Alternative Procurement Guidebook to Help Permittees With CBP3s and Pay-for-Performance Contracts

Date / Time:
Tuesday, Sep 15 4:00pm to 4:30pm
Location:
3
Track / Session:
Track: Funding and Financing / Session 4
Description/Abstract: 

The community-based public-private partnership (CBP3) guidebook contains the tools and steps to help stormwater mangers decide whether alternative procurement methods will benefit their jurisdiction and understand how to move through the CBP3 process. Components of the guidebook can also provide guidance to those involved in project finance, procurement, construction, and maintenance, as well as other interested stakeholders such as elected officials and local community advocates. Although the guidebook focuses on pay-for-performance contracting and CBP3s, the guidance can be applied to many other alternative procurement strategies.

Through four distinct sections the guidebook helps the reader determine whether a CBP3 might be right for their community, understand the different program design elements to consider, strategize how to effectively engage key stakeholders, and learn the first steps to start up, including tools that ease the start up phase.

Section 1: Is a CBP3 Right for Your Community provides a flowchart to determine the right contracting model for each unique municipality. For example, if there is no sustained revenue source or meaningful project implementation scale, consider project-level performance contracts as opposed to a programmatic CBP3 arrangement. Additionally, to support a CBP3 the municipality should have a diversified risk portfolio to motivate robust proposals rather than consider a dollar/cost floor for a CBP3.

Section 2: Designing a CBP3 identifies the typical process and design elements for developing a CBP3 with broad support while reducing the likelihood that a critical constraint emerges after investing significant effort. This section outlines a four-step development process and then highlights the relevant design elements in each step. For example, in CBP3 scoping and design, determine the portion of predictable revenue streams that are available, as well as any funding gaps that would need to be covered by additional revenue and funding sources.

Section 3: Building Support for Your CBP3 describes the importance of strategic stakeholder engagement and provides strategies to build support for your project. While stakeholder support is necessary for CBP3 success, engaging stakeholders is costly, time-consuming, and requires significant resources. This section provides a table that outlines how to involve different influencers at an appropriate engagement level given their respective resources and desired level of commitment to the CBP3 program.

Section 4: Getting Started provides checklists for designing the products you need to move forward such as, essential elements of an RFQ or RFP with linked references to additional detail. This section also contains a checklist of the essential elements of a performance contract and a link to a Pay for Performance Toolkit developed with federal grant funds.

This technical presentation will focus on presenting the Guidebook, as developed through a state-funded contract with the Washington Department of Commerce. The presentation will mention case studies of successful alternative procurements including: 1) The Clean Water Partnership in Prince Georges County which integrated community interests into project delivery by using small, minority, and women-owned businesses for more than half of the total project scope and 2) the Anne Arundel County, MD Full Delivery of Stormwater Benefits program that reduced treatment costs per acre from around $75k to around $15k over four successful cycles of private proposals. The attendees will be engaged with prepared interactive questions that are peppered throughout the presentation.

Primary Speaker:
Chad Praul, Environmental Incentives
Chad founded Environmental incentives nearly 15 years ago and helps permittees create performance-driven stormwater programs. He believes performance is achieved through adequate funding, clear metrics, consistent reporting and adaptive management. He’s also a big fan of youth soccer and the Mankind Project.