LAWA'S CONTRACTING MODEL SETS INCLUSIVITY RECORDS

Los Angeles City Council Meeting, April 26, 2024. Courtesy City of Los Angeles and Los Angeles World Airports.

(Los Angeles) Los Angeles World Airports (LAWA)'s latest Multiple Award Task Order Contract (MATOC), representing nearly $1 billion in contracting value, received approval from Los Angeles City Council on April 26, 2024. The Council's endorsement follows earlier consent from the City of Los Angeles's Travel, Trade and Tourism Committee and LAWA's Board of Airport Commissioners (BOAC). The occasion marks a groundbreaking moment for LAWA and its dedication to creating new and lasting economic pathways for local, diverse, veteran, small and micro businesses with a historic number of first time and new-to-LAWA participants.

"After supporting this game-changing MATOC with my fellow BOAC members, I commend the City on its unanimous decision to ratify this vital contract," said Karim Webb, President, Board of Airport Commissioners. "At LAWA, we are ensuring that public dollars are spent equitably and result in measurable outcomes that benefit the businesses and individuals that make our airport community so great. Our Board challenged LAWA staff to be bold, and they definitely delivered."

Previously, the Program Services MATOC had an inclusivity requirement of 20% for Small Business Enterprises (SBEs). The newest, self-imposed standards amend goals to be larger and more far-reaching with requirements totaling 30% for SBEs, 14% for Local Business Enterprises (LBEs), 11% for Local Small Business Enterprises (LSBEs) and 2% for Disabled Veterans Business Enterprises (DVBEs). Collectively, these categories are known as XBEs. Further, LAWA established three contract award levels based on business size standards for small, medium, and large firms to compete equally with the same level of contract capacity. This approach resulted in contract awards for four large firms, five medium firms, and six small firms, with six of these firms being first-time prime contractors and two being joint-venture XBE firms that are new to LAWA's pool of qualified vendors.

"LAWA's Capital Improvement Program is among the largest and most ambitious aviation initiatives in the country. Our new MATOC partners are the most diverse group ever and include many firms that have never had the opportunity to work with LAWA. Contracting this way will help grow vital capacity for our innovative projects and benefit the Los Angeles communities we serve," said John Ackerman, Chief Executive Officer, Los Angeles World Airports. "Through our investments, we not only build airport infrastructure, we also build communities by making purpose-driven inclusivity non-negotiable."

The Program Services MATOC joins two recent MATOCs related to LAWA's Capital Improvement Program that also advanced LAWA's inclusivity goals - the Entitlement and Environmental Planning MATOC ($25 million in contracting value) and the Planning and Design Services MATOC ($100 million in contracting value). Each MATOC constitutes a master contract that is used to expedite future job orders relating to improvements at Los Angeles International Airport (LAX) and Van Nuys Airport (VNY) over multiple years. When needs arise, a new task order defines the scope for individual jobs, with the existing MATOC providing the terms of an overarching agreement. This contracting model eliminates the need to negotiate additional service terms, greatly increasing efficiencies for both contractors and the client. While time is saved by eliminating superfluous contract review processes, expectations for inclusivity are pre-established, ensuring work is executed by teams that meet or surpass LAWA's industry-leading representation requirements.

By establishing a new and inclusive engagement approach, LAWA reached qualified partners, some of whom had never done business with the Department before. Ongoing dialogue between LAWA and these vendors yielded positive changes to procurement processes that greatly decreased barriers to entry. To become an owner of choice, LAWA implemented broader operational transparency, a refreshed design and construction handbook, expansive inclusivity goals and requirements, new opportunities for microbusinesses, industry mentor and protégé programs, internship and educational learning opportunities and more. These improvements will continue to evolve and grow, all in support of fostering equitable economic growth and resiliency in Los Angeles and the greater Southern California region.

A new MATOC for Construction and Design-Build Services is currently in development, with the release of a Request for Proposal and pre-proposal conference anticipated before 2025. Interested parties can learn more about LAX's campus-wide transformation and subscribe for project updates at lax.to/LAXtransformation.

KEY DETAILS

• LAWA's latest Program Services MATOC represents nearly $1 billion in contracting value for four large firms, five medium firms, and six small firms, with six of these firms being first-time prime contractors and two being joint-venture XBE firms that are new to LAWA's pool of qualified vendors.
• The award to these 15 firms includes the participation of 230 subconsultants of which 147 are XBE firms, and 73 are micro small businesses.
• The approval of LAWA's Program Services MATOC marks a pivotal moment; the contract is the largest award of its kind in the City's history and includes the highest number of first time and new-to-LAWA firms.
• LAWA is working to identify and decrease barriers to entry for local, diverse, veteran, small and micro businesses while ensuring their ongoing success by requiring industry leading XBE goals and evaluation criteria scoring for contracts.
• LAWA's measurable inclusivity investments are fostering equitable economic growth and resiliency in Los Angeles and the greater Southern California region.

LEAD CONSULTANTS

• Anser Advisory Management, LLC
• C2PM
• CMTS, LLC
• COLAB LAWA, LLC
• Cordoba Corporation
• D'Leon Consulting Engineers Corporation
• H.J. Russell & Company
• Hill International, Inc.
• Jacobs Project Management Co.
• The Kennard Development Group dba KDG Construction Consulting
• Lea + Elliott, Inc.
• Parsons Transportation Group, Inc.
• PSG JV
• Simpson & Simpson Management Consulting, Inc.
• Vanir Construction Management, Inc.

MEDIA ASSETS
A PDF of this press release and high-resolution images are available to download at: lax.to/HistoricMATOC. Credit all assets as "Courtesy Los Angeles World Airports."