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Public-Private Education Facilities and Infrastructure Act 2002 (PPEA)

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Title: Public-Private Education Facilities and Infrastructure Act 2002 (PPEA)


1
Public-Private Education Facilities and
Infrastructure Act 2002 (PPEA)
  • Joe Damico

2
Presentation Outline Public-Private Education
Facilities and Infrastructure Act (2002) PPEA
  • What is it?
  • PPEA Code Requirements
  • Guidelines
  • Qualifying Project
  • Initiate a Qualifying Project
  • Evaluating a Qualifying Project
  • Executing the Deal
  • Impact of Legislative Amendments to PPEA
    Processes
  • Should a PPEA Procurement Process be Initiated?

3
PPEA What is it?
  • General Assembly (GA) passed legislation during
    2002 GA Session
  • Need for timely acquisition process not satisfied
    by existing procurement methods
  • Inadequate resources to develop new facilities
    and infrastructure
  • Public-private partnerships can improve delivery
    schedule and lower costs
  • Encourage investment in the Commonwealth by
    private entities, facilitate bond financing and
    have the greatest possible flexibility in
    contracting
  • Simply stated just another procurement process
  • Code of Virginia 56-575.1 - 56-575.18
  • http//leg1.state.va.us/cgi-bin/legp504.exe?000co
    d56-575.1

4
PPEA Code Requirements Guidelines
  • Public entities shall adopt Guidelines
    Require
  • Competition, public notice, opportunity to meet
    with public entity
  • Evaluation criteria, timelines for selecting
    proposals and negotiating an agreement
  • Procedures for accelerated selection involving
    projects deemed high priority
  • Final review and analysis procedures
  • Procedures for review by public body having
    appropriation authority
  • Methodology for posting proposal information to
    encourage competition

5
PPEA Code Requirements Guidelines
  • PPEA working group
  • Maintain Model Guidelines for state public
    bodies
  • http//dgs.virginia.gov/PPEA/tabid/62/Default.asp
    x

6
PPEA Code Requirements Guidelines
  • Adoption of Model Guidelines by other public
    bodies
  • NOT required to use the PPEA working group model
    procedures, but may
  • Other public bodies must have procedures
  • Procurement law, policies and procedures that
    DO NOT apply
  • Virginia Public Procurement Act
  • DGS/DPS Agency Procurement and Surplus
    Property Manual
  • DGS/DEB Construction and Professional Services
    Manual

7
PPEA Code Requirements Qualifying Project
  • What is considered a PPEA Qualifying Project
  • Any education, recreational, or solid waste
    management facility
  • Any building or facility that meets a public
    purpose
  • Any building improvements necessary to enhance
    public safety and security
  • Any improvements necessary or desirable to
    unimproved real estate
  • Utility, telecommunications and other
    communication infrastructure
  • Technology infrastructure, services, and
    applications
  • A project designed to increase productivity or
    efficiency using technology or other means

8
PPEA Code RequirementsInitiate a Qualifying
Project
  • Qualifying projects may be Initiated
  • From the submission by private entities of an
    unsolicited proposal
  • In response to a public entity request for
    proposals or invitation for bids
  • The public entity may proceed under the PPEA
    process provided it determines that a qualifying
    project serves a public purpose
  • Estimated cost of the project is reasonable
  • Private entitys plan will result in the timely
    development and operation
  • There is a public need for or benefit derived
    from the qualifying project

9
PPEA Code Requirements Evaluating a Qualifying
Project
  • Unsolicited or Solicited (most cases a two phase
    process)
  • Conceptual Proposals (phase I)
  • Detailed Proposals (phase II)

10
PPEA Code Requirements Evaluating a Qualifying
Project
  • Conceptual proposals
  • Requirements for the content of conceptual
    proposals are provided in 56-575.4
  • Unsolicited proposals may be rejected at any time
  • Unsolicited proposals must be publicly posted
    within 10 working days of acceptance
  • A private entity must provide their proposal to
    each affected local jurisdiction
  • Conceptual proposals are evaluated, then
    short-listed
  • Private entities that have been short-listed will
    be asked to submit detailed proposals

11
PPEA Code RequirementsEvaluating a Qualifying
Project
  • Detailed Proposals
  • Detailed proposal submission requirements
  • Determine evaluation criteria for detailed
    proposal
  • Private entities may be called-in to present
    their detailed proposal
  • Evaluation committee determines negotiation
    points
  • Negotiations conducted with each private entity
    submitting a detailed proposal
  • May move forward with an interim or
    comprehensive agreement

12
PPEA Code RequirementsEvaluating a Qualifying
Project
  • Public-Private Partnership Advisory Commission
    Process
  • http//leg1.state.va.us/cgi-bin/legp504.exe?000co
    d30-278
  • Comprised of 11 members 8 legislative members
    3 executive branch members
  • Public entity responsibilities (state agencies
    only)
  • Provide detailed proposals to advisory commission
    for review
  • Negotiate agreement after commission decision to
    accept or decline review
  • Send agreement to the commission 30 days prior to
    execution
  • Commissions responsibilities
  • 10 days to decide to accept or decline proposals
    for review
  • If accepted, 45 days to review and provide
    findings/recommendations

13
PPEA Code Requirements Executing the Deal
Interim/Comprehensive Agreements
  • Negotiations can result in an interim or
    comprehensive agreement
  • Interim Agreement
  • Smaller in scope than a comprehensive agreement
  • May be entered into by public and private entity
  • Enable the private entity to commence certain
    work and be compensated
  • Establish the process and timing for negotiations
    of a comprehensive agreement
  • Contain other provisions related to the project
    that may deem appropriate
  • Does not require that the parties enter into a
    comprehensive agreement
  • Comprehensive Agreement
  • Includes scope of work, timeline, cost, terms and
    conditions, and reference work completed under an
    interim agreement

14
PPEA Code Requirements Executing the Deal
Interim/Comprehensive Agreements
  • Both Agreements Require
  • Approval by public entitys appropriating
    authority
  • Approval by Public-Private Partnership Advisory
    Commission
  • Any changes agreed upon must be by written
    amendment
  • Public hearing no later than 30 days prior to
    entering into an agreement
  • Availability of procurement records to public
    once agreement is executed
  • Procurement documents to be filed with the
    Auditor of Public Accounts

15
Impact of Legislative Amendments to PPEA
Processes
  • There have been 39 amendments to the PPEA since
    its introduction
  • A PPEA procurement initiative has become more
    cumbersome
  • GA Session 05 introduction of interim agreement
    implemented in FY06
  • GA Session 07 introduction of review Commission
    implementation in FY08
  • GA Session 09 introduction of public hearing
    requirement - implementation in FY10
  • Approximately 115 days added to the PPEA process
  • PPEA Commission 10 days for decision to accept
    or reject review of proposals
  • PPEA Commission 45 days allowed for review
  • PPEA Commission submit agreement 30 days prior
    to execution
  • Public Hearing approximately 30 days
  • Prepare final procurement documents for Auditor
    of Public Accounts time ??

16
Impact of Legislative Amendments to PPEA Processes
interim agreement gt
review commission gt
public hearing gt
17
Should You Consider Initiating a PPEA Process
  • Depends
  • Do not think so, if
  • Procurement flexibility is necessary
  • Completing the procurement in a timely manner is
    important
  • Can accomplish same scope of work using
    conventional procurement process
  • Funding is already appropriated/budgeted
  • May want to consider, if
  • There is a need to keep government
    leaders/decision makers informed
  • Funding/financing is an issue
  • Bring in your agencys legal representative early
    and keep them engaged

18
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