News: Long Island

Public Private Partnerships are a cost-effective and efficient approach

For over two years, we've been waiting for federal reauthorization of the Federal Safe, Accountable, Flexible, and Efficient Transportation Equity Act known as SAFE-TEA. While we've been waiting, the infrastructure here on Long Island and across the nation has continued to crumble and our skilled workforce has faced record unemployment. While we've been waiting, a few creative public officials and industry representatives developed Public Private Partnerships, known as P3s, a device that will advance infrastructure maintenance and construction at significant savings. And while we continue to wait for the political will to appropriate the SAFE-TEA and state budgetary allocations, P3s are the smart device that will allow government at any level, village, county, state, federal to maintain roads and bridges and construct new assets. Typically, governmental transportation agencies handle routine highway maintenance and private contractors, selected through a competitive bid process, conduct new construction or major rehabilitation work. This arrangement calls for municipal employees and adequate equipment inventory to be available full-time for whatever maintenance response may arise, regardless of actual need. The private bid process requires a sufficient private workforce be available for specific contracts for limited periods. This structure is cumbersome and inefficient, not only contributing to public payrolls and burgeoning public pension costs, but to increased unemployment benefits disbursed to private sector workers who are inevitably laid off at the completion of government contracts. Given that public works agencies are dramatically understaffed with additional layoffs inevitable, and the private infrastructure industry is already suffering unforgiving unemployment levels, P3s are the answer to reduce local payroll and pension costs and state unemployment expenses. The strength of both the public and private sectors in the P3 framework would provide a cost-effective and efficient approach to essential maintenance and new construction. Under a P3 framework, government could concentrate its efforts in its areas of strength: that is on the administration, compliance and enforcement of public works contracts, and private industry could remain staffed and equipped to conduct maintenance and construction needs keeping workforce consistently employed and productive. Economic development projects are essential to pull out from under this recessionary climate, and P3s are the perfect tool. Take those economic development projects well advanced in their planning and approval process which require infrastructure enhancements, and allow both private developers and local governments to contribute financial assets. Smart P3 investment will facilitate the project -a private goal, infrastructure improvement - a public goal, and economic development-the common goal. The Long Island Contractors' Association continues as a stalwart advocate of comprehensive, cost effective infrastructure policy and we seek partners to ensure our roads and bridges are ready to drive the economy forward and serve our communities. Will you join us? James Pratt is the president of the Long Island Contractors Association, Hauppauge, N.Y.
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