The Commonwealth of Virginia’s Office of Transportation Public-Private Partnerships received the distinction of Best Central/Regional Government PPP Promoter, recognized for its work on some of the largest infrastructure projects currently taking place in the US, including the 95 Express Lanes project and the Midtown Tunnel.  Continuing their winning streak, Dusty Holcombe, Deputy Director of the Virginia Office of Transportation P3, was also honored for Best Individual Contribution. 

Also receiving recognition, Presidio Parkway was "Highly Commended" for Best Transport Project, essentially making it one of top three transport projects in world.  This $1.1 billion project was the first to be delivered under California’s P3 law, and only the third anywhere in the United States to be developed through an availability payment structure.

We would also like to recognize Ernst & Young for being named Best Financial Adviser and KPMG for being “Highly Commended” in the same category.  Congratulations also to Arup for being named Best Technical Adviser.

The Partnerships Awards recognize people and projects from around the world for innovation, inspiration and collaboration.  Entries are first reviewed by an 80-plus expert panel before going on to the 20 head judges. 

Congratulations to all the agencies and their private partners involved in these projects for this highly-deserved recognition.

"We welcome this decision and will continue to work with the Surface Transportation Board on the implementation of the nation's first high-speed rail program," said Jeff Morales, the Authority's chief executive. "We can now focus on starting major work on the project this summer and providing thousands of jobs in the Central Valley."

The Authority expects to award a $985 million contract shortly to a joint venture led by Tutor Perini to design and construct the first 29-mile section of the high-speed train system in the San Joaquin Valley, from Madera County to Fresno.

In authorizing construction of this initial Merced-to-Fresno segment of the larger high-speed train system, the STB exempted the Authority from the more detailed and lengthy application process that would otherwise govern federal licenses to construct rail lines.  The STB noted that the Authority's rail line will be a "valuable addition to the passenger rail transportation system in California," and adopted the extensive environmental analysis already completed by the Authority for this segment.

The STB, a federal economic regulatory agency, has jurisdiction over the construction of rail lines as part of the interstate rail network.  The STB determined that it had jurisdiction over the Authority's high-speed train system because the STB found that, despite being located entirely in the state of California, the Authority plans to interconnect its system with other interstate services like Amtrak.

The STB's decision in this matter will establish important precedent for the future federal regulation of state-supported passenger rail systems.

Peter Denton co-authored this entry.

The Project includes the reconstruction of 21 miles of I-4 from west of Kirkman Road in Orange County to east of State Road 434 in Seminole County. The I-4 project adds four tolled express lanes to I-4 while maintaining the existing free general use lanes.

The shortlisted teams were selected based on qualification statements submitted on April 19, 2013 in response to the request for qualifications (“RFQ”) issued by FDOT on March 8, 2013.

The four shortlisted teams and their respective members are:

4wardPartners

• VINCI Concessions S.A.S.
• Meridiam Infrastructure I-4 Ultimate, LLC
• Walsh Investors, LLC

I-4 Development Partners LLC

• Macquarie Capital Group Limited
• OHL Concesiones S.A.
• FCC Construccion S.A.

I-4 Mobility Partners

• Skanska Infrastructure Development Inc.
• John Laing Investments Limited

Ultimate Mobility Partners

• InfraRed Capital Partners Limited
• Fluor Enterprises, Inc.
• Kiewit Infrastructure South Co.

A press release may be found at the I-4 Ultimate Project website.

The ARTI Project consists of six elements, all of which are located in Los Angeles County, including: the development of one high-occupancy toll (“HOT”) lane in each direction along Interstate 5 (“I-5”) North from SR 14 freeway to Parker Road; the design, construction, rehabilitation and maintenance of the pavement of all lanes on the SR 14 to Parker Road segment of I-5 North; the reconstruction of the existing SR 71 from Mission Boulevard in to Interstate 10 (“I-10”) to provide four general purpose lanes and one high-occupancy vehicle (“HOV”) lane in each direction, one interchange, two grade separated rail crossings, and three arterial undercrossings;  the reconstruction of the existing SR 71 from SR 60 to Rio Rancho Road to provide three general purpose lanes and one HOV lane in each direction, one interchange, one arterial undercrossing, frontage roads, and one pedestrian overcrossing; the design and construction of approximately 16,300 linear feet of soundwalls at various locations along Interstate 210 (“I-210”) freeway; and the design and construction of approximately 28,500 linear feet of soundwalls along SR 170 and Interstate 405 ("I-405") freeways. 

The RFQ and related Project documents are available from Metro’s procurement website.

Tristan Robinson co-authored this entry.

The relatively sudden application of Buy America to utility work that was not previously subject to its requirements has had serious consequences.  Utilities in many states are refusing to sign agreements that incorporate the Buy America requirements, which threatens to delay and increase costs for many projects.  Reasons advanced for this refusal vary, but many appear to be based on practical concerns; for example, a utility states that it does not have any experience in complying with Buy America, its current procurement processes do not yield the information necessary to confirm compliance, or it is not certain that it will be able to procure quality Buy America-compliant materials.

For a project sponsor, the consequences of noncompliance with Buy America could be dire.  According to FHWA (as stated on FHWA's MAP-21 website), failure to incorporate Buy America provisions where required ". . . would render all contracts within the scope of the NEPA document ineligible for Federal-aid highway funds." 

State DOTs, other project sponsors and related groups have expressed the need for guidance and practical assistance from FHWA in the application of this new law.  For example, in a February 12, 2013 letter to outgoing Transportation Secretary Ray LaHood, the American Public Works Association (APWA) and the National Association of County Engineers (NACE) requested guidance and future rule making to the effect that "Buy America requirements are not applied to contracts or work under an agreement with a utility that is not funded by title 23 programs".  Others have suggested a grace period for implementation of the new rules.  Discussion at a recent meeting of the AASHTO Subcommittee on Right of Way, Utilities, and Outdoor Advertising Control found that notwithstanding the guidance posted on FHWA's website, so far the new rules are not being interpreted or applied uniformly throughout the country. 

We understand that FHWA anticipates issuing a Notice of Proposed Rule Making for regulations dealing with these Buy America compliance issues sometime in 2013.  We urge FHWA to act quickly in developing its proposed regulations, and to pursue whatever other measures are necessary to resolve this impasse as soon as possible.
 

Mr. Peterson has a long history in the industry and joins TCA from CH2M Hill where he was a senior transportation strategy consultant.  Prior to that, he worked at Booz, Allen & Hamilton and served as executive director of the Los Angeles County Transportation Commission and chief executive of public transportation systems in Seattle and Oakland. 

Mr. Peterson is also the founder of the non-profit Edge Foundation and was the founding CEO of the car-sharing company Flexcar, now named Zipcar.

For more information, visit TCA’s website.

The I-69 Section 5 project consists in upgrading approximately 21 miles of existing State Route (“SR”) 37, a four-lane median divided highway between Bloomington, Indiana (home of Indiana University) and Martinsville, Indiana, and development of a six-lane divided highway in designated urban areas.  In addition, the project involves construction of four new interchanges and four new overpasses with varying degrees of improvements to the existing interchanges and overpasses at the Fullerton Pike, Tapp Road/SR 45/2nd Street, Sample Road and Liberty Church Road, all of which are current intersections with SR 37.

Section 5 is one of six sections under development to complete the interstate connection from Evansville, Indiana to Indianapolis, collectively part of a further development of the national I-69 corridor to connect Mexico with Canada.  Four of the remaining five sections are completed or development and construction are underway, and Section 6 is still in the planning stage.

Over 175 people attended a industry workshop on May 22, where Governor Mike Pence reaffirmed Indiana’s, and his administration’s, commitment to exploring innovative approaches to deliver much-needed infrastructure – particularly transportation – improvements in Indiana.

IFA is an independent financing instrumentality of the State, which in working with INDOT, reprises a successful partnership that brought the East End Crossing to the American P3 industry, the first availability payment concession in the United States to have met each of its procurement schedule deadlines in among the fastest P3 procurements in the United States and to have successfully achieved financial close with a “flat” investment grade rating.

Statements of qualifications are due at the IFA’s offices in Indianapolis, Indiana at 3:00 p.m. on July 9, 2013.  Shortlisting is anticipated by the end of July 2013, with award tentatively scheduled for late first quarter, 2014 and financial close early second quarter, 2014.

Moorman stated that privately-owned railroads serve as both “a barometer of the economy” as well as “an essential element in solving the country’s freight transportation problem.” Moorman called for specific action from the federal government to aid private railroads in their indispensible function. First, the government must support and not hinder private railroad’s ability to invest and gain returns on investment in their own infrastructure.  Second, the government must put the economy on sound footing. Third, the government must find sensible ways to allow private sector and partners invest in railroad projects. 

Moorman’s full comments may be found at the Norfolk Southern website (PDF).

The I-35E Managed Lanes Project is the first phase in a multi-phase program to relieve traffic congestion along an existing 28-mile corridor of I-35E in Dallas and Denton Counties. The scope of the $845 million design-build contract includes the design and construction of tolled managed lanes, general purpose lanes, collector-distributor roads and bridges. The scope of the capital maintenance agreement includes the optional long-term maintenance of the project’s managed lanes component.  The capital maintenance agreement consists of up to three optional five year terms.
 

The first 67 miles of the new 142-mile I-69 corridor opened in November 2012 and construction is now underway on all 27 miles of I-69 Section 4.  All highway design, construction and financing firms interested in participating in a design, build, finance, operate and maintain procurement for the Section 5 project are encouraged to attend the forum.

All interested attendees are encouraged to RSVP to Sydney Dudek at sldudek@kpmg.com by 5 p.m. ET on Friday, May 17, 2013.  Those unable to attend in person and wishing to participate virtually should contact Ms. Dudek to ensure registration.

For more information about I-69 between Evansville and Indianapolis, visit the project website.

RCTC had previously pre-qualified 4 teams for the project and issued the RFP on July 26, 2012:  The 4 pre-qualified teams were:  Atkinson/Walsh, a joint venture; Flatiron/Skanska/Rados, a joint venture; Shimmick/Obayashi/FNF, a joint venture; and Kiewit Infrastructure West.

RCTC’s selection of the Atkinson/Walsh joint venture was the culmination of a best value procurement and evaluation of proposals received from the four prequalified proposers.  The best value selection criteria included the combination of a net present value price score and a technical proposal score as well as an adjustment to the price score based on completion schedule.  Atkinson/Walsh’s design and construction price is $140 million lower than RCTC’s engineer’s estimate.  In addition, all proposers proposed a schedule duration of 1218 days, 10 months earlier than the outside completion deadline set by RCTC.

The project is being developed under California’s Design-Build Demonstration Program authorized by legislation passed in 2009.  The project will widen State Route 91 with the addition of new freeway lanes, toll/express lanes extending the existing SR-91 express lanes into Riverside County, expanded freeway-to-freeway connectors and better access to and from the freeway at congested locations.  The toll lanes will connect to the existing SR-91 Express Lanes operated by Orange County Transportation Authority and provide drivers with a seamless tolled express lane from I-15 to SR-55.  RCTC is developing the project in cooperation with Caltrans.  Upon completion of the project, RCTC will operate and maintain the toll facilities for a period of 50 years.

The project will be financed through a combination of toll revenue bonds, sales tax bonds and an approximately $416 million dollar TIFIA loan from USDOT. 

Corey Boock co-authored this entry.

“President Obama has challenged us to make sure our nation’s transportation infrastructure is up to the job of attracting and supporting businesses and the families that rely on them," U.S. Transportation Secretary Ray LaHood said in a statement. “And because the Appropriations Act that funds TIGER requires that funds be obligated by October 1, 2014, this round of TIGER will be making a difference soon.”  To give USDOT enough time to obligate funds by the statutory deadline, a project must be ready to go by June 30, 2014.  

Grants will range from $10 million to $200 million to fund eligible projects, which include highways and bridges; public transit; passenger and freight rail; intermodal facilities; and marine and port investments.   According to the USDOT, at least $120 million of the $474 million must be awarded to projects in rural areas.

TIGER money can be used to fund up to 80% of a project’s total cost, though if a project can show that is has a significant amount of nonfederal funds included in its overall financing package, the project may have a competitive edge, the USDOT has said.

Recent projects that have benefitted from TIGER include the 3.3 mile M-1 Rail project in Detroit, which received $25 million, and the Port of Corpus Christi, Texas, which received a grant of $10 million to expand rail service at the port with a new rail yard.

This is the fifth round of financing being distributed under TIGER since the program was put in place by the American Recovery and Reinvestment Act of 2009.  Since its inception, demand for funding under the TIGER program has been significant.  According to the USDOT, in the first four rounds of the TIGER program, the USDOT received more than 4,050 project proposals seeking more than $105.2 billion.  While demand has been great, only approximately $3.9 billion in transportation project grants have been given out so far under the program.

Interested applicants can review the USDOT’s grant resources page and view the full Notice of Funding Availability.   Applications for grant money are due by June 3.

The project involves the reconstruction of over 21 miles of I-4 in Orange and Seminole Counties, including 19 major interchanges, 56 new bridges and 71 bridge replacements, and the addition of two managed toll lanes in each direction.  The estimated cost of the project is approximately $2.1 billion. 
 
The I-4 is often considered the backbone of surface transportation in Central Florida.  It provides a crucial link between Tampa on the west coast and Daytona Beach on the east coast, as well as serving the Orlando Metro area, one of the world's most popular travel destinations.  The I-4 Ultimate Project seeks to alleviate congestion by adding managed lanes and improving access to and from the interstate. 
 
The project is being procured as a public-private partnership, through an anticipated 40-year design, build, finance, operate and maintain (DBFOM) concession agreement.   The Concessionaire will receive availability payments throughout the operating period, and FDOT assumes the traffic revenue risk.  This is only the fifth highway P3 in the United States to adopt an availability payment structure.
 
Next month, FDOT is expected to short-list at least three and as many four proposers, who will have the opportunity to submit their proposals in early 2014.   The successful proposer is anticipated to be selected in the spring of 2014. 

The projects under consideration include a high-capacity rail system and a tolled highway within the Corridor in the vicinity of the I-405 Freeway, a transit connection to the Los Angeles International Airport and a north-south transit opportunity in the east San Fernando Valley that would provide connections to Metro's County-wide transportation network.  The I-405 through the Sepulveda Pass is one of the most congested freeway segments in the nation.  An additional HOV lane is currentlly under construction.
 
Highway and rail tunnels through the Sepulveda Pass, with an initial cost estimate from US $10 - 13 billion, were identified in a concept study authorized by the Metro board this past December.  The study indicated that premium transit fares and tolls will be necessary to finance the projects due to limited alllocation of public funding under the Measure R sales tax measure that the voters of Los Angeles County approved in November 2008. The Sepulveda Pass Corridor is one of twelve transit projects with funding allocations from Measure R. 
 
Metro is considering the procurement of a pre-development agreement with a private consortium to plan the scope, financing and method for delivering portions or all of the projects.  The project delivery method may be a long term DBFOM concession agreement.
 
To attend the forum, RSVP by April 26 to Teri Argabright of HDR/InfraConsult, Metro's P3 Advisory Team Lead, at Teri.Argabright@hdrinc.com.  Please provide your name, firm contact information and names of attendees.  
 
Tristan Robinson co-authored this entry.

The Regional Connector would be a 1.9-mile underground line that would tie together the Gold, Blue and Expo lines and allow a one-seat ride from Montclair to Long Beach and from East Los Angeles to Santa Monica.  The West Side Extension would build out the Purple Line subway from Wilshire & Western to Westwood, a distance of 9.5 miles.

Both projects were slated for Full Funding Grant Agreements in the Federal Transit Administration’s FY 2014 New Starts Report (PDF).  Metro has identified these two projects as its priority projects.

Only one other project, the Columbia River Crossing, a bridge project with an FTA-supported transit component, was included in the President’s budget proposal and recommended for a FFGA in the New Starts Report.  The Columbia River Bridge Project is co-sponsored by the Oregon and Washington Departments of Transportation.

The apparent best value selection was based 70 percent on price and 30 percent on technical scores.  The Tutor Perini/Zachry/Parsons proposal price of $985,142,530 was also the lowest price proposal.  The apparent best value proposal price was also significantly below the Authority's cost estimate of between $1.2 and 1.8 billion.  While the initial determination of the apparent best value proposer has been made, the procurement remains in progress.  If the Authority is unable to reach a final contract with Tutor Perini/Zachry/Parsons, the Authority may continue the procurement with the next most highly ranked proposer.

Please see the Authority's website for further information.

(See also our blog post regarding the EPA report released last month promoting funding mechanisms and other strategies for communities to provide more transit-oriented development.)  

The study found that homes closer to public transit performed 42 percent better (in terms of resilience of property values)  than those further away.  This finding was based on an analysis of home values in San Francisco, Phoenix, Boston, Chicago, and Minneapolis-St Paul between 2006 and 2011.  

Price resilience was highest for properties near transit stations with the most connections and most frequent service.  Interestingly, housing type (apartment, single-family, townhouse etc) had no impact on the study, with the results holding true across all property types.  Residents in a “transit shed” (within a half a mile of selected transit) also had “better access to jobs and lower average transportation costs” than the study area as a whole.  

The full text of the report is available on the American Public Transportation Association website.

The deadline for RFI responses is May 8, 2013.  The RFI and the official press release can be found on the Maryland Transit Administration website.

This recognition is the latest in a number of industry awards honoring the Presidio Parkway Project, which is the first transportation project to be procured under California's 2009 PPP statute, and only the fourth highway project in the United States developed using an availability payment structure.  A Nossaman team, led by Barney Allison, advised Caltrans on the $1.1 billion deal, which reached financial close on June 14, 2012.
 

Infrastructure Journal has announced that the Virginia Department of Transportation's Downtown Tunnel/Midtown Tunnel/MLK Extension Project ("Midtown Tunnel") is one of four finalists for its Global Transport Deal of the Year, the third time in four years IJ has so recognized US projects, starting with the Texas Department of Transportation's North Tarrant Express, named the Global Transport Project of 2009 and finalist for the overall Global Infrastructure Project of that year; and the Florida Department of Transportation's I-595 Project, also a finalist for the 2009 Global Transport Project. For this year's awards, the publication reviewed more than 600 submissions and will announce the winner on April 17, 2013.

PPP Bulletin International has announced that the California Department of Transportation's Presidio Parkway Project, the Midtown Tunnel and VDOT's I-95 Express Lanes project are all among the finalists for its Best Transport Project of the Year. The publication will announce the winner on May 23, 2013.

We congratulate VDOT, Caltrans and their private partners for this well-deserved recognition.