412 Neb. Admin. Code, ch. 4, § 004

Current through September 17, 2024

Section 412-4-004 - CRITERIA TO WEIGH IN ANALYZING WHEN USE OF P3 MAY BE APPROPRIATE FOR DELIVERY OF A DEPARTMENT TRANSPORTATION PROJECT

004.01A The Director of Transportation ("The Director") or designee will make an initial determination whether any proposed project will be considered for use of an Alternative Project Delivery Method or whether the project should be developed under the traditional design-bid build method of Neb. Rev. Stat. § 39-1348 et seq. If a proposed project is selected by the Director as a candidate for an alternative project delivery method, then the following criteria shall be applied in determining whether to use P3. The Director reserves the right to reconsider the use of P3 or another alternative delivery method whenever such reconsideration is in the best interest of the Department.

004.01B Subject to the provisions of Section 01.05, the following are qualitative considerations that the Department may evaluate when determining whether it is appropriate to use a P3 delivery method:

004.01B1 Whether a project presents complex technical requirements;

004.01B2 Whether a project affords a material opportunity to employ private sector innovations, technical concepts, or specialized knowledge/expertise;

004.01B3 Whether there is a need to accelerate completion or to contract for a date certain for project completion;

004.01B4 Whether the project affords the Department an opportunity to allocate typical public-sector risks to a private partner in exchange for the private sector meeting performance-based requirements rather than technical specifications;

004.01B5 Whether there are favorable market conditions, whether by way of greater competition for projects, a program of projects, or financial market conditions being conducive to private sector investment under a Value-for-Money analysis;

004.01B6 Whether P3 delivery may better meet the public expectations for project approach, project cost and completion;

004.01B7 Whether the project lends itself to delegating lifecycle, technology, or long-term performance responsibilities to the private partner(s);

004.01B8 Whether the project will be required to function at a high level, low failure rate, under intense use conditions;

004.01B9 Whether P3 delivery may make for more efficient use of State resources, including but not limited to human capital; and

004.01B10 Whether there is Value-for-Money in transactional/procurement costs to pursue P3 delivery rather than conventional delivery.

004.01C Subject to the provisions of 01.05, the following are capital planning, budgetary, and other monetary considerations that the Department may take into account when determining whether it is appropriate to use a P3 delivery method:

004.01C1 Whether there is need, or opportunity, in the project to predict, control, or reduce life cycle costs;

004.01C2 Whether there is a market opportunity to involve private investment to better manage capital planning dollars relative to the need to deliver the project in the nearer term;

004.01C3 Whether the project presents an opportunity to capture savings from the economies of scale;

004.01C4 Whether there is a market opportunity to involve private investment to maximize the timing and use of State revenue; and

004.01C5 Whether the project needs to emphasize (and thus to impose) operating and maintenance discipline to diminish or eliminate unexpected or deferred maintenance, or to plan for and manage expenses relating to planned maintenance, by shifting duties to the private partner.

412 Neb. Admin. Code, ch. 4, § 004

Adopted effective 8/22/2023