IDEAS home Printed from https://ideas.repec.org/a/kap/porgrv/v20y2020i1d10.1007_s11115-018-0426-6.html
   My bibliography  Save this article

DBFOM Contracting and Public Stewardship in the Norfolk-Portsmouth Elizabeth River Tunnels Public-Private Partnership

Author

Listed:
  • Joshua Steinfeld

    (Old Dominion University)

  • Ron Carlee

    (Old Dominion University)

  • Kouliga Koala

    (Old Dominion University)

Abstract

In 2011, the Virginia Department of Transportation issued a request for proposals to upgrade the Norfolk-Portsmouth Elizabeth River Midtown and Downtown Tunnels. The project involved government contracting with a local subsidiary of two foreign entities that would handle all project phases according to a Design-Build-Finance-Operate-Maintain (DBFOM) contract. The case of the Elizabeth River Tunnels (ERT) project is examined through the perspective of transaction cost theory and evaluates the DBFOM contracting method according to its impact on public stewardship. The research findings improve understanding of public-private partnerships (PPPs) by examining the connection between transaction costs and public stewardship.

Suggested Citation

  • Joshua Steinfeld & Ron Carlee & Kouliga Koala, 2020. "DBFOM Contracting and Public Stewardship in the Norfolk-Portsmouth Elizabeth River Tunnels Public-Private Partnership," Public Organization Review, Springer, vol. 20(1), pages 37-62, March.
  • Handle: RePEc:kap:porgrv:v:20:y:2020:i:1:d:10.1007_s11115-018-0426-6
    DOI: 10.1007/s11115-018-0426-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11115-018-0426-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11115-018-0426-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-785, July.
    2. Hoppe, Eva I. & Kusterer, David J. & Schmitz, Patrick W., 2013. "Public–private partnerships versus traditional procurement: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 145-166.
    3. Eoin Reeves & James Ryan, 2007. "Piloting Public-Private Partnerships: Expensive Lessons from Ireland's Schools' Sector," Public Money & Management, Taylor & Francis Journals, vol. 27(5), pages 331-338, November.
    4. Williamson, Oliver E., 2010. "Transaction Cost Economics: The Origins," Journal of Retailing, Elsevier, vol. 86(3), pages 227-231.
    5. Williamson, Oliver, 2009. "The Theory of the Firm as Governance Structure: From Choice to Contract," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 111-134, December.
    6. Oliver E. Williamson & Scott E Masten (ed.), . "The Economics of Transaction Costs," Books, Edward Elgar Publishing, number 1652.
    7. Eva I. Hoppe & Patrick W. Schmitz, 2013. "Public-private partnerships versus traditional procurement: Innovation incentives and information gathering," RAND Journal of Economics, RAND Corporation, vol. 44(1), pages 56-74, March.
    8. James Runde & J. Perry Offutt & Stacie D. Selinger & Jennifer Sarah Bolton, 2010. "Infrastructure Public‐Private Partnerships Re‐Defined: An Increased Emphasis on “Partnerships”," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(2), pages 69-73, April.
    9. Oliver Hart, 2003. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 69-76, March.
    10. Darrin Grimsey & Mervyn K. Lewis, 2005. "Are Public Private Partnerships value for money?," Accounting Forum, Taylor & Francis Journals, vol. 29(4), pages 345-378, December.
    11. Daniel Albalate & Germ� Bel & R. Richard Geddes, 2015. "The determinants of contractual choice for private involvement in infrastructure projects," Public Money & Management, Taylor & Francis Journals, vol. 35(1), pages 87-94, January.
    12. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1127-1161.
    13. Jan Whittington, 2012. "When to Partner for Public Infrastructure?," Journal of the American Planning Association, Taylor & Francis Journals, vol. 78(3), pages 269-285.
    14. James G. March & Zur Shapira, 1987. "Managerial Perspectives on Risk and Risk Taking," Management Science, INFORMS, vol. 33(11), pages 1404-1418, November.
    15. Turner, J.R., 2001. "Project Contract Management and a Theory of Organization," ERIM Report Series Research in Management ERS-2001-43-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    16. Matti Siemiatycki, 2010. "Delivering Transportation Infrastructure Through Public-Private Partnerships: Planning Concerns," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(1), pages 43-58.
    17. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    18. Ronald W. McQuaid & Walter Scherrer, 2010. "Changing reasons for public--private partnerships (PPPs)," Public Money & Management, Taylor & Francis Journals, vol. 30(1), pages 27-34, January.
    19. Tim Snippert & Wiebe Witteveen & Hans Boes & Hans Voordijk, 2015. "Barriers to realizing a stewardship relation between client and vendor: the Best Value approach," Construction Management and Economics, Taylor & Francis Journals, vol. 33(7), pages 569-586, July.
    20. Flyvbjerg,Bent & Bruzelius,Nils & Rothengatter,Werner, 2003. "Megaprojects and Risk," Cambridge Books, Cambridge University Press, number 9780521009461.
    21. Trevor L. Brown & Matthew Potoski, 2003. "Managing contract performance: A transaction costs approach," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 275-297.
    22. Michael Opara & Fathi Elloumi & Oliver Okafor & Hussein Warsame, 2017. "Effects of the institutional environment on public-private partnership (P3) projects: Evidence from Canada," Accounting Forum, Taylor & Francis Journals, vol. 41(2), pages 77-95, June.
    23. Ferris, James M & Graddy, Elizabeth, 1991. "Production Costs, Transaction Costs, and Local Government Contractor Choice," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 541-554, July.
    24. Raden Murwantara Soecipto & Koen Verhoest, 2018. "Contract stability in European road infrastructure PPPs: how does governmental PPP support contribute to preventing contract renegotiation?," Public Management Review, Taylor & Francis Journals, vol. 20(8), pages 1145-1164, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arshad Ali Javed & Patrick T.I. Lam & Albert P.C. Chan, 2014. "Change negotiation in public-private partnership projects through output specifications: an experimental approach based on game theory," Construction Management and Economics, Taylor & Francis Journals, vol. 32(4), pages 323-348, April.
    2. Schmitz, Patrick W., 2023. "The proper scope of government reconsidered: Asymmetric information and incentive contracts," European Economic Review, Elsevier, vol. 157(C).
    3. Cian O'SHEA & Dónal PALCIC & Eoin REEVES, 2019. "Comparing Ppp With Traditional Procurement: The Case Of Schools Procurement In Ireland," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(2), pages 245-267, June.
    4. Eva I. Hoppe & Patrick W. Schmitz, 2021. "How (Not) to Foster Innovations in Public Infrastructure Projects," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 238-266, January.
    5. Joshua Steinfeld & Kouliga Koala & Ron Carlee, 2019. "Contracting for public stewardship in public-private partnerships," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 12(2), pages 135-155.
    6. Ehtisham Ahmad & Annalisa Vinella & Kezhou Xiao, 2018. "Contracting arrangements and public private partnerships for sustainable development," Public Sector Economics, Institute of Public Finance, vol. 42(2), pages 145-169.
    7. Athena Roumboutsos & St�phane Saussier, 2014. "Public-private partnerships and investments in innovation: the influence of the contractual arrangement," Construction Management and Economics, Taylor & Francis Journals, vol. 32(4), pages 349-361, April.
    8. Välilä, Timo, 2020. "An overview of economic theory and evidence of public-private partnerships in the procurement of (transport) infrastructure," Utilities Policy, Elsevier, vol. 62(C).
    9. Schmitz, Patrick W., 2013. "Job design with conflicting tasks reconsidered," European Economic Review, Elsevier, vol. 57(C), pages 108-117.
    10. Hodaka Morita & Maroš Servátka, 2016. "Does Group Identity Prevent Inefficient Investment in Outside Options? An Experimental Investigation," Research in Experimental Economics, in: Experiments in Organizational Economics, volume 19, pages 105-126, Emerald Group Publishing Limited.
    11. Schmitz, Patrick W., 2010. "Contractual solutions to hold-up problems with quality uncertainty and unobservable investments," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 807-816, September.
    12. Buso, Marco & Marty, Frederic & Tran, Phuong Tra, 2017. "Public-private partnerships from budget constraints: Looking for debt hiding?," International Journal of Industrial Organization, Elsevier, vol. 51(C), pages 56-84.
    13. Berde, Éva, 2013. "A fundamentális transzformáció és a referenciapont szerepe a hiányos szerződések elméletében [The role of basic transformation and reference point in the theory of incomplete contracts]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 865-885.
    14. Nunzia Carbonara & Roberta Pellegrino, 2020. "The role of public private partnerships in fostering innovation," Construction Management and Economics, Taylor & Francis Journals, vol. 38(2), pages 140-156, February.
    15. Schmitz, Patrick W. & Kusterer, David J., 2018. "Government versus Private Ownership of Public Goods: Experimental Evidence," CEPR Discussion Papers 13204, C.E.P.R. Discussion Papers.
    16. Jean Beuve & Marian W Moszoro & Pablo T Spiller, 2023. "Doing It by the Book: Political Contestability and Public Contract Renegotiations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 39(1), pages 281-308.
    17. Miranda Sarmento, J. & Renneboog, L.D.R., 2014. "Anatomy of Public-Private Partnerships : Their Creation, Financing, and Renegotiations," Other publications TiSEM d276f5b6-49cb-40c7-b83c-1, Tilburg University, School of Economics and Management.
    18. Veiko LEMBER & Ole Helby PETERSEN & Walter SCHERRER & Robert ÅGREN, 2019. "Understanding The Relationship Between Infrastructure Public‒Private Partnerships And Innovation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(2), pages 371-391, June.
    19. Committee, Nobel Prize, 2016. "Oliver Hart and Bengt Holmström: Contract Theory," Nobel Prize in Economics documents 2016-1, Nobel Prize Committee.
    20. Miranda Sarmento, J.J. & Renneboog, Luc, 2016. "Anatomy of public-private partnerships : Creation, financing, and renegotiations," Other publications TiSEM dc944be7-8594-4439-90da-6, Tilburg University, School of Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:porgrv:v:20:y:2020:i:1:d:10.1007_s11115-018-0426-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.