PPP (Public-Private Partnership)
PPP stands for Public-Private Partnership. A public-private partnership is a long-term agreement where a private company helps finance, build, operate or maintain a public asset like a road, building, housing or utility. The private partner takes on some of the risk and is paid through fees, user charges or performance payments.
PPPs are more common at state and local levels and in military housing and utilities. They are complex and usually involve large firms leading a team of designers, builders and operators.
Why it matters to a small contractor
PPPs create long-running maintenance work, like grounds, janitorial and HVAC upkeep, often for decades. The private operator, not the government, usually hires those service subs.
Example
A state partners with a private group to build and run a new rest-area network for 30 years. The operator hires a local janitorial company for $250,000 a year.
PPP: common questions
Is PPP the same as the Paycheck Protection Program?
No. In govcon, PPP often means public-private partnership. The Paycheck Protection Program was a pandemic-era loan program that stopped taking applications in 2021.
Who do I contact for PPP work?
Usually the private operator or builder, since they handle most subcontracting.
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