Public private partnerships (P3s) are a tool that can accelerate delivery by providing significant upfront funding, leveraging appropriations while optimizing local participation, and promoting risk sharing in project delivery. Utilizing P3s can streamline delivery, share risk, and provide significant life-cycle cost savings. The Assistant Secretary of the Army for Civil Works has directed USACE to establish a P3 pilot program with the goal of demonstrating the viability of new delivery methods that significantly reduce the cost and duration of project delivery.
P3 implementation can minimize impacts from delay or deferment of Civil Works Funding. A recent publication from the Institute for Water Resources found that: “Costs associated with extended project durations ranged from a few percent to as much as 40 percent of the total project placement cost. On a per-year or annualized basis, this cost increase ranged from 1 to 3.5 percent, with an average value of approximately 2.2 percent.”
Implementation of community based infrastructure using P3 delivery can minimize these funding impacts and help to reduce projects costs. In 5-years of traditional delivery a project could realize cost growth of 17.5% above inflation.
Visit the following link to read the Institute for Water Resources publication mentioned above: https://www.iwrlibrary.us/#/document/51ed9d76-47ad-47ef-faa4-08ab5417b2b2
The Director of Civil Works signed implementation guidance for the P3 pilot program in January 2019. USACE is to identify up to ten additional P3 pilot projects and provide guidance on the screening and selection criteria, as well as how the USACE Civil Works budget should be allocated to P3 projects. USACE P3 policy encourages innovation and can be an important delivery tool for USACE and project sponsors. USACE is pursuing a public private partnership (P3) pilot program to accelerate project delivery in a constrained fiscal environment. The P3 pilot program is part of the Revolutionize USACE Civil Works initiative to expedite delivery of our nation's infrastructure by synchronizing actions, developing new tools, and streamlining activities.
Nominate Projects Today!
USACE Civil Works is inviting input on conceptual P3 delivery of specific USACE Civil Works projects. Project nominations can be submitted at any time. Nominations will be accepted on USACE authorized or likely to be authorized projects. Additional information can be found in the Frequently Asked Questions and Additional Resources sections below.
On April 29, 2020, USACE hosted a P3 webinar to provide more information on how to submit a conceptual P3 project. The webinar slides can be accessed here.
If you are interested in submitting a potential P3 project use the P3 project template here.
P3 Pilot Program Status
USACE has three (3) identified pilot projects. More information about the projects is listed below. Each of these projects went through nomination, development and validation to explore how P3 delivery compared to traditional project delivery and to identify any obstacles to implementation the project as a P3. This nomination, development and validation of these projects took 6-24 months depending on specific project details.
P3 Program Benefits
The USACE P3 pilot program has projected Federal savings of more than $350M and 13 years.