Due to a critical decline in their transportation revenue stream, the Arizona Department of Transportation is incorporating innovative P3 project delivery into their program. Buying power from fixed-fuel fees, the increase in fleet miles per gallon and reduction in vehicle miles travelled have been detrimental to program funding for transportation agencies. ADOT selected HDR to serve as their Public-Private Partnership (P3) Adviser/Program Manager. In this role, we are helping develop its overall P3 program, integrate P3 projects into state-wide transportation plans and create an environment in Arizona that promotes quality P3 projects.

Our work includes advising ADOT on P3 guideline development, project feasibility analysis, policy development, outside agency coordination, industry outreach and education of elected officials, transportation agency officials and the public and the procurement and implementation of successful P3 programs.

Our first objective was to develop rules, policies, procedures and guidelines to establish a P3 structure that is tailored to their program requirements and provides guidance to potential P3 partners. ADOT’s customized P3 policies and guidelines are based on national best practices, including developing a transparent process for the evaluation and implementation of P3 projects; Integrating P3 projects into state-wide transportation plans while better leveraging Arizona's limited resources; and establishing financially viable P3 projects that will enhance mobility and improve safety.

Currently, ADOT’s Office of P3 Initiatives has several projects underway.

• A 22-mile greenfield freeway project just completed the environmental process, with ADOT announcing their decision to proceed as a P3 project. This includes a long-term maintenance component in the design-build contract. We led the Value for Money study and alternative delivery analysis on the project. This method is expected to save considerable time and money and will provide a relatively certain fixed price for the approximately $2 billion project, years earlier in the life of the funding stream.

• A 40-mile greenfield limited access roadway is being considered as a toll road and a potential P3 concession project. ADOT has developed a Design Concept Report, and is assisting OPI with a Traffic and Revenue Study to evaluate the financial feasibility of the project as a tolled facility.

• Statewide Safety Rest Area Operations, Maintenance, Sponsorship and Advertising Concession, which involves all 25 of the state’s Safety Rest Areas. The concessionaire is responsible for the operations and maintenance on all rest areas, under a contract with incentive/disincentive provisions for contract performance. Our procurement experience helped ADOT work through the procurement idiosyncrasies afforded by their newly gained P3 legislation, and this project is currently operating.

• Flagstaff District Office is an innovative project that involves a Pre-Development Agreement approach to a Public-Private Partnership between ADOT, the city of Flagstaff and a developer. The project will result in a new District Office/MVD office for ADOT, enhancement of Flagstaff’s roadway network and significant commercial development in the heart of Flagstaff.

• OPI has issued a Request for Information and is investigating the feasibility of a P3 contract for development of a concession to replace the lighting on the Regional Freeway System with energy efficient LED technology.

• OPI has issued a Request for Information and is investigating the feasibility of a P3 contract for development of a concession to upgrade, rehab, operate and maintain ADOT’s pumping infrastructure on the Regional Freeway System.