Examination of US Transportation Public-Private Partnership Experience: Performance and Market

Abstract

Worldwide, public-private partnership (P3) project performance and benefits accrued to market participants are understudied. Focusing on the US, this dissertation examines the country’s transportation P3 experience through three empirical studies comparing P3 to design-bid-build (DBB), the traditional delivery method. Throughout, the Information Source for Major Projects database, built by a University of Maryland team in which the author led the data collection effort, served as the data source. In the first study, the researchers examined P3 cost and time performance using piecewise linear growth curve modeling, recognizing that past cross-sectional studies had produced mixed results. With 133 major transportation projects, the longitudinal analysis confirmed P3’s time performance advantage and efficiency diffusion effecting cost savings in DBB, where efficiency diffusion was a new term describing the spillover and internalization of technical and managerial innovations inducing an efficient outcome. The second study used social network analysis to investigate collaboration patterns among different types of players in the P3 market (i.e., public sponsors, special purpose vehicles, investors, lenders, advisors, contractors, and professional service firms). With 135 projects and 1009 organizations, data found that both P3 and DBB networks are small worlds. Exponential random graph modeling revealed that practicing in the DBB market helps firms participate in P3 projects and that large firms (vis-à-vis small/medium-sized firms) are not privileged. The third study, further exploring the P3 market, focused on the Disadvantaged Business Enterprise (DBE) program. Administered by the US Department of Transportation, the program promotes the participation of small, disadvantaged firms in federal-aid projects. Linear regressions on 134 contracts showed that P3 associates with higher DBE goals in terms of percentage of dollars to be awarded to DBEs, whereas the delivery method does not affect the actual attainment. Overall, the findings justify continued policy support towards P3 implementation.