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Committee hears update on Cameron Ferry privatization; department says goal is service improvement, not immediate cost savings
Summary
An agency official told the committee that an unsolicited proposal and a responsive bid advanced a procurement process for privatizing Cameron Ferry operations; the department said privatization is aimed at improving service, with contract negotiations and a target completion by July 1.
The House Transportation Committee heard an update March 17 on a proposal to privatize operation of the Cameron Ferry. An agency official identified in the record as Mr. Ciccare said an unsolicited proposal from a private party (transcribed as 'Latimore' and elsewhere in the record as 'Labmore') initiated the process; the Louisiana Transportation Authority authorized moving forward, and a competitive solicitation produced a responsive, qualified bid.
Mr. Ciccare said the department opened negotiations with the bidder to determine whether a competitive contract could be negotiated for private operation of the ferry system. "This process would allow us to enter into that negotiation and see if we could negotiate a competitive contract with [the bidder] to take over operation of that ferry system," he said. He emphasized that, in the department’s view, privatization is likely to be "more of a service improvement than a cost saving measure." The department noted two new ferries are coming online and that a private operator could provide consistent crews and captains.
Representative Shamenhorn asked whether the proposal is expected to save the state money. Mr. Ciccare replied that cost savings are not the primary expectation; additional costs accompany privatization, and specifics depend on how the contract is negotiated. On responsibility for fuel and maintenance, Mr. Ciccare said those details are negotiable but in practice "that would all be on them" under the likely contract framework.
Mr. Ciccare said the department aims to have the procurement wrapped up by the end of the fiscal year, with a target of July 1. Committee members thanked the official and noted additional discussion with an OMV/agency commissioner would occur the following Monday. The transcript records no formal action or vote on privatization during this meeting.
Note on name spelling: the proposaler's name is transcribed inconsistently in the committee record as both 'Latimore' and 'Labmore'; the committee transcript does not resolve the correct spelling.
