An overview of Title 28, Chapter 22, Article 1

Under the new law, public-private partnerships include any project in which the private partner takes on risk and responsibility for transportation improvements that would have previously been borne solely by ADOT.

Public-private partnerships include new contracting concepts, such as design-build, which allows a single proposer to both design and build a facility rather than the traditional approach of bidding out one contract for design, another for engineering, and another for construction.  It also allows for the possibility that the private sector may design, build, maintain and operate a new facility, leaving ADOT in an oversight role only.  In that scenario, the private proposer could be paid for its work with public funds, through tolls or fees from users, or some combination of the two.  If tolls are to be part of a project, the toll setting process is required to be included in the project agreement. 

The new law grants the Department the authority, after a competitive procurement process, to award a project based on best value to the State, or to reject all proposals.  The best value can be based on price, financial proposal or other factors, though the Department is required to disclose its criteria as part of the project procurement.

Under the new law, public-private partnerships can be initiated either by the Department or through an unsolicited proposal.  In the case of unsolicited proposals, if the Department feels the proposal has merit, then it is required to go through a competitive procurement process. 

The Department may approve the use of PPPs by other public entities.

Personal information is confidential and kept protected under the new statute.  Improper use of such information is subject to a fine of $10,000 per occurrence.

The new statute does not require ADOT to engage in new practices or to change the way it currently does business.  Public-private partnership projects do not prohibit the Department from undertaking any improvement projects either currently identified or which may be identified in the future. The new law simply gives the ADOT the authority to explore new methods for the finance and construction of new or enhanced projects.