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SEP-14 Programmatic Approval Waiver for Public Private Partnerships Projects

Mr. David Gibbs, Division Administrator
Federal Highway Administration
545 John Knox Road, Suite 200
Tallahassee, Florida 32303

Subject: SEP-14 Programmatic Approval Waiver for Public Private Partnerships Projects

Dear Mr. Gibbs:

The Florida Department of Transportation (FDOT) requests a Special Experimental Project (SEP) No. 14 programmatic approval waiver. This programmatic request is for a waiver of 23 CFR 636.507 (b) and allowing the unsuccessful proposer technical concepts to be included in the final negotiations with the successful proposer. The Department requests this programmatic approval waiver for a five year period on all present and future FDOT Public Private Partnership Projects.

The Department's process for informing proposers of their intent to utilize ideas from unsuccessful proposers will be indicated in the Request for Proposals (RFP), proposed sample RFP language is attached. The RFP will inform proposers that FDOT will be selecting an apparent best value firm based on the RFP selection criteria, indicate to the proposers that a stipend will be provided to unsuccessful firms for the use of their ideas, and indicate that the FDOT may utilize ideas from the unsuccessful firms in final negotiations with the apparent best value firm.

Enclosed are the purpose, scope, schedule, measures and reporting for the FDOT's I-595 project and the First Coast Outer Beltway (FCOB) project. We believe you will find this request to be acceptable and request your concurrence to proceed with this programmatic approval waiver on these complex type projects. Your concurrence with this approach will allow the Department to proceed and use unsuccessful proposer's innovative concepts as an advantage in the obtaining the best value project. The Department will be providing annual reports evaluating on how each project is developing.

Sincerely,

Ananth Prasad, P.E.
Chief Engineer

Sample language from the I-595 RFP (Instruction to Proposers, ITP):

3.6 Use of Proposed Alternate Technical Concepts (ATCs) by Successful Proposer

By submitting a Proposal, and in accordance with Contractual Services Agreement described in ITP Section 6.3, the Proposer agrees that if FDOT does not award it the Agreement that FDOT may disclose its work product, including any information related to an ATC, to the Proposer awarded the Agreement.

6.3 Stipend / Contractual Services Agreement

Pursuant to the separate Contractual Services Agreement executed between FDOT and the Proposers, FDOT will pay some or all of the Proposers a Stipend for their submitted Proposals or, if FDOT cancels the RFP or Project prior to the Proposal Due Date, all work product developed by Proposers under the Contractual Services Agreement. The successful Proposer shall not be entitled to the Stipend. The amounts paid under the Contractual Services Agreement are in no way intended to compensate Proposers for the total cost of preparing a Proposal. FDOT reserves the right to use any ideas or information contained in the Proposals or otherwise developed under the Contractual Services Agreement as FDOT deems appropriate, subject to FDOT's obligation to pay the Stipend.

I-595 project:
Purpose:

The contract for this project includes federal funding and is a fixed price/best value contract pursuant to the federal design-build regulations 23 Part 636. The FDOT plans to enter into discussions with each proposer as allowed by Subpart D of the federal regulations and requests a waiver of 23 CFR 636.507 (b) which provides that an owner cannot reveal another offeror's technical concepts/solutions.

The FDOT will provide notice in the RFP that it would select an apparent best value proposer at which time it would negotiate into the final contract technical concepts or solutions of the unsuccessful proposer after award, but before contract execution that were beneficial to the apparent best value proposer taking advantage of the innovative ideas of the shortlisted teams.

Scope:

The limits of the Project extend from the I-75/Sawgrass Expressway Interchange to east of the I-595/I-95 interchange in Central Broward County, Florida, for a total project length of approximately 10.5 miles. The Project consists of the reconstruction and resurfacing of the I-595 mainline, including the addition of auxiliary lanes (and all associated improvements to adjacent cross-roads, frontage roads and ramps), and a new express lanes system in the I-595 median.

The major improvement measures include: (1) at-grade express toll lanes serving express traffic to/from I-75/Sawgrass Expressway from/to east of SR-7, with a direct connection to the median of Florida's Turnpike; (2) the addition of auxiliary lanes on the eastbound and westbound I-595 and SR 84 roadways; (3) a continuous connection of the SR 84 frontage road between Davie Road and SR 7; (4) grade separated (braided) interchange ramps; (5) combined ramps and cross-road bypasses; (6) geometric improvements to the I-595/Florida's Turnpike Interchange; (7) widening/reconstruction of Florida's Turnpike from Griffin Road to Peters Road; (8) the accommodation of a future transit envelope within the corridor currently under development as part of the Central Broward East-West Transit Analysis (CBE-WTA); and (9) implementation of the environmental commitments set forth in the PD&E Study and subsequent environmental permit commitments as they relate to the design, construction and maintenance of the Project. Major construction components include: roadway and barrier walls, earthwork, retaining and noise abatement walls, bridges (new, widening and reconstruction), drainage, and intelligent transportation systems.

On June 29, 2006, Federal Highway Administration (FHWA) approved a Type II Categorical Exclusion for the Project. FHWA based this approval on the environmental commitments identified in the Commitments and Recommendations section of the PD&E Study. In addition, FHWA Florida Division has recently approved a Design Change Re-evaluation of the original PD&E study to address the change in typical section due to the at-grade Express Lanes and to further document any changes in the Project commitments, criteria, environmental documentation and scope that have occurred subsequent to FHWA's approval of the Type II Categorical Exclusion.

FDOT seeks to enter into a Concession Agreement with a Concessionaire to design, build, finance, operate and maintain the project. FDOT is seeking a private partner experienced in undertaking large transportation infrastructure projects under a concession approach who is willing to share project risks. The successful proposer must have proven ability to arrange and close private financing, as well as demonstrated skill in designing, building, managing and operating complex highways on behalf of public sector owners.

FDOT expects to compensate the Concessionaire through an availability payment structure that may include other components such as a small usage-related payment that is primarily intended to compensate the Concessionaire for traffic on the Project in excess of pre-determined levels. In addition, FDOT may pay final acceptance payments to the Concessionaire, upon final completion of the construction phase of the project. Further details regarding this payment mechanism will be presented in the RFP.

The FDOT has three short listed proposers and currently a $1,000,000 stipend will be paid to the unsuccessful proposers.

Schedule:

Schedule (all dates tentative)

December 17, 2007 Issue Draft Request for Proposal
March 2008 Issue Final RFP
May 2008 Proposal Due Date
June 2008 Selection of Best Value Proposer and Award
Sept./Oct. 2008 Execution of Contract
Early 2009 Construction Commencement
Early 2014 Construction Completion
Measures:

The performance of this request will be measured by:

  1. Number of concepts proposed
  2. Number of concepts used
  3. Interview with shortlisted Proposers to see if this process was advantageous
Reporting:

Initial and interim evaluation reports will be prepared for the project. The initial report will be prepared after the award of the project. This report will discuss the RFP selection process and identify effects of this on the selection of the best value proposer. In addition, interim reports will be prepared evaluating how the project is developing.

First Coast Outer Beltway (FCOB) project:
Purpose:

The contract for this project includes federal funding and is a fixed price/best value contract pursuant to the federal design-build regulations 23 Part 636. The FDOT plans to enter into discussions with each proposer as allowed by Subpart D of the federal regulations and requests a waiver of 23 CFR 636.507 (b) which provides that an owner cannot reveal another offeror's technical concepts/solutions.

The FDOT will provide notice in the Request for Proposal (RFP) that it would select an apparent best value proposer at which time it would negotiate into the final contract technical concepts or solutions of the unsuccessful proposer after award, but before contract execution that were beneficial to the apparent best value proposer taking advantage of the innovative ideas of the shortlisted teams.

Scope:

The Project is at a minimum a proposed four-lane limited access toll facility from Interstate 95 in St. Johns County, crossing the St. Johns River, to Interstate 10 in Duval County. The Project is comprised of the St. Johns River Crossing segment in St. Johns and Clay Counties and the Branan Field-Chaffee Road segment in Clay and Duval Counties. The total length of the Project is approximately 46.5 miles.

The major construction components of the Project include: roadway pavement, bridges (including an approximate 10,000 foot crossing of the St. Johns River), earthwork, drainage, interchanges, and toll facilities. Interested parties may obtain information regarding the Project by referring to the PIM and the advertised websites.

FDOT seeks to enter into a Concession Agreement with a Concessionaire to develop, design, construct, finance, operate, maintain, and toll the Project. The Concessionaire will be required to design, build, and finance the Project, and then to operate, maintain, and toll the Project during the concession period. FDOT is seeking a private partner experienced in undertaking large transportation (road and bridge) infrastructure projects under a concession approach and who is willing to share risks. The successful Proposer must have proven ability to arrange and close financing on favorable terms, as well as a demonstrated skill in designing, building, managing and operating complex transportation (road and bridge) projects on behalf of public sector owners.

FDOT expects the Concessionaire to be compensated by means of the collection of toll revenue from the Project during the concession period. With the cooperation of local government agencies, FDOT may also compensate the Concessionaire through other mechanisms. If relevant, further details regarding mechanisms may be presented in the RFP. The Concessionaire may present alternative financing options as part of the RFP written proposal.

FDOT intends to pay partial compensation to each fully responsive but unsuccessful Short-Listed Proposer for the work product it produces in developing and submitting a Detailed Proposal. The amount of this partial compensation will be at least $1,000,000 and in no way is intended to compensate the responsive but unsuccessful Short-Listed Proposer(s) for the total cost of preparing a Detailed Proposal.

Schedule:

Schedule (all dates tentative)

February 2008 Issue Draft Request for Proposal
July 2008 Issue Final RFP
September 2008 Proposal Due Date
November 2008 Selection of Best Value Proposer and Award
March 2009 Execution of Contract
July 2010 Construction Commencement
June 2014 Construction Completion
Measures:

The performance of this request will be measured by:

  1. Number of concepts proposed
  2. Number of concepts used
  3. Interview with shortlisted Proposers to see if this process was advantageous
Reporting:

Initial and interim evaluation reports will be prepared for the project. The initial report will be prepared after the award of the project. This report will discuss the RFP selection process and identify effects of this on the selection of the best value proposer. In addition, interim reports will be prepared evaluating how the project is developing.

Contact

Jerry Yakowenko
Office of Program Administration
202-366-1562
E-mail Jerry

 
 
Updated: 04/07/2011
 

FHWA
United States Department of Transportation - Federal Highway Administration