Gov Rendell allows four top legislators look at Penn Pike expressions of interest
Posted Wed, 2007-06-13 07:41
Governor Ed Rendell yesterday responded to complaints by top legislators that he was being secretive about his lease concession plans for the Pennsylvania Turnpike, sending the four house and senate leaders of each party copies of 52 expressions of interest (EOI).
"Our taxpayers deserve and expect a transportation funding policy that results from a careful review of all potential options, In the four months since I first proposed leveraging the value of the turnpike to address our transportation crisis, I have talked to residents from across the state who agree that something needs to be done now," said Rendell in a press release.
“We are providing the expressions of interest in the spirit of compromise, and so that legislators can see that we are serious about solving this crisis before they leave Harrisburg for their annual summer recess."
Names and addresses of the firms have been blacked out ("redacted") but the Governor's press release says the copies of EOIs were sent with the understanding they would not be made public unless and until a turnpike bidding process was complete.
Most expressions of interest are corporate puff - lists of all the great past accomplishments of the firms, awards they have received, biographies of their brilliant key managers and their stellar qualifications, testimonies to their excellence, descriptions of what a perfectly balanced team the different component partners would comprise, and suchlike.
But expressions of interest sometimes stray into the outlines of a proposal. The formal request for expressions of interest issued by the Pennsylvania secretary of transportation last fall was only that, but at the same time the Governor was saying he wanted indications of what the proposers might propose.
Officials say they got a hybrid EOI/proposals. Some at least of the 16 EOIs from potential bidders provided an inkling of what they would bid, or the methodology they would use to compute their bids.
Roy Kienitz, the governor's deputy chief of staff and leading adviser on leasing the Turnpike said May 21 that the state's legal and financial advisers were unanimous in strongly believing the EOIs should not be released until after the concession procurement was complete. This was because some of the EOIs outlined the methodology they would use and could help competing groups work out what they might bid. see see http://www.tollroadsnews.com/node/145
The more the different bidders are in the dark about their competitors bids the better a deal the state is likely to get - a theory that is entrenched in the closed bid process for regular construction and other state procurement.
In response to reporters' criticism of secrecy Rendell administration officials point out that the McClatchy Company recently conducted a confidential competitive bid process to obtain the highest possible price for the Philadelphia Inquirer and Philadelphia Daily News.
Gov Rendell said: "I am hopeful that the legislators who receive this information will keep it confidential because they are interested in preserving our ability to get the best value for taxpayers. We know that there is great value in the turnpike that may help solve our long-standing transportation funding crisis today and for generations to come, but we need now to officially solicit bids before anyone can determine if a lease would benefit taxpayers.
“We need $1.7 billion to repair our roads and bridges and keep public transportation going in all 67 counties. The independent financial analysis released last month shows we can achieve this goal in a way that protects against excessive toll hikes and maintains state control of the turnpike.
“A tightly controlled lease – one that maintains the commonwealth’s ownership of the turnpike, includes strong protections against excessive toll hikes, and protects turnpike workers – provides a unique opportunity to meet our transportation funding needs.
“As we work together to resolve this issue, it is crucial that legislators guard the expressions of interest as carefully as I have. Leaking this information will seriously jeopardize our ability to get the most value for the taxpayers who elected us.
the documents released to legislative leaders were:
• 16 from potential bidders;
• 22 from investment banks and consulting firms seeking to provide financial advisory services;
• 8 submitted by transportation engineering firms seeking to provide technical advisory and/or operations management services; and
• 6 from law firms seeking to provide legal advisory services
The documents have been given to Senate Majority Leader Dominic Pileggi (Republican), Senate Minority Leader Robert J Mellow (Democrat), House Majority Leader William DeWeese (Democrat), and House Minority Leader Sam Smith (Republican).
TOLLROADSnews 2007-06-13
Governor Ed Rendell yesterday responded to complaints by top legislators that he was being secretive about his lease concession plans for the Pennsylvania Turnpike, sending the four house and senate leaders of each party copies of 52 expressions of interest (EOI)."Our taxpayers deserve and expect a transportation funding policy that results from a careful review of all potential options, In the four months since I first proposed leveraging the value of the turnpike to address our transportation crisis, I have talked to residents from across the state who agree that something needs to be done now," said Rendell in a press release.
“We are providing the expressions of interest in the spirit of compromise, and so that legislators can see that we are serious about solving this crisis before they leave Harrisburg for their annual summer recess."
Names and addresses of the firms have been blacked out ("redacted") but the Governor's press release says the copies of EOIs were sent with the understanding they would not be made public unless and until a turnpike bidding process was complete.
Most expressions of interest are corporate puff - lists of all the great past accomplishments of the firms, awards they have received, biographies of their brilliant key managers and their stellar qualifications, testimonies to their excellence, descriptions of what a perfectly balanced team the different component partners would comprise, and suchlike.
But expressions of interest sometimes stray into the outlines of a proposal. The formal request for expressions of interest issued by the Pennsylvania secretary of transportation last fall was only that, but at the same time the Governor was saying he wanted indications of what the proposers might propose.
Officials say they got a hybrid EOI/proposals. Some at least of the 16 EOIs from potential bidders provided an inkling of what they would bid, or the methodology they would use to compute their bids.
Roy Kienitz, the governor's deputy chief of staff and leading adviser on leasing the Turnpike said May 21 that the state's legal and financial advisers were unanimous in strongly believing the EOIs should not be released until after the concession procurement was complete. This was because some of the EOIs outlined the methodology they would use and could help competing groups work out what they might bid. see see http://www.tollroadsnews.com/node/145
The more the different bidders are in the dark about their competitors bids the better a deal the state is likely to get - a theory that is entrenched in the closed bid process for regular construction and other state procurement.
In response to reporters' criticism of secrecy Rendell administration officials point out that the McClatchy Company recently conducted a confidential competitive bid process to obtain the highest possible price for the Philadelphia Inquirer and Philadelphia Daily News.
Gov Rendell said: "I am hopeful that the legislators who receive this information will keep it confidential because they are interested in preserving our ability to get the best value for taxpayers. We know that there is great value in the turnpike that may help solve our long-standing transportation funding crisis today and for generations to come, but we need now to officially solicit bids before anyone can determine if a lease would benefit taxpayers.
“We need $1.7 billion to repair our roads and bridges and keep public transportation going in all 67 counties. The independent financial analysis released last month shows we can achieve this goal in a way that protects against excessive toll hikes and maintains state control of the turnpike.“A tightly controlled lease – one that maintains the commonwealth’s ownership of the turnpike, includes strong protections against excessive toll hikes, and protects turnpike workers – provides a unique opportunity to meet our transportation funding needs.
“As we work together to resolve this issue, it is crucial that legislators guard the expressions of interest as carefully as I have. Leaking this information will seriously jeopardize our ability to get the most value for the taxpayers who elected us.
the documents released to legislative leaders were:
• 16 from potential bidders;
• 22 from investment banks and consulting firms seeking to provide financial advisory services;
• 8 submitted by transportation engineering firms seeking to provide technical advisory and/or operations management services; and
• 6 from law firms seeking to provide legal advisory services
The documents have been given to Senate Majority Leader Dominic Pileggi (Republican), Senate Minority Leader Robert J Mellow (Democrat), House Majority Leader William DeWeese (Democrat), and House Minority Leader Sam Smith (Republican).
TOLLROADSnews 2007-06-13