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.

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.