Stormwater Community-Based Public-Private Partnership Program

 

Short video to explain the fundamentals

We developed a new grant to help communities develop and implement stormwater Community-Based Public-Private Partnerships (CBP3), performance-based contracts, and other forms of alternative procurement. With our funding and following the process described in the CBP3 Guidebook for Municipal Stormwater Managers communities will be able to help reduce stormwater pollution and gain benefits such as creating green community space.

What are Community-Based Public-Private Partnerships (CBP3)?

Community-Based Public-Private Partnerships (CBP3s) are a way for local governments and private partners to work together to improve stormwater systems and provide community benefits, such as creating green public spaces, workforce development opportunities, and supporting local small businesses.

In a CBP3, a local government partners with a private organization to plan, build, operate, or maintain stormwater projects, often using green infrastructure like bioretention facilities, rain gardens, trees, or permeable pavement.

What makes CBP3s different?

In a traditional stormwater contract, a contractor is usually paid for completing tasks like designing or installing infrastructure. In performance-based project or CBP3, payment is based on verified project results like gallons of stormwater treated.

CBP3 or performance-based projects use alternative procurement, a flexible way to plan, design, build, operate, and maintain projects. Alternative procurement allows local governments to work with private partners in ways that traditional contracts do not, especially when projects involve private land, complex technical requirements, or long-term maintenance. 

CBP3s and performance-based projects use performance-based contracts, which tie payment to results instead of just activities. These contracts include:

  • Performance measures – What success looks like and how it’s measured
  • Verification processes – How results are checked and confirmed
  • Payment terms based on project outcomes – How and when payments are made based on results

This approach encourages innovation, long-term maintenance, and higher-quality outcomes.

Bundling and Integrated Delivery
Another key difference in CBP3s is the ability to bundle multiple project phases—and often multiple sites—into a single, integrated contract.

Traditional delivery separates planning, design, construction, and operations into different contracts. In contrast, alternative procurement models such as Design-Build (DB), Design-Build-Operate-Maintain (DBOM), and Design-Build-Own-Operate-Maintain (DBOOM) allow local governments to combine phases of work under one contract.

By bundling services, communities can:

  • Streamline procurement and reduce administrative burden
  • Align design decisions with long-term operations and maintenance needs
  • Shift appropriate risks to the party best able to manage them
  • Accelerate project delivery

By combining design, construction, and operations under one accountable partner—and tying payment to measurable outcomes—CBP3s better align incentives with long-term water quality results.

What kinds of stormwater projects use CBP3s?

Stormwater CBP3 projects can take many forms, including:

  • Installing green infrastructure on private property
  • Designing and building projects on public land
  • Delivering and maintaining a multi-year stormwater program under a single contract

These projects can also help communities meet Municipal Separate Storm Sewer System (MS4) permit requirements.

About the program


Funded projects


Overview videos

Planning for and Engaging Communities

Overcoming Common Barriers

Contracting Innovations with the Private Sector

10 Design Elements for CBP3s