Performance Metrics for Public–Private Partnerships (2021)

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60 A P P E N D I X B Survey Questionnaire NCHRP SYNTHESIS 20‐05, TOPIC 51‐19 Performance Metrics for Public–Private Partnerships Dear Agency Representative, The Transportation Research Board (TRB), through the National Cooperative Highway Research Program (NCHRP), under the sponsorship of the American Association of State Highway and Transportation Officials (AASHTO), and in cooperation with the Federal Highway Administration (FHWA), is preparing a synthesis report on Performance Metrics for Public–Private Partnerships (P3). The purpose of this questionnaire is to identify and summarize the use of performance metrics for highway P3 projects. The focus is primarily on the metrics used for measurement and payment of post- construction operations and maintenance services. The results of the survey will be incorporated into a synthesis of highway agency practice and will become a comprehensive document of effective P3 performance metrics for use by agencies in their future P3 programs. This survey is being sent to you because you were previously identified as someone involved in your agency’s P3 program. If you are not the appropriate person at your agency to complete this questionnaire, please forward this request to the correct person. Please complete and submit this survey by February 15, 2020. We estimate that it should take no more than 15 minutes to complete. If you have any questions or problems with operation or access to the questionnaire, please contact our principal investigator, Dr. Doug Gransberg. Definitions The following definitions are used in conjunction with the agency questionnaire: Availability payment The Concessionaire/Developer will be reimbursed for financing provided using a long-term payment scheme that assigns future public funding as it becomes available from the funding sources. Availability payment concession In availability payment concessions, the sponsor (public owner) provides the private partner with availability payments to compensate it for designing, constructing, financing, operating, and maintaining the facility for a set concession period. During this time, the private partner receives a predictable set of income. Availability payments may be used on non-tolled projects, or on tolled projects where the revenue may not be sufficient to cover the debt repayment or in cases where the project sponsor wants to retain control over toll rates. Concessionaire/Developer The private entity in a P3 contract. Design-Build-Finance (DBF) A P3 contract structure that includes private financing but no long-term operations and/or maintenance responsibilities on the part of the private partner. Warranties are not considered long-term responsibilities in this context. Design-Build-Finance-Operate-Maintain (DBFOM) A P3 contract structure that includes private financing and long-term operations and maintenance responsibilities on the part of the private partner. Design-Build-Operate and/or Maintain (DBOM, DBO, DBM) A P3 contract structure that does not include private financing but does include some level of long-term operations and maintenance responsibilities on the part of the private partner. Handback criteria Project condition criteria used at the conclusion of the P3 agreement to transfer the facility back to the agency.

Survey Questionnaire 61   other revenue streams on the Concessionaire/Developer. Revenue risk concession With toll concessions, tolls generated by the project are the primary revenue source for the P3 transaction. The private sector partner maintains the right to collect the revenues during the concession period but bears the risk that the project toll revenues may not be adequate to pay the underlying project loans and interest and make a fair return on its investment. To protect the public sector interest in the event of robust revenue generation, some concession agreements include a revenue-sharing provision between the private partner and public sector if revenues exceed certain specified thresholds. Questionnaire Contact Information: Name Organization Phone E‐mail 1. Has your agency delivered any type of P3 project(s)? Yes No If yes, continue to question 2. If no, survey completed. 2. Which of the following variations of project delivery has your agency used, and how many projects either have been completed or are under development? Check all that apply. Delivery Method Financing/Risk Approach RemarksAvailability Payments No. of Projects Revenue Risk No. of Projects Hybrid¹ No. of Projects DBF DBO DBFO DBFM DBOM DBFOM DBFOM (Either/or) Other ¹Hybrid is defined as any structure with both an availability payment and a revenue risk component payable over the term of the contract 3. Does your agency have performance metrics in use on any of your P3 projects? Yes No If yes, continue to question 3. If no, the survey has been completed. 4. Please indicate the project phases in which performance metrics are used (select all that apply). Design Operations Construction Maintenance Project handback 5. Please indicate the type and number of P3 projects that have included a performance metric. Project type No. Project type No. New or reconstructed flexible pavement New or reconstructed rigid pavement Flexible pavement rehabilitation Rigid pavement rehabilitation Flexible pavement maintenance Rigid pavement maintenance New bridge construction Tolling systems Bridge rehabilitation Intelligent transportation systems Other: please specify Other: please specify Performance metrics Metrics used to measure the behavior, activities, and performance of a project. This should be in the form of data that measure required data within a range, allowing a basis to be formed supporting the achievement of overall project performance goals/objectives. Public–private partnership (P3) A contract between a public agency and a private entity to design, build, finance, and/or operate and/or maintain a public transportation project. Revenue risk The Project Agreement assigns the risk for actual revenues generated through tolling or . Hybrid concession In a Hybrid concession, there is a mix of availability payment obligations on the part of the sponsor and revenue risk obligations on the part of the developer. These may be used in cases when the sponsor desires to transfer a certain level of project revenue risk to the developer, but the revenue isn’t necessarily strong enough to cover all applicable project costs. This hybrid concept can be for the length of the concession term or for specified periods based on certain project performance metrics.

62 Performance Metrics for Public–Private Partnerships Metrics in Use Effectiveness Time to Penalty Feature of Work Remarks21 3 <24 1–3 >3 hours days days Flexible pavement Rigid pavement Guard rails Attenuators Fence Signs Drainage systems Barrier wall Toll equipment/buildings Lighting Bridges Vegetation control Sound barriers ITS operations Incident response Embankments Earth/rock cuts Other: please, specify below 7. Are the performance metrics used to measure performance of the Concessionaire/Developer in the Operations & Maintenance period the same as at the end of concession handback criteria? Yes No If No, what is the major difference? 8. How many years has your agency been using P3 performance metrics? < 1 year 2–5 years 5–10 years > 10 years 9. What criteria are used to determine which features of the P3 will be measured for performance (select all that apply)? Criteria Remarks New construction or reconstruction Statutory requirement Traffic volume (please specify) Project site conditions (please describe) Project length (please specify) Pavement type (please specify) Project complexity (please describe) Availability Other (please describe) 6. For which of the below general work categories does your agency utilize O&M P3 performance metrics (select all that apply)? For each category, rate your perception of the effectiveness of the metrics in use in measuring the desired performance objective. Recognizing that any category may have multiple performance indicators within the category, please provide a general overall response. 1 = not effective; 2 = marginally effective; 3 = effective. Indicate in the Time to Penalty column the appropriate period allowed for deficiencies to be corrected before a penalty is assessed.

Survey Questionnaire 63   13. If your agency employs incentive/disincentive schemes for P3 projects, in which features of the project are I/D schemes applied? Note: A “penalty” does not have a corresponding bonus, whereas a disincentive does have a corresponding incentive. Project Feature I/D Scheme Pavement Bridges Drainage Structures/Grading/Storm Sewerage Signage/Striping/Safety Devices Lighting/Electrical/Communications Tolling Systems Emergency Response Congestion Management Intelligent Transportation Systems Maintenance Other (please specify) 14. How does your agency determine performance criteria requirements (distress and condition types, thresholds, remedial activities)? 15. Please provide information where the researchers can obtain documentation that reflects your agency P3 performance metrics. This may include contract documents, agency reports, agency warranty‐related manuals (guidelines), policies, research reports, etc. Please provide as much information as possible to accurately capture your agency’s practice. Web link where documents are available for public download: Email address for contact to obtain documents: 10. What major challenges does your agency have with applying P3 performance metrics (select all that apply)? Criteria Remarks Does not apply — no major challenges Organizational Industry resistance Condition assessment Legal Specification development Defining threshold values Project selection Balancing performance value versus benefit ($) Other (please describe) 11. Describe the process your agency uses to apply performance metrics to deductions and/or penalties as applicable to the developer during the operations and maintenance phase of a P3 project: 12. Does your agency employ incentive/disincentive schemes for P3 projects? Yes, on all P3 projects No, skip to question 15 Yes, on some projects.

64 Performance Metrics for Public–Private Partnerships Figure 19. Survey responses. 17. Thank you for sharing your knowledge and your precious time. If there is anything else you would like to share with the research team, please include it in the textbox below. Survey Responses Individual survey responses are reported in Chapter 3. Figure 19 shows the map of survey responses. 16. The synthesis will also include case examples illustrating agency P3 performance practices. During the development of the case example, additional follow‐up interview questions may be required. Agencies will be provided the opportunity to review the case example write‐up for accuracy. Would your agency be interested and willing to participate by providing a case example interview? Yes No