sb ppea ion power point) december 7 2010 (2)
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8/7/2019 SB PPEA ion Power Point) December 7 2010 (2)
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Public Private Partnerships for SchoolPublic Private Partnerships for SchoolPublic Private Partnerships for SchoolPublic Private Partnerships for School
DevelopmentDevelopmentDevelopmentDevelopment
CONFIDENTIAL
www.mcguirewoodsconsulting.com
Montgomery County School Board
Christopher D. Lloyd
December 7, 2010
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Virginia Procurement Opportunities
Design-bid-build
Design-build
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PPEA
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Design-Bid-Build
Traditional procurement method allowed under the Virginia Procurement Act
Begins with selection of engineer and design team through competitive
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Selected firm designs project to near complete drawings
Design and bid specifications are put out for bid
Some public entities start with RFQ, then proceed to RFP to help narrow list
of potentially qualified contractors
Contractor selection based on lowest responsible bid
Construction is to the plans
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Design-Build
Design-Build Review Board created in 1996 to grant project specific approvals
Law amended in 2006 to allow one-time Board approval to public entities
(Montgomery County NOT allowed to participate)
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Engineer and contractor propose as a common team with shared risks andrewards
Public entity often uses on-call or in-house expertise to scope project and
assist with team evaluation
Widely used by VDOT with about 20-30 other projects statewide
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PPEA
Law passed in 2002
Based on PPTA (Transportation) of 1995
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ows or ot so c te an unso c te proposa s or eve opment an or
operation of qualifying projects
Public entity must adopt guidelines to consider project proposals
2 phase process conceptual and detailed
Results in a de facto design-build procurement
Over 100 projects completed or underway statewide
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PPEA: Dispelling the Myths
Not a panacea
Not free money
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ot a nance too
Not secret negotiations
Not necessarily cheaper
Not privatization
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PPEA: Process
Public entity solicits for proposals or accepts unsolicited proposals
Minimum of 45 day open competition period for unsolicited proposals
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protect ons or con ent a n ormat on are negot ate
Conceptual proposal outlines team qualifications, proposed scope, proposed
scope and public benefits
Public entity may levy a proposal review fee on both solicited and unsolicited
proposals
Proposal review fee is used to cover procurement costs
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PPEA: Process
All competing proposals are reviewed, followed by a downselect
Detailed proposals are requested often relies on recommendations of
outside/inside advisors
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Detailed proposals start to lock in project scope, costs, schedule
Leads to an interim or comprehensive agreement with one firm
School Board MUST secure Board of Supervisors approval before executing
contracts
Significant requirements for public notification and hearings
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PPEA: Pros
Many of the same benefits as design-build
Provides opportunities for creative and innovative approaches to addressing
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PPEA has a certain cachet with state regulatory and funding bodies
No non-Montgomery County approvals necessary
School Board retains right to reject, modify, expand, or amend proposals at
any time
Project costs can be covered by proposers
Staff augmentation and single point responsibility
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PPEA: Cons
Project scope and cost may not be defined until late in the negotiation
process
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Suspicions about competitive negotiations
Did I get the best possible price?
Negotiations can be lengthy and complex
Currently not an authorized procurement vehicle for USDA funding programs
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Mitigating PPEA Risks
Use of strong outside advisors with PPEA experience
Two step solicitation process
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sta s ng c ear goa s, part cu ar y re ate to pr ce
County and School Board must be on the same page
Use of interim agreement process
Circulate proposed comprehensive agreement at detailed review phase
Prepare contingency budgets and plans that share risk and rewards
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PPEA: Why Unsolicited Proposals?
Greater acceptance of use of project review fees
Greater flexibility to develop a project with undefined scope
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pportun ty to get wor c ass eas
Opportunity to get the dream team
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PPEA: Why Solicit Proposals?
Public entity is in proactive, not reactive mode
Greater opportunity to narrow or define scope
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ay ncrease compet t on, num er o proposa s
Reduces requirements for staff time to meet with proposers
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PPEA Implementation
What Makes Projects Go Well
Open and collaborative process between public and private sectors
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Atmosphere that encourages innovation and creativity
Include public, press and other stakeholders
Objectives (cost savings, time, limits on risk) are clear from the beginning
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PPEA Implementation
What Makes Projects Go Bad
Unnecessary closed door discussions
Public sector shifts all risk, not willing to pay for it
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Staff objections to process
Owner did not establish clear criteria and goals upfront to properly assess
performance and success at end
Cost overruns and scope creep
Public sentiment turns away from development
Negotiations never end
Project is overly defined or restricted
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PPEA: Project Examples - Schools
Stafford County (2 schools)
City of Falls Church
Northumberland County
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City of Fredericksburg (2 schools) Frederick County
Chesterfield County
Cumberland County
City of Winchester
Warren County
Bedford County
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Project Examples
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Project Examples
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Praise for the PPEA
You have to do a lot of work up front, Francis said of the PPEA process.
We made adjustments as we went along. In the end, the project was early
and under bud et. - Bedford Count
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Both projects were completed on time, Lafayette opening in September 2005
and James Monroe HS in September 2006, within 26 months, for a
Guaranteed Maximum Price (GMP). Moreover, both have received design
awards from Virginia school organizations. City of Fredericksburg
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THE END
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