{"data":{"id":"us/23-cfr-636.119","jurisdiction":"us","citation":"23 CFR 636.119","heading":"How does this part apply to a project developed under a public-private partnership?","body":"(a) In order for a project being developed under a public-private agreement to be eligible for Federal-aid funding (including traditional Federal-aid funds, direct loans, loan guarantees, lines of credit, or some other form of credit assistance), the contracting agency must have awarded the contract to the public-private entity through a competitive process that complies with applicable State and local laws.\n(b) If a contracting agency wishes to utilize traditional Federal-aid funds in a project under a public-private agreement, the applicability of Federal-aid procurement procedures will depend on the nature of the public-private agreement.\n(1) If the public-private agreement establishes price, then all subsequent contracts executed by the developer are considered to be subcontracts and are not subject to Federal-aid procurement requirements.\n(2) If the public-private agreement does not establish price, the developer is considered to be an agent of the owner, and the developer must follow the appropriate Federal-aid procurement requirements (23 CFR part 172 for engineering service contracts, 23 CFR part 635 for construction contracts and the requirements of this part for design-build contracts) for all prime contracts (not subcontracts).\n(c) The STD must ensure such public-private projects comply with all non-procurement requirements of 23 U. S. Code, regardless of the form of the FHWA funding (traditional Federal-aid funding or credit assistance). This includes compliance with all FHWA policies such as environmental and right-of-way requirements and compliance with such construction contracting requirements as Buy America, Davis-Bacon minimum wage rate requirements, for federally funded construction or design-build contracts under the public-private agreement.","path":["Title 23—Highways","CHAPTER I—FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION","SUBCHAPTER G—ENGINEERING AND TRAFFIC OPERATIONS","PART 636—DESIGN-BUILD CONTRACTING","Subpart A—General"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-23.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:50Z","sha256":"982d9cf990133c59a505822473cb275785dcf02fdc52912e7a245014af035861","source_id":"us-cfr","stale":true,"prev":"us/23-cfr-636.118","next":"us/23-cfr-636.201"},"notice":"GroundRules: Original legal text. Not legal advice."}