Community Based Partnership
A Community Based Partnership Model is where a local government or public utility aggregates multiple improvement projects together into single, integrated procurement, creating one point of private sector accountability for linear type projects that support environmental, social and governance goals for a community through-out its lifecycle. It uses a performance-based contract, linking the partner’s payment to specific, measurable goals. The private partner assumes both short and long-term budget and schedule risks, incentivizing best value and a whole life compliance solution. The public sector can also require its private partner to achieve specific Key Performance Indicators to create jobs and engage with minority and women owned enterprises to create resilience solutions that create green space and achieve other community and economic development goals. Additionally, the private partner can also source best fit capital to invest “at risk” portion of development work to provide an earlier start to a program which the government partner can refinance with lower cost of capital upon completion and certification of the projects that make up the program.
Hetch Hetchy Water and Power (HHWP)
Black & Veatch was selected to assist with the management and evaluation of the HHWP power and civil asset facilities in California. These include raw water pipelines, tunnels and penstocks, among other assets. Services include project and program development and management, capital program prioritization and risk analysis.
Black & Veatch assessed HHWP’s capital program prioritization and recommended improvements that focused HHWP’s capital program decision making on forward-looking, risk-based analyses. Black & Veatch site engineers and project managers were involved in the day-to-day management of the capital program as supplemental staff to HHWP. In this role, they assisted HHWP in leading the execution of major capital projects, scheduling resources, and facilitating the coordination of internal and external professionals and teams.
Black & Veatch was responsible for the prioritization and business case evaluation of HHWP’s capital program. This included a detailed economic and risk analysis of capital projects. The prioritization results were used by HHWP to justify and optimize its capital program budget.
By incorporating Black & Veatch’s prioritization tools, HHWP’s program planning has been greatly improved. The value to HHWP is that their capital program is more defensible, and the company has been able to increase funding to invest in rehabilitation projects.