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U.S. Army Corps of Engineers (USACE) Civil Works Public Private Partnerships Pilot Program

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.

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.

2020 Request for Information -- Coming Soon!

In early 2020, USACE CW will post a request for information (RFI) in the Federal Register inviting input on conceptual P3 delivery of specific USACE Civil Works projects.  This website will be updated with the link to this notice once it has been posted.  The RFI will be open for 60 days.

P3 Pilot Program Status

USACE is currently working on four P3 pilot projects.  More information about the projects is listed below. The development and validation phase of these projects will explore how P3 delivery compares to traditional project delivery and will identify any obstacles to implementation as a P3.  This development and validation phase will take 6-24 months depending on specific project details.

Under Construction

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  • Investment Size:  $2.84B
  • Non-Federal Sponsor(s):  Metro Flood Diversion Authority; City of Fargo, North Dakota; and City of Moorhead, Minnesota
  • P3 Elements:  Design, Build, Finance, Operate and Maintain
  • Contracting:  Non-Federal
  • Non-Federal Revenue Source(s):  State Appropriations, Sales Taxes, and Assessment District
  • Cost / Time Savings:  $100M Federal / Completion by 2027
  • Additional Authorities:  None identified
  • Website: https://www.fmdiversion.com/
  • Additional Information

Pending Implementation

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  • Investment Size:  $288M
  • Non-Federal Sponsor(s):  Brownsville Navigation District, acting as the financial representative for the Port of Brownsville
  • P3 Elements:  Design, Build, Finance, and possible Operate/Maintain
  • Contracting:  Non-Federal
  • Non-federal Revenue Source(s):  Private entities
  • Cost / Time Savings:  $150M / Completion by 2024
  • Additional Authorities:  None identified

Under Development and Validation

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  • Investment Size: $1.4B
  • Non-Federal Sponsor(s): City of Los Angeles
  • P3 Elements: Design, Build, Finance, Operate/Maintain
  • Contracting: Non-Federal; one contract for each of the three elements
  • Non-federal Revenue Source(s): State, local and foundation grants; usage revenue; tax assessments; general funds
  • Cost / Time Savings: 33% Federal cost savings / 10-20 years earlier for each element
  • Additional Authorities: None identified
  • Investment Size:  $3.9B
  • Non-Federal Sponsor(s):  Lead NFS is Texas General Land Office.  Special Purpose Vehicle and Trust: Velasco Drainage District, Jefferson County Drainage District 7, and Orange County
  • P3 Elements:  Design-Build and Traditional Design-Bid-Build
  • Contracting:  Federal
  • Non-federal Revenue Source(s):  Private entities
  • Cost / Time Savings:  USACE Galveston District estimates completion in 7 years vs. 11 years due to full Federal funding up-front. P3 would reduce risk of failure to pay non-Federal cost share.
  • Additional Authorities:  No additional Federal authorities required.  Action by the Texas legislature may be needed to establish the Special Purpose Vehicle and designated Trust Fund between private industry and the NFS.

Projects No Longer Under Consideration:

  • Soo Locks is no longer under consideration.  The submission has been withdrawn and is no longer considered for this program.

P3 Program Benefits

The USACE P3 pilot program has projected Federal savings of more than $160M and 13 years.

Frequently Asked Questions

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A - A list of authorized and unconstructed projects can be found here.  This list includes projects authorized by Congress that have not been completed, some are ongoing. Items in the "Purpose" column generally represent the following:  "E" - Environmental, "F" - Flood Risk Reduction and "N" - Navigation.  This list represents a snapshot in time, as of 3 May 2019, and is subject to change.

Stakeholder Webinars

The USACE Infrastructure Team hosted stakeholder webinars in February 2019 to discuss the request for information related to conceptual P3 pilot projects.  The slides for the webinars can be found here.  USACE previously held webinars in December to discuss the P3 pilot program.  The slides for these webinars can be found here.

Questions

 

Questions on the USACE Civil Works P3 pilot program relevant to the USACE may be submitted electronically to: CW.Infrastructure.Team@usace.army.mil.