The U.S. Department of the Treasury recently published an Economic Framework for Comparing Public-Private Partnerships and Conventional Procurement.
The department concluded that there is no single factor that should determine whether a P3 is likely to yield a stronger benefit than one delivered through conventional means. The paper also outlines important steps for a government to take before procuring a P3 project to ensure optimal benefit to the taxpayer.
One key factor cited in the report was the capacity of a project to bundle several projects into one large contract. The capacity to bundle is by far the most important factor in a P3 creating cost savings, the report concluded.
Other important considerations were:
- Private-sector expertise: A strong indicator of whether the project will provide a net-benefit over the full life cycle of a P3 is the technical expertise available.
- Clearly defined terms that are quantifiable: How precisely does the contract lay out the service level required?
- High capital costs and long lived assets: Assets procured using a P3 need to be large enough to generate cost savings that offset the transaction costs of privately raised capital.
Related Stories
| Aug 11, 2010
Portland Cement Association offers blast resistant design guide for reinforced concrete structures
Developed for designers and engineers, "Blast Resistant Design Guide for Reinforced Concrete Structures" provides a practical treatment of the design of cast-in-place reinforced concrete structures to resist the effects of blast loads. It explains the principles of blast-resistant design, and how to determine the kind and degree of resistance a structure needs as well as how to specify the required materials and details.
| Aug 11, 2010
NASA plans federal government's greenest building
NASA is set to break ground on what the agency expects will become the highest performing building in the federal government. Named Sustainability Base, the new building at Ames Research Center in Sunnyvale, Calif., will be a showplace for sustainable technologies, featuring "NASA Inside" through the incorporation of some of the agency’s most advanced recycling and intelligent controls technologies originally developed to support NASA’s human and robotic space exploration missions.
| Aug 11, 2010
Harvard Law School Wood-Framed Houses
Cambridge, Mass.
A century ago, majestic Victorian homes lined Massachusetts Avenue in Boston, but few of these grande dames still survive. Harvard Law School owned three such beauties, which they used for office and research space. Unfortunately, the houses occupied prime real estate on which the school planned to build a new academic center. Rather than raze the historic wood-frame homes, the law school made it a priority to repurpose them.
| Aug 11, 2010
Rice concrete can cut greenhouse emissions
Rajan Vempati of ChK Group, Inc. in Plano, Texas, and a team of researchers found a way to make nearly carbon-free rice husk ash for concrete, which can lead to a boom in green construction.
| Aug 11, 2010
iSqFt acquires technology and key assets of Plan Express Inc.
Today iSqFt, the nation’s leading online preconstruction network, announced it has purchased the technology and key assets of Plan Express, Inc., a partner document-sharing network.
| Aug 11, 2010
ZweigWhite Announces 2009 Best Firms to Work For
Management consulting and research firm ZweigWhite has identified the best civil engineering, structural engineering, multidiscipline A/E services, environmental services, and architecture firms to work for in its annual ranking of top industry firms. These outstanding employers were selected based on their commitment to provide a positive work environment and challenging and interesting work opportunities for their employees.
