Government Business
Article | July 11, 2022
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
In Michigan’s Muskegon County, some departments need 24/7 access to computers, applications and the IP-based phone system, including the Muskegon County Sheriff's Office, the Muskegon County Juvenile Transition Center and the Muskegon County Wastewater Management System. To improve uptime, the county recently upgraded its IT infrastructure and turned its primary and secondary data centers into an active-active environment. Now, if one data center goes down, the second site automatically continues IT operations. “We are a 24-hour operation. Downtime is not an option,” says Ivan Phillips, information systems director for the county
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Article | May 26, 2021
Cities, counties, and states are being forced to upgrade or purchase new technology. The old legacy systems are now inadequate, inefficient, and somewhat dangerous because of their vulnerability to hacking. Many of the old systems are almost completely obsolete. They are unable to accommodate new applications.
In today’s data driven world, technology modernization leads to less cost, increases in efficiency, fewer requirements for human resources, and huge increases in convenience for citizens. Research on numerous capital improvement plans for cities, counties, and states reveals that funding is being allocated for major technology purchases and upgrades throughout the country.
Massachusetts
In a bill just signed by the governor, the Act Financing the General Governmental Infrastructure of the Commonwealth, $660 million has been allocated for information technology (IT) needs. Community colleges are scheduled to receive $140 million for cybersecurity, software, hardware, and infrastructure upgrades. Public schools will be eligible for competitive matching grants from a program that received $50 million. Much of the education funding will be used for access to broadband and other digital learning curricula. The IT funding includes $10 million for a statewide data sharing system for all criminal justice agencies and $10 million for the state’s Department of Health.
Cities and counties in Massachusetts also will receive funding. Sommerville’s need to acquire modern backup IT appliances and disaster and cybersecurity projects will get funding. The county of Berkshire is granted funding for a study to determine the cost of constructing a municipal broadband network. Avon will receive funding to move the township’s financial software to the cloud for increased security, and Easton will get funding for an e-permitting geographic information system and some technology-based service delivery software.
Texas
City leaders in Houston plan to spend millions to upgrade some outdated technology. The current computer-aided dispatch (CAD) system is more than 13 years old and has limited functionalities. The city's public safety department is in need of a new system to efficiently respond to police, fire, and medical calls for services. Funding allocations are outlined in the city’s 2021-2025 Capital Improvement Plan. The public safety CAD replacement is scheduled to receive $1 million, and the city has allocated $2.2 million for new budgeting software.
Nevada
The Las Vegas Public Works Department plans to procure a software solution for the city’s capital improvement project program management system (CPMS). The department is challenged with aging IT infrastructure, reduced resources, and currently, each phase of the CPMS uses separate software applications. This is labor intensive and ineffective. The plan is to have one software solution that tracks and manages all phases of the CPMS, including concept, planning, design, permitting, construction, and closeout. The city has budgeted $350,000 each year from 2021-2025 to complete this project.
Virginia
The city of Norfolk plans to upgrade its Department of Utilities’ billing system at a cost of $2 million. Over two years, city leaders plan to spend $4 million per year to purchase IT infrastructure. Purchases will include public safety radios, courthouse equipment, an electronic health record system, security appliances, a cybersecurity assessment, and upgrades to e-services platform.
The city of Portsmouth will upgrade its financial software beginning in 2021 with full implementation by 2024. The project will include software and hardware upgrades and the streamlining of third-party software. Beginning in 2022, the city will purchase record retention software to house permanent, and eventually all, citywide digital records. Plans also call for updating the city’s public safety records management/computer aided dispatch system at a cost of $900,000. New software will improve mobile computing and analysis tools, management dashboards, and multijurisdictional expandable capabilities for future potential collaborations with surrounding communities.
Pennsylvania
The city of Philadelphia’s Office of Innovation and Technology has a total of $153.6 million in city tax-supported funding programmed over its six-year FY21-FY26 capital program. Of the $22.5 million recommended, $8.67 million is for major upgrades for network infrastructure stabilization and enhancement. Another $13.83 million will support citywide departmental applications. This funding will be used for replacement of an old tax legacy system, a new personnel accountability system for the fire department, an integrated jail management system, and an enterprise resource platform modernization effort for procurement, accounting, and logistics. In 2021, the city also will design and implement a new fare collection system at a cost of $1.54 million to replace or enhance the current revenue collection equipment.
North Carolina
The Forsyth County Board of County Commissioners has approved a 2020-2021 annual budget which includes a $6.2 million enterprise resource planning system. The county’s budget, finance, and human resources software programs are in critical need of replacement. In Chatham County, there are plans to replace the current tax office software at a cost of $1 million, and the current software is being evaluated for new purchases.
Oregon
The city of Salem’s Information Technology Department has announced plans to update its financial system at a cost of $650,000. This upgrade is needed to maintain support of the application and increase functionality. The city also plans to update its enterprise storage array at a cost of $250,000. This equipment is primarily used for enterprise applications including financial services, cash handling, parking, utility billing, police records, and other city records flagged for retention purchases.
There is absolutely no doubt – 2021 will be a good year for companies that have new technology to sell to public officials.
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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Article | June 19, 2020
The House of Representatives laid out an infrastructure plan on June 18 – an expensive one with a price tag of approximately $1.5 trillion. It will not, of course, pass Congress in its current state, but it promises to start the critical and overdue conversation in Washington about infrastructure.
But, there’s an omission that hopefully will be addressed and debated in Congress. The new plan makes little mention of funding for America’s outdated public technology infrastructure. Yet, the nation’s technology is a critical component of its infrastructure.
Some leaders hope to make Congress aware of the challenges public officials face as they try to manage with old legacy technology systems that should have been replaced a decade ago. Broadband will likely be addressed, but all kinds of other technology assets need attention as well.
When taxpayers think about what infrastructure should include, there is not a consensus. Roads and bridges are certainly considered as public assets and will be included in every discussion of infrastructure. Water, power, schools, health care, and even the Postal Service are named in the new plan that passed the House of Representatives. But, the new bill, which is called the Moving Forward Act, does not mention government’s basic technology infrastructure.
One definition of infrastructure is “the basic physical and organizational structures and facilities needed for the operation of a society or enterprise.” Surely, technology falls into that category.
There’s no argument that America’s global economic future depends on its technology infrastructure as well as its transportation infrastructure.
But, public officials in governmental entities throughout the country attempt to provide services on old legacy systems that are decades past replacement stages. Public databases and networks are vulnerable to cyberattacks. The technology found in cities, counties, school districts, and governmental agencies is more than old and inadequate it is simply unreliable and in some instances could be considered dangerous.
In a world of ‘big data’, artificial intelligence, cloud computing, apps, the Internet of Things (IoT), and extreme security requirements, government technology assets lag too far behind in America.
Public officials don’t have funding to replace the antiquated technology systems. As Congress debates infrastructure reform, technology should be a part of the conversation.
Those in agreement that the national debt does not need another $1.5 trillion hit may advocate for ways to encourage private sector funding for the many needs of infrastructure. Collaborative initiatives could be structured in the final infrastructure bill so that there are incentives for alternative funding and private sector expertise, as well as guidelines to protect taxpayers and public agencies.
The inclusion of technology needs in any infrastructure discussion is, at the very least, worthy of discussion.
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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