CITY COUNCIL APPROVES LOS ANGELES WORLD AIRPORTS $5B MULTIPLE AWARD TASK ORDER CONTRACT FOR DESIGN AND CONSTRUCTION SERVICES

02/19/2025 10:41 PM

  

For Immediate Release
February 19, 2025

Contact:
LAX Public Relations
(424) 646-5430
laxpr@lawa.org

CITY COUNCIL APPROVES LOS ANGELES WORLD AIRPORTS $5B MULTIPLE AWARD TASK ORDER CONTRACT FOR DESIGN AND CONSTRUCTION SERVICES

LAWA's largest MATOC streamlines procurement processes for design and construction services to accelerate modernization at LAX and Van Nuys Airport


LOS ANGELES - The Los Angeles City Council today approved Los Angeles World Airports’ (LAWA) latest Multiple Award Task Order Contract, or MATOC, for design-build and construction services. The overall contract, which is valued at $5 billion and includes 51 contractual agreements, assembles a pool of pre-qualified design-builders and construction contractors that can support forthcoming projects in LAWA's multi-billion-dollar Capital Improvement Program.

"This is about our commitment to investing in LA small businesses and LA families,” said Los Angeles Mayor Karen Bass. "We are leading the way in how investment in infrastructure means investing in people, too."

The five-year contract includes 13 first-time prime contractors as part of a pool of 31, and increases opportunities for diverse, small and local businesses. The contract enables LAWA to build the next generation of infrastructure and facilities at Los Angeles International (LAX) using a quicker and more streamlined procurement process.

"With major events on the horizon, this program ensures LAX is equipped to handle increased demand, benefiting travelers, businesses, and the local economy alike," said Council President Marqueece Harris-Dawson.

A MATOC allows project owners, such as LAWA, to readily draw from a pre-qualified pool of contractors without requiring repeated qualification solicitations or approvals, as well as execute the award process faster. For pre-qualified contractors, a MATOC can provide a steady stream of work for the life of the contract, as firms will be able to respond to requests for a variety of scopes and services that best match their skills, knowledge and abilities.

"Today’s approval of LAWA’s Design-Build and Construction MATOC is a major win for our city. This strategic initiative will accelerate LAX’s infrastructure upgrades while expanding access for small businesses and creating thousands of good-paying jobs," said Councilmember Traci Park, whose Council District 11 includes LAX. "As we gear up for the 2028 Olympic and Paralympic Games, it’s this kind of forward-thinking investment that will cement Los Angeles as a global leader in smart, innovative infrastructure with the added benefit of new contracting and employment opportunities throughout our city."

In designing its MATOCs, LAWA sought to reduce barriers to competition for small firms. This was achieved by establishing three contract award levels based on a firm's contracting size; implementing historically higher Business Enterprise (xBE) goals and evaluation criteria scoring; and providing small firms with contract capacity equal to that of large firms. Size classification follows United States Small Business Administration standards: small, with capacity less than $45 million; medium, with capacity between $45-250 million; or large, with capacity greater than $250 million.

"LAWA once again has raised the bar for contracting inclusivity and procurement efficiency with today's Design-Build and Construction MATOC," said Karim Webb, President, Board of Airport Commissioners. "This procurement model underscores our commitment to local and small businesses, as it creates a contracting framework that puts local businesses to work faster, ultimately resulting in the benefits of our spending mirroring the talent and entrepreneurial vigor of our city."

LAWA began an extensive outreach effort in January 2024, which included conferences, roundtable discussions, and other industry outreach events to engage with business leaders and solicit feedback from potential respondents about the contract.

"Today's approval of the Design-Build and Construction Services MATOC by the Los Angeles City Council marks a pivotal moment in our ongoing efforts to modernize and transform LAX into a world-class, gold-medal airport," said John Ackerman, CEO, Los Angeles World Airports. "I am grateful to Mayor Karen Bass, the Board of Airport Commissioners, and the City Council for their support of this historic contract. This is a win for LAWA because it gives us the ability to execute our audacious plans for the City and the Airport ahead of 2028, and a victory for all Angelenos because LAX will be ready for the Olympics."

The Design-Build and Construction (DB&C) Services MATOC will support LAWA's Capital Improvement Program and other key initiatives, with 20 projects included in the contract planned to begin in 2025. The MATOC will be valid for five years, with options for LAWA to exercise two one-year renewal options at its discretion. 

“The MATOC procurement has provided our company an opportunity to be a Prime General Contractor for the first time in 26 years at LAWA,” said Tim Coffey, President and CEO of TEC Constructors & Engineers. “The MATOC allows small business a seat at the table as a Prime General Contractor. This is an unprecedented feat for a large public agency like LAWA.”

The DB&C MATOC also furthers LAWA's commitment to diversity and inclusivity with the highest xBE requirements ever included in a LAWA contract. All contractual agreements under the MATOC are subject to the following subcontracting requirements: 

  • Small Business Enterprise: 30%
  • Local Business Enterprise: 20%
  • Local Small Business Enterprise: 15%
  • Disabled Veteran Business Enterprise: 3%

Additionally, prime contractors must submit inclusivity and workforce development plans and adhere to various tracking and reporting programs. Contractors must also include graduates of the HireLAX Apprenticeship Readiness Program, offer internship opportunities, and conduct STEM outreach to students at K-12 Title 1 schools.

"Driven by diversity — both in our people and our construction expertise — Lucas Builders has created opportunities where they matter most," said Lucas Silva, Project Engineer, Lucas Builders. "Now, with LAWA opening a door for us, we're ready to build on our foundation and deliver with excellence."

A list of DB&C MATOC prime contractors is as follows (an asterisk indicates first-time LAWA prime contractor):

  • AECOM Hunt *
  • Austin Commercial LP
  • Balfour Beatty *
  • Birdi Systems, Inc.
  • Clark Construction Group-CA, LP
  • Flatiron West, Inc.
  • Granite Construction Company
  • Griffith Company
  • Hensel Phelps
  • J-Squared General Contractors, Inc. *
  • Kemp Bros. Construction, Inc. *
  • Lucas Builders, Inc. *
  • Mata Construction Services, Inc. *
  • McCarthy Building Companies, Inc.
  • Mladen Buntich Construction Co., Inc. *
  • Myers & Sons Construction, LLC
  • PCL Construction Services Inc.
  • Pinner Construction Co., Inc. *
  • Premier Interior Development, Inc. *
  • Silverado Contractors, Inc. *
  • Skanska USA Civil West California District Inc.
  • Steve Bubalo Construction Co.
  • Sully-Miller Contracting Company
  • Swinerton
  • TEC Constructors and Engineers *
  • Technion Contractors TCI, Inc.
  • The Whiting-Turner Contracting Company *
  • Turner Construction
  • W.E. O'Neil Construction Co. of CA
  • Webcor Builders
  • Xcel Mechanical Systems, Inc. *

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About Los Angeles International Airport (LAX)
LAX, the eighth-busiest airport in the world serving nearly 66 million guests in 2023, is owned and operated by Los Angeles World Airports (LAWA), a proprietary, revenue-generating department of the City of Los Angeles that also governs Van Nuys Airport (VNY). As the international gateway to the Southern California region, LAX and its partners are dedicated to meeting global airport standards for customer satisfaction, safety, regional economic leadership, organizational performance and sustainability.

To better serve the millions of domestic and international guests who travel through LAX each year, the airport is undergoing a multi-billion-dollar capital improvement program to modernize its entire campus. Initiatives underway will ensure efficiency and dependability for every traveler and include an Automated People Mover and Consolidated Rental Car facility.

For more information about LAX, its transformation and its environmental, social and local workforce commitments, please visit flylax.com. Follow LAX on X (formally Twitter), Instagram, LinkedIn, Facebook and YouTube.

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