Programs and Partnerships
Current P3 Projects
South Mountain Freeway Public-Private Partnership Concept Advances
The Arizona Department of Transportation, in close collaboration with the Maricopa Association of Governments and the Arizona Division of the Federal Highway Administration, has selected the project-delivery approach that will be used to construct the South Mountain Freeway in the event that the Final Environmental Impact Statement (FEIS) indicates a preferred alternative rather than the no-build option. The South Mountain Freeway will be procured as a single project using a public-private partnership approach. The Design-Build-Maintain delivery mechanism will include a long-term maintenance component but will not include a private finance option.
This decision was made after more than a year's worth of analysis following the submission of an unsolicited proposal. The submission provided an opportunity for ADOT to explore several ways of delivering the project in the event the federal environmental impact process recommends a preferred alternative. This extensive analysis considered a traditional design-bid-build approach, several design-build options, and public-private partnership (P3) alternatives including those with maintenance options, private finance options, or both. Using a Value for Money approach, ADOT and its partner agencies determined which approach would provide the best value for Arizona taxpayers, which would allow the agency to mitigate risk most effectively, and which would provide the most efficient delivery option.
Nothing in this selection impacts the FEIS. No further procurement activities will move forward until the FEIS is released in mid to late September. Following the release of the FEIS, if it recommends a build alternative, ADOT will release a Request for Qualifications, which will serve to notify the industry of the qualifications that ADOT and its partners are seeking in potential bidders. Responders will have approximately six weeks to submit their required qualifications and will be notified approximately four weeks later of those firms or consortia of firms that are selected for the short list of potential bidders.
Statewide Asset Sponsorship Program: Request for Information
ADOT is investigating opportunities to offset operating costs and/or enhance revenue streams by effective and appropriate corporate sponsorship opportunities on various state-owned transportation assets.
ADOT currently envisions a program in which the consultant will plan, implement and deliver a comprehensive, high-quality sponsorship program and will perform functions including, but not limited to, marketing, sales, development of fee schedules and collection of revenue. The scope of work would primarily entail the identification of sponsorship opportunities throughout Arizona that are compliant with state and federal law and FHWA directives. All transportation assets and facilities, except rest areas, are eligible to be included in the program, which includes, but is not limited to, sections of state highway systems, interchanges, freeway patrol vehicles, traffic images and data, the 511 traveler information program, Motor Vehicle Department (MVD), ports of entry (POEs), websites, office space merchandising, the Grand Canyon National Park Airport (GCNPA) and the Adopt a Highway program (AAH); the estimation of the amount of annual revenue that could be generated through a comprehensive statewide asset sponsorship program operated for five (5) years; the development of standard sponsorship agreements, fee structure for program participation and participation guidelines; the prioritization and aggressive marketing of approved sponsorship opportunities; and finally, the sponsorship implementation that would require negotiation and collection/distribution of fees.
The purpose of this RFI is to seek the industry's perspective and feedback on the questions presented therein and to provide an opportunity for industry input on the overall procurement process for the program. Interested firms and parties are strongly encouraged to submit responses with detailed comments. The information provided in response to this RFI process will assist ADOT in the planning and development efforts as well as to provide ADOT viable options to consider in the procurement, financing, and delivery approach for this prospective future solicitation.
New Signs Part of GEICO Sponsorship Through Rest Area Public-Private Partnership
On June 10, 2014, the Arizona Department of Transportation unveiled the new "Safe Phone Zone" signs as part of a partnership with GEICO. The signs feature the GEICO Gecko image and can be seen along the highways leading to the rest areas and within the rest areas themselves. Travelers who stop to take a break at one of Arizona's 14 highway rest area locations will see new signs designating the rest areas as Safe Phone Zones, which is part of a nationwide effort to encourage drivers to pull into a safe location to use their phones for calling, texting and accessing mobile apps.
This sponsorship program is part of ADOT's rest area public-private partnership, which began last October and is the department's first fully implemented public-private partnership. Under this five-year agreement, Infrastructure Corporation of America, a private company, manages the daily maintenance and operations of the rest areas and has implemented a sponsorship and advertising program to generate revenue for reinvestment in the rest areas. The GEICO sponsorship is the first one to move forward. ADOT still owns all 14 rest areas.
"ADOT's top priority is safety and we are committed to educating the public about the dangers of distracted driving," said ADOT Director John Halikowski. "These Safe Phone Zones provide travelers with the opportunity to pull into a rest area where they can use their phones safely and responsibly. We are able to move this project forward because of the legislation enacted to generate public-private partnerships in Arizona — partnerships that have proven to be an innovative approach to funding transportation projects with non-traditional funding sources."
At the sign unveiling, Halikowski was joined by representatives from the Arizona Governor's Office of Highway Safety, GEICO and Infrastructure Corporation of America to speak about the new Safe Phone Zone signs at ADOT's offices in Phoenix. "Distracted driving is a major concern for motorists in Arizona and across the country. Each year, there is a growing number of injuries and fatal accidents directly related to this issue," said Martha Furnas, GEICO regional vice president. "GEICO is proud to partner with the Arizona Department of Transportation to create Safe Phone Zones throughout the state, where motorists can answer texts and make phone calls, all in a safe and convenient environment."
The Safe Phone Zone signs will be installed and maintained by Infrastructure Corporation of America, as part of the public-private partnership with ADOT. The company plans to generate other sponsorships to add more amenities within the rest areas to provide a better experience for travelers.
"Every state is facing a tremendous challenge to do more with less in order to keep their infrastructure preserved and maintained," said Butch Eley, CEO of Infrastructure Corporation of America. "ICA is proud to be Arizona's partner in an innovative project that will ensure rest areas are well-maintained, that they generate new revenues to support high-quality maintenance, and through GEICO's participation and expansion of the Safe Phone Zones, will make the highways safer. We are thrilled the Arizona Department of Transportation is taking a nationally leading role in advancing this innovative, public-private partnership model for the people of Arizona."
South Mountain Freeway Public-Private Partnership Concept Advances
The Arizona Department of Transportation has conducted a Request for Information and an industry forum related to the proposal to construct the South Mountain Freeway as a public-private partnership, should the freeway be approved through the ongoing federal environmental process.
The purpose of all of this is to seek the industry's perspective and feedback on specific questions and to provide an opportunity for industry input on the overall procurement process for the proposed project. The information obtained will help ADOT advance planning and development efforts for the project; help confirm or refine ADOT's project procurement, financing and delivery approach; and may result in the launch of a formal Request for Proposals.
The South Mountain Freeway remains a corridor under study, and this public-private partnership proposal has no impact on the ongoing Environmental Impact Statement that is scheduled to be finalized in 2014. The EIS must be completed and acceptable to the Federal Highway Administration regardless of how the proposed project is funded or constructed.
Public-private partnerships allow a private-sector entity to participate in the delivery of a transportation project. ADOT has authority to partner with the private sector to build or improve Arizona transportation facilities.
The Arizona Department of Transportation is set to relocate to new offices in Flagstaff as part of a first-ever public-private partnership designed to acquire new facilities for the agency and free up prime land for local redevelopment.
ADOT recently selected Vintage Partners, an Arizona-based development firm, as the developer that will relocate and consolidate the agency's offices in Flagstaff. This project, also known as a P3, will enable ADOT to move into new office space in Flagstaff, including new Motor Vehicle Division offices, at no cost to the department, in exchange for ADOT's existing property at 1801 S. Milton Rd.
Conceptual P3 Projects
Eligible P3 Projects
These are the eligible facilities types:
- Bus systems
- Guided rapid transit
- Parking facilities
- Rail yard and storage
- Rolling stock and other related equipment, items or property
- Other ADOT-related facilities and structures