Private Sector Participation
The private sector can play a valuable role in developing and implementing new transportation projects and related community improvements. Early involvement of the private sector can bring creativity, efficiency and capital to transportation projects at the state and local level.
For example, private entities can engage by participating in the planning and transportation improvement program process or entering into a public-private partnership (P3), in which a private firm participates in the design, building, finance, operation, and maintenance aspects of a transit facility. Other examples of private sector participation include Joint Development, Capital Leasing, and Third Party Contracting.
Private Investment Project Procedures (PIPP)
FTA's Private Investment Project Procedures (PIPP) allow FTA grantees considering capital projects to seek a waiver or modification of a FTA regulation, policy or guidance that may impede the use of a P3 or private investment in that project. As outlined in the PIPP Final Rule, the procedures are intended to encourage project sponsors to seek modifications of federal requirements to spur private participation and investment in project planning, development, finance, design, construction, maintenance, and operations to accelerate the project development process, attract private investment and lead to increased project management flexibility, more innovation, improved efficiency, and/or new revenue streams.
How to Apply
Submit an application using FTA's PIPP application intake form, with a copy to the appropriate FTA Regional Administrator.
Private Sector Participation Legislative Overview
The Moving Ahead for Progress in the 21st Century Act (MAP-21) continued FTA’s support for private sector participation by:
- Better coordinating public transportation services delivered by both public and private providers;
- Promoting more effective use of private-sector expertise to deliver capital transportation projects; and
- Promoting better understanding of public-private partnerships by providing technical assistance and education opportunities.
Specifically, 49 U.S.C. 5315 and 20013 of MAP-21 requires FTA to:
- Identify public transportation laws, regulations or practices that impede public-private partnerships or private investment in transit capital projects, and develop procedures through regulation to address, on a project basis, legal impediments to the use of public-private partnerships and private investment, as well as procedures to protect the public interest and any public investment in public transportation capital projects that involve public-private partnerships or private investment in public transportation capital projects.
- Develop guidance to promote greater transparency and public access to public-private partnerships agreements.
- However, FTA will not waive any provision of Federal law, including labor protections of 49 U.S.C. § 5333 and NEPA.
- Develop guidance on how to best document compliance by grantees with the private enterprise participation requirements in the planning and transportation improvement programs under 5303(i)(6), 5306(a), and 5307(b).
- At the request of project sponsors and grantees, provide technical assistance on best practices and methods for using private providers of public transportation and using public-private partnerships for alternative project delivery of fixed guideway capital projects.
Additional Private Sector Participation Resources
- Private Sector Participation in Current Authorization (MAP-21)
- Private Sector Participation and Public-Private Partnerships
U.S. Department of Transportation
- USDOT Build America Bureau
- Federal Highway Administration Center for Innovative Finance Support
- Other Federal Resources
Federal Transit Administration
Transit Cooperative Research Program (TCRP)
- Guide to Value Capture Financing for Public Transportation Projects
- Public Transportation Guidebook for Small- and Medium-Sized Public-Private Partnerships (P3s)