Midterm Quiz

Question 1

the government (public authority) hires a private company or entity to carry out one or more specified tasks or services for a period

Answer 1

Service contract

Question 2

the government pays the private partner a predetermined fee for the service, which may be based on a one-time fee, unit cost, or other basis

Answer 2

Service Contracts

Question 3

expands the services to be contracted out to include some or all of the management and
operation of the public service

Answer 3

Management contract

Question 4

the private partner is responsible for the service in its entirety and undertakes obligations relating to quality and service standards.

Answer 4

Lease contract

Question 5

are a kind of specialized concession in which a private firm or consortium finances and develops a new infrastructure project or a major component according to performance standards set by the government.

Answer 5

Build-operate-transfer and similar arrangement

Question 6

the private partner provides the
capital required to build the new facility.

Answer 6

Build-operate-transfer (BOT)

Question 7

where the transfer to the public owner takes place at the conclusion of construction rather than the end of the contract.

Answer 7

Build–transfer–operate (BTO)

Question 8

where the developer constructs and operates the facility without transferring ownership to the public sector.

Answer 8

Build-own-operate (BOO)

Question 9

contract, ownership is never in private hands. Instead, a single contract is put out for the design, construction, and operation of the infrastructure project.

Answer 9

Design-build-operate (DBO)

Question 10

approach, the responsibilities for designing, building, financing, and operating are bundled together and transferred to private sector partners

Answer 10

Design-build-finance-operate (DBFO)

Question 11

The public sector is responsible for establishing performance standards and ensuring that the concessionaire meets them.

Answer 11

Concession