One of the major benefits of a P3 project is that it enables public entities to undertake projects they might otherwise postpone or ignore due to lack of funds. P3 projects also create tens of thousands of jobs and project completion is dramatically accelerated over traditional Design-Bid-Build. There are several different types of P3 delivery options; however, the most common P3 system is a Design-Build- Finance-Operate-Maintain (DBFOM) transaction.
Florida has enjoyed the benefits of P3s under existing legislation for state transportation projects. See Florida Statute §334.30. Now Florida has expanded its P3 legislation to allow local government to use P3s to construct government buildings and related social infrastructure. Also, county-owned roads in Florida can now be rebuilt using P3.
Indeed, during the 2013 legislative session, the Florida’s House of Representatives and Florida Senate passed the House of Representatives Bill 85 (HB85), which establishes this broadened framework for such P3 projects. This bill is expected to go before Florida’s Governor for enactment in the near future.
HB85 creates a P3 procurement process for use by counties, cities, school boards, and regional entities. The bill sets forth the requirements for such P3 agreements, which allows for both solicited and unsolicited proposals. The bill also requires public entities to provide notice of unsolicited proposals, conduct independent analyses of proposed P3s, notify other affected local jurisdictions, and enter into comprehensive agreements for qualifying projects. In accordance with HB85, a public entity may approve a qualifying project if there is a public need for or bene t derived from the project, the estimated cost of the project is reasonable, and the private entity’s plans will result in the timely and cost-effective acquisition, design, construction, improvement, renovation, expansion, equipping, maintenance, operation implementation, or installation of the qualifying project.