What does performance-based infrastructure mean?
Performance-based infrasctructure (PBI) is the creation of capital projects where the investment, risk, responsibility, and rewards of a capital project are shared between government and private sector participants. Components of the project (design, construction, financing, operation and maintenance) are bundled together, resulting in integrated, efficient service delivery. The responsibility for long-term operations and maintenance is shifted to the private partner, creating a compelling incentive to ensure high-quality construction, as well as proactive upkeep of the finished building. The developer is the single point of contact for the procurement and delivery of all services under the contract.

What is the benefit to taxpayers?
Performance-based infrastructure benefits taxpayers by bringing discipline to the costs and the timeline of a project and creates incentives for maintaining the completed property for the duration of its use. Additionally, the cost to the state is distributed over a longer period of time and payments can be linked with operational performance. In particular, peformance-based infrasctructure arrangements can mean that the design and construction phases of the project are completed in a shorter amount of time. Taxpayers also benefit from the competitive solicitation of combined 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 has built and will continue to build high-quality courthouses and buildings according to the most rigorous standards of design and construction. Nevertheless, the number of courthouses in the state that are in need of immediate replacement is large, and all options for lowering costs and increasing efficiency in construction are being considered. With pubic-private partnerships, OCCM should be able 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 will the AOC ensure that the new courthouse is built on time and within budget?
Any final PBI contract will include performance incentives and penalties that drive performance by the project developers. Additionally, benchmarks will be built into the agreement that allow for ongoing monitoring of contract performance.

Who will own the new building when it's finished?
There are a variety of ways that PBI arrangements can be structured. The Administrative Office of the Courts anticipates maintaining fee ownership of the site and typically ownership of the court building at the completion of the operating term of the agreement. The building in which the court will be located may include space for retail, commercial offices, or other uses, in which case the other parties may have interests in the building.

What is the schedule?
There are five primary phases to the new Long Beach courthouse project:

• Develop an organizational model for the project, refining concepts and objectives.
• Prepare a solicitation schedule.
• Develop evaluation criteria, project performance expectations, and selection procedures.

• Draft necessary documents related to financing and business terms.
• Identify potential responders to developer solicitation documents.
• Release request for proposals.
• Schedule pre-proposal meetings.
• Maintain open response period for potential responders to prepare proposals.

• Review submitted proposals based on solicitation document criteria, financial structuring, and risk analysis.
• Interview firms responding to solicitation.
• Prepare written and oral evaluations.

• Negotiate agreement(s) with selected potential partner(s).

• Review progress and recommend any necessary action during design and construction phases.