FTA encourages the consideration of the private sector in the development and implementation of transportation improvements, following Sections 49 U.S.C. 5315 and 20013 of MAP-21. Early involvement of the private sector can bring creativity, efficiency, and capital to address complex transportation problems facing state and local governments.
There are numerous opportunities where the private sector can engage in the public transportation industry, ranging from private operators participating in the planning and transportation improvement program process to a public-private partnership, 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)
In July 2017, FTA published a Notice of Proposed Rulemaking (NPRM) for the Private Investment Project Procedures (PIPP) for public transportation capital projects in the Federal Register. The PIPP will help the federal government develop more effective approaches to spurring private participation and investment in project planning, development, finance, design, construction, maintenance, and operations. Grantees would be allowed to identify FTA regulations, practices, procedures or guidance that may impede use of a public-private partnership (P3) or private investment in that project. The FTA Administrator would have discretion to grant a modification or waiver of a requirement if certain criteria are met.
The 60-day comment period ended on September 29, 2017. FTA is evaluating submitted comments and will issue a final rule in 2018.
- 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
- FTA Resources
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)