John F. Williams, SVP National Director - Governmental Consulting and Planning HDR Engineering, Inc. New York City PROJECT MANAGEMENT P3
Jan 11, 2016
John F. Williams, SVPNational Director - Governmental Consulting and PlanningHDR Engineering, Inc.New York City
PROJECT MANAGEMENTP3
Beginning with a Common Understanding
Source: * Hermann Scheer, author of A Solar Manifesto
Definitions
Variations
Dimensions
United Nations SU/SSC Training Course 2
P R O J E C T M A N A G E M E N TP3
In the U.S. We Call It …
Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 3
P R O J E C T M A N A G E M E N TP3
P3
In Canada We Call it …
Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 4
P R O J E C T M A N A G E M E N TP3
3P
In Europe We Call It ...
Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 5
P R O J E C T M A N A G E M E N TP3
PFI
What Do You Call It?
Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 6
P R O J E C T M A N A G E M E N TP3
?
Different Acronyms –
Same Process With Many Variations
Source: * Hermann Scheer, author of A Solar ManifestoUnited Nations SU/SSC Training Course 7
P R O J E C T M A N A G E M E N TP3
P3 What is It?
Source: * Hermann Scheer, author of A Solar Manifesto
A public-private partnership exists when public sector agencies (federal, state, or local) join with private sector entities (companies, foundations, academic institutions or citizens) and enter into a business relationship to attain a commonly shared goal that also achieves objectives of the individual partners.
United Nations SU/SSC Training Course 8
P R O J E C T M A N A G E M E N TP3
Three Basic Dimensions of P3
Source: * Hermann Scheer, author of A Solar Manifesto
Place landfill photo
United Nations SU/SSC Training Course 9
P R O J E C T M A N A G E M E N TP3
Although each is unique, all P3’s include three basic characteristics
shared goals
shared resources (time, money, expertise, people)
shared risks and benefits
Without all three there is no reason to create or continue a partnership.
Why?
Source: * Hermann Scheer, author of A Solar Manifesto
Governments can bring private sector efficiency, expertise and competitiveness into projects and operations, while still being responsible for public interest issues and ensuring delivery at specified service levels.
In short, P3 is a tool that can help governments meet demands for the development of modern and efficient facilities, infrastructure and services while providing value for taxpayers.
United Nations SU/SSC Training Course 10
P R O J E C T M A N A G E M E N TP3
Getting Started
How do you create one?
How do you implement one?
A Public entity’s perspective of finding and contracting with the best private sector partner.
United Nations SU/SSC Training Course 11
P R O J E C T M A N A G E M E N TP3
How Is It Done?
Place landfill photo
United Nations SU/SSC Training Course 12
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModifications
Assessment EnhancementMonitoring Contract
Renegotia-tions
DesignCompliance
Situation Initial Idea,Need or Vision
Prelim ProjectDefinition &Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
Seed Funding
FeasibilityReport/
BusinessCase
Process Map& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
Final ProjectDefinition
Environ-mental/
PermittingAnalysis
Site Selection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach &StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
Financing Plan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposal
Evaluation
ProcurementDocuments
Property Management
Construction
Developer
Design/Engineering
Brokerage/Marketing
Legal
Finance/Accounting
Public "Owner"/Sponsor
Program Manager
User/Tenant
II
OverseeConstruction
AdministerConstruction
ConstructFacility
VisitSite
SuperviseStart-upActivities
ProvideGuidance
I
I
I
ApplyScope/Quality
Controls
SuperviseCommission-ing Activities
AuditDevelopment
Costs
ConfirmContract
Compliance
I
ApplyMonitoring
Controls
A
I
I
LeadContract
NegotiationsA
ReviewContract
Mods
A
Assist inContract
Negotiations
ReviewContract
Mods
VisitSite
I
CompletePunchlist
OverseeCommission-
ing
OverseePunchlist
Completion
I I
MakeCommission-
ingAdjustments
PreparePunchlist
ManageFacility
OverseeFacility
Management
A
I
I
I
AssessContract
Compliance
ApplyMonitoringControls
DocumentEnhancements
I
SuggestEnhancements
SuggestEnhancements
ProvideGuidance
ReviewMajor
ContractMods
ExecuteContract
Mods
IdentifyHotspots/
PowerPlayers
AssessPublic
& PrivateAttitudes
RiskIdentification
I IVisitSite
DocumentMajor Deal
Terms
I
PreparePreliminaryBusiness
Plan
PresentAlternatives
I
PrepareMasterBudget/
Schedule
PrepareGuidance
Report
I
PrepareRFQ &RFP
I
I II
ConductOutreachSessions
I
PrepareFinal
BusinessPlan
IdentifyHotspots/
PowerPlayers
IdentifyStakeholders
RiskAllocation
RiskMatrixing
ReviewDraftPlan
ReviewDraftPlan
DiscussProcurement
Philosphy
LegalOptions/Provide
Guidance
PrepareContracts
A
I
I
I
Administrative Specs
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PresentOptions/
DocumentStrategy
DevelopEvaluationProcess
A
I
LeadContract
NegotiationsA
I
I
ReviewDesign
Submittals
StrategyInput
PrelimPublic
Assessment
MarketFeedback
MarketFeedback
MarketFeedback
ExpressInterest
I
IDetermine
StakeholderStrategy
PrepareRelationsStrategies
A
ReviewDraftPlan
ReviewDraftPlan
I
StrategyInput
RiskAssessment
RiskAssessment
A
CommercialTerms
ContractPrinciples
A
Terms ofReference
A
A
A
A
Assist inContract
Negotiations
ReviewDesign
Submittals
PrepareDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
SubmitQuals
AssembleTeam
Visit Site/Ask
Questions
SubmitProposal
Visit Site/Ask
Questions
Visit Site/Ask
Questions
PrepareBAFO
RefineAssumptions
I
PrepareMaster
Plan
ROI
Land UseAmendment
I
Infrastructure/SupportSystems
CompetitiveAnalysis
Program
ProjectCash Flow
Needs
InitialPhasing
InitialPhasing
I
DetermineSources& Uses
SeedBudget
Estimate
EstablishObjectives
ProvideQualitative
InputI I I
VisitSite
I
PrepareFeasibility/Business
Report
I
DocumentAlternatives
I
PrepareFatal FlawAnalysis
II
CustomizeProcess Map
& Strategy
I
CoordinatePermit
Process
PerformFunctionalEvaluation
I
I III I
StrategyInput
ResearchPotential
Uses
PrelimMarket
Analysis
I
PreparePrelim
Budget/Schedule
I
Leasevs. OwnAnalysis
EstimateSoft
Costs
DetermineSources& Uses
ProvideQualitative
Input
DocumentQualitativeAnalysis
SuggestAlternatives
SuggestAlternatives
EstablishObjectives
ProvideGuidance
I I I I I I
A
I
I
I
I
I I I
MarketFeedback
MarketFeedback
PerformPhysical
Evaluation
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PhysicalEvaluation
Market Needs
Program-ming
CodeSynopsis
Environ-mentalImpact
Assessment
SiteVisit
DocumentObjectives
EstablishCriteria
DocumentFinal Project
Definition
PrepareApplication
Serve asApplicant
IdentifyOperationsScenarios
IdentifyFinancingSources
Prelimi-narilyDefineProject
DiscussProcurement
Desires
ProvideGuidance
Define BasicNeeds
CommissionFacility
TrendsInput
MarketFeedback
P3PMSM Process
P R O J E C T M A N A G E M E N TP3
Two Major Steps
United Nations SU/SSC Training Course 13
P R O J E C T M A N A G E M E N TP3
Crafting the Partnership
Implementing the Partnership
CRAFT IMPLEMENTATION
Two Steps Down to Six Phases
United Nations SU/SSC Training Course 14
P R O J E C T M A N A G E M E N TP3
Genesis
Feasibility
Plan & Test
Procure
Design & Build
Operate & Maintain
GENESIS PROCUREFEASIBILITYPLAN &
TESTDESIGN &
BUILD
OPERATE &
MAINTAIN
Six Phases to 18 – Sub Phases
United Nations SU/SSC Training Course 15
P R O J E C T M A N A G E M E N TP3
Pre-QualifyDefinition Rationale ProForma
MasterPlan
MarketResearch
EconomicAnalysis
ConfirmDemand
ProgramBudget
Schedule
Select &Negotiate Design Maintain
Delivery/Deal
Structure
RiskAssess-
ment
Risk/DealStructure Start-up DisposalBuild
18 Phases to 40 Milestones
United Nations SU/SSC Training Course 16
P R O J E C T M A N A G E M E N TP3
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModificationsAssessment EnhancementMonitoring
ContractRenegotia-
tions
DesignCompliance
Situation Initial Idea,Needor Vision
PrelimProjectDefinition&Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
SeedFunding
FeasibilityReport/
BusinessCase
ProcessMap& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
FinalProjectDefinition
Environ-mental/
PermittingAnalysis
SiteSelection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach&StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
FinancingPlan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposalEvaluation
ProcurementDocuments
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModificationsAssessment EnhancementMonitoring
ContractRenegotia-
tions
DesignCompliance
Situation Initial Idea,Needor Vision
PrelimProjectDefinition&Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
SeedFunding
FeasibilityReport/
BusinessCase
ProcessMap& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
FinalProjectDefinition
Environ-mental/
PermittingAnalysis
SiteSelection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach&StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
FinancingPlan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposalEvaluation
ProcurementDocuments
40 Milestones to 100s of tasks
Place landfill photo
United Nations SU/SSC Training Course 17
P R O J E C T M A N A G E M E N TP3
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModifications
Assessment EnhancementMonitoring Contract
Renegotia-tions
DesignCompliance
Situation Initial Idea,Need or Vision
Prelim ProjectDefinition &Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
Seed Funding
FeasibilityReport/
BusinessCase
Process Map& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
Final ProjectDefinition
Environ-mental/
PermittingAnalysis
Site Selection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach &StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
Financing Plan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposal
Evaluation
ProcurementDocuments
Property Management
Construction
Developer
Design/Engineering
Brokerage/Marketing
Legal
Finance/Accounting
Public "Owner"/Sponsor
Program Manager
User/Tenant
II
OverseeConstruction
AdministerConstruction
ConstructFacility
VisitSite
SuperviseStart-upActivities
ProvideGuidance
I
I
I
ApplyScope/Quality
Controls
SuperviseCommission-ing Activities
AuditDevelopment
Costs
ConfirmContract
Compliance
I
ApplyMonitoring
Controls
A
I
I
LeadContract
NegotiationsA
ReviewContract
Mods
A
Assist inContract
Negotiations
ReviewContract
Mods
VisitSite
I
CompletePunchlist
OverseeCommission-
ing
OverseePunchlist
Completion
I I
MakeCommission-
ingAdjustments
PreparePunchlist
ManageFacility
OverseeFacility
Management
A
I
I
I
AssessContract
Compliance
ApplyMonitoringControls
DocumentEnhancements
I
SuggestEnhancements
SuggestEnhancements
ProvideGuidance
ReviewMajor
ContractMods
ExecuteContract
Mods
IdentifyHotspots/
PowerPlayers
AssessPublic
& PrivateAttitudes
RiskIdentification
I IVisitSite
DocumentMajor Deal
Terms
I
PreparePreliminaryBusiness
Plan
PresentAlternatives
I
PrepareMasterBudget/
Schedule
PrepareGuidance
Report
I
PrepareRFQ &RFP
I
I II
ConductOutreachSessions
I
PrepareFinal
BusinessPlan
IdentifyHotspots/
PowerPlayers
IdentifyStakeholders
RiskAllocation
RiskMatrixing
ReviewDraftPlan
ReviewDraftPlan
DiscussProcurement
Philosphy
LegalOptions/Provide
Guidance
PrepareContracts
A
I
I
I
Administrative Specs
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PresentOptions/
DocumentStrategy
DevelopEvaluationProcess
A
I
LeadContract
NegotiationsA
I
I
ReviewDesign
Submittals
StrategyInput
PrelimPublic
Assessment
MarketFeedback
MarketFeedback
MarketFeedback
ExpressInterest
I
IDetermine
StakeholderStrategy
PrepareRelationsStrategies
A
ReviewDraftPlan
ReviewDraftPlan
I
StrategyInput
RiskAssessment
RiskAssessment
A
CommercialTerms
ContractPrinciples
A
Terms ofReference
A
A
A
A
Assist inContract
Negotiations
ReviewDesign
Submittals
PrepareDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
SubmitQuals
AssembleTeam
Visit Site/Ask
Questions
SubmitProposal
Visit Site/Ask
Questions
Visit Site/Ask
Questions
PrepareBAFO
RefineAssumptions
I
PrepareMaster
Plan
ROI
Land UseAmendment
I
Infrastructure/SupportSystems
CompetitiveAnalysis
Program
ProjectCash Flow
Needs
InitialPhasing
InitialPhasing
I
DetermineSources& Uses
SeedBudget
Estimate
EstablishObjectives
ProvideQualitative
InputI I I
VisitSite
I
PrepareFeasibility/Business
Report
I
DocumentAlternatives
I
PrepareFatal FlawAnalysis
II
CustomizeProcess Map
& Strategy
I
CoordinatePermit
Process
PerformFunctionalEvaluation
I
I III I
StrategyInput
ResearchPotential
Uses
PrelimMarket
Analysis
I
PreparePrelim
Budget/Schedule
I
Leasevs. OwnAnalysis
EstimateSoft
Costs
DetermineSources& Uses
ProvideQualitative
Input
DocumentQualitativeAnalysis
SuggestAlternatives
SuggestAlternatives
EstablishObjectives
ProvideGuidance
I I I I I I
A
I
I
I
I
I I I
MarketFeedback
MarketFeedback
PerformPhysical
Evaluation
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PhysicalEvaluation
Market Needs
Program-ming
CodeSynopsis
Environ-mentalImpact
Assessment
SiteVisit
DocumentObjectives
EstablishCriteria
DocumentFinal Project
Definition
PrepareApplication
Serve asApplicant
IdentifyOperationsScenarios
IdentifyFinancingSources
Prelimi-narilyDefineProject
DiscussProcurement
Desires
ProvideGuidance
Define BasicNeeds
CommissionFacility
TrendsInput
MarketFeedback
P3 Project Management – A Process Linked to Critical Path Scheduling
United Nations SU/SSC Training Course 18
P R O J E C T M A N A G E M E N TP3
Pre-QualifyDefinition Rationale ProForma
MasterPlan
MarketResearch
EconomicAnalysis
ConfirmDemand
ProgramBudget
Schedule
Select &Negotiate Design
IMPLEMENTATIONCRAFT
MaintainDelivery/
DealStructure
RiskAssess-
ment
OPERATEDEVELOPPROCUREPLAN & TESTFEASIBILITYGENESIS
Risk/DealStructure Start-up DisposalBuild
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModificationsAssessment EnhancementMonitoring
ContractRenegotia-
tions
DesignCompliance
Situation Initial Idea,Needor Vision
PrelimProjectDefinition&Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
SeedFunding
FeasibilityReport/
BusinessCase
ProcessMap& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
FinalProjectDefinition
Environ-mental/
PermittingAnalysis
SiteSelection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach&StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
FinancingPlan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposal
Evaluation
ProcurementDocuments
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModificationsAssessment EnhancementMonitoring
ContractRenegotia-
tions
DesignCompliance
Situation Initial Idea,Needor Vision
PrelimProjectDefinition&Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
SeedFunding
FeasibilityReport/
BusinessCase
ProcessMap& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
FinalProjectDefinition
Environ-mental/
PermittingAnalysis
SiteSelection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach&StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
FinancingPlan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposal
Evaluation
ProcurementDocuments
ConstructionOversight
Commis-sioning
AdministrationStartup
ContractModifications
Assessment EnhancementMonitoring Contract
Renegotia-tions
DesignCompliance
Situation Initial Idea,Need or Vision
Prelim ProjectDefinition &Rationale
PrelimBudget/
Schedule
ObjectivesSetting
AlternativesIndexing
Seed Funding
FeasibilityReport/
BusinessCase
Process Map& Strategy
Fatal FlawAnalysis
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
Final ProjectDefinition
Environ-mental/
PermittingAnalysis
Site Selection/Analysis
Asset/SystemEvaluation
MasterSchedule/
Budget
PoliticalClimate
Assessment
Public/VendorOutreach &StakeholderConsultation
PrelimBusiness
Plan
MasterPlan &
Phasing
ProcurementStrategy
RiskAssessment/
Allocation
BusinessPlan
Vendor Pre-Qualification
ConceptDesign/
PerformanceSpecs
DealStructuring/
Financing Plan
DeliveryMethodology
CommercialTerms/
ContractPrinciples
ContractNegotiations
VendorProposal
Evaluation
ProcurementDocuments
Property Management
Construction
Developer
Design/Engineering
Brokerage/Marketing
Legal
Finance/Accounting
Public "Owner"/Sponsor
Program Manager
User/Tenant
II
OverseeConstruction
AdministerConstruction
ConstructFacility
VisitSite
SuperviseStart-upActivities
ProvideGuidance
I
I
I
ApplyScope/Quality
Controls
SuperviseCommission-ing Activities
AuditDevelopment
Costs
ConfirmContract
Compliance
I
ApplyMonitoring
Controls
A
I
I
LeadContract
NegotiationsA
ReviewContract
Mods
A
Assist inContract
Negotiations
ReviewContract
Mods
VisitSite
I
CompletePunchlist
OverseeCommission-
ing
OverseePunchlist
Completion
I I
MakeCommission-
ingAdjustments
PreparePunchlist
ManageFacility
OverseeFacility
Management
A
I
I
I
AssessContract
Compliance
ApplyMonitoringControls
DocumentEnhancements
I
SuggestEnhancements
SuggestEnhancements
ProvideGuidance
ReviewMajor
ContractMods
ExecuteContract
Mods
IdentifyHotspots/
PowerPlayers
AssessPublic
& PrivateAttitudes
RiskIdentification
I IVisitSite
DocumentMajor Deal
Terms
I
PreparePreliminaryBusiness
Plan
PresentAlternatives
I
PrepareMasterBudget/
Schedule
PrepareGuidance
Report
I
PrepareRFQ &RFP
I
I II
ConductOutreachSessions
I
PrepareFinal
BusinessPlan
IdentifyHotspots/
PowerPlayers
IdentifyStakeholders
RiskAllocation
RiskMatrixing
ReviewDraftPlan
ReviewDraftPlan
DiscussProcurement
Philosphy
LegalOptions/Provide
Guidance
PrepareContracts
A
I
I
I
Administrative Specs
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PresentOptions/
DocumentStrategy
DevelopEvaluationProcess
A
I
LeadContract
NegotiationsA
I
I
ReviewDesign
Submittals
StrategyInput
PrelimPublic
Assessment
MarketFeedback
MarketFeedback
MarketFeedback
ExpressInterest
I
IDetermine
StakeholderStrategy
PrepareRelationsStrategies
A
ReviewDraftPlan
ReviewDraftPlan
I
StrategyInput
RiskAssessment
RiskAssessment
A
CommercialTerms
ContractPrinciples
A
Terms ofReference
A
A
A
A
Assist inContract
Negotiations
ReviewDesign
Submittals
PrepareDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
ReviewDesign
Submittals
SubmitQuals
AssembleTeam
Visit Site/Ask
Questions
SubmitProposal
Visit Site/Ask
Questions
Visit Site/Ask
Questions
PrepareBAFO
RefineAssumptions
I
PrepareMaster
Plan
ROI
Land UseAmendment
I
Infrastructure/SupportSystems
CompetitiveAnalysis
Program
ProjectCash Flow
Needs
InitialPhasing
InitialPhasing
I
DetermineSources& Uses
SeedBudget
Estimate
EstablishObjectives
ProvideQualitative
InputI I I
VisitSite
I
PrepareFeasibility/Business
Report
I
DocumentAlternatives
I
PrepareFatal FlawAnalysis
II
CustomizeProcess Map
& Strategy
I
CoordinatePermit
Process
PerformFunctionalEvaluation
I
I III I
StrategyInput
ResearchPotential
Uses
PrelimMarket
Analysis
I
PreparePrelim
Budget/Schedule
I
Leasevs. OwnAnalysis
EstimateSoft
Costs
DetermineSources& Uses
ProvideQualitative
Input
DocumentQualitativeAnalysis
SuggestAlternatives
SuggestAlternatives
EstablishObjectives
ProvideGuidance
I I I I I I
A
I
I
I
I
I I I
MarketFeedback
MarketFeedback
PerformPhysical
Evaluation
VisitSite/Perform
Analysis
ProvideValuation
Research& Interpret
Zoning
I
PhysicalEvaluation
Market Needs
Program-ming
CodeSynopsis
Environ-mentalImpact
Assessment
SiteVisit
DocumentObjectives
EstablishCriteria
DocumentFinal Project
Definition
PrepareApplication
Serve asApplicant
IdentifyOperationsScenarios
IdentifyFinancingSources
Prelimi-narilyDefineProject
DiscussProcurement
Desires
ProvideGuidance
Define BasicNeeds
CommissionFacility
TrendsInput
MarketFeedback
Practical Guide for P3 Program Management
Place landfill photo
United Nations SU/SSC Training Course 19
P R O J E C T M A N A G E M E N TP3
Six Distinct Phases
United Nations SU/SSC Training Course 20
P R O J E C T M A N A G E M E N TP3
Genesis: What’s the need, what’s driving the need, and is there a need for a Public/Private Partnership?
Feasibility: Is a Public/Private Partnership feasible, not only financially, but practically? Can it be done?
Plan & Test: What is the best way to complete the project? Has the plan been thoroughly tested to assess market demand, public and stakeholder feedback, economics and potential “fatal flaws” that could derail the project?Procure: How do you choose and contract with the best-value private partner? What’s the best method and what do current statutes allow?
Implement: How can the project best be delivered — financed, designed, built, operated and maintained?
Operations: Is the private sector partner fulfilling its obligations, and is it necessary to negotiate changes to the contract? Is everything running smoothly?
OPERATEOPERATE
IMPLEMENTIMPLEMENT
PROCUREPROCURE
PLAN & TESTPLAN & TEST
FEASIBILITYFEASIBILITY
GENESISGENESIS
Genesis – What’s the Need?
Will a P3 Satisfy It?
Kick-off and Vision Overview
Data Collection and Analysis
On-site Tours/Condition Survey and Analysis
Vision Refinement
Objectives Setting
United Nations SU/SSC Training Course 21
P R O J E C T M A N A G E M E N TP3
Genesis – Preliminary Project Definition
Preliminary Test Plan
Preliminary Risk Analysis (RAP)
Development Options/Frame of Reference (FoR)
United Nations SU/SSC Training Course 22
P R O J E C T M A N A G E M E N TP3
Genesis – Preliminary Feasibility Check/Validation Fatal Flaws
Development Options Testing
Process Map and Strategy
Master Schedule
United Nations SU/SSC Training Course 23
P R O J E C T M A N A G E M E N TP3
Genesis – Phase 1 Process Map
United Nations SU/SSC Training Course 24
P R O J E C T M A N A G E M E N TP3
Feasibility – Can It Be Done?
Is a P3 Practical?
Call for Ideas
Request for Expression of Interest
“Case Study” Tours
Environmental and Geotechnical Analysis
Infrastructure Analysis
Place landfill photo
United Nations SU/SSC Training Course 25
P R O J E C T M A N A G E M E N TP3
Feasibility – Return on Investment
Master Development Budget
Preliminary Development Pro-Forma
Market Focused Interviews
Input Workshops
Economic Analysis
RAP Session
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United Nations SU/SSC Training Course 26
P R O J E C T M A N A G E M E N TP3
Feasibility – Risk
P3 Delivery & Risk Management Workshop
Final Test Plan
Fatal Flaw Update
Sales and Communications Strategy
Risk-Allocation, Procurement Strategy & Delivery Methodology
Commercial Terms & Contract Principles
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United Nations SU/SSC Training Course 27
P R O J E C T M A N A G E M E N TP3
Feasibility – Phase 2 Process Map
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United Nations SU/SSC Training Course 28
P R O J E C T M A N A G E M E N TP3
Plan and Test
Market Based Feedback
Are Concepts Sufficient?
Constant Check for Fatal Flaws
Is the Project Real?
Feedback Based AdjustmentsPlace landfill photo
United Nations SU/SSC Training Course 29
P R O J E C T M A N A G E M E N TP3
Plan and Test – Is There a Sound Business Case?
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United Nations SU/SSC Training Course 30
P R O J E C T M A N A G E M E N TP3
Plan and Test - Phase 3 Process Map
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United Nations SU/SSC Training Course 31
P R O J E C T M A N A G E M E N TP3
Procurement and Contracting
Delivery/Deal Structure
Pre-Qualify
Select & Negotiate
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United Nations SU/SSC Training Course 32
P R O J E C T M A N A G E M E N TP3
Structural Framework
A Matter of Balance
Financing
“Ownership”/Occupancy
Project Delivery
Procurement Approach
Contracting Methodology
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United Nations SU/SSC Training Course 33
P R O J E C T M A N A G E M E N TP3
Structure Drivers
Project Goals
Public Entities Characteristics
Marketplace Realities
“Ownership”/Occupancy
Direct Ownership
Traditional Lease
Build-to-suit Lease
Lease/Purchase (fixed or variable)
Synthetic Lease
United Nations SU/SSC Training Course 34
P R O J E C T M A N A G E M E N TP3
Financing
Cash Purchase
Debt Financing (bonds/mortgage)
Leasing (many variations)
Lease/purchase
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United Nations SU/SSC Training Course 35
P R O J E C T M A N A G E M E N TP3
Project Delivery – “Mainstream”
Traditional (design-bid-build)
Multi-prime
Construction Management at Risk
Design-Build Place landfill photo
United Nations SU/SSC Training Course 36
P R O J E C T M A N A G E M E N TP3
Project Delivery – Variations on a Theme Finance-Design-Build (turnkey)
Finance-Design-Build-Leaseback (typical)
Finance-Design-Build-Operate
Finance-Design-Build-Operate & Maintain
Sale-Leaseback (user develops)
Build-Operate
Build-Operate-Transfer
Build-Own-Operate-Transfer
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United Nations SU/SSC Training Course 37
P R O J E C T M A N A G E M E N TP3
Project Delivery – Many Acronyms DBB
DB
FDB or DBF
DBO
United Nations SU/SSC Training Course 38
P R O J E C T M A N A G E M E N TP3
DBOM
BO
BOT
BOOT
Procurement Approach
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United Nations SU/SSC Training Course 39
P R O J E C T M A N A G E M E N TP3
Price
A Key Factor?
The Only Factor?
How Much Can Be Done Before Price is Set?
Selection
Low-Bid
Weighed Criteria
Equivalent Design/Lower-Bid
Fixed Budget/Best Design
Meets Criteria/Low Bid
Best Value (adjusted low bid, weighted criteria including price)
Best Value – Weighted Criteria
United Nations SU/SSC Training Course 40
P R O J E C T M A N A G E M E N TP3
ProposerQualitative
Score (60 max.)
PriceProposal
Price Score(40 max.)
Total Score(100 max.)
Firm “A”
Firm “B”
Firm “C”
51
53
44
1,629,000
1,546,000
1,510,000
37
39
40
88
92*
84
Best Value – Adjusted Low-Bid
United Nations SU/SSC Training Course 41
P R O J E C T M A N A G E M E N TP3
Proposer QualitativeScore
Price Proposal
Adjusted Price
Firm “A”
Firm “B”
Firm “C”
0.85
0.95
0.50
1,000,000
1,300,000
800,000
1,176,471
1,368,421
1,600,000
Procurement Approach
Sole Source
RFP
RFQ/RFP (pre-qualify, then select)
RFEOI/RFQ/RFP (determine interest, pre-qualify, select)
Contingent Designation and Simultaneous Negotiations
United Nations SU/SSC Training Course 42
P R O J E C T M A N A G E M E N TP3
Contract Methods
Lump Sum
Cost Plus
Cost Plus with GMP
Unit Price
Bonus/Merit Awards
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United Nations SU/SSC Training Course 43
P R O J E C T M A N A G E M E N TP3
Procurement & Contracting – Phase 4 Process Map
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United Nations SU/SSC Training Course 44
P R O J E C T M A N A G E M E N TP3
Implementation – Phase 5
Design Compliance
Construction Oversight
Commissioning and Administration
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United Nations SU/SSC Training Course 45
P R O J E C T M A N A G E M E N TP3
Operations - Phase 6
Startup
Monitoring
Assessment
Enhancement
Contract Modifications
Contract Renegotiations
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United Nations SU/SSC Training Course 46
P R O J E C T M A N A G E M E N TP3
P3 – Process Players
Sponsors/Users
Finance/Accounting
Legal
Owner/Developer
Program Manager
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United Nations SU/SSC Training Course 47
P R O J E C T M A N A G E M E N TP3
Brokerage/Marketing
Design/Engineering
Construction
Relocation
Property/Facility Management
P3 – Process Responsibilities
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United Nations SU/SSC Training Course 48
P R O J E C T M A N A G E M E N TP3
Initial Ideaor Need Seed FundingSituation
Prelim ProjectDefinition &Rationale
AlternativesIndex
PrelimEconomic/FinancialAnalysis
QualitativeAnalysis
Fatal FlawAnalysis
Process Map& Strategy
FeasibilityReport/
BusinessCase
ObjectivesSetting
PrelimBudget/
Schedule
CommercialTerms/
ContractPrinciples
DealStructuring
ConceptDesign/
PerformanceSpecs
ProcurementDocuments
Vendor Pre-Qualification
VendorProposal
Evaluation
RiskAssessment/
Allocation
DeliveryMethodology
ContractNegotiations
CommissioningAdministration
ConstructionOversight
Startup Monitoring Assessment EnhancementContract
Mods Contract
Renegotiations
Sponsor/User/Tenant
Finance/Accounting
Legal
Owner/Developer
Program Manager
Brokerage/Marketing
Designer/Engineer
Constructor
Relocation
Property Manager
Initial Ideaor Need Seed FundingSituation
Prelim ProjectDefinition &Rationale
R
R
R
R
Define
Basic Need
s Source&
Uses
Budget
Market
Analysis
P3 Program Management Summary
United Nations SU/SSC Training Course 49
P R O J E C T M A N A G E M E N TP3
• Risk Assessment/ Allocation
• Delivery Methodology• Commercial Terms
/Contract Principles• Deal Structuring • Concept Design/ Performance Specs • Procurement Documents• Vendor Pre-Qualification • Vendor Proposal Evaluation • Contract Negotiations
• Startup• Monitoring• Assessment• Enhancement• Contract Mods• Contract Renegotiations
• Objectives Register• Alternatives Index• Prelim Schedule/ Budget• Prelim Economic/
Financial Analysis• Qualitative Analysis• Fatal Flaw Analysis • Process Map & Strategy • Feasibility Report/
Project Approval
• Asset/System Evaluation • Site Selection/ Analysis• Environmental/ Permitting Analysis• Final Project Definition • Master Schedule/
Budget • Political Climate Assessment • Procurement Strategy• Prelim Business Plan• Public/Vendor Outreach & Stakeholder Consultation• Business Plan
• Design Compliance• Construction Oversight• Commissioning Administration
• Prelim Project Definition • Seed Funding
OPERATEOPERATEIMPLEMENTIMPLEMENTPROCUREPROCUREPLAN & TESTPLAN & TESTFEASIBILITYFEASIBILITYGENESISGENESIS
John F. Williams, SVPNational Director - Governmental Consulting and PlanningHDR Engineering, Inc.New York City
PROJECT MANAGEMENTP3