Leading and Managing Organizational Networks

Leading and Managing Organizational Networks (PLCY 698T)

Cross-sector Governance

Fall 2020

Examination, Part I: Long lead take-home paper

The Purple Line is a Maryland 16 mile light rail line connecting New Carrolton in Prince George’s County to Bethesda in Montgomery County. It will connect to Metro, MARC, Amtrak and bus lines. Construction of the Purple Line has been delayed for many reasons, but especially by persistent resistance through legal challenges. Governors of both parties and local governments have supported the Purple Line. Opposition has been largely from local groups

The Purple line is owned by the Maryland Department of Transportation, Maryland Transit Administration. It is a public-private partnership (P3) in which private companies were to help finance and construct the line and would receive a return over the long term. In 2016, the Purple Line Transit Partners (PLTP) competed and won the right to build, operate and maintain the system for 36 years. The PLTP, a consortium of three companies (Meridiam, Star America and Fluor Enterprises) signed a $5.6 billion, 876 page contract with Maryland to construct the Line over six years and then, operate and maintain it. Federal funding was secured for the project.

In September 2020, PLTP notified the state that it would cease work and terminate the contract. This step culminated a dispute over $800 million of expenses which resulted from the significant construction delays. The State took the position that the cost overruns were the responsibility of the contractor while PLTP argued that they were Maryland’s responsibility.

Efforts to revive the P3 have been ongoing and successful resolution offers advantages for the concessionaire, PLTP, and its investors, their banks and local support groups, and for the State and its leaders and supporting stakeholders. The Fall of 2020 is a crucial time for this effort.

Instructions: Using learning from this course, and …