Los Angeles World Airports

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RESOLUTION NO. 26491

WHEREAS, on recommendation of Management, there was presented for approval, award a five (5)-year, Two-Phased Design-Build Contract to Hensel Phelps Construction Co. covering comprehensive engineering, design, demolition, pre-construction and construction services for the Airport Police Facility Project at Los Angeles International Airport, for cost not to exceed $165,800,000, subject to change order authority by the Chief Executive Officer up to the budgeted owner's contingency of $2,820,000; and appropriation of $24,936,000 for Phase 1 of said project; andLAX

Van Nuys

WHEREAS, on May 22, 2017, staff issued a Request for Qualifications for Design-Build Firms on the Los Angeles Business Assistance Virtual Network. Five (5) firms responded by the closing date of June 29, 2017; and

City of Los Anfoles

Eric Garcetti Mayor

Board of Airport Commission ora WHEREAS, on August 28, 2017, Los Angeles World Airports (LAWA) short-listed four (4) of

the five (5) Proposers and invited them to participate in a collaborative process for the Airport Police Facility (APF) Project. LAWA hosted a series of confidential meetings with the Proposers to discuss LAWA objectives, scope and project constraints. The four (4) short­listed firms were:

• Austin Commercial• Hensel Phelps Construction Co.• Clark Construction• Bernards / Jones & Jones / Gruen Associates; and

Sean 0. Burton President

Valeria C. Velasco Vice President

Jeffery J. Daar Gabriel L. Eshaghlan Beatrice C. Hsu Thomas S. Sayles Dr. Cynthia A. Telles

Deborah Hint Chief Executive Officer WHEREAS, the fifth proposer, Charles Pankow Builders, Ltd., was sent their non-selection

letter on August 28, 2017; and

WHEREAS, after receiving Board of Airport Commissioners approval, staff issued the Final Request For Proposals (RFP) on October 18, 2017, using a competitive sealed proposal selection process to procure a firm for comprehensive engineering, design, demolition, pre­construction and construction services using the Design-Build delivery method; and

WHEREAS, during the proposal preparation period, LAWA hosted a series of confidential workshops with each Proposer Team that included:

• Two (2) rounds of workshops to allow Proposers to present their conceptual designs and receive feedback from LAWA.

• One (1) site tour of existing facilities: Airport Response Coordination Center Operations, Airport Police Dispatch and Airport Police Headquarters.

• One (1) interview to discuss the submitted Proposals; and

WHEREAS, the successful proposer is required to meet a mandatory 20% Small Business Enterprise (SBE), 7% Local Business Enterprise (LBE), 5% Local Small Business Enterprise (LSBE) and 3% Disabled Veterans Business Enterprise (DVBE) goals; and

WHEREAS, Proposers were evaluated using the following criteria:

Evaluation Criteria Description Possible PointsPart

Administrative Requirements • Administrative SubmittalsA Pass/Fail

i\ \ Work Product Proposal Agreement • Proposal Agreement* mw Pass/FailB

I

1 World Way Los Angeles California 90045-5803 Mail EO. Box 92216 Los Angeles California 90009-2216 Telephone 310 646 5252 Internet www.lawa.aero

Resolution No. 26491 -2-

(Table continued)

Technical Requirements • Transmittal Letter Pass/FailC

Conceptual Design• Architectural Design• Functional Design• Site & Civil Design

• Special Systems Design• Emergency-Operability• ROM Cost Estimate

30

• Project Management Plan• Design Management• Pre-construction Management• Construction Management• Delivery Schedule

• Commissioning & AOR• Stakeholder Management• Risk Management Plan

25

Sustainability Plan• Impact Mitigation During Construction• Long-Term Sustainable Performance by Design• Compatibility with Surroundings_____________

Past Performance & Inclusivity• References and Past Performance• SBE, LSBE, LBE and Local Hiring Plans

15

15

Multiplier Proposal__________________________________________Lead Designer Multiplier

• All-inclusive multiplier for the Lead Designer_______________Grand Total (Proposal Efficiency Factor):

D

15

100; and

WHEREAS, the points assigned for the Lead Design Multiplier were determined by awarding 15 points to the firm with the lowest fully-loaded multiplier and awarding a proportional share to the other firms based on the following formula:

(Firm ‘X’ Lowest Proposed Multiplier / Firm ‘Y’ Multiplier) x 15 = Firm ‘Y’ Points; and

WHEREAS, the Grand total points were converted to an "Efficiency Factor" which was used to calculate the Lowest Ultimate Cost Calculation. The Efficiency Factor was used to calculate the Lowest Ultimate Cost as follows:

Design to Budget Value x (1 + Design-Builder’s Fee) = Lowest Ultimate Cost Proposer’s Efficiency Factor

SBE/LBE/LSBE/DVBE Pledge Percentage

EfficiencyScore

FirmName

Proposer’s Ultimate Cost*Ranking

$230,145,882.35 30/10/10/3Hensel Phelps 90.03%1

Clark Construction $254,680,623.29 20/7/5/382.69%2

$262,706,569.16Austin Commercial 20/7/5/378.74%3Bernards/Jones and Jones Joint Venture $290,059,109.87 20/7/5/3; and71.90%4

* Note that these values are not bids nor cost estimates, but are simply the result of LAWA's Evaluation Criteria & Formulas.

WHEREAS, on January 18, 2018 LAWA received proposals from the following four (4) firms:

• Austin Commercial• Hensel Phelps• Clark Construction• Bernards/ Jones & Jones/ Gruen Associates; and

Resolution No. 26491 -3-

WHEREAS, Procurement Services Division reviewed the administrative documents submitted by the four (4) firms and determined that all firms were in compliance with LAWA and City of Los Angeles administrative requirements; and

WHEREAS, the firms were evaluated by a five-member evaluation panel consisting of LAWA staff: Deputy Executive Director- Planning & Development, Deputy Executive Director - Security & Public Safety, Chief of Airport Police, Director of Terminal Design and Sr. Airport Engineer II, Terminals; and

WHEREAS, the panelists interviewed the Proposers during the week of January 29 - February 1, 2018. Interviews were based on the Part B - Technical Requirements evaluation criteria. Overall scores for Part B were then determined from both the written submissions and interviews; and

WHEREAS, the four (4) short-listed firms also submitted separate Fee Proposals on January 18, 2018. Staff then calculated the "Lowest Ultimate Cost" in accordance with the RFP to determine the Proposer's Ultimate Cost as listed above; and

WHEREAS, the City Council approved an ordinance to allow the use of alternative project delivery methods and competitive sealed proposal selection process (CSPSP) for delivery of projects related to the Landside Access Modernization Program. When using the CSPSP, City Charter Section 371(b) requires that the Design-Builder be selected based on the “Lowest Ultimate Cost to the City.” Proposers must be able to demonstrate to LAWA their technical and construction experience, staffing and organizational approach, schedule and cost controls, and an understanding of the unique challenges of working in an airport environment; and

WHEREAS, this Project will include the redevelopment of approximately twelve (12) acres at the northeast corner of Westchester Parkway and Loyola Boulevard for a new APF. This will include a new building (approximately 185,000 square feet), a new parking structure (883 stalls), and a series of new indoor and outdoor functional spaces for Airport Police Division (APD). This may include, but not be limited to, the Office of Operations, Office of Support Services, Office of Homeland Security & Intelligence, Traffic & Security Group, Bomb Disposal Unit, K-9 Unit, Firing Range, Emergency Services Unit, Community Room and Landscaped Paseo along Westchester Parkway. The main new 3-story Administration building will be constructed as an essential facility, which provides for a more resilient structure to maintain operability after a major seismic event. The facility will accommodate approximately 1,100 Officers and Civilian Personnel that will work multiple shifts in the APD facility; and

WHEREAS, once the APD is relocated into the new facility, the existing locations will be decommissioned to a safe and serviceable condition. The demolition or repurposing of existing APD facilities will be a separate project; and

WHEREAS, the APF will be delivered in two (2) phases. Phase 1 will include;

• Mobilization: Project Management Office (PMO), Insurance and Bonds, Staff Onboarding,etc.

• Design: Basis of Design, Alternatives Analysis, Schematic Design, Building Information Modeling, Design Development, Early Permitting, etc.

• Pre-construction: Field Investigations, Exploratory Excavations, Subcontractor Outreach & Procurement, Cost Estimating, Phasing & Logistics Planning, Scheduling, Stakeholder Outreach, etc.

• Early Enabling Work: Utility Relocations, Purchase of Long-Lead Equipment, etc.; and

Resolution No. 26491 -4-

WHEREAS, LAWA will be using Target Value Design.$145,000,000 and $20,800,000 for allowances. The design will be continuously reviewed, estimated, and adjusted to stay within that budget constraint. As the design progresses, LAWA will work with Design-Builder to identify opportunities to maximize the operational uses of the facility. LAWA and the Design-Builder will each prepare independent estimates at each formal design-milestone, and will continuously monitor costs, risks, milestones, etc. to inform key decisions throughout Phase 1 of the Contract. In order to maximize collaboration and transparency, this will involve co-locating the Project Team with blended staff from LAWA and the Design-Builder in a PMO. The team will also provide monthly reports, weekly design workshops, and constant coordination throughout all stages of the Project; and

The Design to Budget is

WHEREAS, one of LAWA’s key objectives is to minimize operational impacts to the existing roadways, sidewalks, and the community. To that end, Hensel Phelps will also provide detailed Phasing and Logistics Plans at each formal design-milestone. These plans will be developed collaboratively with LAWA’s Coordination and Logistics Management Group, and approved by LAWA’s Shutdown Control Center prior to implementation; and

WHEREAS, upon completion of the 60% Design Package, Hensel Phelps will submit a Guaranteed Maximum Price (GMP) work package proposal for Phase 2 of the Contract (Construction, Commissioning, etc.). The GMP Proposal will be developed from detailed estimates by LAWA and the Design-Build team, and using actual competitive bids from key subcontractors. Once the GMP has been negotiated and finalized, staff will return to the Board for approval of the GMP in order to appropriate the remaining funds and execute Phase 2 of the Contract. This is anticipated to occur in the Second Quarter of 2019; and

WHEREAS, if staff is not satisfied with the performance of Hensel Phelps or the submitted GMP, LAWA has the option to retain them under the Design-Build contract to complete the design only, and then solicit new bids for construction. Or, LAWA could choose to begin a new procurement altogether using the design completed up to that point, and select another contractor to complete the design and construction; and

WHEREAS, the total budget for this project is currently $197,302,000. This includes the Design-Build contract, inclusive of allowances in the contract, owner contingency, and other City support services (inspection, survey, testing, permits, etc.), as shown in table below. Permits & Agency Fees are included in the Design-Build contract, except for those that will be funded through Interdepartmental Orders. The project also includes a public art allowance calculated at 1% of construction cost for public areas as required by the City’s Administrative Code for all public works projects, and staff will return to the Board in three (3) months for approval of soft costs; and

WHEREAS, the total project costs, exclusive of soft costs, are as follows:

$ 145,000,000Design Build Base Contract• Allowances

Public Art, utility infrastructure, connections and upgrades, make safe of existing facilities, hazmat remediation, community outreach, agency coordination, etc.) $ 20,800,000

$ 165,800,000Design-Build Contract Total:

Construction Support Services (Interdepartmental Orders)• Dept, of Public Works, Dept, of Transportation, LA Building &

Safety, LA Department of Water & Power, Cultural Affairs, General Services $ 6.632.000

$ 172,432,000

$ 24,870,000

$ 197,302,000; and

Total Construction Costs:

Total Project Contingency (15% of the cost of Construction):

Project Cost (excluding Soft Cost):

Resolution No. 26491 -5-

WHEREAS, staff will proceed with design and pre-construction activities to refine and detail the drawings, specifications, and project implementation plans. These efforts will facilitate the development of a GMP Proposal with increased specificity, clarity, comprehensiveness and accuracy. Staff will provide Board briefings at key design-milestones as the project advances, and will return to the Board in the Second Quarter of 2019 to present the final GMP Proposal and recommend proceeding with Phase 2 of the Contract. Phase 1 entails design, subcontractor outreach, GMP proposal, staffing, procurement and establishing the PMO. Design, pre-construction, construction and closeout activities will overlap in order to achieve an accelerated project delivery, with minimal risk. Substantial Completion is expected in the Second Quarter of 2021 followed by contract closeout activities; and

WHEREAS, in compliance with the California Environmental Quality Act (CEQA), the proposed Airport Police Facility Project has been determined to be consistent with the Project evaluated and approved in the Final Environmental Impact Report for the LAX Northside Plan Update certified by the Board of Airport Commissioners on March 12, 2015 by Resolution 25654. Any activity (approval of bids, execution of contracts, allocation of funds, etc.) for which the underlying project has previously been evaluated for environmental significance and processed according to the requirements of CEQA is exempt from further review pursuant to Article II Section 2(i) of the Los Angeles City CEQA Guidelines; and

WHEREAS, Hensel Phelps will comply with the provisions of the Service Contractor Worker Retention and Living Wage Ordinances and the Labor Code of the State of California (Prevailing Wage); and

WHEREAS, Procurement Services Division has reviewed this action (File 8148) and established mandatory goals of 20% Small Business Enterprise (SBE), 7% Local Business Enterprise (LBE), 5% Local Small Business Enterprise (LSBE) as a subset to LBE goal, and 3% for Disabled Veteran Business Enterprise (DVBE) for this specific project. Hensel Phelps has committed to 30% SBE, 10% LBE, 10% LSBE, and 3% DVBE participation; and

WHEREAS, Hensel Phelps will comply with the provisions of the Affirmative Action Program;and

WHEREAS, Hensel Phelps has been assigned Business Tax Registration Certificate 0000099083-0001-4; and

WHEREAS, Hensel Phelps will comply with the provisions of the Child Support Obligations Ordinance; and

WHEREAS, Hensel Phelps must have insurance documents, in the terms and amounts required, on file with LAWA prior to issuance of a Notice to Proceed; and

WHEREASQuestionnaire and Pledge of Compliance, and will comply with the provisions of said program; and

Hensel Phelps has submitted the Contractor Responsibility Program

WHEREAS, Hensel Phelps has been determined by the Public Works - Office of Contract Compliance, to be in full compliance with the provisions of the Equal Benefits Ordinance; and

WHEREAS, this action is not subject to the provisions of the First Source Hiring Program;and

WHEREAS, Hensel Phelps has submitted the Bidder Contributions City Ethics Commission Form 55 and will comply with its provisions; and

Resolution No. 26491 -6-

WHEREAS, actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 373;

NOW, THEREFORE, BE IT RESOLVED that the Board of Airport Commissioners determined that this action is exempt from the California Environmental Quality Act requirements; adopted the Staff Report; found that the work can be performed more economically or feasibly by an independent contractor than by City employees; further found that the proposal from Hensel Phelps Construction Co. represents the lowest ultimate cost (as defined in Charter Section 371) to the City than any other responsive proposal submitted; further found that the award of contract is in compliance with Los Angeles City Ordinance 184889 effective June 2, 2017; approved the award of a five (5)-year Design-Build Contract to Hensel Phelps Construction Co. for the Airport Police Facility Project at Los Angeles International Airport in amount not to exceed $165,800,000, subject to change order authority by the Chief Executive Officer, as necessary; further approved a budgeted owner's contingency in the amount of $2,820,000 for Phase 1 of this project, this contingency can only be utilized through change orders authorized by the Chief Executive Officer or the Board; authorized the Chief Executive Officer to approve and execute change orders to the contract up to the budgeted owner's contingency of $2,820,000 for Phase 1 of this project, provided that prior execution of any change order in excess of $500,000, the Board shall first have reviewed and authorized the execution thereof, and such authorization shall have become final pursuant to Charter Section 245; further approved appropriation and allocation of capital funds in the amount of $24,936,000, from LAX Revenue fund to work breakdown structure (WBS) elements 1.17.08A-700 (Airport Police Facility) and other Board-approved capital projects and their respective WBS elements as may be required, adjustments to the Phase I appropriation will be made at the Phase II appropriation and upon final negotiation on a Guaranteed Maximum Price, for Phase 1 of the project - mobilization, design, and pre-construction, staff will return to the Board upon acceptance of each Guaranteed Maximum Price work package, and request appropriation of the associated funds at that time; and further authorized the Chief Executive Officer to execute said contract with Hensel Phelps Construction Co. upon approval as to form by the City Attorney and upon further approval by the Los Angeles City Council.

oOo

I hereby certify that this Resolution No. 26491 is true and correct, as adopted by the Board of Airport Commissioners at its Special Meeting held on Thursday, May 3, 2018.

s

Sandra J. Miller - SecretaryBOARD OF AIRPORT COMMISSIONERS