The current definition of the Federal project can be a barrier to private sector participation
The current definition of a federal project could be a barrier to private sector participation as it could result in the private sector having to adhere to stringent and burdensome requirements even on those elements that can be completed more efficiently using local dollars. Some significant federal barriers to public-private partnerships for transit projects include statutory provisions, such as Buy America and the Davis-Bacon and Related Acts, and related FTA regulations that can ultimately increase cost and slow project delivery.
The private sector is more likely to participate in transit projects if it can retain the project management structure that it already utilizes, even if that pre-existing structure does not comport with federal guidelines. There are some considerations that can be proposed to the private sector for their participation in federally funded projects, for example including DBE subcontractors to achieve a greater public purpose.