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FBO DAILY - FEDBIZOPPS ISSUE OF MARCH 20, 2015 FBO #4864
MODIFICATION

R -- Development of a White Paper on Revenue Risk for Highway Facilities

Notice Date
3/18/2015
 
Notice Type
Modification/Amendment
 
NAICS
541990 — All Other Professional, Scientific, and Technical Services
 
Contracting Office
Department of Transportation, Office of the Secretary (OST) Administration Secretariate, Volpe National Transportation Systems Center, 55 Broadway, Kendall Square, Cambridge, Massachusetts, 02142-1093, United States
 
ZIP Code
02142-1093
 
Solicitation Number
DTRT5715Q80040
 
Archive Date
6/4/2015
 
Point of Contact
Karen M. Marino, Phone: 6174942437
 
E-Mail Address
karen.marino@dot.gov
(karen.marino@dot.gov)
 
Small Business Set-Aside
N/A
 
Description
This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Federal Acquisition Regulation (FAR) Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotations are being requested and a written solicitation will not be issued. Solicitation No. DTRT5715Q80040 is issued as a Request for Quotation (RFQ). This solicitation is being conducted under FAR Part 12, Acquisition of Commercial Items and FAR Part 13, Simplified Acquisition Procedures. The NAICS Code is 541990 and the Small Business size standard is $15.0 M. This solicitation document and the incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2005-80, effective March 2, 2015. The Government intends to award a Firm Fixed-Price Purchase Order on a competitive basis to develop a White Paper that explores how the public and private sector would share revenue risk in long-term concession agreements for highway facilities, in accordance with the Statement of Work (SOW) below. Statement of Work (SOW) Begin. Sharing Revenue Risk in Long-Term Highway Public-Private Partnerships INTRODUCTION General The John A. Volpe National Transportation Systems Center (Volpe Center) has been tasked by the FHWA Office of Innovative Program Delivery (OIPD) to develop a White Paper that explores how the public and private sector might share revenue risk in long-term concession agreements for highway facilities, both conventional toll roads and managed lanes adjacent to general purpose lanes. For some jurisdictions, public-private partnerships (P3s) have provided an attractive alternative to traditional transportation financing options. By allowing the private sector to assume the revenue risk (in return for the revenue reward) of a toll facility, States have accelerated the delivery of projects that would have otherwise been delayed due to public financing constraints. These arrangements can also provide other benefits, including increased efficiency, more innovation, and better asset management. Although this White Paper focuses on toll facilities, approaches used in P3 agreements for other transportation modes or infrastructure sectors may be strongly applicable to the research task at hand. Background Although some early successes have been compelling, revenue risk concerns may limit the appeal - to both the private and public sectors - of P3 agreements for toll facilities. In response to financial distress encountered by several P3 toll facilities in the US shortly after opening, the private sector has grown more reluctant to accept toll revenue risk. Correspondingly, as companies encourage the government to assume the toll risk and provide pre-defined availability payments, P3 deals are likely to become less attractive to the public sector. Shared revenue risk approaches may offer the opportunity to maintain robust private sector participation in future P3 concessions that provide clear public benefit. 1.0 TASKS TO BE PERFORMED CLIN 0100: Development of White Paper Task 1.1 Produce an Outline for the Alternative Revenue Risk Allocation Strategies for Toll Revenue Concession Projects The Contractor shall produce a draft outline, in sufficient detail, of the topics and subtopics to be included in the White Paper. The Contractor shall participate in three teleconferences to discuss the content of the outline with the Volpe Center and FHWA OIPD staff. The draft outline will be reviewed by the Volpe Center and written comments will be delivered within two weeks to the Contractor. The Contractor shall then produce a revised outline for the White Paper within two weeks. The Contractor shall not proceed to task 1.2 until approval of the outline has been granted. Task 1.2 Produce a First Draft of the White Paper The Contractor shall produce a draft White Paper based on the final outline. The Contractor will participate in three one-hour teleconferences to review the first draft White Paper. The White Paper is expected to be concise, suitable for reading and review by high-level executives, and less than 50 pages in length. Risk sharing approaches to be examined shall include, but not be limited to: 1. Fixed plus variable payments: Fixed availability payments can be combined with variable payments - or a share of the toll collections - that allow the public and private sectors to split the revenue risk. In this scenario, the government's availability payments might amortize less than the full project cost yet still reduce the P3 concessionaire's downside risk. With a portion of its compensation contingent on toll income, the concessionaire would retain the incentive to maximize revenue. Depending on public agency objectives, this approach could be used to achieve facility through-put - rather than revenue - goals. For example, the concessionaire could be required to employ dynamic toll rates that attract the optimal number of vehicles, so that the variable payment depends on traffic counts. Similar to the "shadow" toll concept (with the obvious addition of "real" tolls), this portion of the public sector payment depends on the attainment of transportation policy goals. Such an approach was considered by the Florida DOT for the I-595 HOT lanes project in Fort Lauderdale. 2. Revenue Guarantees: Revenue guarantees on toll concessions can help to reduce the need for direct public subsidies and also lower financing costs with minimal impact on the financial position of the public sponsors. For example, revenue guarantees up to the level of debt-service during the operations phase can lower substantially the interest rates on debt without ever having to kick in. For the I-77 project in North Carolina, such a revenue guarantee was used to lower the financing cost significantly. In this case, the guarantees had a maximum cap both at the annual and cumulative level and only applied to the initial ramp-up phase of the project. 3. Variable Term Contract: This approach, also known as the flexible-term or least-present-value-revenue (LPVR) approach, is a strategy to deal directly with toll revenue risk. The variable term is designed to eliminate the need to rely on toll revenue forecast accuracy. In a typical P3 toll concession, the public sponsor sets the concession term and the concessionaire bids on the required public subsidy (or payment to the public agency from the concessionaire) based on assumed traffic forecasts. Under a variable term concession, the public sector sets the toll levels and the concessionaire bids on the desired concession term and LPVR level. The concession term is then adjusted as traffic or revenue levels change, i.e., if the traffic or revenue is lower than anticipated, the term is extended and, if higher, it is shortened. This approach has been used in countries such as the UK, Chile, and Portugal since late 1990s, where it has been shown that, by helping to lower risk premiums, the approach can achieve project cost savings. In Chile and Portugal, it is now the standard practice for all highway P3 procurements. 4. Combinations of Innovative Risk Allocation Strategies: Using the above and other risk allocation strategies as building blocks, new combinations of revenue risk allocation strategies may be designed to minimize potential private sector defaults. For example, the variable term model may be combined with a revenue guarantee. The Contractor shall attend a review of the draft White Paper at US DOT headquarters and provide an overview of the draft White Paper and discuss the refinement of the paper with Volpe Center and FHWA staff. Within two weeks of the review, the Volpe Center will provide written comments on the first draft of the White Paper. Travel expenses related to the attendance at the White Paper review at US DOT headquarters will be part of CLIN 2. Task 1.3 Produce a Second Draft of the White Paper The Contractor shall produce a second draft by incorporating written comments from Volpe and FHWA OIPD. The Contractor will participate in two one-hour teleconferences to review their progress of the White Paper. The second draft of the White Paper will be in Microsoft Word and be 508 compliant. The second draft will be distributed to a panel of P3 experts for review. Task 1.4 Development of Presentation The Contractor shall develop a draft presentation in Microsoft Power Point that provides an overview of the findings of the White Paper. The presentation should include speaker notes and should be designed to last approximately 30 minutes in length. The Contractor shall deliver the draft presentation to FHWA and Volpe Center staff at US DOT headquarters. Travel expenses related to the FHWA OIPD presentation at US DOT headquarters will be part of CLIN 2. The Volpe Center will provide written comments on the presentation slides and speaker notes and the Contractor shall produce a revised version. The Contractor shall refine the presentation and speaker notes based upon Volpe Center feedback and produce a final version that is 508 compliant. Task 1.5 Participate in a Roundtable The Second Draft White Paper will be discussed by the panel of P3 experts at a one-day Roundtable to be organized by the Volpe Center. The Contractor shall deliver the presentation developed in task 1.4 (approximately 30 minutes for presentation and 30 minutes for questions and answers) that presents the highlights of the paper. The Contractor shall attend the one-day roundtable. Travel expenses related to the Roundtable will be part of CLIN 2. Task 1.6 Presentation of Findings at FHWA The Contractor shall present the draft findings to Volpe Center and FHWA staff at US DOT headquarters in Washington DC on two occasions (in association with task 1.2 and task 1.4). Task 1.7 Presentation of Findings to Designated Agencies The Contractor shall present the PowerPoint presentation developed in Task 1.4 to designated agencies. There shall be up to two presentation venues designated by the Volpe Center. CLIN 0200: Travel Travel costs associated with CLIN 0100 (Tasks 1.6 and 1.7). Travel costs associated with these two travel events shall conform to Federal per diem rates. CLIN 0300: Refinement of White Paper (Optional) Tasks associated with this CLIN will only be undertaken after the completion of all tasks in CLIN 1 and if deemed necessary by the Volpe Center. The Contractor shall revise the White Paper based upon comments received at the Roundtable and feedback from the Volpe Center and FHWA OIPD. Based upon the comments received, the revisions may include the addition of new sections as well as refinement of existing sections. The Contractor shall participate in a one-hour conference call approximately one week after the Roundtable with Volpe and FHWA OIPD to review the comments received at the event and a second call approximately three weeks later to review progress. The Contractor shall deliver a revised draft White Paper for review by the Volpe Center and FHWA. The Volpe Center will provide the contractor with written comments within two weeks of submittal and the Contractor shall produce a final draft of the report that is 508 compliant. Task 3.2 Revision of PowerPoint Presentation The Contractor shall revise the PowerPoint presentation based upon feedback from the roundtable participants and Volpe Center and FHWA staff comments. The Volpe Center will provide the Contractor with written comments, and the Contractor shall produce a revised final version of the PowerPoint presentation within two weeks of the written comments. Task 3.3 Delivery of Presentation The Contractor shall deliver the presentation to FHWA OIPD staff in Washington, DC and at up to 3 other venues as determined by the Volpe Center. CLIN 0400: Travel (Optional) Travel costs associated with CLIN 0300 (Task 3.3). Travel costs associated with this travel event shall conform to Federal per diem rates. Period of Performance The period of performance for this purchase order shall be 18 months from the date of purchase order award, if all options are exercised. The Volpe Center expects that all tasks in CLIN 1 will be completed in no more than 12 months from the date of purchase order award. CLIN 0100 POP: Twelve months from date of purchase order award CLIN 0200 POP: Twelve months from date of purchase order award CLIN 0300 POP: Eighteen months from date of purchase order award CLIN 0400 POP: Eighteen months from date of purchase order award Deliverables Table (See Attachment No. 1) 2.0 TECHNICAL POINT OF CONTACT The following individual will serve as the Volpe Center Project Manager and will be the technical point of contact: Mr. Terrance Regan US DOT - Volpe National Transportation Systems Center, V-322 55 Broadway, Cambridge, MA 02142 Tel. (617) 494-3628 Fax (617) 494-3260 e-mail terry.regan@dot.gov GOVERNMENT FURNISHED INFORMATION The Volpe Center will furnish the review materials, if any, for tasks sent electronically to the contractor. Technical Evaluation Criteria (See Attachment No. 2) Statement of Work (SOW) end. PRICING: The Government intends to award one (1) purchase order for a base (CLINs 0100 and 0200) and 2 optional line items (CLINs 0300 and 0400), on a Firm Fixed Price basis as a result of this solicitation. The Offeror shall provide a firm fixed price proposal for all labor, travel and materials, in accordance with each CLIN listed below: CLIN 0100, Development of a White Paper, 1 EA Total Price $_______________ CLIN 0200, Travel for CLIN 0100, Not to Exceed, 1 EA Total Price $________________ CLIN 0300, Refinement of White Paper (Optional Line Item), 1 EA Total Price $________________ CLIN 0400, Travel for CLIN 0300, Not to Exceed (Optional Line Item), 1 EA Total Price $________________ Please provide a total firm fixed price for CLINs 0100 and 0400 $________________ INSTRUCTIONS TO OFFERORS: FAR 52.212-1, Instruction of Offerors-Commercial Items is hereby incorporated by reference. FAR 52.212-2, Evaluation - Commercial Items, the Government will award a purchase order resulting from this solicitation to the responsible offeror whose offer is considered to be the most advantageous to the Government based on Technical Understanding, Staffing Qualifications and price. All Offerors must include a completed copy of the provision at FAR 52.212-3, Offeror Representations and Certifications-Commercial Items. An Offeror shall complete only paragraph (b) of this provision if the Offeror has completed the annual representations and certifications electronically using the System for Award Management (SAM) accessible via http://www.sam.gov. If the Offeror has not completed the annual representations and certifications electronically in SAM, the Offeror shall complete only paragraphs (c) through (o) of this provision. The Offeror is reminded that if it completes its annual representations and certifications electronically in SAM it must update its representations and certifications as necessary, but at least annually, to ensure they are kept current, accurate, and complete. All Contractors must be registered in SAM in order to receive an award from a DOT Agency. FAR Clause 52.212-4, Contract Terms and Conditions-Commercial Items, is hereby incorporated by reference. FAR Clause 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Items is hereby incorporated by reference Additional clauses cited in 52.212-5 that apply to this acquisition are: 52.209-6, 52.217-8, 52.222-3, 52.222-19, 52.222-21, 52.222-26, 52.222-35, 52.222-36, 52.222-37, 52.222-40, 52.223-9, 52.223-15, 52.223-16, 52.223-18, 52.225-1, 52.232-33 and 52.232-40. These references may be viewed at www.acquisition.gov/far. The signed offer must be submitted electronically via email to Karen.Marino@dot.gov. The offer should be addressed to the following: U.S. Department of Transportation, Volpe National Transportation Systems Center, Attn: Karen Marino, V222, 55 Broadway, Cambridge, MA 02142. The time for receipt of offers is 3:00 PM, Eastern Time on 3/25/2015. No telephone requests will be honored. The Government will not pay for any information received. The following notice is provided for informational purposes for Minority, Women-Owned and Disadvantaged Business Enterprises: ATTENTION: Small and Disadvantaged (SDB), Women-Owned, and Disadvantaged Business Enterprises (DBEs). The Department of Transportation's (DOT) Short-Term Lending Program (STLP) offers working capital financing in the form of lines of credit to finance accounts receivable for transportation-related contracts. The Maximum line of credit is $750,000. The STLP loan has a variable rate, which is connected to the prime rate. The current rate may be found on the OSDBU website http://osdbuweb.dot.gov or call 1-(800) 532-1169.
 
Web Link
FBO.gov Permalink
(https://www.fbo.gov/notices/36829e57ced08e138bbfc686fc387a51)
 
Record
SN03671658-W 20150320/150318235041-36829e57ced08e138bbfc686fc387a51 (fbodaily.com)
 
Source
FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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