Los Angeles World Airports (LAWA) procures over $350 million a year of
goods, materials and services to maintain efficient operation of its network
of airports at Los Angeles (LAX), Ontario (ONT), Van Nuys (VNY) and Palmdale
(PMD). From asphalt to safety equipment to legal services, many of LAWA’s
divisions utilize outside contractors to provide specialized products
or services to fulfill the needs of the airport.
While each contract solicitation presents a unique business opportunity
focused on individual goals and needs, there is a standard process by
which LAWA solicits and evaluates potential contractors.
The process generally includes the following steps:
- LAWA issues a Request for Bid (RFB) or Request for Proposal
(RFP) at the time it is seeking contractors for specific projects, which
contains details on the contracting process and criteria for selection.
An RFB is utilized for the purchases of materials, supplies, equipment,
construction services and non-professional services, and an RFP is used
for unique, scientific, expert or technical services of a temporary
and occasional nature, performed by independent contractors whose occupation
is the rendering of such services.
- LAWA advertises in a variety of sources (detailed below) to
inform potential contractors about business opportunities.
- Potential contractors must sign and return required administrative
forms along with their proposals. These forms are detailed within the
RFB or RFP.
- Once the detailed proposals and required city administrative
documents are submitted, designated staff members from our contracting
department review the proposals for compliance, and provide it to an
evaluation committee to determine the qualifications of the proposers.
RFBs are evaluated based on the amount of the product or service purchased
and involve a telephone quote (contract value of less than $1,000),
a letter bid (value of $1,000 - $10,000), formal, written and sealed
bid ($10,000 - $150,000) or formal, written and sealed bid in response
to an advertisement and approved by the Board of Airport Commissioners
($150,000 or more). In the RFP process, proposals are generally evaluated
on the minimum qualifications stated in the RFP and other criteria,
which may include experience, financial stability of the proposer, cost
and staff size and location. The City Attorney’s office oversees
this process.
- Depending on the nature of the contract, interviews may be
conducted with the proposers, utilizing a standard list of questions, based on the evaluation criteria stated in the RFP/RFQ.
- Qualified contractors are then selected based on the evaluation criteria stated in the RFP/RFQ.
The City Attorney’s office reviews all RFPs, attends pre-proposal
meetings, reviews proposals of selected firms and prepares contract
documentation to ensure that the vendor-selection process is in conformance
with any and all City Charter and City Administrative Code contracting
requirements.
Additional details on the procurement process are provided below.
Types of Procurement at Los Angeles World Airports
Los Angeles World Airports procures materials, products and services through the following methods:
- Request for Bid (RFB) Process
A Request for Bid
is used for purchase of materials, supplies, equipment, construction
services and non-professional services.
Los Angeles City Charter, Section 371, requires an open and competitive bidding process
in awarding the contract to the lowest responsive and responsible bidder meeting
the product/services specifications. Bids are not subject to negotiation.
- Request for Proposal (RFP)
A Request for Proposal is used for unique, scientific, expert, or technical services of a temporary and occasional nature, performed by independent contractors whose occupation is the rendering of such services.
The RFP/Selection Criteria
As noted, in the RFP process, proposals are generally evaluated on
the qualifications outlined in the RFP. Other criteria that may be utilized
in selecting potential contractors is as follows:
-
Professional/Technical Services Contracts (Experience of lead firm and sub-consultants with similar types of projects, Experience and qualifications of key staff members, Financial stability, Cost, Staff size and location)
-
Concessions Contracts (Financial return to LAWA, Facility design, quality of improvements and capital investment, Concept, merchandise, marketing plan and pricing, Proposer financial capability, Disadvantaged Business Enterprise (DBE) participation)
-
Request for Qualification (RFQ) & Request for Information (RFI)
In preparation for the procurement of services and for budget purpose, LAWA may perform preliminary research
for potential contractors, and cost of the same services that are offered prior to developing the Request for Proposal. In rare instances, a Request for Qualification or Request for Information is used.
A Request for Qualification
(RFQ) is typically used when the City wishes to select a vendor to help
develop a project (including project scope, cost, time frame, staffing,
etc.) and to subsequently implement that project. A RFQ is used to gather
information about vendors to determine if they are capable of performing
certain types of services for the City. The RFQ might ask for information
such as the size of the company, the amount of business conducted during
the last year, the number of customers of projects similar to what the
City is contemplating, the cost per project and time frame for completion,
and appropriate references. The RFQ is usually reserved for the selection
of engineers, architects, or other highly specialized technical providers.
A Request for Information (RFI) is used when the actual scope of work
is not known or difficult to define or when LAWA needs to develop a
“pool” of likely proposers. An RFI is a solicitation of
ideas, solutions and/or recommendations to assist LAWA in the development
of a scope of work for an RFP.
All Request for Proposals (RFP), Request for Bids (RFB) and Special
Bids are now available through the City of Los Angeles, Business Assistance
Virtual Network:
http://www.labavn.org/
The Business Assistance Virtual Network (BAVN) is a free service provided by the City of Los Angeles
Minority Business Opportunity Committee (MBOC) and the Los Angeles Opportunities
& Procurement Services.
Reviewing Proposals
A panel is appointed to review the proposals for the contract. The
proposals are evaluated against the criteria set forth in the proposal
solicitation.
Interviews
Interviews are conducted where appropriate. For each specific contract
- depending on its nature - LAWA staff typically prepares a standardized
list of questions following the evaluation criteria published in the RFP/RFQ for possible use by the interview panel. Standard
procedures are followed for each step of each contract proposal process.
Time spent with firms during interviews is dependent upon the length
of the firms’ presentations and time allotted for follow-up questioning.
Opening of the Bids
Bids valued between $10,000 - $25,000 do not have formal public openings
but do have stated opening dates and times, usually on Fridays at 2:00
p.m. at the Purchasing Office. Bids valued at greater than $25,000 have
a formal public opening and have stated opening dates and times. After
an award of contract is made, bid recap sheets of informal awards (less
than $25,000) are available to the public for inspection at the Purchasing
Office. Formal bids (more than $25,000) may be reviewed on request.
Awarding the Contract
It is part of standard procedure that at the time a contract is awarded,
LAWA staff submits a report to the Board of Airport Commissioners describing
the RFP process, the contractor selection process and the reasons why
the recommended contractor submitted the most responsive and responsible
bid or proposal. Recommendations set forth in such reports are almost
always by unanimous vote of the selection panel.
Contractor Responsibility
LAWA’s Contract Services Division (CSD) administers the Contractor
Responsibility Program (CRP). CSD provides technical support, conducts
the CRP reviews and determines contractor responsibility. Upon receipt
of complaints regarding alleged responsibility violations by a current
or prospective contractor/tenant, the CSD collects necessary facts and
documentation from the complainant(s) and issues a “Notice to
Respond” to the alleged contractor/tenant summarizing the facts
of the investigation. A contractor/tenant found non-responsible is subject
to sanctions.
LAWA enjoys an excellent reputation for its contracting practices,
and the CRP ensures that we maintain the highest standards with our
contractors.
Purchasing, Procurement and Contract Management at Los Angeles World Airports
Utilizing a coordinated de-centralized process, various LAWA Divisions are associated with Purchasing and Procurement at LAWA's four airports.
RFB/RFP/RFQ Preparation, Vendor Selection and Contract Management
Project Management Division: This division manages the procurement process for major construction projects. The majority of contracts in this division are for personal and professional services.
Concessions Management Division: This division administers concessions, including the food/beverage, specialty-retail, car rental,space rental and other passenger services concession program. Examples of other concessions programs include Automatic Teller Machines (ATMs), Baggage Carts, Baggage Storage, Business Service Centers, Duty Free Shops, Food & Beverage, Gift & News, Locker Rentals, Rent-A-Car, Specialty Coffee, Specialty Retail and Vending Machines. Concessions contracts typically involve revenue to Los Angeles World Airports carried out in the form of rental/leasing contracts.
Other Divisions: Many LAWA divisions purchase professional/technical and personal services. LAWA has many divisions purchasing a variety of products, services and materials. We recommend that small businesses initially work with the Small Business and Job Opportunities representative for the division where they are interested in marketing products or services - as he or she will be happy to make a first contact for you. Other divisions include:
- Accounting and Financial
Reporting
-
Airfield Operations
-
Airport Police
-
City Attorney
-
Community
Relations
-
Construction and Maintenance
-
Project Management
(Engineering)
-
Facilities Development
-
Information Technology
-
Landside
Operations
-
Environmental Management
-
Human Resources
-
Property
-
Media Relations
-
Risk Management
Technical Support
Purchasing Division: This division purchases materials, supplies, equipment, construction services, equipment rental services, repair and maintenance services and oversees delivery of goods and services for the four airports comprising LAWA: Los Angeles International (LAX), Ontario International (ONT), Palmdale (PMD), and Van Nuys (VNY) airports.
Contract Services Division: This division is the central access point and repository for all procurement and contract requirements. It assists LAWA Divisions, prospective vendors, and contractors with the provision of requirements and compliance information, including contractor's efforts to increase minority and women business participation, as mandated by City of Los Angeles and Board of Airport Commissioners (BOAC) policy.
Small Business and Job Opportunities Center: This division assists those businesses who wish to sell their goods or services to the Airports. The center's primary function is economic development - their mission is to provide neighboring businesses with improved access to opportunities with LAWA.
The Small Business and Job Opportunities Center is available to answer your procurement questions and to meet your procurement needs. To assist potential bidders, Small Business and Job Opportunities Center offers lists of pre-qualified subcontractors and certified minority, woman and disadvantaged businesses.
This office is responsible for implementing and monitoring the First Source Hiring Program. For any questions and request for assistance, contact Clarence R. Espinosa at 310-417-6490.
For information on business opportunities at LAWA, access the Los Angeles City-wide website: "Los Angeles Business Assistance Virtual Network" www.labavn.org.
For an overview of the procurement process at LAWA, you are welcome to attend our monthly seminar Doing Business with LAWA.
We look forward to doing business with you!
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