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Private Sector Participation

FTA encourages the consideration of the private sector in the development and implementation of transportation improvements, following Sections 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)

In July 2017, FTA published a Notice of Proposed Rulemaking (NPRM) for the Private Investment Project Procedures (PIPP) for public transportation capital projects in the Federal Register. The PIPP will help the federal government develop more effective approaches to spurring private participation and investment in project planning, development, finance, design, construction, maintenance, and operations. Grantees would be allowed to identify FTA regulations, practices, procedures or guidance that may impede use of a public-private partnership (P3) or private investment in that project. The FTA Administrator would have discretion to grant a modification or waiver of a requirement if certain criteria are met. 

The 60-day comment period ended on September 29, 2017. FTA is evaluating submitted comments and will issue a final rule in 2018. 

Updated: Tuesday, April 17, 2018
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