Transcript
Page 1: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Rail-Volution Greg Benz

October 23, 2014

Page 2: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

The Purple Line Corridor is a 16-mile east-west corridor from Bethesda to New Carrollton

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Page 3: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

The Purple Line Project will serve six underserved major activity centers

Bethesda Silver Spring UMD College Park Takoma/Langley Park Riverdale Park New Carrollton

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Page 4: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

The Purple Line provides Intermodal Connectivity •  Links 4 branches of the Metro

–  Red Line at Bethesda –  Red Line at Silver spring –  Green Line at College Park –  Orange Line at New Carrollton

•  Connects to all three MARC lines –  Brunswick at Silver Spring –  Camden Line at College Park –  Penn Line at New Carrollton

•  Connects to Amtrak Northeast Corridor at New Carrollton

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Page 5: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Project Status •  NEPA

–  Signed Record of Decision

•  FTA New Starts –  Approved for Entry into

Engineering –  Recommended for FFGA

•  Medium-High rating •  $900M

•  P3 Solicitation –  Four shortlisted teams –  Final RFP issued –  Proposals/bids dues in January 2015

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Page 6: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Key Reasons for Using a P3 for Purple Line •  Operational factors

–  Natural stand-alone asset –  P3 approach will also increase the likelihood of consistently excellent, highly responsive

service •  Risk transfer efficiencies

–  P3 will integrate various project elements into a single agreement that clearly outlines the optimal allocation of project risk between the public and private partners

•  Whole life-cycle planning and cost optimization –  P3 will provide greater incentive to make investment decisions that are optimized over the

life of the asset. •  Schedule discipline

–  Strong incentives for the concessionaire to maintain schedule discipline during asset delivery •  Enhanced opportunities for innovation

–  P3 will provide the private sector with opportunities and incentives to propose enhancements to the asset design and delivery approach that could benefit long-term operating and maintenance performance

•  Potential financial value –  Due to the operational benefits, risk transfer efficiencies, life-cycle planning, scheduling

discipline, and innovation opportunities of the P3 approach, there is potential for long-term financial savings relative to a traditional project delivery approach

Page 7: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

MTA Is Retaining Primary Responsibility for Certain Elements

•  Public Information, Communications and Involvement

•  General Terms of Third Party Agreements

•  Right of Way Acquisition

•  Fare Policy, Farebox Revenue and Ridership Risks

•  Transit Oriented Development Activities Not Included in Project (or P3)

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Page 8: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

How Key Objectives Are Addressed in P3

•  Service Quality & Reliability •  Station Planning/Aesthetics •  Community Commitments •  3rd Party Agreements •  ROD Commitments

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Page 9: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Provide Service Quality & Reliability

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•  Defined Headways & Loading Standards •  Availability Payment Mechanism

– Deductions •  Missed trips •  Headway non-achievement •  Cleanliness •  Equipment availability

Vehicle Availability Non-Conformance Event Non-Conformance Factor

Un-sequenced Train – Peak (Vehicle Bunching) 0.80

Late Train – Off-Peak (More than 5 min) 0.80

Late Train – Off-Peak (More than 7.5 min) 1.10

Late Train – Off-Peak (More than 10 min) 1.30

Short Train 1.30

Early Departure – Off-Peak (15 seconds) 1.30

Incomplete Trip (Never reaches scheduled Terminal) 2.50

Missed Trip (Never departs scheduled Terminal) 2.50

Page 10: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Assure Station Site Planning/Aesthetics

•  Proscriptive Contract Drawings and Technical Provisions – Versus typical performance provisions for rest of

facilities, systems and equipment/vehicles

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Page 11: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Honor Commitments

•  Community Agreements •  3rd Party Agreements •  FEIS/ROD

Commitments Included in RFP as contract documents •  Concessionaire’s/owners’ responsibilities

defined •  Interfaces defined •  Construction phase incentive/penalty clauses

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Page 12: RV 2014: Public Private Partnerships: The P3 Experience by Gregory Benz

Summary

•  P3 is Not: – Free $$ – Public sector turning over project to private

interests •  P3 RFP/Contract Needs to Clearly Define

– Owners vs Concessionaire roles – Proscriptive vs performance aspects

•  Achieve objectives •  Achieve innovation and D/B & life cycle efficiency •  Honor commitments 12


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