A Case Study – Part I
CASE STUDY
By John L. Craig
Nebraska, USA
Abstract
The Oregon Transportation Investment Act (OTIA) III State Bridge Delivery Program was a comprehensive public–private partnership between the Oregon Department of Transportation (ODOT) and a Fluor–HDR joint venture. The program established a model for sustainable infrastructure investment by simultaneously enhancing economic performance, mobility, and environmental stewardship while delivering a positive return on public expenditures.
During a period of significant economic stress, the program successfully managed more than $2.1 billion in funding ($1.3 billion in OTIA funds and $800 million in additional sources), achieving economies of scale and saving or avoiding in excess of $2 billion in costs. The program was completed on schedule and more than $45 million under budget. It is estimated to have created or sustained approximately 22,000 jobs, with 90% of expenditures directed to Oregon firms and residents, thereby providing substantial statewide economic stimulus. The program also recorded more than 3 million work hours without major safety incidents.
A suite of innovative delivery approaches contributed to savings exceeding $1 billion. These included:
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- advanced information technology systems that, according to a state-of-the-art public-sector cost–benefit analysis, generated a return of $2 for every $1 invested; among them, the Work Zone Traffic Analysis tool alone is estimated to have saved motorists more than $200 million in avoided delay;
- a single environmental programmatic permitting framework that coordinated requirements across 11 state and federal agencies, avoiding an estimated $74 million in costs and preventing delays associated with conventional permitting; and
- a design exception process that met ODOT and Federal Highway Administration standards while streamlining decision-making and avoiding nearly $700 million in costs.
Collectively, these strategies enabled the OTIA III State Bridge Delivery Program to exceed its performance, cost, and schedule objectives and to demonstrate the potential of well-structured public–private partnerships to deliver large-scale transportation infrastructure with strong stakeholder and partner support.
Introduction/Summary
Routine bridge inspections in 2001 revealed expanding cracks in several highway structures, signaling an urgent need to modernize Oregon’s aging transportation infrastructure. These deficiencies imposed load restrictions on major freight corridors, leading to delays, detours, and broader system inefficiencies. A subsequent study estimated that, over 25 years, failing to address the problem would cost the state approximately $123 billion in lost productivity and 88,000 jobs (ODOT, 2003).
Oregon has nearly 6,700 bridges, including 2,700 state-owned structures, with almost half constructed before 1960. Projections indicated that an average of 15 bridges per year would become structurally deficient. Without intervention, the situation was expected to deteriorate rapidly.
In 2003, the Oregon Legislature passed House Bill 2041 and established the Oregon Transportation Investment Act (OTIA) III State Bridge Delivery Program—the largest investment in Oregon’s transportation infrastructure in more than 50 years. HB 2041authorized $1.3 billion to repair or replace 365 bridges statewide within a compressed schedule of just over a decade. The Legislature directed the Oregon Department of Transportation (ODOT) to outsource program management for this effort.
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How to cite this article: Craig, J. L. (2026). A Remarkable Public-Private Partnership: A Case Study – Part I, PM World Journal, Vol. XV, Issue VI, June. Available online at https://pmworldjournal.com/wp-content/uploads/2026/06/pmwj165-Jun2026-Craig-A-Remarkable-PPP-part-1-Case-Study.pdf
About the Author
John L. Craig
Nebraska, USA
John L. Craig has served as a civil engineering executive in both the public and private sectors, leading award-winning multibillion-dollar programs and projects around the world. He served as the Program Manager/Director, Owner’s Representative, and Principal-in-Charge for the Fluor-HDR Joint Venture that delivered the Oregon Transportation Investment Act III State Bridge Delivery Program from 2009 to 2015, the last and final of three since the Joint Venture-Program began in 2004. A retired U.S. Army Corps of Engineers Lieutenant Colonel and former Director of the Nebraska Department of Transportation, he holds bachelor’s and master’s degrees from the University of Central Missouri, a master’s degree from the University of Alaska-Fairbanks, and has published on the natural-built environment, engineering, construction, national defense, and security. He currently resides in Omaha, Nebraska, and can be contacted via email at johnlcraigconsulting@cox.net.
