1

Management Report on Bradley West Project

BOAC Meeting

October 5, 2009

2

• Upcoming Decisions

- Bradley West Gates

- Bradley West Core

• How CMAR Works

• Program Budget Overview

• Board Action - October 19, 2009

AGENDA

3

UPCOMING DECISIONS

Exercise Bradley West Gates Project Construction Option

• Approve the contract amendment with an upper limit of $545.5M

• Approve a Budgeted Owner’s Contingency of $61.4M

• Delegate Signature Authority for Change Orders

• Appropriate Capital Funds in an amount of $14.7M

► Gates

4

UPCOMING DECISIONS

Award Core Construction Manager at Risk (CMAR) Contract and Authorize Preconstruction Services

• Award contract with upper limit of $584.2M

• Approve a Budgeted Owner’s Contingency of $66.7M

• Appropriate Capital Funds in an amount of $25.1M

• Delegate Signature Authority for Change Orders

► Core

5

HOW CMAR WORKS

$545.5M

Passenger Boarding Bridges

Preconstruction

Bus Gates and TPAR Equipment Procurement

Core Emergency Egress

Site Enabling

Foundations/Steel/Utilities

Exterior Skin and Systems

Interior Architecture and Finishes

West Apron Work

North and South Concourse Demolition

• LAWA provides CMAR with work packages

• CMAR commits to complete each package for a Component Guaranteed Maximum Price (CGMP)

• Each CGMP will be presented to BOAC for approval and appropriation of funds

• CMAR must competitively bid 90% of Scope of Work from minimum of 3 bidders

• CMAR cannot perform more than 10% of Scope of Work

• Each CGMP will be additive resulting in an “aggregate” Guaranteed Maximum Price for all Scope of Work appropriated to date within the contract amount of $545.5M

Bradley West Gates CGMPs

6

PROGRAM BUDGET OVERVIEW

Total Program Cost Summary ReportPROGRAM BUDGET

7

PROGRAM BUDGET OVERVIEW

Bradley West ElementELEMENT BUDGET

8

PROGRAM BUDGET OVERVIEW

Bradley West GatesPROJECT BUDGET

(dollars in millions)

Bradley West Gates

ITEM No. ITEM/DESCRIPTION AMOUNT

1. Construction 501.40

2. Program Management 20.13

3. Design 52.40

4. Construction Support 28.65

5. LAWA / City Support 34.10

SUBTOTAL BUDGET 636.68

Contingency 54.98

TOTAL PROJECT BUDGET 691.66

9

BOARD ACTION – OCTOBER 19, 2009

10

BOARD ACTION – OCTOBER 19, 2009

Bradley West Gates Project Construction Option

Bradley West Gates

1. Airside Element – Concourse Demolition / West Aprons 42.90

2. Bradley West – Concourses 501.40

3. Utilities & Infrastructure – TPAR 1.25

Total Cost 545.55

11

Process• Administrative Requirements

• Technical Requirements (Quality Points)

• Interview (Quality Points)

• Fee

• Fee x Budget / Total Quality Points = Ultimate Cost

Award Core Construction Manager at Risk (CMAR) Contract and Authorize Preconstruction Services

Selection Process Results

• Received seven proposals

• Interviewed all seven firms

• Walsh Austin Joint Venture Proposed Lowest Ultimate Cost

BOARD ACTION – OCTOBER 19, 2009

12

BOARD ACTION – OCTOBER 19, 2009

Bradley West Core Improvements

• Award contract with upper limit of $584.2M

• West Apron $2.2M

• Core $569.0M

• Temporary Power and Relocation $13.0M

$584.2M

• Approve a Budgeted Owner’s Contingency of $66.7M

• Appropriate Capital Funds in an amount of $25.1M

• Pre-Construction Services $6.0M

• Public Art Allowance $5.4M

• LAWA Support $6.2M

• City Services $7.5M

$25.1M

13

BOARD ACTION – OCTOBER 19, 2009

Bradley West Core Improvements

Bradley West Core Improvements

1. Airside – Apron Strip 2.20

2. Bradley West – Core 569.00

3. Utilities & Infrastructure – TPAR 13.00

Total Cost 584.20

14

BOARD ACTION – OCTOBER 19, 2009

Signature Authority

• Exercise authority pursuant to Charter Section 376

• Authorize Executive Director to execute change orders up to $1M

• Limit accumulative amount of change orders to no more than 10% of the BOAC approved aggregate guaranteed maximum price

• Report monthly to BOAC on all change orders executed throughout the term of the contract