Private sector contractors are aggressively pursuing P3 engagements to provide energy retrofits to public facilities at no cost to taxpayers. These partnerships have worked well and are attractive in all parts of the country. The expectation is that there will be many more of them announced in the next few months.

This type of investment in energy efficiency, involving both the public and private sectors, is expected to reach $4 billion in the next two years. The Department of Defense alone has set aside $465 million for the refurbishing and retrofitting of federal buildings in 2012 and $718 million in 2013. However, as cities, counties, state agencies, universities and public hospitals get involved, federal funding will be dwarfed by the amount that will be allocated at the state and local levels of government.

Seeking private operation of five parks to lower costs, prevent some closures

Roy Stearns

Like many other states facing budget shortfalls in their state parks systems, and amid fears of having to close parks, California is taking the lead in pulling the private sector into the fold - and bringing its money with it.

The McConnell SRA is one of five park units seeking a private sector partner.

California State Parks (CSP) recently issued a request for proposals (RFP) for a five-year concession contract(s) for a private sector partner to take over operation of five of its parks in the Central Valley area. The affected park units are the Turlock Lake State Recreation Area (SRA), McConnell SRA, George J. Hatfield SRA, Woodson Bridge SRA and Brannan Island SRA.

CSP is seeking the contract to be a concession contract that features a commercial lease agreement. The agency would retain ownership and control over the parks without having to pay the private sector partner to operate them. The private sector partner would retain the user fees charged, but a percentage of that fee would be paid to the state in the form of "rent."

CSP Spokesperson Roy Stearns noted that the private sector has long been a supporter of the state park system, adding, "They should be considered as friends, along with nonprofits, in our efforts to preserve and protect our park system."

Facilities would be built on Army bases with energy sold back to military

The U. S. Army is offering a unique opportunity for private developers with renewable energy capacity. The Army hopes to talk private sector vendors into building renewable energy projects on many of its bases. The up-side for the vendors is that the Army would guarantee them it would purchase the power produced. The Army is seeking wind, solar, geothermal and other renewable technologies.

To that end, the Army has issued an RFP for the project and is hopeful of seeing $7 billion in private capital into renewable energy projects on military land. Not only is the project environmentally sound, but it also ensures that if something were to happen to the electric grid, the Army operations could continue.

The RFP comes after the Army studied 180 Army and National Guard facilities to determine which sites would be best. It is currently looking at building large-scale projects on 15 bases. A two-step acquisition process is planned under a multi-award task order contract. Vendors would first be qualified and then they will compete for the task orders. The task order winners then will be responsible for owning and operating the project for up to 30 years. The Army will commit to buying some of the power produced by the renewable facilities totaling up to $7 billion over the life of the contract. Energy not purchased by the Army can be sold to other buyers. However, if the power grid were to be lost, the energy generated on the bases could be excluded from purchase by anyone by the Army.

Will evaluate public-private partnership initiatives for transportation projects

Several large transportation projects have been identified by the Ohio Department of Transportation for possible public-private partnership initiatives. The action is a result of Ohio DOT creating a new division - the Division of Innovative Delivery - charged with identifying alternative methods of financing infrastructure projects such as roads and bridges. The division will evaluate public-private partnerships from design-build to long-term lease.

The Ohio legislature passed a bill that gives ODOT the ability to enter into P3 partnerships for transportation projects. Agency officials say P3s allow the agency and the private sector to work together to develop new ways to develop, finance, maintain or operate a transportation facility. Officials say they would look first for a partnership for the $650 million, three-phase Portsmouth Bypass, since funding is already in hand for phase one.

ODOT estimates it will have only $100 million per year to spend on new construction during a time of budget crisis.

Facility replacements at University of Iowa total $404.9 million

Damages to the University of Iowa campus as a result of flooding during 2008 could top $1 billion. The Iowa Board of Regents recently got an update on replacement costs, including $404.9 million for replacing the fine arts campus. The Hancher Auditorium, art building and music facility (see in the accompanying artist's rendering) alone came in about 5 percent higher than the preliminary estimate. The regents will receive further updates on the recovery process and will be asked to approve designs, description and budgets for replacing the three facilities. About 65 percent of the replacement costs will be borne by $267 million in funding from the Federal Emergency Management Agency. Flood insurance also will pay a portion of the costs, as will revenue bonds, university gifts and earnings and building renewal funds. The University of Iowa Foundation is planning to raise another $30 million toward the cost. The new multi-use Hancher Auditorium will seat 1,800 and will be built two feet above the 500-year flood plain.

Public-private partnership bill passes Maryland House

Online lottery sales to make first debut in Illinois 

(To view these stories, click here and look under "Around the Nation.")

Other upcoming contracting opportunities

Virginia town studies public-private partnership for mixed-use building

In Virginia, citizens of the town of Vienna are taking a hard look at a proposed three-story mixed-use building and four-story parking structure (as seen in the accompayning aartist's rendering). It is the first such proposal since the town adopted P3 guidelines. The plan, submitted by a private sector developer and carrying a price of between $3 million and $3.3 million, would build two buildings in a more than 23,000-square-foot lot. A three-story mixed-use building would include retail on the first floor and two floors of residential units above it. A four-story parking structure would accompany the building. The plan calls for the developer to develop and fund the project. Land for the parking structure would be sold to the town for $1 and construction would be financed by the town. Construction would likely cost $2.8 million to $3.3 million. The developer's plan was submitted as an unsolicited proposal. The town council cannot take action on the proposal until 45 days after the proposal is submitted, allowing for other interested developers to submit proposals. That would put a decision by the council into early May.

Supplemental transportation bill means more funds for Washington projects

A supplemental transportation budget was recently signed by Washington Gov. Chris Gregoire. The budget adds $57 million in new spending that comes from increased driving fees. Gregoire warned that although the new dollars are welcomed, they are a far cry from the $3.6 billion in increased transportation funding she sought over the next decade. Washington Gov. Chris Gregoire on Friday signed into law a supplemental transportation budget with $57 million in new spending paid for by increased fees related to driving. The new money in the two-year, $9.8 billion budget approved last year is a far cry from the $3.6 billion increase in transportation funding over the next decade that Gregoire called for in January. "Let me be clear," she said. "Tomorrow we're going to have to step up to this challenge as a state." The new funds will include $9 million in aid to regional and local transit agencies over the next year, $8 million in spending for highway projects and another $7 million for fuel for the ferry system. Several hundred million dollars in dedicated money will also be freed up for a floating bridge project on Route 520.

 

Variety of contracting opportunities available in El Paso area

A number of contracting opportunities for vendors are available in El Paso. They include:

• The Department of Veterans Affairs in El Paso is requesting bids for milk and dairy products for the VA Center in Amarillo;
• The Texas Department of Transportation is requesting bids for barbed-wire fence removal and replacement in Hudspeth County;
• The city of Laredo Utilities Department is requesting bids for PVC pipe fittings and brass and galvanized fittings;
• The city of El Paso is requesting bids for fuel processing, provider-CNG fuel for city vehicles and related lease of city property for natural gas fuel processing facility;
• The Housing Authority of the City of El Paso is requesting bids for energy audit;
• The University of Texas at El Paso is requesting bids for electrical service upgrade Administration and Physical Science buildings;
• The El Paso Independent School District is requesting bids for annual food products; and
• The Socorro Independent School District is requesting bids for rock, sand and gravel materials.

Steve White

 Students in Alpine ISD to get updates to stadium, new artificial turf

The Board of Trustees of the Alpine (Texas) Independent School District has voted to build a new stadium and to install artificial turf. The stadium project is expected to cost $1.9 million, according to AISD Superintendent Steve White. Stadium work could begin as early as April 1, and thus carry an Aug. 1 completion date. The new turf is a large part of the overall project and is expected to reduce the incidence of injuries and save money by not having to reseed grass or water it. The new facilities will be used by high school and middle school for football games and track activities. The district will no longer have to use the athletic facilities of Sul Ross State University. 

 

Land purchases mark next step to building Stockton courthouse

The purchase of two final parcels of land is the most recent step toward building a new superior courthouse in Stockton, California. Now the design team can create a landscaped entry plaza. The 13-story courthouse will feature 30 courtrooms totaling more than 300,000 square feet and will be the tallest building in the city. Officials hope to have the preliminary design plans completed by mid-year. The plans should be completed by 2014, followed by construction. Officials are looking at a mid-2016 opening date. The project is funded by the State Court Facilities Construction Fund, which includes court fees, penalties and assessments, rather than taxpayer-generated revenue. The cost of the project is $272.9 million, officials said.

 

Michigan city preparing to build new recreation center

The Tecumseh, Michigan, Planning Commission recently approved the site plan for the A.J. Smith Recreation Center. City Manager Kevin Welch said the engineering firm and architect must now finish the specifications and drawings before the project can go out for bids. The Lenawee Community Foundation is the financial agent for the project and the funding for construction will be paid by the Ruth V. and Ruth Anne Thompson Trusts. Officials are shooting for an early 2013 completion date. The center, whose site plan gained unanimous approval, will be built at John Smith Park on North Evans Street.

 

Ohio city residents looking forward to new water treatment plant

A new water treatment plants is expected to be operational in the city of Uhrichsville, Ohio, after the water and sewer district board in Urichsville, Ohio, gave approval for putting the project out to bid March 29. The project is expected to be awarded on May 1, with construction set to begin in early June. The $7 million facility should be completed by summer 2013. Nearly five years of work has gone into planning the project and to secure a new well field and treatment plant. The funding will come from the Ohio Environmental Protection Agency through its Disadvantaged Community Grant program. The grant will pay for 40 percent of the cost, and the other 60 percent will be paid from a zero-interest loan from the OPEA. The new plant is expected to save the district $500,000 per year in chemicals to treat the water. 

 

Check out these recent awards:

• L.A. Fuller & Sons Construction was awarded a $2.1 million contract by the City of Amarillo for work on arterial streets, including repairs to pavement, shaving off a layer and applying more than 400,000 square feet of hot-mix asphalt.
• Front Rowe won a contract worth up to $5.5 million from the Employment Training Administration for information technology services, including telecommunications services.
• Harris Corp. has been awarded a contract valued at $80.3 million by the Veterans Affairs Department vital to the development of an integrated VA-Defense Department electronic health record system.
• PDG Architects, Reynolds, Smith and Hills. Inc., URS Group Inc. and HDR Architects have been awarded contracts for five years valued at $49 million by NASA for architect and engineering services that include feasibility studies, conceptual designs, preliminary engineering reports, budget estimates and designs for alterations, new construction, repair and refurbishment projects.
• Northrop Grumman Information Technology won a contract worth up to $13.5 million for the Air Force for information technology services, including telecommunications services.  
• Chasco Constructors has been awarded $4.96 million contract by the city of Austin, Texas, for improvements to the Deep Eddy, Bartholemew and West Enfield pools.
• Jay Cashman has been awarded a $42.7 million contract by the South Carolina State Ports Authority to place fill on the land site of the container terminal at the old Charleston Naval Base, along a 5,000-foot containment wall already in place.
• Ameresco Inc. has won a $3.6 million energy savings performance contract by the Lyon County School District in western Nevada to upgrade 23 buildings in the district, including 19 schools and four administrative buildings.
• Stuart C. Irby Co. won a $97,732 contract from the Robertsdale, Alabama, City Council to retrofit street lights along Ala. 59, to replace several models of lights with a system using light-emitting diodes.
• Swofford Construction has been awarded a $14.5 million contract by the Cobb County, Georgia, school board to build the West Cobb 9th Grade Center at Harrison High School.
• Collins Electric Co. has been awarded a contract for $104,880 to install lighting at the St. Longmeadow (Massachusetts) High School athletic field.
• Clark Construction Group of Bethesda won a contract worth up to $29.5 million from the General Services Administration for construction of structures and facilities.
• Jacobs Engineering has been awarded a $408,184 contract by the city of Brownsville (Texas) to design and build a new two-level parking garage that will encompass about 75,000 square feet and 150 parking spaces for the Brownsville B-Metro Multi Modal Facility.
• BAE Systems Technology Solutions & Services won a contract for up to $32.4 million from the Army to provide for logistic, maintenance, transportation and supply services.
• Booz Allen Hamilton was awarded a contract worth up to $5.5 million from the Army for information technology services, including telecommunications services.

Texas city forms corporation that could lead to public-private partnerships

The city of Edinburg, Texas, recently formed a corporate entity whose goal will be to lay the ground work for projects that are part of the city's downtown master plan. A local government corporation will try to attract private investors to develop projects such as a hotel, anchor restaurant and other cultural and tourist attractions that will enliven the downtown area. One firm has already show interest in building a $12 million development that could include student housing for The University of Texas-Pan American and on land leased by the university. The entity would act on behalf of the city as the city designs and develops publicly owned facilities that are funded through public-private partnerships. Any development deals would have to be approved by the City Council. Risk would be shifted to the investors through the corporation and incentive money can be part of the agreement, with those funds to be used for incentive money for other projects.

Oklahoma City considers public-private partnership for city parks

Nancy Anthony

A public-private partnership has been formed between the Oklahoma City Community Foundation and Oklahoma City that will benefit the city's park system. The two entities are sharing the costs to develop a new master plan for the city's park system. Secondary to that goal is figuring out a way to also share the costs for improvements to the parks and expansion of the parks. The long-range plan will help the city attract private partners, said community foundation Executive Director Nancy Anthony. "It's difficult for private dollars to begin to work with parks if you don't know what the mission is or what you're trying to accomplish," Anthony said. The city has already approved its $150,000 in funds for its share of the study. Wallace Roberts & Todd was selected to develop the plan. The firm was selected over 10 bidders and has developed park systems in other states. A public-private partnership has been formed between the Oklahoma City Community Foundation and Oklahoma City that will benefit the city's park system. The two entities are sharing the costs to develop a new master plan for the city's park system. Secondary to that goal is figuring out a way to also share the costs for improvements to the parks and expansion of the parks. 

 

North Carolina public-private partnership draws four European developers

Four European consortia have responded to a Request for Qualification by the North Carolina Department of Transportation for a major infrastructure project. The project includes the proposed I-77 High Occupancy toll (HOT) project, which will convert and expand the state's High Occupancy Vehicle (HOV). The Department of Transportation is seeking a vendor to develop, design, construct, finance, operate and maintain the public-private partnership. The short-list of developers is expected to be named March 30. The final RFP would then be issued during the second quarter of this year with proposals due in the third quarter. The commercial close would be December of this year with financial close during the first quarter of 2013. 

 

Public-private partnership to lead to rehabilitation of Florida terminals

Steve Cernak

Thanks to a public-private partnership, Port Everglades (Florida) will see a $54 million rehabilitation of four of its terminals. The P3 agreement was arranged between the port operator, Broward County Board of County Commissions, and Carnival Corp., which owns Carnival cruise ships. The deal calls for a minimum of 25.5 million Carnival passengers to sail in and out of the port during the 15-year timeframe both sides approved. That would result in $500 million in port revenue. Because Carnival is responsible for most of the use of Terminals 2, 19, 21 and 26, those four terminals will be upgraded with additional loading bridges, separate and larger baggage halls, revamped ground transportation and Florida-inspired artwork to let cruise passengers know they have arrived in Florida when they get to the terminal. Port Director Steve Cernak said because cruise ships are larger, homeports must "reconfigure and modernize its cruise terminals to accommodate arriving and debarking passengers simultaneously to keep ships on schedule." Upgrades also will include new or upgraded escalators, elevators and air conditioning, additional seating, updated restrooms and energy-efficient technology.

 

Seattle seeks evaluation of impact of public-private partnerships

Seattle's Office of Economic Development is seeking an evaluation of the impacts of public sector investments and public-private partnerships in South Lake Union neighborhood. The study should include information regarding the value of a P3 as it relates to how public investment supports private investment and vice versa and how public policies encourage private investment, including commercial and residential development and employment. Officials also are seeking information regarding the economic activity of South Lake Union in recent years and provide guidelines on how to evaluate the future. The evaluation must be completed by May 15.

 

Some contracting opportunities from across the nation: 

New Mexico

• The U.S. Army, WSMR, N.M., is requesting bids for Industry Day for Test Engineering and Analysis Systems Support Services.
• New Mexico State University is requesting bids for scientific equipment for NMSU NMDA.

Nevada

• The State of Nevada has issued a Request for Proposals for a Consultant(s) to assist in the study of a new method of funding for public schools in Nevada.
• University of Nevada, Reno, is seeking bids for furnishing all labor, materials and equipment and performing all work necessary and incidental to remodeling the campus courtyard plaza.

South Dakota

• The State of South Dakota is seeking bids for portable radios.
• Northern State University is seeking bids on printing services.

Pennsylvania

• Bloomsburg University is seeking vendors that can provide services for its One Card Banking RFP.
• The Historical and Museum Commission is seeking a vendor to furnish all labor and materials, tools and equipment and the performance of all operations and services necessary to replace the wood shingle roof on the Keith House in Montgomery County.

New Jersey

• The State of New Jersey is seeking bids for small business contractors to provide non-tax debt collection service.
• The State of New Jersey is seeking bid proposals from qualified contractors for the purchase and installation of new radio communication systems, as well as additions to, upgrades of, and maintenance and support of existing radio communication equipment & systems.

 
Kathryn Shen (top left), a veteran attorney with labor relations experience at Kaiser Permanente, Alcoa and Goodrich Aerospace, has been chosen as the new head of the Palo Alto Human Resources Department, replacing Russ Carlsen, who retired at the end of last year. Marcilynn Burke (top center), a tenured Associate Professor of Law at the University of Houston Law Center, has been nominated by President Barack Obama to be the Department of the Interior's Assistant Secretary for Land and Minerals Management and her nomination was recently considered by the Senate Energy and Natural Resources Committee. Michael J. Hogan (top right), president of the University of Illinois for less than two years, has resigned, but will stay on through the transition period that ends July 1, when he will stay on as a tenured faculty member. A five-member committee has recommended Kieran Ryan, an alternate municipal judge since September 1998 and a practicing attorney in Las Cruces since January 1994, has been recommended as a second municipal judge in Las Cruces. Jerome Puyau, current supervisor of maintenance at the Vermilion Parish School District in Louisiana, has been chosen as the district's next superintendent, and will train under current Superintendent Randy Schexnayder until Schexnayder's contract expires in June 2013. Andy McCuistion, city manager in Canton, Texas, has been chosen as the next city manager for the city of Breckenridge, succeeding Brad Newton, who was terminated after six months. Dr. Beatriz Espinoza (middle right), former vice chancellor for Educational Planning and Services at Yuba Community College in Marysville, California, has been chosen the next president of Coastal Bend College in Beeville, Texas. Jeff Schatz (middle center) Davies High School principal and a graduate of Fargo (North Dakota) Public Schools, has been chosen as the district's new superintendent, replacing the retiring Rick Buresh. Susan Y. Price (middle left), vice chancellor for instructional and student services at the Alabama Community College system, has been chosen as interim chancellor, replacing former Chancellor Freida H. Hill. Paul Navazio, assistant city manager for the city of Davis, California, since 2008 has been selected at the new city manager for the city of Woodland, California, replacing Mark Deven, who resigned last September. Eric Christensen, a 20-year veteran of the Contra Costa County (California) Sheriff's Office, where he is currently a lieutenant, has been named chief of police of the Lafayette, California, police department, replacing retiring chief Mike Hubbard. Lantana, Florida, Town Manager Michael Bornstein, who has served in that capacity for the last 12 years, was recently chosen as the new city manager in Lake Worth. Susan C. Aldridge (bottom left), who was put on indefinite leave as president of the University of Maryland University College a month ago after serving for six years, has announced that she will resign on March 31. President Barack Obama is nominating Dartmouth College President Jim Yong Kim (bottom center), a physician who is a prominent figure in the global health world, to head the World Bank, after Bank President Robert Zoellick announced his resignation in February. The East Baton Rouge (Louisiana) Parish School Board has picked Bernard Taylor (bottom right), superintendent of the Grand Rapids, Michigan, schools since 2006, to take over Louisiana's second-largest school district. Paso Robles, California, Police Chief Lisa Solomon, has resigned her post, with Tim Burton named acting chief. Michael Selden, city manager of the city of Bangor, Michigan since 2007, has been hired as city manager for Wayland, a town in Allegan County. Tim Dietman, currently a firefighter in Sturgeon Bay, Wisconsin, who also heads the local firefighters union, has been selected as the new assistant fire chief for the department. Two new assistants to the city administrator in Woodbury, Minnesota - Mary Van Milligen and Tyler Burkart - will fill the vacancies left by former assistant to the city administrator Matt Stemwedel, who took a job in another city, and retiring public works superintendent Dick Riemenschneider.