Capital Improvement Program

Procurement & Delivery Strategy

December 16, 2021

1

Introduction

Over the past decade, LAWA has embarked on a transformational Capital Improvement Program to deliver “Gold Standard” facilities, and provide a world class guest experience at LAX and VNY airports.

LAWA has already begun executing over $10 billion in construction:• Landside Access Modernization Program (LAMP)• Midfield Satellite Concourse (MSC)• Runway Safety Area (RSA) Improvements• Terminal Development Improvement Program (TDIP)

With those programs nearing completion, LAWA is preparing to launch our final wave of capital investments before the 2028 Summer Olympic Games arrive in Los Angeles.

Upcoming Capital ProjectsLAWA’s upcoming Capital Projects may include, but not be limited to;

• Airside Improvements Program (ATMP Airfield Improvements, Runway Rehabilitation, etc.)• Baggage Improvements Program (BOP Phase 2, BHS Connectivity, Remote Baggage Check, etc.)• Cargo Redevelopment Program (Century Cargo Complex, Imperial Cargo Complex, etc.)• Land Use Improvement Program (LAX Northside, Van Nuys, Central Receiving, etc.)• Landside Improvements Program (ATMP Roadways, Mobility Improvements, etc.)• LAX Commercial Development Program (CTA West Station, Common Use Lounges, etc.)• LAX Landscaping Program (CTA Landscaping, Parks & Plazas, etc.)• Terminal Development Program (Concourse 0, MSC South, TBIT Optimization, Terminal 2/5 Refresh, Terminal 9, etc.)• Wayfinding Enhancement Program (Digital Dynamic Roadway Signage, Terminal & Gate Renaming, GPS-Integration, etc.)

Alternate Delivery Methods – Past ProjectsProject Delivery MethodAirport Police Facility

Progressive Design-Build(PDB)

ITF WestMSC NorthReceiving Station XTerminal Vertical CoresAutomated People Mover Design-Build-Finance-Operate-Maintain

(DBFOM)Consolidated Rental Car Facility

Bradley West Construction Manager At Risk(CMAR)MSC North Enabling

LAMP Roadways, Utilities & Enabling Design-Build CMAR(Hybrid)LAMP Utilities & Landside Enabling

Central Utility Plant Design-Build(DB)Terminal 4-TBIT Connector

Terminal 1 Modernization

Lease & Acquisition(L&A)

Terminal 1.5Terminal 2/3 ModernizationTerminal 3-TBIT ConnectorTerminal 4/5 ModernizationTerminal 6 ModernizationTerminal 7/8 Modernization

LAWA – along with the global construction industry – has evolved to include a wide variety of alternative delivery methods.

This allows the owner to tailor each Contract to address the unique challenges & opportunities that each project presents.

LAWA has awarded over $12 Billion in Alternate Delivery Method Contracts since 2009 (listed to the right).

Our peers throughout the transportation sector are experiencing the same trend, including CalTrans (I-405 Widening, > $1B), LA-Metro (Expo Line, > $2B), and many more.

See Past LA City Ordinances 182086, 182347, 184889, 184936, 184937, 185282, 185576, etc.

Alternate Delivery Methods – Known Benefits

ConstructionDesign & Permitting Construction Procurement Mobilization

Alternate Delivery Methods (ADM)

Early Work Packages

18 Months 6 Months 6 Months 48 Months

Main Work Packages

Final Work Packages

48 Months

Total Duration ≈ 60 Months

Design & Permitting18 Months

Mobilization

Design-Procurement

ADM Procurement

12 Months

Total Duration ≈ 78 Months

RISK

RISK

RISK

RISK

Sample:Large Project, > $1B+

Key ADM Benefits Early Onboarding of Delivery Team Builder Influences Phasing Plans Constructability Influences Design Allows Early Construction Packages Competitive Pricing of each Package Earlier Opportunities to Mitigate Risk

Alternative Delivery Methods – Upcoming ProjectsUpcoming Projects

• ATMP Enabling Projects

• ATMP Roadway & Mobility Improvements

• Baggage Optimization Program – Phase 2

• Concourse 0

• CTA Commercial Development

• LAX Airfield Improvements

• LAX Landscaping Improvements

• MSC South

• Terminal 9

• Wayfinding Enhancement Program

Potential Project Delivery Methods

• Construction Manager (CM)

• Construction Manager at Risk (CMAR)

• Design-Bid-Build (DBB)

• Design-Build (DB)

• Design-Build-Finance-Operate-Maintain (DBFOM)

• Ground Lease / Developer

• Lease & Acquisition

• Multiple Prime (MP)

• Progressive Design-Build

• Public Private Partnership (P3)

7

Upcoming RFP

MSC South Project

MSC South – Project Overview

Building Data:• Two stories, no basement• Approximate building area 150,000 SF

Programmatic Functions• 8 ADG III Gates & Holdrooms• Restrooms• Airline Operation Space• LAWA Support Space• Baggage Make Up• Concessions

Airfield Improvements• Hydrant fueling• GSE charging

MSC – LA City Ordinance 182086

MSC South – Request For Proposals (RFP)

Delivery Method: Construction Manager At Risk (CMAR)

Scoring & Selection ProcessStage Evaluation Criteria Possible Points

0 Administrative Requirements Pass / Fail

1 Minimum Qualifications Pass / Fail

2 Technical Proposal 300

3 Final Interview 400

4 Financial Proposal 300

Grand Total 1,000

Notes1) LAWA may “Shortlist” after each Stage.2) Scores will carry over from Stage 1 to Stage 2 to Stage 3.3) The Grand Total Scores (up to 1,000 possible points) will form the basis for final selection.

MSC South – Next Steps

BOAC BRIEFING

PUBLISH RFP

BOAC AWARD CONTRACT

January 2022(Today)

PROPOSALS DUE

March 2022 April 2022

D E S I G N

PRECONSTRUCTION SERVICES AND GMP NEGOTIATIONS CONSTRUCTION (APPROX. 20 MONTHS)

NOV ‘21 NOV ‘22 AUG ‘24MAY ‘22

PROCUREMENT

12

QUESTIONS