One of the hottest and most attractive contracting options for public officials throughout the country today is a public-private partnership, usually called a P3. These types of engagements are being used to build roads, construct courthouses and student housing, to provide emergency technology to police and fire professionals and to upgrade and maintain public facilities. In fact, P3s are being used for almost any conceivable public project. Just last week, two New York senators renewed a call to use P3s to continue the Brooklyn-Queens Expressway that is stalled because of a lack of funding.

Because public works funding is so scarce, and job creation is such a high priority, public officials are eager to find private sector partners who can put up equity and allow them to move forward on much-needed projects. The U.S. Department of Transportation estimates that for every $1 billion invested in transportation infrastructure projects, 25,000 jobs are created.  

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HUD grant funds will be used to upgrade apartments to assisted living centers

Millions of dollars in renovations contracts will be available in five states soon as the U.S. Department of Housing and Urban Development (HUD) has announced $23.7 million in funding to upgrade apartments to meet the needs of elderly residents.

Connecticut, Indiana, Minnesota, New York and Ohio will all receive part of the funding, which will be used to help convert existing multifamily projects into assisted living facilities for the elderly. Among the grants are more than $8.5 million for the Bernardine Apartments in Syracuse, New York. These funds will be used to convert 39 existing units that serve the elderly into assisted living units. Renovations will include Life Safety system upgrades and an additional elevator. Another $3.5 million grant is headed to NRC of Johnstown, Ohio, which will convert 24 existing two-story apartments for the elderly into assisted living units. Renovations in that facility include a new commercial kitchen, dining room, therapy facilities, commercial and personal laundry, nursing offices and exercise areas.

The funds for the projects are provided by HUD's Assisted Living Conversion Program, which makes money available for physical conversion of eligible multifamily assisted housing projects or portions of projects to assisted living facilities. HUD Secretary Shawn Donovan said the funding will provide "an affordable option to nursing homes, helping senior
 sto live independently."

These types of facilities generally are available to low-income elderly persons and persons with disabilities who can live independently but need assistance with certain activities such as eating, personal care, etc. The facilities also provide other services such as meals and transportation.

The grants are competitively awarded and the owners of the facilities are responsible for ensuring the converted units meet standards, codes and regulations. To see the complete list of awardees and what their grant funds will be used for, click here and look under "Recent Reports."

5 percent cost preference would be given to local companies' bids

Ellyn Bogdanoff

A Florida Senate committee has passed out legislation aimed at giving Florida-based companies an advantage over out-of-state vendors when it comes to competing for government contracts. The bill (SB 538) would require agencies to give a 5 percent cost preference to in-state companies' bids.

Florida agencies currently have the authority to grant preferential treatment to in-state vendors, but rarely do, according to some Florida vendors. On the other hand, other states offer even bigger incentives and in some cases require governments to grant contracts to in-state companies that bid on projects. Many vendors note that keeps them from being able to compete in other states, while no preference is given to them in-state either.

A similar bill made its way through several Senate committees in the Florida Legislature last session but the bill did not make it through any House committee. The bill is being carried by Sen. Ellyn Bogdanoff, who said it is "counterintuitive" to buy services from companies in another state that can't purchase from Florida. "So we can't compete," she said.

Construction, renovation, expansion projects in line for Ole Miss

Construction activity at the University of Mississippi will be in high gear for the next several months, as officials there are biting into nearly $120 million in construction, renovation and expansion projects. Among the upcoming projects are a $50 million renovation of the Student Union, a $10 million renovation of Johnson Commons and a $10 million renovation of the Turner Center. Johnson Commons will be retrofitted with mechanical and electrical systems. A new building will be added to the north side of the Johnson Commons and the Commons building will be renovated. The Thad Cochran Research Center will use $30 million in grant funding for additional labs to be added to the building.

Community college prepares for overhaul of donated land, property

John Fitzsimmons

The Southern Maine Community College midcoast campus is preparing to make good use of land and property donated by the U.S. Navy. College President John Fitzsimmons said it is now "official" that $78 million worth of buildings and 22 acres of land at the Brunswick Naval Air Station are being donated to the community college system. "It's official now that it's our property," he said. The buildings will mostly be converted for educational use. The Navy transferred the property to the college for $1 and voters approved a bond in June of last year for $4.7 million to convert the buildings for education use. "These are magnificent buildings and they are in great shape," said Fitzsimmons. "It already looks like it was built to be a small college. We're very fortunate and it's going to be a wonderful new home."

New York school planning for energy audit to help save money

The Cambridge Central School in New York has approved an energy audit which will be performed free and hopefully result in energy savings that leads to money savings. The audit was suggested by the school's architectural firm, along with execution of an energy performance contract that will help the district find alternative funds for building improvements. The audit, performed by a private sector vendor, will show what building improvements should be made to reduce energy costs. Those improvements will be made by the contractor and then paid for with future energy savings. Even after the audit is performed, the school is under no obligation to follow through with any of the work suggested. The private company seeking the contract proposed a $1.3 million project that includes lighting, insulation and other energy efficiency improvements. The expectation is that the improvements would result in a savings of $90,000 per year for the district, with a portion of those funds directed to repayment of the costs over 18 years. This project is not part of a voter-approved $8.037 million capital improvement project. That project, which will get under construction next June, includes reconstructing parking lots, pathways and corridor ramps, creating a monitored high school entrance, replacing gym floors and bleachers and renovating playgrounds. It also includes replacing single-pane windows, leaking or damaged skylights, a hot water tank, unit ventilators and kitchen improvements.

Massachusetts encouraging turning landfills to renewable energy projects 

Kenneth Kimmell

Cities and towns in Massachusetts are being urged to turn former landfills into solar and wind energy farms. The Department of Environmental Protection notes that there are some 500 former landfills in the state that could be used for solar and wind projects and 12 such projects already have been permitted since last year. "As these catch on and we create economic models and permitting models to do it more, more communities will get involved," said DEP Commissioner Kenneth Kimmell. Not all of the landfills are eligible, however, as renewable projects must not disrupt buried waste or jeopardize soil and synthetic caps that control spread of waste at many closed landfills. But, of those permitted, officials think they can be done safely. Solar panels are the most popular option. Officials not only see these projects as a way to use land that would otherwise lie dormant, but also as a means of helping the state reach its goal of generating 15 percent of its power from renewable energy sourced by 2020. In many cases, developers are financing and building the projects and then operate it with a lease, giving them the option of applying for tax and renewable energy credits. Energy also can be sold to the grid.

The first segment of the California high-speed rail project will get under way thanks to a $928 million funding infusion from the Federal Railroad Administration. The funds are going to the California High-Speed Rail Authority (CHSRA) to design and construction the Central Valley segment - a 230-mile line from Bakersfield to just south of Merced. The CHSRA previously said the cost for the proposed new rail line in California was approximately $36.4 billion, with the second phase carrying a price tag of $74.5 billion. Phase One includes a 520-mile route from San Francisco's Merced station to Union Station in Los Angeles and the regional Transportation Center in Anaheim. All federal funding necessary for the project has been secured for design and construction of phase one in Central Valley. Construction is slated to begin next autumn in Fresno. 

 

Officials get fist look at proposed design for California courthouse

The design for the new Woodland Courthouse (see artist's rendering at right) in California has been made public and the first phase of the architectural design is nearly complete, officials say. The new courthouse is funded by SB 1407 from 2008 that provides for up to $5 billion in funding for new and renovated courthouse. Funding comes from court fees, penalties and assessments. The project is not slated for construction until early 2013, and it will be located on the south side of Main Street between Fifth and Sixth Streets. The project includes a five-story building that will consolidate court operations from seven facilities into one central building with 14 courtrooms. It will be a 163,000-square-foot facility and includes security improvements, better access and more efficiency. The building will also feature a covered arcade for shade and protection from the weather, with a two-story glass lobby that connects the exterior and interior. The design also has numerous sustainability features and will seek LEED Gold rating from the U.S. Green Building Council. Energy-saving features are numerous.

 

RFP issued for alternative fueling station near Chicago airport

A Request for Proposals to operate a new alternative fueling station near O'Hare International Airport has been released by the Chicago Department of Aviation (CDA). The bid must include payment of all capital costs, operation of the station and payment of land lease and concession fees to the CDA. The station is to provide sustainable alternatives for drivers near the airport like the electric vehicle charging stations at O'Hare and Midway International Airport. The station will encourage the use of clean fuels and electricity to power vehicles. The station will be built on the northeast side of the airport, near the proposed rental car facility and taxi staging areas. Officials say at least 60 percent of the fuel at the station will be alternative fuels, including compressed natural gas and combinations of biodiesel, liquefied petroleum gas, ethanol, hydrogen and electric vehicle charging. The remainder will be traditional gas or diesel fuel for the first five years. Officials expect the RFP process to be completed and construction to begin next year.

 

Florida city to go out for bids on fuel management system

Marty McClain

In Cape Coral, Florida, officials are seeking bids on its new fuel management system. The process could take up to four months. Council member Marty McClain urged the bid process, saying he was not sure the current vendor offered the best value for the city. The current contract holder was slated to charge more than $132,000 for all the software and hardware upgrades needed plus a recurring annual cost of nearly $50,000 for maintenance and for maintaining future databases. Internal and outside audits recently revealed the city could not account for all of its fuel. The city then decided to upgrade its system. Since no contract was signed with the current contract holder, it will have to bid like other would-be contractors. "We've been locked into the same vendor since 2003," said McClain, who added that he wants to make sure the city is getting its money's worth. 

 

Georgia city planning to use $4M loan for wastewater project

The City of Richmond Hill, Georgia, is the recipient of a $4 million loan from the Georgia Environmental Finance Authority (GEFA) that will be used for a wastewater project in the city. GEFA Executive Director Kevin Clark recently announced that the city is in line for a $4 million low-interest loan from the Clean Water State Revolving Fund. The funding will be used to finance phase one of a multi-phase project to upgrade the existing water pollution control plant from 1.5 million to 4 million gallons per day. Clark said the programs through GEFA help local governments to improve their environmental infrastructure and the Clean Water program gives government entities affordable financing to deal with improved water quality projects. Richmond Hill will pay 3 percent interest on the 20-year, $4 million loan.

 

Oklahoma public employee retirement system seeking consultant

The Oklahoma Public Employees Retirement System (OPERS) board is issuing a Request for Proposals for general investment consulting, a smaller defined benefit plan for state judges with $237 million in assets and two deferred compensation plans with total assets of $625 million. The current contract holder is also invited to bid. The contract expires June 30 of next year. A similar search is conducted about every five years. Proposals are due Dec. 16.

 

Finances finally in order for new San Francisco 49ers stadium

Financing, at long last, has been approved for a new stadium to be home to the San Francisco 49ers. The NFL team and the city of Santa Clara have announced they have put together the money to fund a proposed $1 billion football stadium (see artist's rendering at right), after more than two years of negotiating. Revenues at the stadium from such things as ticket sales, naming rights and rent from the 49ers are expected to pay back the loans. The remainder will come from the NFL - at least $150 million, $40 million from the city's redevelopment agency and $35 million from a projected local hotel tax. Three financial institutions have agreed to pay for most of the construction, which could begin next year. The 68,500-seat stadium price has increased from original estimates of $987 million to $1.02 billion. Officials think the stadium will create so much money that it will be able to pay off the note much sooner - probably within 25 years.

 

Want to know who your competition is? Who was awarded the contract on a particular project? Below are listed some recent winners of major government contracts:  

• Hilton Cooper submitted the low bid of $139,900 for a sewer project for Wetumpka, Alabama, to provide an additional sewer line that will extend about 2,600 feet of 8-inch line.
• Henkel Construction was awarded a $16.2 million contract to build a new 88,350-square-foot Orange Elementary School in Waterloo, Iowa.
• BBDO ad agency has won a fast-moving RFP process to handle the "New York Open for Business" global marketing push recently launched by the City of New York. Negotiations are still under way for a two-year contract of up to $50 million set aside and an option for two additional one-year renewals.
• Thieneman Construction has been awarded a $6.1 million contract by the City of Lowell, Indiana, for work to the wastewater treatment plant the town shares with Cedar Lake.
• Southeastern Kentucky, Corbin, Ky., was awarded a firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a maximum $12,438,000 by the U.S. Defense Logistics Agency for first aid kits.
• Data Matrix Solutions of Herndon won a $3.9 million contract from the Navy for professional, administrative and management support services.
• Foxhole Technology of Fairfax won an $8.3 million contract from the Defense Information Systems Agency for information technology services, including telecommunications services.
• MEB General Contractors of Chesapeake won a $25.7 million contract from the Army for construction of structures and facilities.
• United Electric Supply of Jessup won a $1.3 million contract from the Government Printing Office for installation of equipment.
• Whitney Bradley & Brown of Reston won a $5 million contract from the General Services Administration for professional, administrative and management support services.

Cuomo seeks public-private partnerships to bridge $3.5 billion budget gap

Saying he wants to "address the illness" that has caused what is likely to be a $3.5 billion state budget gap during the next fiscal year, New York Gov. Andrew Cuomo is looking to public-private partnerships as one means of addressing the infrastructure needs that are weighing down the state budget. One way of paying for infrastructure projects that the governor is addressing is meeting with labor unions about possibly investing some of their private pension funds in infrastructure projects such as the Tappen Zee Bridge. The state is looking at having to replace the bridge at a cost of as much as $6 billion.

Virginia officials enter into P3 to build new Midtown Tunnel

Sean Connaughton

The Virginia Department of Transportation (VDOT) has entered into a contract with the Elizabeth River Crossings construction consortium to build a new Midtown Tunnel. The project, a public-private partnership, will also rehabilitate the existing tunnel, the Downtown Tunnel and extend the MLK Freeway. Calling the project a "significant milestone" for a project that has been around for a long time, Virginia Secretary of Transportation Sean Connaughton said the contract was negotiated over five months. Construction is slated to begin next year. The project is valued at $2.1 billion. VDOT will retain ownership of the structures and oversee the Elizabeth River Crossings (ERC) work. ERC is a partnership between Skanksa Infrastructure Development and the Macquarie Group. ERC will finance the project through a $422 million low-interest loan from the Federal Highway Administration Transportation Infrastructure Finance and Innovation Act, along with $1.3 billion in equity, debt and revenue from operations. ERC will finance, build and maintain the facilities for 58 years, collecting tolls to offset costs during that time. The department of transportation will put in $362 million to try to help keep toll costs low. The project is expected to double the Midtown Tunnel's capacity and save driver commute times.

Oregon public-private partnership for energy projects gets rave reviews

Providing instant rebates for home energy audits and retrofits, no-money-down financing, easy qualification and the words of wisdom from an independent energy advisor, the Clean Energy Works Oregon (CEWO) program is a public-private partnership that is setting the bar for national home energy efficiency programs. The program has a goal of significantly changing the energy performance of at least 6,000 Oregon homes in three years. The program uses a variety of incentives, contractor partnerships and technical support to increase home energy efficiency at an affordable cost. CEWO's goal is to transform the energy performance of at least 6,000 homes in just three years. The program has brought together the Energy Trust of Oregon, Oregon utility companies, financial institutions, local governments, contractors and others to promote environmental and energy-saving goals for the state. The program combines scientific expertise with high craftsmanship to ensure home energy retrofits produce savings for home owners while also positively affecting the environment.

Some contracting opportunities from across the country

New York:

• The Monroe Academy for Visual Arts (Bronx) is seeking bids for science lab upgrades. Project range $2.03 million to $2.145 million.
• The New York City Police Department (NYPD) has issued a notice of solicitation for Invitation to Bid for furnishing all labor, material and equipment necessary and required to audit NYPD Communications bills.
• The Triborough Bridge and Tunnel Authority is seeking bids for indoor and outdoor extermination services at various authority facilities.
• The Department of Sanitation is seeking bids for a contract for minor roof repairs and restorations at various locations citywide. Bid estimate $1.5 million.
• The Department of Citywide Administrative Services is seeking bids for off-site records storage and associated services.

Virginia:

• Culpepper County is seeking bids for a fixed price contract to provide and install remanufactured office modular furniture at the county's Department of Human Services.
• The City of Manassas has released an RFP seeking to establish a contract for civil engineering services for the Route 28 Nokesville Road widening project.
• The town of Blacksburg is seeking bids for municipal building renovations. Henrico County is seeking bids for Fire Station 9 replacement.
• The Thomas Nelson Community College is seeking bids for a contract to provide vending services for food, snacks, hot and cold drinks for the Hampton campus.

 Are you a government official who has moved into a new position or to a new agency? Did you recently retire? Were you recently named to an executive-level position at a state-supported college, university or community college? Have you secured a new job as superintendent of a public school? If so, we'd like to hear from you - and so would your friends and colleagues - for our "Where Are They Now" column. Just drop us a line at editor@spartnerships.com and let us know about your previous job and where you are now. This week we feature Earl E. Devaney.

Earl Devaney

Earl E. Devaney is a native of Massachusetts and began a career in law enforcement in 1968 as a Massachusetts police officer and after graduating from Franklin and Marshall College in 1970, he became a special agent with the United States Secret Service. He served as Special Agent in Charge of the Fraud Division until his retirement from the Secret Service in 1991. Devaney then became the Director of Criminal Enforcement for the U.S. Environmental Protection Agency, overseeing the agency's criminal investigators and was responsible for the EPA's Forensics Service Center and the National Enforcement Training Institute. In 1999, he was tapped by President Bill Clinton to serve as Inspector General for the U.S. Department of the Interior. In 2009, Devaney was chosen by President Barack Obama to oversee the $787 billion American Recovery and Reinvestment Act, the federal stimulus plan, as head of the Recovery Accountability and Transparency Board. Devaney recently announced that he will retire from his 41-year career with the federal government.

 

NASA veteran shuttle Launch Director Mike Leinback (top left) has announced he is leaving the agency after nearly 30 years of service to join a major aerospace company in Florida. President Barack Obama has nominated Marilyn Tavenner (top center), former Virginia Secretary of Health and Human Resources, to serve as administrator of the Centers for Medicare and Medicaid Services (CMS). Richard W. Lariviere (top right), president of the University of Oregon who has served in that capacity for more than two years, has been fired by the Oregon State Board of Education, effective Dec. 28. Robin S. Rosenbaum, a federal magistrate in Fort Lauderdale and a former South Florida federal prosecutor, was recently nominated by President Barack Obama to serve as a U.S. District Court judge in Miami. Dr. Donald M. Berwick, official in charge of Medicare and Medicaid, has announced he is resigning after being nominated to the post in April of last year but never confirmed by the Senate. Angie Avery, parks and recreation department director for the city of Los Alamitos, California, has been named the city's new city manager, replacing Jeff Stewart, who will leave that post early next year. Travis County (Texas) Judge Sam Biscoe (middle right), who has served as county judge for the last 13 years, has announced that he will not seek re-election when his term expires in 2014, ending 25 years on the county commissioners court. Maj. Gen. Patricia Horoho (middle center) has been promoted to the rank of lieutenant general and this week became the first nurse to serve as Army Surgeon General, succeeding Lt. Gen. Eric Schoomaker. Nancy Mahon (middle left), executive director of the M-A-C AIDS Fund, has been chosen by Health and Human Services Secretary Kathleen Sebelius to serve as the new chair of the Presidential Advisory Council on HIV/AIDS. Assistant City Manager Philip Wagner, who has more than a decade of administrative experience in Bell Gardens, California, has been chosen as the new city manager, taking over for retiring City Manager Steve Simonian. Scott W. Huth, who has served as the Public Services Director of the City of Coronado, California, since 1995, has been announced as the new city manager for the city of Del Mar. A 23-year veteran of the Westerly, Rhode Island, Police Department, Capt. Edward St. Clair, has been named chief of police, replacing Edward Mello, who retired in September. Terri Cobb (bottom left), chief of staff in Wake County, North Carolina's Wake County Schools, has been hired as superintendent of the Pender County Schools. The University of Akron has hired Wayne Hill (bottom center), who has more than 40 years of professional communications experience in both the public and private sectors, as its Associate Vice President and Chief Marketing Officer, and Eileen Korey (bottom right), a veteran communications counsel and project manager for private, nonprofit and public organizations, as its Associate Vice President and Chief Communications Officer. J. R. Gamez, former San Jose (California) Police Department captain, has been sworn in as police chief of Redwood City. The Vernon, Connecticut, Public School System has hired Michael Purcaro, the city's Emergency Management Director, as the new director of business and finance, replacing Stanley Karasinski. Todd Glover, who served three years as assistant Aiken County, Georgia, administrator, has been chosen as the new city administrator for the city of North Augusta, replacing Sam Bennett, who left that post in September.