Large infrastructure projects cost millions - sometimes billions. Because public funding is simply not available and because the country's water needs get more critical each day, opportunities abound for private sector investors.

The American Water Works Association predicts that the United States will need to spend $1 trillion over the next 25 years to modernize and repair the country's water and wastewater infrastructure.

Kathleen Sebelius

States will get a 30-day reprieve from Health and Human Services (HHS) Secretary Kathleen Sebelius on the deadline for filing their health insurance exchange plans. The exchanges, which will sell health insurance plans and offer federal tax subsidies as prescribed under the Affordable Care Act (ACA), are supposed to open for enrollment on Oct. 1, 2013. More than 20 million people are expected to use them.

Although Friday remains the deadline for states planning for a state-run exchange to submit their letters of intent, their complete Blueprint for Approval of State-based and State Partnership Exchanges will not be due until Friday, Dec. 14. Sebelius said HHS still is looking at a Jan. 1, 2013, date for the agency to grant either full or conditional approval of those plans.

In a letter to the states, Sebelius noted that the agency has heard from many state officials who said that being allowed a little more time before the deadline would allow for "a more comprehensive, complete" Blueprint application.

"Funding is now available to you no matter where you are in the process of establishing an exchange and no matter whether you plan to run your own e, partner with another state or work with the federal government," said the HHS Secretary. She pointed out that the states have until the end of 2014 to apply for these federal funds and can use the funds for both building their exchanges or for ancillary start-up costs if the state's exchange is not yet self-sustaining. The next application deadline for establishment grants is Friday.

States that plan to create a partnership exchange with the federal government will have until Feb. 15, 2013, to submit their blueprints. Those that do not will be a participant in a federal-run exchange. However, they will also have the opportunity to transition to either a state or a partnership exchange later. Consumers in all 50 states and the District of Columbia will have access to insurance through these new exchanges beginning Jan. 1, 2014. 

In response to a suggestion by one of our readers, the Government Contracting Pipeline this week begins a pilot program we're calling "RFP Central." Any public sector jurisdiction, from local to state government to public and higher education, as well as nonprofits and other quasi-governmental entities will be allowed to place their RFPs free on our "RFP Central" Web page. Each week, we will use this space to provide a link to the RFPs (and RFIs and RFQs) submitted. The only stipulation is that the RFP posting must be sent in one of two formats - as an original pdf or as a link to the posting of the RFP as it is hosted on your Web site. No other formats will be accepted. We'll try the program - a beta, if you will - to see if we can gauge reader interest in the proposal. Please send your RFP in one of the two formats mentioned previously to editor@spartnerships.com. See an example of how the RFPs page will work. 

Colleges and universities, senior citizens and local libraries will benefit from bond issues approved last week by New Mexico voters. One bond issue allocates $119.4 million to state college and universities to help them renovate aging facilities. One state bond issue will fund higher education institutions in more than 20 counties. Two other bond issues that were successful will mean $10.3 million for senior citizen centers and $9.8 million for libraries. Of the higher education funding, the lion's share - $24.5 million - is headed to the University of New Mexico (UNM) for renovations to its science labs and to complete renovations to its chemistry and biology buildings. UNM President Bob Frank said the renovations will provide "facilities that are critical for (Science, Technology, Engineering and Mathematics) education and it'll allow them state-of-the-art facilities." Officials are particularly pleased with passage of the bond issues after the last bond issue floated that would allocate funding for capital projects failed. Unlike that bond issue, the one that passed last week does not raise taxes.

Kansas school district planning school addition for shelter

A middle school addition in the Hays (Kansas) school district will also mean there will be a storm shelter available. Construction on the eight classrooms that will be added to the Hays Middle School should begin in April. The school district will soon submit its plans to the Federal Emergency Management Agency (FEMA), which is providing grant funding for the addition that will serve as a shelter. The addition, which is expected to cost about $2.7 million, will be built to FEMA specifications. The district will be responsible for only about $1.4 million of the costs.

New Jersey voters approve $750 million bonding for colleges, universities

In spite of a major hurricane, New Jersey voters went to the polls to cast votes to approve $750 million in borrowing for state colleges and universities. It marks the first time in nearly 25 years that the state has borrowed money for higher education construction projects. The funds will be used to build laboratories and classrooms. Public research universities, including Rutgers, will get $300 million of the funding. Other public four-year colleges will share $247.5 million. County colleges will get $150 million and private colleges $52.5 million. The funding was criticized by some after Hurricane Sandy caused billions of dollars in damages along the East Coast. However, the majority of voters saw an investment in higher education as a way to ensure the future prosperity of the region. 

 

Iowa school district plan would build new facility for three schools

Paul Gausman

A $16.35 million plan to consolidate three grade schools into one building is under consideration by the Sioux City (Iowa) school board. Superintendent Paul Gausman has suggested consolidating grades one through five from three complete schools and part of another at the site of the former middle school. A fourth elementary school would be left standing. One of the three schools whose students would be among those in the consolidation would then be used for pre-K and kindergarten students. That school would also be renovated. The new school would facilitate nearly 650 students. Another $1.15 million would be used to install energy-efficient windows and air conditioning at one of the older buildings. The plan, say some, would take some students out of one overcrowded school but avoid the "megaschool" that many parents oppose, Gausman said.

 

Massachusetts district planning to build new model high school

A $356 million, 20-year bond was approved recently by the Marshfield (Massachusetts) Board of Selectmen to pay for a new model high school for the town. Some of the funds will also be used for other town projects. Officials see now as the time to move forward, as interest rates are extremely low. The low interest rate is expected to save taxpayers approximately $7 million over the 20-year life of the bond. Officials had anticipated the rate would be approximately 4.85 percent if they had waited for two years. The current rate came in at 2.43 percent.

 

 

Tom Corbett

The Pennsylvania Lottery is considering expanding its games to include keno and online games. Gov. Tom Corbett said expanding the games could produce more revenue from the system whose $3.5 million in revenue funds programs for the elderly. The state is currently in talks with companies about privatizing the lottery management and Corbett admitted expansion was one idea being discussed. There is disagreement as to whether Corbett can authorize that action without the approval of the state legislature. While the Corbett administration is currently meeting with companies interested in managing the lottery, Corbett has not released the names of those companies. Last year, the lottery earned a little over $1 billion for state programs. While some question why privatize the lottery when state employees currently in charge of its operation are producing increased sales and could also manage any expansion of gaming, Corbett said the state would only turn to privatization if more money could be guaranteed to the state as a result. "If we can ensure increased funding and protect our seniors who are the recipients of the lottery, then we have our obligation to take a look at privatizing," Corbett said. He said while the private partner would earn an incentive fee, the state would keep its rights to conduct, control, inspect and audit the lottery. Other expansion options could include online ticket sales or addition of more lottery retailers. Pennsylvania would require the winning bidder to set aside $150 million should the bidder fall short of its profit promise.

Arkansas voters approve sales tax to fund road improvements

After a voter-approved sales tax, motorists in Arkansas will soon see construction start on road improvements throughout the state. One of the major projects will be construction on Interstate 540. The remainder of the $1.3 billion approved by voters will be for other projects. What the voters approved was a half-cent sales tax that will not begin being collected until July of next year. The tax would expire in 10 years. Once the funds are starting to be collected, the state's highway department will sell bonds, seek bids and sign contracts with private sector contractors beginning in 2013. Among the projects on tap in addition to the widening of I-540 to six lanes from Fayetteville to Bentonville are two lanes for the Bella Vista Bypass and the first phase of the 412 bypass.

San Francisco vote to result in $195 million for parks, open spaces

Phil Ginsburg

Facing having to have two-thirds approval, voters in San Francisco have approved a $195 million bond issue that will provide the city with funding for improvements in its parks. A total of 72 percent of those who voted cast a vote for the bond issue. Passage of the measure now will lead to work that will start next March. Phil Ginsburg, chief of the city's Recreation and Park Department, said the bond funds are absolutely essential to both improve and repair the city's parks and open spaces. And there was certainly opposition by some to the bond proposal. "It's certainly comforting to note that San Franciscans are clearly more interested in building playgrounds than playing politics with them," Ginsburg said. "It feels good that residents are aware of the importance of our park system and were able to rise above the noise to invest in our families and in future generations." The funds will be split - $99 million for open spaces, $40.5 million for citywide programs, $34.5 million for the waterfront and $21 million for parks. A similar proposal also passed in 2008, when voters approved $185 million in bonding authority.

 

Bids to be sought for paving of access road to Grand Canyon West

Bids are being sought this month for the paving of the Diamond Bar Road in Arizona, the primary access road to Grand Canyon West on the Hualapai Native American Reservation. The road is owned by the Hualapai Tribe and is not part of the Grand Canyon National Park. The road has been designed to meet the guidelines of the Bureau of Indian Affairs and Mohave County. Two years ago, a third of the 14 miles of the road was paved. The current bid will be for the final 9.5 miles of paving. Officials say the road will significantly cut down on travel time for tourists seeking to travel to Grand Canyon West. The project started more than a dozen years ago, but environmental considerations, dealing with multiple government entities and securing funding stalled the project. 

 

• SDV Construction was awarded a $647,389 contract by the New Mexico Spaceport Authority to oversee Phase 2 construction at the spaceport in southeastern Sierra County. The company will be tasked with overseeing construction of the visitor experience facilities, runway extension, the entrance facility and associated utilities extension. Re-aligning internal roads is another activity.
• MCM Construction, Inc. was awarded a $55.7 million contract by the Los Angeles Board of Harbor Commissioners for a grade separation project that involves building an elevated 4,100-foot roadway that links Harry Bridges Boulevard, Pier A Street and Fries Avenue to TraPac's new entrance and separates truck from rail operations for safer and more efficient flow of traffic.
• Science Applications International Corporation has been awarded a $13 million contract by the U.S. Navy to provide operational medicine research modeling services including support services for research modeling such as casualty projection in support of operational medicine.
• iSYS has been awarded the second option period contract worth $11.6 million to provide mobile Telecom Expense Management Services (TEMS) to the Transportation Security Administration.
• AMEC Environment and Infrastructure Inc. was awarded a $488,969, 12-month contract by the New Mexico Spaceport Authority to do quality testing, including for the runway extension.
• Bray Architects was awarded a contract worth about $1.2 million by the city of Oak Creek, Wisconsin, for architectural and other related services for construction of the city's new library, city hall and fire station.
• Kratos Defense & Security Solutions, Inc. has been awarded a $1.5 million contract by the U.S. Naval Education and Training Command to provide training development and implementation for the U.S. Naval Chaplaincy School and Center.
• James Construction Corp. was awarded a $241.3 million contract by the Texas Department of Transportation to widen Interstate 35 from four to eight lanes, six miles between north and south Loop 363 in Temple.
• S. J. Amoroso Construction Co., Inc. was awarded a $71.5 million project by the Los Angeles Board of Harbor Commissioners for new buildings and state-of-the-art truck entrance and exit gates at TraPac's rear Berths 136-139.
• Northrop Grumman Technical Services won a contract worth up to $2.2 million from the Air Force for maintenance, repair and rebuilding of equipment.

Virginia has high hopes for HOT lanes on the Beltway

(To view these stories, click here and look under "National News.")

Jim Schowalter

When Minnesota officials present their proposal for a health insurance exchange mandated by federal law, the state will include a public-private partnership to oversee the online health insurance marketplace. Jim Schowalter, commissioner of Minnesota Management and Budget, said the blueprint is designed to show the federal government that the state is working toward being in position to have its exchange operational on schedule and on time. Documents showing how the exchange will work are already being placed online. They show how the state will certify plans to participate in the exchange, outline information technology infrastructure for the exchange and job descriptions for those involved in the proposal. The documents, however, do not yet show who will serve on the governing body of the public-private partnership. The governor is pushing for creating a public-private partnership and a board that includes public and private sector members. That should allow the state to take advantage of the strengths of the private sector's expertise while allowing the state to use the exchange for public health care initiatives.

El Paso stadium could become water park as result of P3

A private company has approached the city of El Paso with a proposal to build a water adventure park at the current site of the Cohen Stadium. A water park could work on the same property as the stadium because there is enough land for both there, said City Manager Joyce Wilson. Wilson said the private company suggested formation of a public-private partnership for the project with the city having a "significant" financial stake in the project. The company, which asked that its name not be released, is a national firm with water parks throughout Texas. A team of El Pasoans will visit some of its other parks and evaluate partnerships that led to those facilities. Another option for the city is asking El Paso Community College to transform the stadium into an amateur baseball complex for schools and college teams to use. A baseball complex and water park could also fit on the site. The tenant of the facility, the Tigua tribe, already owes the city $70,000 in stadium utility costs, but improvements they made to the stadium could cut that figure down. The city is more interested in a cooperative transition out of the lease.

Solar installation result of public-private partnership in city in California

Pictured is one of the solar installations that are part of the public-private partnership.

The city of Gonzales, California, and its private sector partner recently announced completion of a public-private partnership that is expected to reduce the city's carbon footprint while helping reach its conservation goals. Additionally, the project is expected to reduce the city's energy and maintenance costs. Included in the project are infrastructure improvements in the city that include streetlight upgrades, two solar installations that will produce 462kW of power and changes to the city's water pumping station aimed at conserving both water and electricity while reducing costs. Gonzales officials say they hope the project will be a model for other communities. City Manager Rene Mendez said that over the lifetime of the project, "We expect to generate $4.7 million in savings, allowing the city to maintain and enhance services to its more than 8,000 residents." In addition to an energy company geared toward saving government entities money and providing a sustainability program and that developed, designed and built the project, the partnership also included a local winery where one of the solar installations is located and a financial services business that arranged financing.