Public Private Partnership Success Stories The Virginia Experience

Transcription

1 Public Private Partnership Success Stories The Virginia Experience Learn about Public Private Partnership (P3) Success Stories in Virginia and the key fundamentals to set your P3 up for success. Prepared for: NASFA November 30, :30pm EST

2 Presenter Justin Ballard Business Development S.B. Ballard Construction Company

3 S.B. Ballard Construction Company Founded in 1978 Construction Manager General Contractor Mid-Atlantic and Southeast footprint Design-Build Public Private Partnerships Preconstruction Services Virtual Design Construction Commercial Education K-12 Federal/State Healthcare Higher Education Industrial Mixed Use/Housing Sports & Entertainment Transportation Retail

4 P3 Experience Norfolk Public Schools - (5) New Elementary Schools Norfolk, Virginia

5 P3 Experience Union High School & Central High School Wise, Virginia

6 P3 Experience Richmond Justice Center Richmond, Virginia Location: Richmond, VA Size: 412,000 sqft Value: $121,000,000 Completion Date: Feb 2015 Delivery Method: PPEA Owner: City of Richmond Architect: HOK Project Features: Built adjacent to the existing jail which remained operational during construction. Approximately 412,000 SF of new space including six (6) floors and 1,032 beds. The project included air conditioning, state of the art security, deep foundations, extensive site work, and landscaping, as well as a precast structure and skin. The existing jail was demolished following completion of the new structure to allow for additional parking and landscaping.

7 The Rising Demand for P3s Deficits at all levels of government States often have requirement for a Balanced Budget and/or debt limits Infrastructure and service needs escalating Postponed maintenance Political decisions Population growth Cuts in services and government programs Improving public understanding - Learning from examples that have worked - Resulting in increasing legislative actions

8 What is a Public Private Partnership (P3)

9 PPEA Public-Private Education and Infrastructure Act

10 PPEA Guidelines

11 P3 Project Considerations P3 Projects are resource intensive and are costly to develop a structure, a fundamental business case and strong commitment are key elements of success Does enabling legislation exist A structure for decision making Is the project a high priority Is the project in an approved capital plan Are stakeholders supporting the project Is there an unwavering project champion Is there an underlying business (financially viable) case

12 Advantages of P3

13 Key Fundamentals to a successful P3 Create Institutional certainty Educate the public about P3 s Prioritize and screen projects Appoint senior Public Sector Champions Create a clear decision making hierarchy - Structure Be an effective counterparty with sufficient resources and experience advisors Adopt standardized procurement practices Clear accountability and transparency of the procurement process Public engagement

14 Key Fundamentals Public Sector Champion

15 Key Fundamentals Procurement Process

16 Key Fundamentals Procurement Process

17 Key Fundamentals Agreement Development Process

18 Interim Agreement A. Total project time (and thus costs) conserved - HAZMAT survey / abatement - Demolition of existing facilities - Traffic studies - Topographical and boundary survey - Geotechnical examinations - Environmental examinations - Underground utilities, historical resources, endangered species

19 Interim Agreement B. Political and public opinion risks managed - Developer to conduct public outreach - Contractual obligation to incorporate public input into the design 9

20 Interim Agreement C. Test drive of the public-private working relationship - The City s timeline for review, comment and approval - Refining the scope and budget for a collaborative process - Value engineering at early stage 10

21 Interim Agreement D. SWAM subcontractors required - Subcontracting fairs and other outreach to minority suppliers, contractors and service providers - Requirement to development a SWAM subcontracting plan 11

22 Interim Agreement E. Project costs and project schedule more definitively projected - Minimizing uncertainty or risk - Scope refined - Design requirements - Site conditions - Global GMP for bundled projects 12

23 Interim Agreement F. Design Process Improved - Agreement on design criteria and principles - Specify the required deliverables from the developer in 35% design - Reduce the risk of later disagreements over the scope of the work - Determine whether design criteria such as LEED certification or similar certifications are cost effective - More accurate cost estimate produces an agreed-upon guaranteed maximum price (GMP) - Reduce contingency 13

24 Interim Agreement G. Developer s Deliverables - Basis of design narrative - Major building systems and equipment checklist equipment checklist (to include major building operating systems only) - Phase I Environmental Report - HAZMAT surveys - Project costs estimate - Value engineering recommendations 14

25 Interim Agreement H. General Conditions / Negotiations - Clarifies pricing model - Governs preliminary work and Comprehensive Agreement 16

26 Interim Agreement I. Redesign Process? - Substantial change in Program - Change in design criteria or principles - Other scope changes 17

27 P3 Experience - What worked well City/Owner Perspective Having 1 Point of Contact Designer and Builder are one in the same Building Trust - Being able to have City Staff/School Staff/Designer/Builder all involved throughout the process - Open communication is key Community Involvement

28 P3 Experience - What worked well General Contractor Perspective Direct Purchase of equipment Able to ensure same equipment on all bundled schools Ease of maintenance for the schools (all the same equipment) HVAC Equipment Light Fixtures Electrical Equipment Generators Plumbing Fixtures Constructability Reviews Multiple perspectives helped achieve efficient/buildable designs Taking it beyond a design charrette. How do we build it? Is this the best way? Can we get the same look/same function in another way Give and Take from All Team Members Quarterly Update Meetings OAC Meetings every two weeks at one site may not resonate at the other sites Quarterly Updates kept all parties informed on what was going on Many changes were able to be accommodated thru open communication. Many issues became non-issues through the open communication The Matrix How to track lessons learned Communication is key

29 P3 Experience - What worked well Design Team Perspective

30 Evaluating P3 versus traditional project delivery

31 Questions? Justin Ballard Business Development S.B. Ballard Construction Company