Clackamas County, Oregon and Clackamas Progress Partners LLC entered into a project agreement on August 30, 2022. The project agreement was structured as a design-build-partial finance-operate-maintain (DBfOM) P3 Agreement.
How do you reach financial close for a significant P3 project amid turbulent financial and construction markets? The closing of the Clackamas County Circuit Courthouse Public-Private Partnership (P3) Project proves that it is possible. The project represents a momentous achievement in the P3 industry in the US.
The procurement of the Project was one of the fastest P3 procurements ever conducted in the U.S due to a highly efficient process, extensive due diligence ahead of the RFQ, and the experience of the County’s team and the Project Company. It took only 11 months from the issuance of the RFQ to the selection of the winning proposer.
Despite serious turbulence in construction and financial markets, the procurement experienced no major delays and the County was able to stay on its original procurement schedule. The robust pre-procurement preparation and procurement process resulted in a winning proposal that meets the County’s objectives and a balanced project agreement that will protect the County’s interests for the next 30+ years.
This Project represents the first successful closing of an availability payment P3 in Oregon. Our report presents the Clackamas County Circuit Courthouse P3 pre-procurement preparation and procurement process and identifies insights that the P3 market can use in developing new projects.
