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

Public private partnerships (P3) 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 P3 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 public private partnership (P3) pilot program with the goal of demonstrating the viability of new delivery methods that significantly reduce the cost and time 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 10 additional P3 pilot projects and provide guidance on the screening and selection criteria along with 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.

2019 Request for Information

The February 1, 2019, Federal Register request for information on conceptual Public-Private Partnership (P3) delivery of specific USACE Civil Works projects closed on April 2.  USACE received eight project-specific proposals and has identified four projects for further development and validation. The development and validation will explore how P3 delivery compares to traditional project delivery and identify any obstacles to implementation as a P3.  This development and validation phase will take 6-24 month depending on specific project details.  The four identified projects are:

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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
  • 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:  $922.4M
  • Non-Federal Sponsor(s):  Michigan Department of Transportation
  • P3 Elements:  Design, Build, Finance and possibly Operate/Maintain
  • Contracting:  Non-Federal
  • Non-federal Revenue Source(s):  State appropriations; User fees
  • Cost / Time Savings:  Not specifically quantified
  • Additional Authorities:  Authority to collect and retain fees; authority for non-Federal operation and maintenance of a Federal lock
  • 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.

USACE may identify one additional project for further development and validation at a future date.

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.