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Key Performance Indicators in Public-Private Partnerships: a State-Of-The-Practice Report

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Key Performance Indicators in Public-Private Partnerships: a State-Of-The-Practice Report Key Performance Indicators in Public-Private Partnerships A State-of-the-Practice Report AUSTRALIA BRITISH COLUMBIA NEW ZEALAND UNITED KINGDOM UNITED STATES Sponsored by: In cooperation with: American Association of State Highway and Transportation Officials National Cooperative Highway Research Program March 2011 International Technology Scanning Program NOTICE The Federal Highway Administration provides high-quality information to serve Government, industry, and the public in a manner that pro- motes public understanding. Standards and policies are used to ensure and maximize the quality, objectivity, utility, and integrity of its information. FHWA periodically reviews quality issues and adjusts its programs and processes to ensure continuous quality improvement. Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. FHWA-PL-10-029 4. Title and Subtitle 5. Report Date Key Performance Indicators in March 2011 Public-Private Partnerships 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Michael Garvin, Keith Molenaar, Desiderio Navarro, Gordon Proctor 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) American Trade Initiatives 11. Contract or Grant No. P.O. Box 8228 Alexandria, VA 22306-8228 DTFH61-99-C-005 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Office of International Programs Federal Highway Administration 14. Sponsoring Agency Code U.S. Department of Transportation American Association of State Highway and Transportation Officials 15. Supplementary Notes FHWA COTR: Hana Maier, Office of International Programs 16. Abstract This report provides a state-of-the-practice description of domestic and international practices for key performance indicators (KPIs) in public-private partnerships (PPPs). The report is based on a comprehensive literature review and eight case studies from Australia, British Columbia, the United Kingdom, and the United States. The concept for this report came from an implementation strategy in Public-Private Partnerships for Highway Infrastructure: Capitalizing on International Experience, as well as Linking Transportation Performance and Accountability and Construction Management Practices in Canada and Europe. The report identifies how government-developed performance measures reflecting societal goals such as congestion management or environmental impact are translated through KPIs and included in project documents for designing, constructing, operating, and maintaining transportation facilities. The report shows that it is possible to align projects with these higher goals. The findings are applicable to agencies that wish to align overarching organizational and societal performance measures through KPIs not only to PPP projects, but also to conventionally bid projects. 17. Key Words 18. Distribution Statement key performance indicator, performance measure, No restrictions. This document is available to the public-private partnership, tollroad, transportation public from the: Office of International Programs, asset measurement FHWA-HPIP, Room 3325, U.S. Department of Transportation, Washington, DC 20590 [email protected] www.international.fhwa.dot.gov 19. Security Classify. (of this report) 20. Security Classify. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 120 Free Form DOT F 1700.7 (8-72) Reproduction of completed page authorized Key Performance Indicators in Public-Private Partnerships This work was sponsored by the Federal Highway Administration Offices of Innovative Program Delivery, Asset Management, and International Programs. The topic was identified in the International Scanning Program report Public-Private Partnerships for Highway Infrastructure: Capitalizing on International Experience as a key implementation item. Review Panel Research Team Jan Weingart Brown (FHWA) Keith Molenaar (University of Colorado) Steven DeWitt (North Carolina Turnpike Authority) Michael Garvin (Virginia Tech) Roger Driskell (Illinois DOT) Gordon Proctor (Proctor and Associates) Ted Ferragut (TDC Partners) Desiderio Navarro (University of Colorado) Leon E. Hank (Michigan DOT) Steve Gaj (FHWA) Dusty Holcombe (Virginia DOT) Bob Pieplow (CalTrans) Michael Saunders (FHWA) Jeff Seiders (Texas DOT) Art Smith (National Council for Public-Private Partnerships) Jerry Yakowenko (FHWA) International Technology Scanning Program The International Technology Scanning Program, The International Technology Scanning Program has sponsored by the Federal Highway Administration resulted in significant improvements and savings in (FHWA), the American Association of State Highway road program technologies and practices throughout and Transportation Officials (AASHTO), and the the United States. In some cases, scan studies have National Cooperative Highway Research Program facilitated joint research and technology-sharing (NCHRP), evaluates innovative foreign technologies projects with international counterparts, further and practices that could significantly benefit U.S. conserving resources and advancing the state of the highway transportation systems. This approach art. Scan studies have also exposed transportation allows for advanced technology to be adapted and put professionals to remarkable advancements and into practice much more efficiently without spending inspired implementation of hundreds of innovations. scarce research funds to re-create advances already The result: large savings of research dollars and time, developed by other countries. as well as significant improvements in the Nation’s transportation system. FHWA and AASHTO, with recommendations from NCHRP, jointly determine priority topics for teams Scan reports can be obtained through FHWA free of U.S. experts to study. Teams in the specific areas of charge by e-mailing [email protected]. Scan being investigated are formed and sent to countries reports are also available electronically and can be where significant advances and innovations have accessed on the FHWA Office of International Pro- been made in technology, management practices, grams Web site at www.international.fhwa.dot.gov. organizational structure, program delivery, and financing. Scan teams usually include representa- tives from FHWA, State departments of transporta- tion, local governments, transportation trade and research groups, the private sector, and academia. After a scan is completed, team members evaluate findings and develop comprehensive reports, includ- ing recommendations for further research and pilot projects to verify the value of adapting innovations for U.S. use. Scan reports, as well as the results of pilot programs and research, are circulated throughout the country to State and local transportation officials and the private sector. Since 1990, more than 85 international scans have been organized on topics such as pavements, bridge construction and mainte- nance, contracting, intermodal transport, organiza- tional management, winter road maintenance, safety, intelligent transportation systems, planning, and policy. IV International Technology Scan Reports International Technology Scanning Program: Bringing Global Innovations to U.S. Highways SAFETY PLANNING AND ENVIRONMENT Assuring Bridge Safety and Serviceability in Europe Reducing Congestion and Funding Transportation (2010) Using Road Pricing In Europe and Singapore (2010) Pedestrian and Bicyclist Safety and Mobility in Europe Linking Transportation Performance and (2010) Accountability (2010) Improving Safety and Mobility for Older Road Users Streamlining and Integrating Right-of-Way and Utility in Australia and Japan (2008) Processes With Planning, Environmental, and Design Processes in Australia and Canada (2009) Safety Applications of Intelligent Transportation Systems in Europe and Japan (2006) Active Travel Management: The Next Step in Congestion Management (2007) Traffic Incident Response Practices in Europe (2006) Managing Travel Demand: Applying European Underground Transportation Systems in Europe: Perspectives to U.S. Practice (2006) Safety, Operations, and Emergency Response (2006) Transportation Asset Management in Australia, Roadway Human Factors and Behavioral Safety in Canada, England, and New Zealand (2005) Europe (2005) Transportation Performance Measures in Australia, Traffic Safety Information Systems in Europe and Canada, Japan, and New Zealand (2004) Australia (2004) European Right-of-Way and Utilities Best Practices Signalized Intersection Safety in Europe (2003) (2002) Managing and Organizing Comprehensive Highway Geometric Design Practices for European Roads Safety in Europe (2003) (2002) European Road Lighting Technologies (2001) Wildlife Habitat Connectivity Across European Commercial Vehicle Safety, Technology, and Practice Highways (2002) in Europe (2000) Sustainable Transportation Practices in Europe (2001) Methods and Procedures to Reduce Motorist Delays Recycled Materials in European Highway in European Work Zones (2000) Environments (1999) Innovative Traffic Control Technology and Practice European Intermodal Programs: Planning, Policy, in Europe (1999) and Technology (1999) Road Safety Audits—Final Report and Case Studies National Travel Surveys (1994) (1997) Speed Management and Enforcement Technology: Europe and Australia (1996) POLICY AND INFORMATION Safety Management Practices in Japan, Australia, Transportation Research Program Administration and New Zealand (1995) in Europe and Asia (2009) Pedestrian
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