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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Private Sector Participation

FTA encourages the consideration of the private sector in the development and implementation of transportation improvements (49 U.S.C. 5315 and 20013 of MAP-21). Early involvement of the private sector can bring creativity, efficiency and capital to address complex transportation problems facing state and local governments.

There are numerous opportunities where the private sector can engage in the public transportation industry, ranging from private operators participating in the planning and transportation improvement program process to a public-private partnership, in which a private firm participates in the design, building, finance, operation, and maintenance aspects of a transit facility. Other examples of private sector participation include Joint DevelopmentCapital Leasing, and Third Party Contracting.

Private Investment Project Procedures (PIPP)

On May 30, 2018, FTA issued a Private Investment Project Procedures (PIPP) Final Rule allowing FTA grantees considering capital projects to seek a waiver or modification of a FTA regulation, policy, procedure, or guidance that may impede the use of a public-private partnership (P3) or private investment in that project. PIPP is intended to encourage project sponsors to seek modifications of federal requirements to spur private participation and investment in project planning, development, finance, design, construction, maintenance, and operations. The new procedures will accelerate the project development process, attract private investment and lead to increased project management flexibility, more innovation, improved efficiency, and/or new revenue streams.

How to Apply

Submit an application using FTA's PIPP application intake form, with a copy to the appropriate FTA Regional Administrator.