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Innovative Program Delivery: An Introduction

In this time of declining revenues and increasing fiscal requirements, it is imperative that the transportation industry be equipped with the knowledge and tools needed to evaluate project finance, revenue, and procurement options at the right time in the program delivery process. By being knowledgeable about a wide range of options, both traditional and non-traditional, State and local highway agencies can better ensure that critical projects are adequately funded and delivered on schedule and that continuing needs for the preservation and efficient operation of the system are accounted for.

The traditional process used to deliver highway projects typically does not include early consideration of alternative finance, revenue, and procurement approaches. Often, the right questions are not asked at the right time. Given limited experience in the United States with innovative strategies, such as congestion pricing and public-private partnerships, State and local governments may be reluctant to experiment with new ways of doing business. In some cases, governments may lack the necessary legal authorities to implement certain strategies, thus requiring that enabling legislation be enacted.

The Office of Innovative Program Delivery (IPD) offers a comprehensive suite of resources to assist the transportation community in considering innovative program delivery strategies.

IPD Resources

Technical Expertise to help address the business, financial, administrative, public acceptance, political, and institutional issues associated with the program delivery process and innovative project finance, tolling and pricing, and public-private partnership strategies.

Research to help the industry better understand and apply innovative strategies such as congestion pricing and public-private partnerships.

Capacity Building programs, such as the IPD Academy and the IPD Toolbox, to provide the skill set and tools needed to effectively evaluate and apply alternative program delivery options.

Awareness programs to include partnership building with a wide variety of stakeholder communities to establish interest in innovative program delivery practices.

TIFIA Credit Assistance to help innovative projects clear funding hurdles by providing low-cost, flexible, and long-term financing.

Project Delivery Resources, providing expertise, research, and technical assistance and best practices for project cost estimates, financing, and management plans, as well as assistance for FHWA Divisions in carrying out their statutory oversight and stewardship responsibilities.

In delivering the program, IPD partners with FHWA's Division Offices to serve as a resource for innovative project delivery processes and practices to our State and local partners. The Office also plays a coordinating and convening role in bringing together related activities underway in other FHWA offices. For example, IPD works closely with other FHWA offices to include the Offices of Operations, Environment and Planning, Infrastructure, and Safety to implement a comprehensive and integrated agency tolling and pricing program. Additionally, IPD has the lead agency role in assisting our partners in implementing Grant Anticipation Revenue Vehicles (GARVEEs) and State Infrastructure Bank (SI B) programs, coordinating with the Chief Financial Officers and Division Finance Staff to provide technical assistance and assist Divisions with carrying out their stewardship responsibilities for those programs.

Project and Program Delivery: A Systems Approach

IPD assists States in developing a more holistic view of project development, bringing in revenue and financial considerations at an early stage, and considering long-term maintenance needs. IPD also conducts the Critical Project Review process, helping projects overcome hurdles encountered during the project development and delivery process. Finally, IPD helps States consider their overall program delivery in terms of optimal revenue generation, financial capacity, and procurement.