Public Contracts & Procurement
The Hawkins Delafield & Wood LLP Public Contracts Group represents state and local governments in connection with procurements and contract negotiations for public works projects, contract management services and public-private partnerships. There are 12 attorneys in the group. Each specializes full time in the public contracts field. The Public Contracts Group has been in continuous practice at the Firm for over 30 years and is recognized as one of the pre-eminent municipal contract law practices in the country.
The Public Contracts Group has successfully concluded transactions in all of the major civil infrastructure sectors. These include: transportation, public power, civic facilities, drinking water, wastewater, combined water and wastewater, and solid waste. Representative engagements in each of these sectors are briefly described below.
We also have extensive experience with mixed-use real estate development projects conducted under municipal sponsorship or with substantial municipal involvement. Our practice is national in scope, with more than 200 projects in 25 states and several overseas jurisdictions. The contracts resulting from these procurements have had terms ranging from 5 to 25 years, and values between $5 million and $4 billion. In the aggregate, the public contracts the Firm has negotiated have a value exceeding $25 billion. The Firm's public contracts clients include major cities, counties, and public agencies and authorities, as well as smaller and medium-sized towns, boroughs, and special districts.
The experience of the Public Contracts Group across a broad range of infrastructure sectors and governmental project sponsors enables us to offer highly seasoned, expert counsel to our municipal clients on all of the critical aspects of public works contracting and procurement. The Firm is familiar with the legal and business factors that must be addressed in order to implement each type of civil infrastructure and municipal utility project, including related real estate, environmental, energy, contract, finance, securities, tax and litigation matters. Our central involvement in a wide range of public-private partnerships has also given us the background necessary to offer clients highly practical advice as to planning, procurement, structuring, business climate, management and timeline issues. Hawkins attributes its market leadership position to a flexible, determined and results-oriented approach grounded in a strong record of experience and achievement.
As an active participant and leader in the public contracts and procurement field, the Public Contracts Group has excellent relationships with the management, engineering and financial consulting firms regularly advising municipal governments on alternative project delivery matters. The Firm has also negotiated contracts with a large number of the major construction and operating contractors that regularly submit proposals and undertake public-private civil infrastructure projects. Hawkins represents only municipal governments and other public sector entities in public contract matters. Thus the Firm, unlike many of its competitors who accept contractor representation, is wholly free from potential conflicts of interest in serving municipal clients.
A few of our more noteworthy engagements are described briefly below.
Transportation Projects
Federal Highway Administration - TIFIA.
We serve on an ongoing basis as special counsel to the Federal Highway Administration in connection with its Transportation Infrastructure Finance and Innovation Act (TIFIA) program funding assistance for highway public-private partnerships. On behalf of the FHWA, we review and comment upon the contract and financing documentation prepared by state and regional transportation agencies for the development of new highways and other transportation facilities under alternative project delivery methods such as design-build or private toll financings. In that capacity we have assisted FHWA in closing two of the first transactions under TIFIA for the Washington Metro Area Transit Authority in the District of Columbia and the Tren Urbano project in Puerto Rico. We have also represented FHWA on a third transaction, construction of a new span for the Tacoma Narrows Bridge in the State of Washington.Arizona Department of Transportation
Hawkins worked extensively with ADOT as project counsel on MetroRoad, the development of the proposed widening of the Superstition Freeway. The project involved the formation of a 63-20 non-profit corporation for tax-exempt financing purposes, the grant of a concession to the development team, the construction of the additional lanes on a design-build-operate basis, and toll-based financing of the new assets.Republic of Poland: Transportation Ministry and Finance Ministry
Hawkins represented the Transportation Ministry of the Republic of Poland as procurement and contract counsel in the development of the new A-2 highway in southern Poland, which is now constructed and has been in successful operation for several years. We assisted in the strategic conceptualization of the project under a new national procurement law and in the preparation of the RFP and proposal review, and drafted and negotiated the DBFO concession with the selected Polish-French-German concessionaire. After the concession was executed, Hawkins represented the Finance Ministry as a major lender of subordinate debt in the private financing of the project.City of San Diego, California
Hawkins represented the City of San Diego in the development of the proposed Brown Field Cargo Airport expansion. Our services included proposal review, lease and service contract drafting and negotiations with the selected development team. The transaction involved private development of runways and terminals and of related commercial use property; private equity and financing; and extensive feasibility analysis.New York City Metropolitan Transportation Authority
Our firm served as project counsel in connection with the MTA’s procurement of a new rail signal system to the private proposer on a design-build-operate basis. The system was installed and operated on a demonstration basis for possible system-wide use by MTA. HD&W worked extensively on RFP, proposal review and contract development matters.
Public Power
State of California
Hawkins played a major role in assisting the State of California in the California power crisis of 2001-2002. Representing the California Department of Water Resources, the firm has assisted the State in drafting authorizing legislation empowering the Department to purchase power to meet the State’s shortage. In addition, we represented the Department in negotiating an initial portfolio of over $42 billion of power purchase agreements, including firm energy and capacity based and tolling agreements, and agreements for demand reduction and ancillary services. Hawkins is currently assisting the Department in renegotiating many of its power purchase agreements, and has also represented the Department in connection with gas purchase, transmission, storage and hedging agreements entered into in connection with the Department’s tolling agreements. Our representation also includes a wide range of market related matters, including those involving the California Independent System Operator and the transition of the power market back to the State’s investor-owned utilities.Long Island Power Authority
Hawkins represented the Long Island Power Authority in the acquisition of the electric generation and distribution assets of the Long Island Lighting Company. Upon the acquisition of such assets by LIPA, LIPA entered into various operating agreements with LILCO, whereby LILCO, through its subsidiaries, operated LIPA’s newly acquired electric assets. Hawkins Delafield & Wood LLP was instrumental in structuring, drafting and negotiating the operating agreements, and other related transaction agreements. We also served as bond counsel to LIPA in its issuance of $6.5 billion of municipal bonds to acquire LILCO’s electric assets.Klamath Falls, Oregon
Hawkins was retained to assist in developing and negotiating a transaction for the construction, financing and operation of an approximately 500 megawatt cogeneration facility that was successfully financed and constructed. During the development of the project, we assisted in negotiating the design-build-operate contract, a power purchase agreement, a power brokering agreement, an operating and maintenance agreement, a fuel supply and services agreement and various related agreements.Moreno Valley, California
Hawkins assisted the City of Moreno Valley and the Moreno Valley Electrical Utility as special counsel for the design, procurement, construction and financing of a new electric distribution substation and associated switchyard. The firm substantially advised the City on California’s public-private partnership statute for municipal infrastructure, Government Code Section 5956, and provided contract drafting and negotiation services in this regard. The formation of the municipally-owned electrical utility and the development of the substation and switchyard will permit the City to provide more rate stability to commercial and industrial customers than an investor-owned utility and improve the health and stability of the City’s general fund.
Civic Facilities
Metropolitan Government of Nashville and Davidson County
Hawkins represented the Metropolitan Government of Nashville and Davidson County as project counsel and finance counsel in connection with development of a natural gas fired district-wide heating and cooling system in downtown Nashville. As part of our engagement, we assisted in the preparation of an RFP for a private company to design and build a state-of-the-art heating and cooling system, and to operate it for a period of 30 years. We also negotiated a fuel procurement contract.Gallery Place and Mandarin Hotel Projects, Washington, D.C.
Hawkins acted as special transaction counsel to the District of Columbia in connection with two major mixed-use redevelopment projects. In order to establish parameters for the District’s funding of the subsidy and to ensure that the projects were completed on time and operated in the manner upon which the subsidy was based, Hawkins negotiated a development agreement between the developer and the District, as well as inter-party arrangements with the developers’ private equity investors and their institutional lenders.Battery Park City
Hawkins participated in the planning of Battery Park City, one of the nation’s most successful government-sponsored communities, comprised of a 92-acre neighborhood on the southwest tip of Manhattan. From its conception in the 1960s, through numerous financings including its most recent mega-refinancing in 2003, Hawkins has worked side-by-side with representatives of government and private sector developers and developed legal structures that afford the greatest flexibility to private sector developers in terms of financing sources and structures.
Drinking Water
Seattle, Washington
Hawkins authored the 15-year design-build-operate contract for the City’s new Tolt River water treatment plant in the Cascade Mountains, and substantially advised the City in implementing the procurement process. This transaction is widely regarded as a seminal event in public-private contracting in the drinking water industry.Phoenix, Arizona
Hawkins served as the outside legal advisor to a team that completed a seminal, in-depth study of 11 alternative project delivery methods for the Lake Pleasant Water Treatment Plant. We currently represent Phoenix as special counsel in the design-build-operate procurement for the Lake Pleasant plant now underway with three prequalified contractors utilizing newly enacted Arizona omnibus DBO legislation.San Diego County Water Authority, California
Hawkins represents the Authority as special contract counsel in the development of California’s first major seawater desalination project. The 50 mgd project will serve to substantially expand San Diego County’s reliable supply of local water sources. The plant will be implemented under a design-finance-build-operate water supply contract being negotiated with the developer.San Juan Capistrano, California
Hawkins served as special counsel to San Juan Capistrano’s Valley Water District, providing procurement and contract drafting and negotiation services in one of the first transactions to be effectuated under Government Code Section 5956, California’s public-private partnership statute for municipal infrastructure. A private firm will design, build and operate a 5 mgd groundwater desalination project, with user rates “bought down” to market by Southern California’s Metropolitan Water District.Lawrence, Massachusetts
As special counsel to the City of Lawrence, our firm helped negotiate a consent decree with the Massachusetts DEP for improved management practices at the City’s aging water treatment facility, and was centrally involved in the planning and procurement of an entirely new replacement 15 mgd water facility and major distribution system improvements. The City received five highly competitive proposals in response to its RFP, and Hawkins Delafield & Wood LLP drafted and negotiated the design-build-operate contract.
Wastewater Projects
Cranston, Rhode Island
In Cranston, Hawkins was the principal architect of the first major long- term wastewater project privatization transaction to be approved by the USEPA under Executive Order 12803. The Cranston transaction actually involved eight transactions in one: (1) design-build of capital improvements to the City’s 20 mgd plant; (2) design-build of tertiary treatment facilities; (3) 25-year contract operations; (4) 25-year maintenance, repair and replacement; (5) industrial pre-treatment program; (6) sewer maintenance; (7) contract payment/concession fee to the City; and (8) company financing of the contract payment and system improvements. The Cranston transaction is generally regarded as a landmark event in the wastewater treatment industry.Lynn, Massachusetts
As special counsel to the Lynn Water and Sewer Commission, Hawkins was a key strategist in the Commission’s groundbreaking “DBO for a CSO” project. This was the first project in the country for which a city conducted a design-build competition, which resulted in a savings in excess of $100 million measured against the cost of conventionally procured improvements. Hawkins drafted and assisted in securing passage of special state enabling legislation for these projects.Fulton County, Georgia
Hawkins served as special procurement and contract counsel to Atlanta’s Fulton County for the County’s 24 mgd Camp Creek Wastewater Treatment Plant project, which was the first major project to be implemented under new statewide DBO legislation. We substantially assisted in the RFP development and drafted and negotiated the DBO contract.Newport, Rhode Island
Hawkins was the coordinating consultant and special counsel on Newport’s 20-year operate-maintain-repair-replace contract for the City’s regional 10 mgd wastewater treatment plant.Springfield, Massachusetts
The Springfield Water and Sewer Commission’s 43 mgd wastewater plant, the second largest in New England, was placed under private contract management in a transaction which broke new ground in operator responsibility for odor control, enhanced effluent standards and sludge product production and marketing. Hawkins Delafield & Wood LLP, as special counsel to the Commission, served as the primary draftsman of the RFP as well as the resulting service contract, and played a central role in contract negotiations
Combined Water and Wastewater Projects
Stockton, California
Hawkins represented Stockton as special counsel in connection with the development and implementation of California’s largest long-term management contract for a wastewater treatment plant (43 mgd). The project also included major design-build work for permit-driven nitrogen-reduction upgrades and odor control system improvements valued in excess of $50 million, as well as private management responsibility for sludge disposal and for the management of the City’s water distribution, storm water, and utility billing and collection systems.Laredo, Texas
Hawkins served as special counsel to the City of Laredo, Texas, drafting and negotiating a 10-year service contract for the private management of the City’s entire water and wastewater utility system (25 mgd), including treatment plants, collection and distribution systems, billing and collection services, and special protections for the non-unionized utility workforce.Puerto Rico Aqueduct and Sewer Authority (PRASA)
Our firm acted as special counsel to PRASA and the Government Development Bank of Puerto Rico in negotiating an extension of the previous short-term private management contract, advising PRASA on the business terms of the RFP, and drafting the 10-year contract for private management and initial capital improvements to the PRASA System, which serves the entire island.U.S. Navy (60 Eastern Bases)
Hawkins is serving as special counsel to the Navy in connection with the proposed privatization of water, wastewater, electricity and gas utility systems at 60 naval bases in the eastern U.S. Options under study are asset sales, leases, and management contracts. We are also working with the Navy to develop the transaction forms, contracts and conveyance instruments appropriate to the implementation of the program.
Solid Waste
New York City
Hawkins currently serves as special counsel to the City of New York Department of Sanitation in connection with the implementation of the City’s multi-project long-term solid waste export program. Hawkins is responsible for drafting and negotiating multiple long-term solid waste processing, transport and disposal contracts for all solid waste generated in New York City and collected by the Department of Sanitation. To maintain competition among the proposers throughout the procurement process, Hawkins is conducting concurrent negotiations with multiple proposers for alternative projects for solid waste generated in the same wasteshed.Rockland County, New York
As special contract counsel and bond counsel to the County’s Solid Waste Management Authority since the 1980’s, Hawkins has been centrally involved in all of the major transactions the Authority has undertaken in developing its comprehensive program of solid waste management program. Our services have included RFP and contract drafting, negotiation and administration work for several facilities in the County as well as contracts for waste collection services for several municipalities in the county.Monmouth County, New Jersey
Hawkins has served as special counsel to the County since the mid-1980s in connection with its solid waste projects. The firm’s services have included procurement advice; RFP development, contract drafting, negotiation, administration and enforcement; flow control and solid waste management plan amendment work; and regulatory filings and approvals.San Diego, California
The firm has continuously represented the City of San Diego in implementing solid waste public-private partnerships since the 1980’s, including serving as special counsel and bond counsel in the development and financing of a new landfill as well as the successful implementation of a landfill gas co-generation to reduce air pollution and provide low cost electricity for wastewater system operations. The firm acted as chief negotiating counsel for a long-term service agreement and conditional use permit in connection with the acquisition by a private firm of the Sycamore Canyon landfill from San Diego County.Montgomery County, Maryland
Hawkins represented Montgomery County as special contract counsel in the development and implementation of the County’s 2000 tpd waste-to-energy plant. Our services included procurement, drafting and negotiation of the design-build-operate contract for the disposal facility, and contract negotiations with the governmental agency that provided financing for the project.
