Performance-Based Infrastructure FAQ

Answers to Frequently Asked Questions

What does Performance-Based Infrastructure (PBI) mean?
PBI is an innovative approach to capital projects in which the investment, risk, responsibility, and rewards of the project are shared between government and private-sector participants. Design, construction, financing, operation, and maintenance are bundled together into a single project. The development team is the single point of contact for procurement and delivery of all services under the contract. Shifting both the financial risk and responsibility for long-term maintenance to the private partner creates a compelling incentive to ensure high levels of performance: both high-quality construction and proactive upkeep of the finished building.

What is the benefit to taxpayers?
PBI benefits taxpayers by bringing discipline to the costs and timeline of a project. The cost to the state is distributed over a longer period of time, and payments can be linked to operational performance. At the same time, PBI arrangements can streamline and shorten the design and construction phases of the project compared with those of typical public building projects. Because construction costs generally rise over time, shortening the timeline saves money. Taxpayers also benefit from the competitive solicitation of bundled design, construction, and facility operation services, which gives the state more economic advantage than it might have with traditional procurement.

Isn't it easier for the state to build new projects by itself?
The Office of Court Construction and Management (OCCM) has built and will continue to build high-quality courthouses meeting the most rigorous standards of design and construction. Nevertheless, there are more courthouses in need of immediate replacement than the state can currently afford to fund. That is why OCCM is considering all options for lowering costs and increasing efficiency in construction. Also, PBI partnerships should enable OCCM to leverage the value of existing courthouses by combining the redevelopment of current properties with development of new court facilities, thus reducing the overall cost of the new court facility while contributing to the improvement of the local community.

How can my company be considered for future PBI projects?
The Administrative Office of the Courts (AOC) will post requests for qualifications for any new PBI projects on the Vendors/RFPs page.

Frequently Asked Questions about the Long Beach PBI project

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