LOCAL SMALL BUSINESSES AMONG 11 PRIME CONTRACTORS CHOSEN TO PROVIDE UP TO $259 MILLION IN SUPPORT SERVICES FOR LAWA’S CAPITAL IMPROVEMENTS PROGRAM
(Los Angeles, California – September 21, 2016) Five small, local businesses are among 11 primary contractors that were approved by the Los Angeles Board of Airport Commissioners (BOAC) today to receive seven-year contracts to provide support services for Los Angeles World Airports’ (LAWA) ongoing $14-billion Capital Improvements Program that will transform Los Angeles International Airport (LAX).
The contracts, which require final approval from the Los Angeles City Council due to their length, were awarded in two separate actions by the BOAC.
The procurement of these contracts required both Small Business Enterprise (SBE) participation, as well as a Local Business Preference (LBE) factor. In addition to the five primary contractors, other small local businesses are included as their subcontractors.
“I am so proud of our leadership team, the commission, our staff, and all the small business enterprises that have participated in this program,” said BOAC Vice President Valeria C. Velasco during today’s public meeting. “It is great to hear from some of executives about how they came from small business to become a prime in this bidding process.”
LAWA defines a small business as one that is independently owned, has fewer than 100 employees together with affiliates, and no more than $35 million in average annual gross receipts for the three prior tax years.
Three small companies were among the six successful proposers for Project Construction Management Services. Berg & Associates, Inc., of San Pedro, and Simpson and Simpson Management Consulting Inc., of Alhambra, received contracts worth up to $10 million each, while Los Angeles-based CMTS, LLC received a contract for up to $4 million . These firms will provide services such as office engineering, design review/management, constructability review, utility shutdown coordination, specific project coordination for internal and external stakeholders, and staff augmentation.
Three other local firms were awarded seven-year prime contracts. Los Angeles-based Vanir/ASL, LLC was awarded a contract of up to $30 million; Pasadena-based Parsons Transportation Group Inc. up to $35 million; and Los Angeles-based Jacobs Project Management Co. up to $70 million. These three firms are including smaller local businesses among their subcontractors.
Jacobsen Daniels Associates was one of two firms selected to provide Program Management and Advisory Services. The small, Ypsalanti, Michigan-based firm was awarded a contract for up to $12 million. Lea + Elliot of Grand Prairie, Texas, received a contract for up to $14 million for services including Prog ram Coordination with Enterprise-wide approach; master scheduling; stakeholder communication; financial advisory services; procurement; integration and risk management; and safety, coordination and logistics. Both firms also have local subcontractors.
In a separate action, three firms were selected to provide project controls support services for LAWA’s Capital Improvements Program, which includes both LAX and Van Nuys Airport.
Monrovia-based Quest Project Controls Inc., doing business as Construction Management Solutions , received a seven-year contract not to exceed $15 million for services that include s cheduling , estimating, change-order negotiation, monthly project status reports, trend monitoring, budget tracking and internal auditing.
The BOAC also authorized contracts of $42.5 million each for Fullerton-based Integrated Project Controls Team, a Joint Venture, and Irvine-based Hill International, Inc.-APSI Construction Management Joint Venture .
A pre-proposal conference held in May attracted more than 350 attendees interested in participating in the request for proposal (RFP) process.
About Los Angeles International Airport (LAX)
LAX is the seventh busiest airport in the world and third in the United States. LAX served more than 74.9 million passengers in 2015. LAX offers 742 daily nonstop flights to 101 cities in the U.S. and 1,273 weekly nonstop flights to 76 cities in 41 countries on 64 commercial air carriers. LAX ranks 12th in the world and fifth in the U.S. in air cargo tonnage processed, with more than 2.1 million tons of air cargo valued at over $101.4 billion. LAX handled 655,564 operations (landings and takeoffs) in 2015.
An economic study based on 2014 operations reported LAX generated 620,610 jobs in Southern California with labor income of $37.3 billion and economic output (business revenues) of more than $126.6 billion. This activity added $6.2 billion to local and state revenues and $8.7 billion in federal tax revenues. The study also reported that LAX’s ongoing capital-improvement program creates an additional 121,640 annual jobs with labor income of $7.6 billion and economic output of $20.3 billion, $966 million in state and local taxes, and $1.6 billion in federal tax revenues.
LAX is part of a system of three Southern California airports – along with LA/Ontario International and Van Nuys general aviation – that are owned and operated by Los Angeles World Airports, a proprietary department of the City of Los Angeles that receives no funding from the City’s general fund.
As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. Alternative formats in large print, braille, audio, and other forms (if possible) will be provided upon request.
