentiment turns away from development • Negotiations never end • Project is overly defined or restricted

  7. Why Use a PPP Structure? • Single source of responsibility for complex projects • Use the process to facilitate creativity, innovation, and competition • Develop assets that complement, but may not be at the core, of an entity’s public mission

  8. What to expect from a PPP • Significant interest from private sector looking to build resume, partner on unique assets • Funding for the “core” aspects will likely remain publicly derived (bonds) • Opportunities to reduce cost and accelerate schedule

  9. National Experience • Movement started in transportation • Virginia, Texas, Florida have long been pioneers • Concepts extend to other types of infrastructure through formal and informal arrangements

  10. Case Study - Virginia • Virginia law requires government entities to use sealed low bid procurement • General Assembly passes PPEA in 2002 to provide a formal process to facilitate alternative procurement practices • Allows for solicited and unsolicited proposals • Selection made on factors other than price

  11. PPP for Parkland Hospital - Process • Hospital district has great autonomy to lease assets with few approvals • Added benefits of HB 2090/HB 2168 provide opportunities for greater participation • Need to explore enactment of a formal process (Best Value Contracting) or informal process (RFI, RFQ, RFP) using existing powers • Determine whether you are merely a landlord or active participant in the development • Create opportunities for public input

  12. PPP for Parkland Hospital – Questions • Do you want to have an active or passive role in the development? • What are your goals from the development? • What financial payout do you want to see? • How will improvements advance the mission of Parkland Hospital? • How will improvements help the patients and employees of Parkland Hospital? • How will the project contribute to the tax base?

  13. PPP for Parkland Hospital - Recommendations • Hire project management team to coordinate PPP solicitation process • Define role of Parkland Hospital in project development • Develop broad project goals • Issue RFI to developers providing broad vision for project, copies of previous studies, ally contacts

  14. PPP for Parkland Hospital - Recommendations • Review RFI responses to develop criteria for developer competition • Engage public and other stakeholders in the review process • Issue RFP to establish project goals, selection criteria • Execute development agreement • Establish process for on-going review and oversight

  15. THE END Business Expansion Services | Constituency Development | Economic Development | Federal Budgeting and Contracting Advice | Federal Legislative Assistance | Grassroots Contact Program | Issue Advocacy | PAC Consulting | Public Infrastructure Finance | Public-Private Partnerships | Referendum Campaigns | State Government Relations ATLANTA • BUCHAREST •CHICAGO • SPRINGFIELD • RALEIGH • RICHMOND • TYSONS CORNER • WASHINGTON, D.C. www.mcguirewoodsconsulting.com

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