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A Remarkable Public-Private Partnership:

 

A Case Study – Part II

 

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:

    1. 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;
    2. 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
    3. 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

Part I of this case study focused on the OTIA III Program’s scope, schedule, budget, governance structure, and the delineation of roles and responsibilities within the public–private partnership. Part II examines how the program was operated in practice, highlighting key operational strategies, innovations, and lessons learned across safety, quality, economic stimulus, mobility, environmental stewardship, engineering and construction management, staffing, reporting, communications, project delivery methods, closeout, and joint‑venture governance.

More…

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How to cite this article: Craig, J. L. (2026).  A Remarkable Public-Private Partnership: A Case Study – Part II, PM World Journal, Vol. XV, Issue VII, July. Available online at https://pmworldjournal.com/wp-content/uploads/2026/07/pmwj166-Jul2026-Craig-A-Remarkable-PPP-part-2-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.