This report considers the institutional aspect of P3 formation and implementation. Our purpose is to identify best practices from around the US and the world, to understand how current practices in California compare to best practices, and provide recommendations for improving the capacity of California's state and local governments to effectively develop and carry out P3 projects. Our efforts include detailed examinations of the P3 experience in the US and overseas, an interview process with public sector representatives in California and an analysis of our findings.