Public-Private Partnership Consulting Services for LA Metro

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Public-Private Partnership Consulting Services for LA Metro

When the Los Angeles County Metropolitan Transportation Authority established a Public-Private Partnership Program to help deliver high-priority transit and highway transportation projects, the initial evaluation comprised 81 prospective projects.

HDR (formerly InfraConsult) helped Metro appraise project readiness, risk factors that could affect project delivery and project delivery approach (whether delivery could be design-build, with or without private financial participation). Nine projects advanced for further strategic assessment so we could better understand the specific characteristics of each, including value for money, life cycle cost factors and project attributes most promising for attracting private investment and/or risk sharing. We assessed and compared the risks of traditional design-bid-build project delivery against alternative project delivery methods, and used the findings to identify projects or parts of projects that would progress to business case models. The resulting business plans allowed Metro to determine whether and how to proceed with P3 procurement for each project.

One project selected for early P3 delivery was the Accelerated Regional Transportation Improvements Program. The Accelerated Regional Transportation Improvements Program consisted of planned highway projects in Los Angeles County that were close to being cleared environmentally but programmed for construction in the future (2020 to 2030). The projects were packaged into a single program to be awarded to one concessionaire under a design-build-finance-operate-maintain P3 agreement, with availability payments. Bundling several similar projects as one DBFOM package allowed Metro to fund the projects with availability payments stretched out over a 35-year period while delivering a 40-year program of highway improvements in about 15 years. 

We assisted Metro in outreach to the P3 industry, preparation of requests for qualifications and evaluation of statements of qualifications.  On a parallel track, we prepared a draft P3 agreement and the technical provisions that were to be part of a request for proposals. Metro shortlisted firms for the ARTI project based on qualifications and shortly thereafter underwent a change in management and reorganization of the P3 department and approach.  Following that, the ongoing ARTI procurement was canceled.  

Under the new organization, Metro continues to pursue projects using P3 delivery methods and the lessons learned from the ARTI procurement. HDR continues to be involved but now working on the side of the proposers rather than the owner.

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Los Angeles County Metropolitan Transportation Authority

Los Angeles County, CA
United States