CONFIDENTIALwww.mcguirewoodsconsulting.com

VASCUPP ConferenceChristopher D. Lloyd

September 25, 2013

Is the PPEA Process Right for You?

Why A New Procurement Tool?

• Creates a consistent, repeatable, predictable process for alternative project delivery

• Ensures transparency and accountability to the public

• Increases competition and value delivery• Signals legislative support for the process• Checks and balances to reduce project delivery

problems• Spur innovation and creative project approaches

Procurement Process

• Have you adopted PPEA guidelines?• What other state procurement tools are open to me

(impacted by Tier status)?• What other non-state procurement tools are

available (real estate foundations, etc.)?• What in-house capabilities do I have for review or

do I need outside experts?

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Property Issues

• Who will own the project?• What approvals are required for a lease?• Is the land encumbered through deed or bond

covenant?• What level of gubernatorial approval is required?• How does the project fit into the campus master

plan?

4

Finance Issues

• What is my debt capacity and is it affected by the project?

• What is the repayment plan and how is the plan treated?

• How does the project encumber other campus projects or facilities?

• Are there sufficient financial benefits from using non-traditional funding sources?

• Is developer looking for a financial commitment, a support agreement, or just the right to be in your “aura?”

• Will Treasury Board approval be required for the financing structure?

5

Political and Policy Issues

• Is legislative pre-authorization necessary?• What oversight role will the Board of Visitors play?• Clearing the Public Private Partnership Advisory

Commission• What happens if there is a default?• How will student fees be impacted?

6

Dealing with the Host Community

• If the project is off campus, what role will the host community play in zoning and oversight?

• Will the host community have any financial role in the project?

• If the project has joint uses, which entity will manage the procurement process? Who is in charge after the project is complete?

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