Emerging Technology
Article | July 13, 2022
COVID-19 hit the construction industry like a tsunami. Almost all medium to large construction projects were shuttered as government leaders scrambled to protect the health of Americans.
Today, however, even though the pandemic has not been contained, there is renewed interest in construction and reason for optimism. The immediate future is considerably brighter today than it was three months ago. Although construction projects are moving slower and fewer new ones being launched, there is definite movement.
One year ago, construction projects were so abundant industry leaders warned of imminent danger related to America’s shortage of skilled construction workers, designers, and engineers. Those alarms are not as loud today, but that could change soon because new projects are being announced on a daily basis throughout the country.
Officials at the Tampa International Airport placed approximately $906 million in construction projects on hold, but there’s little doubt that construction will begin again in the not too distant future. Air travel is down more than 95 percent, and urgency for planned expansions and upgrades is not as great.
Many colleges and universities also have delayed projects. In fact, the University of Nebraska-Lincoln (UNL) put a two-year halt on construction planned for this month. A $155 million football facility near Memorial Stadium is delayed primarily because university officials anticipate a $50 million budget shortfall. There’s also uncertainty about when sports events can resume.
But, more positive news may definitely be found in almost every state in the U.S. Here are just a few examples of upcoming construction projects in America.
Louisiana
The Louisiana State Legislature has approved $529 million for construction on university campuses. The University of Louisiana at Lafayette plans to spend $187,700 to repair Fletcher Hall and $16.4 million to renovate Madison Hall. Northwestern State University will receive $37.4 million for construction related to Kyser Hall. Louisiana Tech University plans to spend $40.5 million for a number of campus improvements, and Louisiana State University (LSU) has $227.7 million for construction projects. Southern University in Baton Rouge has planned renovations and expansions for about $18.2 million.
North Carolina
Wake County has approved a $1.47 billion budget and Capital Improvement Plan (CIP). It outlines construction projects at Wake Technical Community College that include new buildings on many campuses. One project outlined in the CIP is a new Emergency Operations Center, and other projects include a new Public Health Center, construction of training space at the Board of Elections Center, facility upgrades at Human Services Sunnybrook, a Facility Condition Assessment program, and vacant space build out for housing at Oak City Multi-Services Center.
Missouri
On June 2, North Kansas City Schools received approval for a $155 million zero-tax increase bond issue. Lee’s Summit voters also approved a new $224 million bond issue for various infrastructure projects in the R-7 School District. Some of the construction projects include a fourth middle school facility and renovations to the three existing middle school facilities. Voters approved a no-levy-increase bond question for $25 million for improvements to district facilities at Belton School District 124.
Wisconsin
The city of Sun Prairie has approved its 2021-2023 Capital Improvement Plan that includes many construction projects. The funding includes $7.4 million for phosphorous treatment and plant capacity upgrades at the Water Pollution Control Facility and $2.1 million for Sun Prairie Utility’s Business Park Substation expansion. Unfunded projects for 2021 include $3 million for a library expansion, a public works campus, and a Grans-Hepker intersection expansion. In 2022 the city will spend $7.4 million on street reconstruction. Another unfunded project for years 2022 and 2023 is a $5.7 million bathhouse renovation.
New Jersey
The New Jersey Turnpike Authority and the South Jersey Transportation Authority approved a toll increase to fund approximately $25 billion in construction over 10 years. Projects include the widening of 15 different sections of a turnpike, the replacement of a bridge between New Jersey and Pennsylvania, and upgrades to roadway tolling stations. The plan also calls for widening of a 13-mile section of the Expressway, construction of a direct connector to the Atlantic City Airport and installation of cashless toll equipment.
The governor announced plans this week to develop an offshore wind port on an artificial island along the Delaware River, potentially giving the state a competitive edge in the race to attract offshore wind jobs and manufacturers. The project would be unlike anything yet proposed in the U.S. and its cost could be as high as $400 million. The New Jersey Economic Development Authority will lead development of the port with the hope of creating thousands of high paying jobs and establishing New Jersey as the national capital of ‘off shore wind’.
Texas
The Capital Area Metropolitan Planning Organization (CAMPO) Transportation Policy Board adopted a 2021-2024 Transportation Improvement Program (TIP) that has numerous major construction projects. It includes $633 million for the I-35 Capital Express project which will be sponsored by the Texas Department of Transportation (TxDOT). The TIP also outlines transportation plans from regional transportation entities including TxDOT-Austin District, Capital Metro, Capital Area Rural Transportation System, and other local sponsors that have federally funded or regionally significant projects. One project the board chose to maintain is construction of two lane frontage roads on U.S. Highway 183. That project is projected to cost approximately $75 million.
Other projects in the CAMPO plan are:
Slaughter Lane widening to six lanes from Brodie Lane to N. Mopac Expressway – $15.73 million;
William Cannon widening to four lanes from McKinney Falls Parkway to Running Water Drive – $14.69 million;
Braker Lane extension from Samsung Boulevard to Dawes Place – $14.05 million;
University Boulevard reconstruction and widening to four lanes from County Road 110 to A.W. Grimes Road – $7.88 million;
Gattis School Road Segment 6 widening to six lanes – $11.38 million;
RM 967 widening from Oak Forest Drive to FM 1626 – $5.32 million;
FM 621 widening from CR 266 to De Zavala Drive in Hays County – $5.1 million;
SH 180 left turn lane installation and elimination of shoulder gap – $2.05 million; and,
Hopkins Multi-use Bike-Pedestrian Facility construction – $2 million.
Construction, engineering, architectural, and design firms will, no doubt, find immediate opportunities to contract with public officials. Additionally, as Congress begins to take up the task of developing an infrastructure bill, it is clear that construction projects will be hailed as the fastest way to stimulate the nation’s economy – a goal that has bipartisan support in America.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Government Business
Article | March 11, 2022
Government agencies seek to deliver quality services in increasingly dynamic and complex environments. However, outdated infrastructures—and a shortage of systems that collect and use massive real-time data—make it challenging for the agencies to fulfill their missions. Governments have a tremendous opportunity to transform public services using the “Internet of Things” (IoT) to provide situation-specific and real-time data, which can improve decision-making and optimize operational effectiveness.
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Article | May 26, 2021
While Americans wait to see if Congress will pass an infrastructure bill, alternative funding and collaborative initiatives are becoming the norm. Even the recent announcement that the U.S. is now in a designated recession has not caused Congress to focus specifically on economic recovery. Economists, financial experts, industry leaders, and elected officials all know that funding large public projects stimulates the economy and creates jobs. They also know that throughout history, infrastructure reform has been a proven path to economic recovery.
Currently, private sector investors stand ready to fund infrastructure projects in America and local government leaders are moving forward to launch projects of all types. Soon, there may be little need for Congress to do anything. The opportunity to lead in this area may soon be usurped by visionary regional leaders and private sector partners.
Destruction brought on by climate change, the devastation resulting from COVID-19, cyber threats on public networks, lack of adequate broadband, and a desperate need for new sources of revenue – these are the problems that have forced visionary leaders to take action and not wait for Congress. Now, change is coming on strong, and that’s a very good thing!
Airports are not waiting to launch critical and long-overdue expansions. State leaders already are combating rising seas and finding ways to install broadband. Wastewater plants are being constructed or upgraded, and various transportation projects are being launched. Because local leaders lacked the luxury of waiting to see if Congress would endorse or partly fund infrastructure projects, they found alternative funding sources.
Congress could have, and should have, already passed an infrastructure bill, even if it only established guidelines or outlined best practices. The Canadian Council for Public Private Partnerships would have been a good model to follow. An endorsement or a statement of support from Congress related to public-private partnerships (P3s) would still be encouraging.
But, with or without encouragement, regional leaders throughout the country are working with industry, nonprofit organizations, academia, and investors to launch large infrastructure projects. And, as that happens, local economies benefit and jobs are created. Entire communities and numbers of citizens benefit from the good that emanates from public safety, quality of life, asset preservation, sustainability, and taxpayer relief.
But, to the surprise of no one, infrastructure projects are costly and many of them require a number of consolidated funding sources. Infrastructure projects also may be funded through a revenue repayment model that compensates private sector investors over a decade or two. Other projects are funded by bonds, grants, and federal programs such as the Tax Cuts and Jobs Act which incentivizes investment into designated Opportunity Zone regions of the country.
Additionally, funding is still available from federal programs that have been in existence for decades. The Federal Emergency Management Agency (FEMA), Army Corps of Engineers, Department of Housing and Urban Development (HUD), and Community Development Block Grant programs all have funding that may be merged with other alternative funding sources.
Many state legislatures have allocated funding for ‘rainy days’, emergencies and/or ‘resiliency’ efforts. Special Districts also may be created by cities, a process that authorizes citizens to tax themselves for critical infrastructure projects. Finding numerous funding sources is not difficult and not a hurdle that stops infrastructure reform.
Two rather important issues, however, have slowed public acceptance of alternative funding and public-private partnerships – a lack of understanding by citizens about the cost and danger of not doing anything and the fact that the public at large does not completely understand the history or the success of P3s. Too many citizens view private sector investment into public projects as a new or risky concept, which is not the case. Collaborative initiatives have been responsible for the building of America’s infrastructure for more than 100 years. And, the public-private partnership model is common throughout the world and has been tested over many decades.
Here are but a few examples of visionary infrastructure initiatives happening now in America.
In Virginia, the Greene County Board of Supervisors has approved guidelines for establishing strategic public-private partnerships to develop numerous types of P3 projects in the county. This action will enable the Greene County School Board to enter P3s for the purpose of building educational facilities. Other possible projects likely will include landfills, drinking water production, and distribution systems. Projects also may include fire department facilities, education construction including stadiums, public safety buildings, utility and telecommunications initiatives, and broadband infrastructure.
The University of California (UC) has provided a 2019-2025 Capital Finance Plan (CFP) that represents $52 billion of capital that will be required by the campuses and its medical centers. The CFP outlines plans for proposed capital projects, P3s and the acquisition of real property. UC has found the P3 model to be efficient, especially for campus housing. The Irvine campus has a long history of partnering with third-party entities to advance its strategic goals.
The Yuma, Arizona City Council has approved a $51.4 million increase from last year for a Capital Improvement Program (CIP) budget. The city expects 45 percent of the costs to be obtained through grants, reimbursements, and P3s. The plan outlines 54 projects and funding plans of $20.3 million for projects in the Yuma Crossing National Heritage Area. The city also plans to augment funding with a federal grant and possibly private sector investment. It has scheduled a regional fiber optic infrastructure project for 2021 and has announced interest in a P3 engagement as the delivery model.
Florida’s Palm Beach Town Council recently approved $316,380 for a water supply feasibility study. An engineering firm will address the town’s need to explore different ways to provide residents potable water. A plan to determine how to meet future water demand is the objective. One option under consideration is to enter into a public-private-partnership to accomplish this objective.
Iowa State University is taking steps to become coal-free and reduce greenhouse gas emissions by 35 percent over the next three years. A P3 is being considered for the operation of its utility system. The university’s Board of Regents this month gave approval for a planning process to begin.
The state of Nebraska is considering a public-private partnership to build a new 1,600-bed prison to deal with overcrowding and staffing issues. Cost of the new prison has been projected to be in the $200 million range or higher, and the state anticipates that a P3 will be the delivery method. The department announced that the project would potentially meet space needs for the next 100 years.
These projects offer just a sampling of what is happening throughout America. State and local leaders are moving forward and not waiting for guidance or encouragement. Instead, most have grabbed the reins of America’s race to the future, and started to address the country’s infrastructure needs. That’s comforting, because there is much to be done.
America’s global competitiveness truly hangs in the balance along with the well-being of millions of families impacted by unemployment. A recession is never good, but this one could be short. Here’s hoping the media, citizens at large, and others who understand the country’s critical infrastructure problems will find ways locally to step up and encourage other elected leaders to support this clear path out of the current recession.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Emerging Technology
Article | July 13, 2022
The COVID-19 crisis has highlighted the importance of constant innovation—as well as the need to respond quickly, agilely, and on a large scale.
During the early stages of the pandemic, governments increased mask production, facilitated data sharing among pharmaceutical companies, relaxed regulatory requirements for certain tests and drugs, and accelerated vaccine production. These were the critical first steps in what turned out to be a highly successful collaboration with the private sector, non-profit organizations, and research institutions.
Governments have served as catalysts throughout the pandemic, assembling and enabling multi-sector efforts to deal with the flood of cases and develop vaccines. Even before the pandemic, the government's role as a solution catalyst was expanding in scope and complexity, with a focus on how to harness innovation across sectors for public benefit.
Governments have gone beyond repairing market failures as commercial and cross-sector innovation has accelerated. Governments are fostering cross-sector solutions for a variety of societal challenges, including public health, climate change, and cybersecurity, in addition to assisting in the strengthening of strategic sectors such as defence and space.
Utilizing outside innovation to drive mission delivery
Many technologies have been developed by the commercial sectorthat can be used to address complex societal problems. Governments are looking into ways to use these capabilities to improve mission delivery in ways other than contracting, in order to develop a broader set of partners and solutions.
It is not always easy to implement such technologies in the public sector. Governments, unlike commercial entities with access to legal and financial structures such as joint ventures and mergers and acquisitions, must find more creative ways to capitalize on external innovation based on mutual interest and advantage across sectors.
Government action and innovation
State and local government leaders face shrinking resources, demanding constituents, complex policy environments, and constant pressure to deliver results on time.
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