A number of agencies have been involved in contracting out services. 1. Select t

A number of agencies have been involved in contracting out services. 1. Select two of the 10 types of public private partnership (ppp) types below. Briefly describe the two PPP.2. 2. Give an example of the two PPP’s you selected. 3. Suggest the guidelines that an agency should consider prior to considering this type of contracting. Include your opinion on what you consider to be the main obstacle to this type of contracting and how you would mitigate it to be successful. Ten Types of Public Private Partnership i. Turnkey Approach: Public agency contracts with private partner to design and build a complete facility IAW specified performance standards and criteria for fixed price. Private partner commits to absorb construction risk and cost for meeting the agreed upon price ii. Operation and Maintenance: Public agency contracts with private partners to provide and/or maintain a specific service. Management can also be included in contract. iii. Design-Build: A public agency contracts with a private partner to provide both design and construction of a public project. iv. Design-Build Operation: A public agency awards single contract for the design, construction and operation of a public facility. v. Wrap Around Addition: Private developer constructs addition to existing public facility and then operates the combined facility for fixed period or until developer recovers costs plus reasonable return on investment; objective: expand the facility despite government’s lack of resources or expertise to do so entirely with its own funds” vi. Lease purchase: An installment-purchase contract; private partner finances/builds new facility and leases to a public agency. End of lease, public owns facility or purchases at remaining unpaid balance in the lease. vii. Temporary Privatization: Ownership of existing public facility transferred to private partner who improves/expands the facility; facility owned and operated by private partner for specified time or until recovers investment + reasonable return. viii. Lease-Develop-Operate or Buy-Develop-Operate: Private partners leases/buys facility from local government; expands or modernizes it, operates under contract with government; private partner expected to invest in facility expansion or improvement and provided period of time to recover investment and realize a return. ix. Build-Operate-Transfer: Private developer finances and builds a facility and upon completion transfers ownership to sponsoring government agency. Government agency then provides long term lease of facility to developer. Developer operates the facility and earns reasonable return from user charges. x. Build-Own-Operate: Local government transfers ownership and responsibility for existing facility or contracts with private partner to build, own and operate a new facility in perpetuity; no provision for the return of ownership to government