Procurement for Arizona DOT HQ underway

Arizona is using a PPP to build a centralised office for its transportation department in Flagstaff. The state in 2012 has broadened its emphasis on transportation infrastructure.

Arizona is moving ahead with what should amount to its maiden public-private partnership (PPP) – a project with its basis in transportation infrastructure.

The Copper State is eager to centralise its Arizona Department of Transportation (ADOT) in a single location in Flagstaff, Arizona, and either RED Development or rival real estate developer Vintage Partners will be picked to handle the undertaking.

“ADOT does not have the funding to relocate…without a successful P3 approach,” according to a statement from the department.

The department in April made clear “traditional procurement” would be inadequate to produce a facility, and began seeking private sector input.

In 2012, Arizona began entertaining privatisation in earnest. The state put enabling legislation into effect in 2009, but failed to attract private capital or industry interest and was criticised for being too vague.

This year, a bill specific to tolling was signed into law. The newly minted legislation enabled electronic toll collection – considered essential for modern-day tolling.

Representative Karen Fann, a Republican, sponsored the bill, named House Bill 2358.

Meanwhile, ADOT hauled in $21.6 million in funding via TIGER, or the federal government Transportation Investment Generating Recovery program.

In particular, the TIGER grant will fund a brownfield project – a renovation of a bridge along Interstate 15 (I-15) in Virgin River Gorge that will cost $27 million, according to the ADOT.