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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.

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 $175M and 13 years.

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

Designated Pilot

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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:  $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:  $72M / Completion by 2024
  • Additional Authorities:  None identified

Under Development and Validation

There are currently no projects under development and validation at this time, and the team will be seeking additional proposals in 2020.

Projects No Longer Under Consideration:

  • Sabine Pass to Galveston Bay
  • Soo Locks is no longer under consideration.  The submission has been withdrawn and is no longer considered for this program.

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.

A - Split delivery projects will typically have one portion of the project that is the responsibility of the non-Federal sponsor and one that is the responsibility of the Corps. The Corps will work with the non-federal sponsors to ensure that any connection points are fully coordinated. It is not expected that the Corps will have a contractual role in contracts issued by the non-Federal sponsors.  These arrangements between the Corps and non-federal sponsor are generally codified in the form of a Project Partnership Agreement (PPA), Memorandum of Understanding (MOU), or a similar formal agreement. 

A - Generally no, the non-federal partner will typically be a state or local government, a tribal national and, in some cases Non-governmental Organization (NGO). The private sector developer is generally selected via a competitive procurement process and will work under the authority of the non-federal sponsor.  

A - P3 term limits are dependent on the local enabling legislation. As most P3 contracts will be procured at the state or local level, the maximum allowable term will be dependent on the jurisdiction in which the private partner is procured.

A - Yes.

A - No, in many cases the projects are entirely owned, operated, and maintained by local governments.

A - The pilot program includes authorized water resources development projects for coastal harbor improvement, channel improvement, inland navigation, flood damage reduction, aquatic ecosystem restoration, and hurricane and storm damage reduction. With these authorized projects, there are a wide range of project elements, including bridges. The Corps has over 950 bridges that are associated with existing projects and could be considered under this program.

A - If the project is authorized for Corps assistance, or is implemented in conjunction with an authorized project, such as ecosystem restoration, then a water conservation project may be eligible for the P3 pilot program.

A - The Corps will evaluate and determine whether the project is a viable candidate for the P3 program.  Once it has passed this initial screening phase, the Corps will identify the project as a pilot.  At this time, is not anticipated that individual project candidates will be subject to competition with other project candidates. 

A - Yes, as long as the project is authorized to receive Corps assistance. 

A - At this time, federal budgetary scorekeeping rules, which are implemented primarily through Office of Management and Budget (OMB) Circular No. A-11,  mandate that in the case of availability payments, the entire federal obligation relating to a project be “scored” upfront in a single year at the time the contract is executed. This means that the totality of all future payments to the private sector must be fully appropriated at the time of contract execution, which for all practical purposes, renders these arrangements impractical.

A - The Corps will maintain all government-to-government responsibilities as it would for all projects. Tribal nations are eligible to partner with the Corps on authorized projects and those projects would be eligible for consideration under the P3 program.

Stakeholder Webinars

On April 29, 2020, USACE hosted a P3 webinar to discuss the nomination process for conceptual P3 pilot projects. Webinar slides are here

Previously, USACE hosted stakeholder webinars in February 2019 to discuss the request for information related to conceptual P3 pilot projects (the slides for these webinars can be found here), and December 2018 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.