About Public Private Partnerships (P3)
A public-private partnership project is a contractual agreement between a public entity and a private entity (or another public entity) in which the public entity transfers the responsibility for engineering, construction, operation, financing, and/or maintenance (or any combination) of a transportation project or facility to the private sector for a defined period of time.
Benefits of Public-Private Partnerships
If the P3 board determines a state operation or project would be more cost-effectively administered or delivered by a private company, the department or appropriate transportation agency can advertise a competitive Request for Proposal (RFP). PennDOT enters into a contract with a company to completely or partially deliver the transportation-related service or project.
In addition to cost savings, P3 projects have other advantages over traditional procurement such as:
- Risk-sharing protecting project sponsors from the cost and consequences of negative events
- Accelerated project delivery compared to traditional public-sector project scheduling and delivery methods
- Improved quality and system performance from the use of innovative materials and management techniques that may result in higher initial quality to minimize long-term maintenance and operations costs
- Ability to apply special incentives to improve project performance and operating efficiencies
- A more optimal distribution of risks, that is allocating certain project risks to the private sector (e.g., financing, schedule, long-term operations, and maintenance) and retaining others with the public agency (e.g., program management, environmental clearance, permitting, and right-of-way acquisition)
- Use of private financial resources and personnel
- Access to new sources of private capital, while leveraging scarce public resources and conserving public-sector debt capacity
What does the P3 Office do?
The Pennsylvania Department of Transportation P3 Office is responsible for overseeing all aspects of the P3 program:
- Identifying, screening, and prioritizing unsolicited proposals and candidate projects;
- Presenting proposals to the P3 Board for review and approval at board meetings;
- Managing the successful implementation of PennDOT projects from development to procurement and deployment;
- Assisting and providing counsel to other public entities.
P3 Office Staff
Kristin A. Mulkerin
Deputy Secretary for Planning
Michael Bonini
Director
717-772-4664
James Nicastro
Deputy Director
717-756-5187
Madelyn Vergos
Project Manager
717-214-2264
Transportation P3 Board
Honorable Michael Carroll
Uri Monson
Gregory Davis
Jerry Knowles
Geoffrey Clarke
Honorable Ed Neilson
Dr. Timothy F. Murphy
What is a Public-Private Partnership (P3)?
A public-private partnership project is a contractual agreement between a public entity and a private entity (or another public entity) in which the public entity transfers the responsibility for engineering, construction, operation, financing, and/or maintenance (or any combination) of a transportation project or facility to the private sector for a defined period of time.
Benefits of Public-Private Partnerships
If the P3 board determines a state operation or project would be more cost-effectively administered or delivered by a private company, the department or appropriate transportation agency can advertise a competitive Request for Proposal (RFP). PennDOT enters into a contract with a company to completely or partially deliver the transportation-related service or project.
In addition to cost savings, P3 projects have other advantages over traditional procurement such as:
- Risk-sharing protecting project sponsors from the cost and consequences of negative events
- Accelerated project delivery compared to traditional public-sector project scheduling and delivery methods
- Improved quality and system performance from the use of innovative materials and management techniques that may result in higher initial quality to minimize long-term maintenance and operations costs
- Ability to apply special incentives to improve project performance and operating efficiencies
- A more optimal distribution of risks, that is allocating certain project risks to the private sector (e.g., financing, schedule, long-term operations, and maintenance) and retaining others with the public agency (e.g., program management, environmental clearance, permitting, and right-of-way acquisition)
- Use of private financial resources and personnel
- Access to new sources of private capital, while leveraging scarce public resources and conserving public-sector debt capacity
What does the P3 Office do?
The Pennsylvania Department of Transportation P3 Office is responsible for overseeing all aspects of the P3 program:
- Identifying, screening, and prioritizing unsolicited proposals and candidate projects;
- Presenting proposals to the P3 Board for review and approval at board meetings;
- Managing the successful implementation of PennDOT projects from development to procurement and deployment;
- Assisting and providing counsel to other public entities.