Indiana has established itself as a national leader in leveraging private sector capital and innovation to finance, construct and maintain major transportation infrastructure projects.
Indiana statute allows INDOT and/or the Indiana Finance Authority (IFA) to contract with a private entity to manage all or part of a transportation project. Unlike INDOT’s traditional procurement process of Design-Low Bid-Build, innovative delivery determines the best mix of project elements, which could include the development, planning, design, construction, maintenance, repair, rehabilitation, expansion, financing, and/or operation of a transportation project through a public-private agreement (PPA).
Indiana has two P3 statutes for transportation projects – IC 8-15.5 (IFA projects) and IC 8-15.7 (INDOT projects). The statutes define which projects have to be procured using the INDOT vs. IFA statute. Both P3 statutes are very similar in terms of procurement and contracting requirements.
Any P3s that involve tolling, long-term contract terms (greater than 2 years), financing, or projects on Interstate 69 must be procured under the IFA statute. The contract will be between the IFA and the contractor, and INDOT provides technical expertise and oversees execution of/compliance with the contract. The contract is funded through INDOT appropriations: INDOT transfers money to IFA and IFA pays the expenses under the contract with those funds.
INDOT’s P3 Guidelines define the process for evaluating and selecting which projects to pursue as P3s, as well as a process for evaluating potential conflicts of interest. Some of the factors taken into consideration include: project complexity, opportunities for private sector innovation, need to accelerate project development, potential efficiencies through risk transfer, ability to transfer risk or responsibility, funding requirements, and ability to raise capital.
A Design-Build-Best Value procurement is one form of P3 and an alternative to the traditional design- low bid-build model traditionally used for project delivery. Best value procurements allow INDOT to establish the RFP evaluation criteria based on project priorities and select a winner based on that criteria.
The winning proposal will provide the best value to taxpayers as opposed to just the lowest cost.
Indiana P3 Project Summary
Indiana Toll Road Lease
An IFA lease/concession agreement to operate and maintain the Indiana Toll Road. In 2006, ITR Concession Co. (now owned by IFM Investors) paid Indiana $3.8 billion for the operating rights of the Indiana Toll Road. The lease agreement with the state runs for 75 years, through 2081. The Indiana Toll Road runs for 157 miles between the Ohio Turnpike and Chicago Skyway
Lewis and Clark Bridge (Design-Build-Finance-Operate-Maintain)
IFA contracted with WVB East End Partners to design, build, finance, operate and maintain the Ohio River Bridges East End Crossing, which has since been renamed the Lewis and Clark Bridge. The contract term is 35 years after achievement of “open to traffic.”
ORB Toll Services Provider (Provide, Operate, Manage and Maintain)
IFA contract with Kapsch Traffic Com IVHS, Inc. to provide, operate, manage, and maintain a toll collection system and provide back office toll collection and customer service for the Louisville Southern Indiana Ohio River Bridges Project. The Kennedy, Lincoln and Lewis and Clark bridges are all tolled electronically - no toll booths, gates or coin baskets. Riverlink is the marketing brand for the toll collection system.
I-69 Major Moves 2020 Expansion Project (Design-Build-Best Value)
IFA contract with Milestone Contractors, LP to design and build the I-69 Major Moves 2020 Expansion Project, which includes constructing additional travel lanes along I-69 within the existing median from Exit 205 (116th Street and SR 37 in Fishers) to north of SR 13; constructing an additional outside auxiliary lane on SB I-69 from 106th Street to 116th Street; and modifying the existing diamond interchange at Exit 210 (Campus Parkway/Southeastern Parkway). This is a fixed-price, $91 million contract. Project currently under construction.
I-65 Northwest Indiana Expansion Project (Design-Build-Best Value)
INDOT contract with Walsh Construction Company II, LLC to design and build the I-65 Northwest Indiana Expansion Project. The $62 million contract includes constructing one additional travel lane along I-65 within the existing median from SR 2 north to US 231, outside shoulders and restriping from 4-lanes to 6-lanes from US 231 north to US 30, and replacement of the Kankakee River Bridges. Proposal innovations resulted in 22% savings when compared to original project estimates and completion 18 months earlier than anticipated. Project currently under construction.
I-65 Southeast Indiana Project (Design-Build-Best Value)
INDOT issued an RFP in December 2016 to design and build 14 miles of I-65 in Jackson and Bartholomew counties through a public-private partnership. The $143 million project includes pavement replacement and rehabilitation for I-65 northbound and southbound travel lanes and shoulder from US 50 to SR 58; widening of portions of the median shoulder to accommodate a future added travel lane; and upgrading bridges and small structures from US 50 to SR 58. Notice of Designation in process with close of contract scheduled for July 2017.
Public Private Partnership Director
Indiana Department of Transportation
Indianapolis, IN 46204