I was in Austin recently for a conference on Public/Private Partnerships (P3). P3 enables the private sector to help public sector entities such as federal, state and local governments build/maintain public facilities (i.e. courthouse) and infrastructure (i.e. bridges) by bringing ideas and creative financing.

The public sector has no money (and won’t for the foreseeable future) and will still have needs that must be addressed somehow.

Here’s what’s coming with the use of P3:

  • The public sector will have to re-think procurement. The low bid won’t always work because they won’t be controlling the money
  • “Value for Money” replaces “Low Bid” as the driver of decisions
  • Ideas matter and ideas are qualitative. You won’t be able to compete only on quantitative metrics. Qualitative metrics will have to be considered. Qualitative metrics added to traditional quantitative metrics will create new competitive advantage.   

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