[Federal Register Volume 84, Number 22 (Friday, February 1, 2019)]
[Notices]
[Pages 1084-1085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00709]



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DEPARTMENT OF DEFENSE

Department of the Army, Army Corps of Engineers


Request for Information on Conceptual Public Private Partnership 
(P3) Delivery of Specific U.S. Army Corps of Engineers Civil Works 
Projects

AGENCY: U.S. Army Corps of Engineers, DoD.

ACTION: Notice; request for information.

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SUMMARY: The Assistant Secretary of the Army (Civil Works) has directed 
the U.S. Army Corps of Engineers (Corps) to establish a Public Private 
Partnership (P3) pilot program with the goals of demonstrating the 
viability of new delivery methods that can significantly reduce the 
cost and time of project delivery. The Corps is to identify up to 10 
additional P3 pilot projects and has been provided guidance on the 
screening and selection criteria.

DATES: Information must be submitted to Headquarters U.S. Army Corps of 
Engineers on or before April 2, 2019.

ADDRESSES: You may submit information by any of the following methods:
     Mail: Headquarters, U.S. Army Corps of Engineers, 
Directorate of Civil Works, Infrastructure Team, Attn: John Coho 3F65, 
441 G Street NW, Washington, DC 20314.
     Email: [email protected].

FOR FURTHER INFORMATION CONTACT: Mr. Aaron Snyder, USACE Infrastructure 
Funding and Financing Lead, at 651-290-5489, or email: 
[email protected].

SUPPLEMENTARY INFORMATION: To develop the pilot program and identify up 
to 10 additional P3 pilot projects, information will need to be 
submitted based on the initial screening and selection criteria. The 
Corps will use a matrix to evaluate the project information that will 
be the basis for coordination and discussions for possible development 
of P3 delivery of specific U.S. Army Corps of Engineers Civil Works 
projects. Submittors are encouraged, but not required, to coordinate 
with the local Corps of Engineers District prior to providing 
information for this request. The criteria are as follows:

Initial Screening Criteria

    (1) The P3 proposal:
    (a) Has a construction cost in excess of $50 million;
    (b) Has non-Federal sponsor support;
    (c) Includes design, build, finance, operation and maintenance 
(DBFOM) or some combination thereof for Federally authorized projects;
    (d) Accelerates project delivery; and
    (e) Has the ability to generate revenue or leverage non-Federal 
funding sources.
    (2) Existing authorities are sufficient to allow the P3 project to 
be completed.
    (3) A qualitative assessment demonstrating that the P3 will deliver 
the project faster and/or more cost effectively than traditional 
delivery.

Selection Criteria

    (1) Return on Federal Investment.
    (a) P3 project proposals will be evaluated and ranked on the basis 
of Return on Federal Investment (ROFI). ROFI will be calculated by 
annualizing the total project benefits and Federal costs utilizing the 
current discount rate, and applying the formula: (Benefits - Federal 
Costs)/(Federal Costs).
    (b) For any P3 project where it has been determined that a 
reduction in the non-Federal share is warranted with authority provided 
in 33 U.S.C. 2213, the ROFI calculation will be adjusted to account for 
those modifications and address concerns pertaining to equity.
    (2) Replicability: Project proposals that are replicable, meaning 
the proposed P3 structure or underlying concepts may be applied to 
other prospective projects.
    (3) Reliable Funding Sources: Reliable non-Federal funding sources 
for the design, construction, operation and maintenance of Federally 
authorized water resource projects are identified.
    (4) Risk Allocation: Project effectively allocates delivery and 
performance risk to non-Federal entities and minimizes Federal direct 
and contingent liabilities associated with the project.
    The USACE has developed implementation guidance that will guide the 
development, coordination, and selections for this P3 pilot program. 
That implementation guidance and other relevant information can be 
obtained at: https://www.usace.army.mil/Missions/Civil-Works/Infrastructure/Infra_P3_program/.
    Projects carried out under the P3 pilot program will be subject to 
the cost-sharing requirements included in the project authorization. 
The USACE intends to conduct follow up discussions and coordination 
with interested parties to gain a better understanding of the P3 
proposals, understand obstacles to implementation and to inform project 
selection.

Existing Challenges

    Significant research and analysis has been completed to date on the 
challenges facing the use of P3 projects on U.S. Army Corps of 
Engineers Civil Works Projects, particularly projects that are owned 
and operated by USACE. Reports documenting some of this information can 
be found at: https://www.usace.army.mil/Missions/Civil-Works/Infrastructure/Infra_P3_program/ and should be considered when 
providing a response to this request. The report from the Harvard 
Kennedy School, citation below, can be used as a resource for 
information.
    Ash Center for Democratic Governance and Innovation. (2017). 
Tapping Private Financing and Delivery to Modernize America's Federal 
Water Resources. Cambridge, MA: Harvard Kennedy School.
    Key known challenges are: (1) Inability to collect, retain and 
reinvest fees; (2) inability to make commitments on future 
appropriations; and (3) enabling framework and authorities to implement 
P3 projects. The Corps has explored options for utilization of P3 on 
Federally owned assets to include the navigation system and hydropower, 
both of which have existing challenges pertaining to authorities and 
budget scoring. These challenges should be considered and understood 
when providing a response to this request.

Entities Submitting Information on a Project Must Include the Following 
Information

    1. Project Name.
    2. Project Location.
    3. Name of the project sponsor.
    4. Statement of support from non-Federal sponsor, or likely non-
Federal sponsor.
    5. The type of project (i.e., Flood Risk Management, Ecosystem 
Restoration, Navigation, etc).
    6. The authority that authorized the project.
    7. Clearly identify if existing authorities are sufficient to allow 
the P3 to be completed (State and Federal).
    8. Identification of additional authorities necessary to carry out 
the project as a P3.
    9. The investment size of the project (i.e., $70,000,000)
    10. Anticipated activities included in the proposed P3 (i.e., 
design, build, finance, operate and maintain)
    11. Anticipated revenue sources for funding the P3 component of the 
project.
    12. Ability to leverage non-Federal funding sources.
    13. Expected impact on the project delivery schedule and costs.
    14. A qualitative assessment demonstrating that the P3 will deliver 
the project faster and/or more cost effectively than traditional 
delivery.

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    15. Anticipated Return on Federal Investment. ROFI will be 
calculated by annualizing the total project benefits and Federal costs 
utilizing the current discount rate, and applying the formula: 
(Benefits - Federal Costs)/(Federal Costs).
    16. Statement on replicability and how this approach may be applied 
to other prospective projects.
    17. Statement on risk allocation and how this approach will 
effectively allocate delivery and performance risk to non-Federal 
entities and minimize Federal direct and contingent liabilities 
associated with the project.
    18. Socioeconomic information to address concerns of equity which 
include: Population Benefited, Number of existing jobs in benefited 
area, Median Family Income, Unemployment Rate, and trends on population 
growth.
    Although not required as part of the submittal the Corps is 
interested in gathering input on how equity issues can be addressed as 
part of the P3 program development. This could include means, methods, 
analysis, or other modifiers that could allow for an equitable 
distribution of projects.

    Dated: January 29, 2019.
John W. Coho,
USACE Infrastructure Team, U.S. Army Corps of Engineers.
[FR Doc. 2019-00709 Filed 1-31-19; 8:45 am]
 BILLING CODE 3720-58-P