Report to the BOARD OF AIRPORT COMMISSIONER

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1 ogic-4, 001a Los Angeles W orld Airports Report to the BOARD OF AIRPORT COMMISSIONER Meeting Date: Reviewed by: ports Engineer Deputy Executive Director April 2, 2013 ICompleted CAO Review: J I Pending Z I N/A Reviewed for Date I Approval Status Ey na Marie Lindsey - Executive Directo Capital Budget Operating Budget CEQA Procurement 03/20/13 Y ID N EJ NA DS 02128/13 11:1YEINO NA RW 02/25/13 YON AE j TS 03/01/13 IDYDNE Cond SUBJECT: Award of Construction Contract to Coffman Specialties, Inc. Award a construction contract in the amount of $36,466,480 to Coffman Specialties, Inc., for the "Taxilane T - Phase I" project at Los Angeles International Airport and appropriate $42,511,130 in capital funds for this project. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines. 3. FIND that R&L Brosamer's bid protest against Coffman Specialties, Inc. is without merit and is rejected. 4. FIND that Griffith/Granite Joint Venture's bid protest against R&L Brosamer is without merit and is rejected. 5. WAIVE any and all informalities in the proposal submitted by Coffman Specialties, Inc.'s. 6. APPROVE the award of a construction contract to Coffman Specialties, Inc., the lowest responsive and responsible bidder, for the "Taxilane T - Phase l" project at Los Angeles International Airport in the amount of $36,466, APPROPRIATE capital funds in the amount of $42,511,130 for this project. 8. AUTHORIZE the Executive Director to execute the contract with Coffman Specialties, Inc., upon its approval as to form by the City Attorney. Page 1

2 DISCUSSION: I. Executive Summary Staff requests the Board of Airport Commissioners award a $36,466,480 construction contract to Coffman Specialties, Inc., for the project entitled, "Taxilane T - Phase l" at Los Angeles International Airport (LAX) and appropriate $42,511,130 in capital funds for this project. This project is part of an airfield improvement program that will ultimately provide a dual taxilane system west of the new Tom Bradley International Terminal and east of the future Midfield Concourse. Taxilane T is being constructed in three phases. The first phase of the work consisted of site demolition work necessary to clear the site for construction. This report covers the scope of work related to the first phase of Taxilane construction. Staff anticipates this first phase of the project to be completed in spring 2014 and the second phase will be ready to bid in approximately two and a half years. Staff also requests the Board waive any and all informalities in the Coffman Specialties, Inc. bid and find that the two bid protests filed by R&L Brosamer and Griffith/Granite Joint Venture are without merit and therefore rejected. 2. Prior Related Actions On September 21, 2009, by Resolution No , the Board certified the Bradley West Project Environmental Impact Report for which Taxilane T was a component project at LAX. On November 15, 2010, by Resolutions 24285, the Board awarded contract DA-4555 to Kimley- Horn and Associates for professional engineering design services for the Taxilane T project at LAX. On January 23, 2012 by Resolution No , the Board awarded a construction contract to Evans Brothers, Inc. for the "Demolition of Low-Bay Hangar, Sky Chefs' Building and Deluge System Modifications" at LAX. This project was an enabling component to the construction of Taxilane T - Phase I. On November 13, 2012, by Resolution 24956, the Board approved the Plans and Specifications for the Taxilane T project and authorized the Executive Director to advertise for bids. 3. Current Action Staff requests the Board approve the award of a construction contract in the amount of $36,466,480 to Coffman Specialties, Inc., for the "Taxilane T - Phase l" project at LAX and appropriate capital funds in the amount of $42,511,130 for this project. The new Taxilane T, with the newly constructed Taxilane S, is part of a dual taxilane system connecting the north and south airfields which allows for increased operational efficiency for the Tom Bradley International Terminal and for greater north-south taxiing capability for all terminals at LAX. The overall scope for Taxilane T includes a number of components that staff separated into three procurement packages due to the need to implement the project in phases. The first component, Page 2

3 (enabling work) was awarded to Evans Brothers, Inc. in January This enabling work consisted of the demolition of: The American Airlines low-bay hangar, The deluge system serving all of American Airline s maintenance hangars A former flight kitchen (Sky Chef s) building The enabling work also included construction of a replacement deluge system for American Airlines remaining hangars and construction of a dust cover over the site following demotion. The remainder of the Taxilane T project will be constructed in two phases. Phase I includes construction of the following: Southern half of Taxilane T with a connection to existing Taxiway C to the south Transition to Taxilane S Intersection at Taxiway D to the north New north-south service road west of Taxilane T New Remain Over Night (RON) aircraft parking and supporting utilities New entrance from Taxiway R to facilitate aircraft movements to and from the existing American Airlines Super Bay maintenance hangar site Phase II of Taxilane T project includes demolition of the existing American Airlines/Qantas maintenance hangar and completion of the remaining pavement and utility work to achieve continuous alignment of the new taxilane between Taxiways C to the south and D to the north. The full taxilane T cannot be completed until replacement facilities to accommodate the tenants who are using the existing maintenance hangar are constructed and the tenants are relocated. However, the FAA has indicated that partial completion of the taxilane and its component projects will provide a significant benefit to airfield operations and have requested that LAWA proceed with the construction of phase 1 of the project. Phase I and II improvements are illustrated in the graphic below: Page 3

4 This project was advertised for bids on December 6, 2012 and a Pre-Bid Conference was held on December 19, Los Angeles World Airports (LAWA) received five bids on February 19, These bids, which will expire on May 19, 2013, are as follows: Contractor Bid Amount 1) Coffman Specialties, Inc. $36,466, ) R&L Brosamer $38,929, ) Griffith/Granite Joint Venture $39,898, ) Flatiron West, Inc. $41,498, ) Sully-Miller Contracting Company $50,108, Staff's construction estimate for Phase I was $39,100,000. Coffman Specialties, Inc. bid was 6.74% below the estimate. On March 4, 2013, LAWA received a bid protest from R&L Brosamer, the second apparent low bidder. The apparent third low bidder, Griffith/Granite Joint Venture, challenged R&L Brosamer's bid. The City Attorney has reviewed both protests and determined there are valid grounds to deny them. In response to the protests, the City Attorney has also concluded that any informalities in the bid submitted by Coffman Specialties, Inc. are within the Board's legal authority to waive. Administrative Review LAWA will receive reimbursement for up to 75% of this project under the FAA's Airport Improvement Program (AIP). Because of the federal reimbursement the project was procured under the Federal Disadvantaged Business Enterprise (DBE) guidelines, not the City of Los Angeles' M/WBE guidelines. LAWA's annual FAA-approved Disadvantaged Business Enterprise program-wide goal for fiscal year 2013 is 18.05%. Coffman Specialties, Inc. proposes 7% DBE participation and will report their usage on a monthly basis. Procurement Services Division determined that Coffman Specialties, Inc. is a responsive bidder and has passed the administrative requirements for this project. Taxilane T - Phase I Proiect Cost The project budget for Taxilane T - Phase I is $56,479,025, including $ 13,926,700 in estimated soft costs. The soft costs include consultant design services, project and construction management, and LAWA City support services (inspection, survey, testing and general administration). The soft costs on this project are approximately 37% of the construction cost, significantly above LAWA's overall goal of 27%. These additional costs were incurred as a result of several changes in the overall project. As initially scoped, staff's intent was to complete a partial demolition of the former TWA hanger allowing for construction of the full Taxiway while Qantas Airlines continued to utilize the western portion of the building. Preliminary engineering design and phasing plans for the partial demolition were completed by the design engineer. However, after preliminary evaluation of the costs, potential impacts to Qantas, the risks associated with the partial demolition, and the fact that the former TWA hangar would need to be demolished as part of the Midfield Concourse in the near future, staff decided to forego this initial plan. Staff then investigated the construction of a temporary maintenance hangar at several locations on the west side of the airport as an alternative to the partial demolition of the TWA hangar. Page 4

5 Construction of a temporary hangar would allow demolition of the complete hangar and construction of the full Taxiway. Evaluation of these alternatives required preliminary engineering design of the hangar, site utility requirements, and foundation needs. The temporary hangar alternatives were rejected due to the cost and potential CEQA and NEPA complications. The costs associated with design of the initial project and evaluation of the temporary hangar alternatives are included in the total soft cost budget for the project resulting in higher than normal costs. Project costs for Phase I are estimated as follows: Cost of Construction: Construction Contract $ 36,466,480 LADWP Power Upgrade 500,000 Purchase of Emission Credits* 707,995 Total Construction Costs: $ 37,674,475 * In order to procure the necessary Air Quality Permits to allow installation of temporary concrete batch plants on site, LAWA was required to purchase Emission Credits to offset the increase in emissions over our permitted baseline. The costs of these credits are prorated over construction projects requiring on-site batch plants. Project Contingency: 10% of the Construction Contract & Power Upgrade $ 3,696,650 Total Contingency: $ 3,696,650 Planning and Environmental 1,181,200, Total Planning & Environmental Costs: $ 1,181,200 Project Soft Costs: Design and Construction Administration $ 6,419,500 Project Management Services $ 5,659,200 City Services & Supplies (Inspection, Testing, etc.) '1,848,000 Total Soft Costs: $ 13,926,700 TOTAL PROJECT COST $ 56,479,025 Prior Appropriated Project Cost: Purchase of Emission Credits 707,995 Planning & Environmental 1,181,200 Design and Construction Administration $ 6,419,500 Project Management Services $ 5,659,200 Total Prior Appropriations: $ 13,967,895 TOTAL REQUESTED APPROPRIATION: $ 42,511,130 Page 5

6 Total Taxi lane T Budget The current overall project budget for the full Taxi lane T project (inclusive of the $23,564,250 already incurred on the enabling project and completion of Phases I and II of the Taxi lane construction) is $156,207,978. This estimate includes construction and soft costs. The costs are divided between the various phases as shown in the following: COMPONENT SCOPE OF WORK Demolition Low Bay Hangar, Sky Chefs Building & Deluge System Modifications Taxi lane T - Phase I Taxi lane T - Phase II TOTAL TAXILANE T PROJECT CONSTRUCTION & SOFT COSTS $ 23,564,250 $ 56,479,025 $ 76,164,703 $ 156,207,978 Approving the Phase - I project will leave a remaining budget of approximately $76 million for Phase II work required to complete the overall Taxi lane T project. Given current market conditions and the remaining scope, staff estimates that actual costs to complete the full project will be less than the remaining budget. LAWA has entered into a multi-year Letter of Intent (LOI) with the FAA under the Airport Improvement Program (Al P) covering the Taxi lane T Project and the Bradley West Aprons, which allows for 75% reimbursement up to an amount not-to-exceed $105,000,000 for these projects. To date, LAWA has received and executed FAA AIP Grant under this LOI in the amount of $37,804,137 and anticipates another FAA AIP Grant in the amount of $13,195,000 this federal fiscal year. These Grant amounts are anticipated to cover 75% reimbursement for the overall construction contracts for both this Taxiway T - Phase 1 project as well as enabling Demolition of Low-Bay Hangar, Sky Chef Building and Deluge System Modification project. Requested Board Action Staff recommends that the Board award a construction contract to Coffman Specialties, Inc., in the amount of $36,466,480 and appropriate capital funds in the amount of $42,511,130 for Taxi lane T - Phase I project. Staff also requests the Board waive any and all informalities in the Coffman Specialties, Inc. bid and find that the two bid protests filed by R&L Brosamer and Griffith/Granite Joint Venture are without merit and therefore rejected. 4. Alternatives Considered Defer the Project Staff considered deferring Phase I of this project until the entire length of Taxilane T could be constructed at one time. However, deferring this initial phase is not recommended as it would limit available aircraft taxiing operations, service vehicle routing, and RON parking positions. In addition to the airfield operational benefits, completion of this work will turn the area of the recently demolished former American Airlines low-bay hangar and Sky Chef facilities into leasable, revenue-producing property. Deferring this project could also jeopardize federal grant funding associated with Taxilane T improvements. Page 6

7 si Use Existing LAWA Staff Staff considered using existing City staff to perform all required construction services on this project. However, they do not have the resources needed to execute the project due to its size, scope, complexity and schedule. Given the scope of work, staff determined that the work can be performed more economically or feasibly by an independent contractor specializing in construction. FISCAL & ECONOMIC IMPACT STATEMENT: The project entitled, "Taxi lane T Phase-1" is an approved capital project at LAX. Staff requests appropriation and allocation of funds not to exceed $42,511,130 from the LAX Airport Revenue Fund to WBS Element (Bradley West - Taxiway T) and other Board approved Capital Projects and their respective WBS elements as may be required. STANDARD PROVISIONS: 1. Any activity (approval of bids, execution of contracts, allocation of funds, etc.) for which the underlying project has been previously been evaluated for environmental significance and processed according to the requirements of the California Environmental Quality Act (CEQA) is exempt from further review pursuant to Article II, Section 2.i of the Los Angeles City CEQA Guidelines. The Bradley West Project Environmental Impact Report (EIR) was certified by the Board of Airport Commissioners for this project on September 21, 2009 (Resolution No ). 2. The construction contract will be approved as to form by the City Attorney. 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. 5. Procurement Services reviewed this action (File No. 6001). LAWA's annual FAA-approved Disadvantaged Business Enterprise goal for fiscal year 2013 is 18.05%, which will be achieved through race-neutral measures since a Good Faith Effort cannot be required. Coffman Specialties, Inc. proposes to utilize 7% of DBE subcontractors and will report their participation on a monthly basis. 6. Coffman Specialties, Inc. will comply with the provisions of the Affirmative Action Program. 7. Coffman Specialties, Inc. has been assigned Business Tax Registration Certificate No Coffman Specialties, Inc. will comply the provisions of the Child Support Obligations Ordinance. 9. Coffman Specialties, Inc. must have approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports prior to the issuance of a Notice to Proceed. 10. This action is not subject to the provisions of City Charter Section 1022 (use of independent contractors). Page 7

8 11. Coffman Specialties, Inc. has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Coffman Specialties, Inc. must be determined by Public Works, Office of Contract Compliance, to be in compliance with the provisions of the Equal Benefits Ordinance prior to execution of contract. 13. Coffman Specialties, Inc. will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX jobs. 14. Coffman Specialties, Inc. has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 8 Taxi lane T Phase4 Contract Award

9 Prr,.jct Títe: SUBCONTRACTOR PARTICIPATION PLAN TAXIWAY T- PHASE 1 Page 1 -,,,,,.%,..:.,.f.,.- IDDER/PROPOSER COMPANVINFSFRTION PRINISIMETION BID/PROPOSAL AMOUNT 1'721 DESCRIPTION OF PROJECT SERVICES C-45-Cue't e CA ca-h CS) inc, - CI (LAG V- t c Rx C. ein C-10._ sfe. 20 o ETHNICITY: C..f)eraz Cunfaci-7. CirdSTATE/ZIP: Sck.4,-\ D 1 e9 Crt (e GENDER: F. jo Eig),(7'D..).7 VThr $3(0 LW ' $1111/ Oa, I. D IgIESCRIVIION OF PROJECT CONTACT Co I. tee_n 'IC6 f-r-w-,a..r, CERTIFf ING AGENCY: ' TELEPHONE No./ g ; -53(r. 3 I OD NAICS. SUBCONTRACTOR/SUBLESSEE COMPANY INFORMATION PieFILE INFAMEIRM"It FrtOPOSEe7 45:Vo PROPOSED..ial "M, ()rrt 1 'c s (t.nn tyaci-n_ (.i-7.1,-ktl ce.. 1\ A la) '"_- O'l---; i (-_,,,, ( VIrl 0 rt.-0 M.A.'' ETHNICITY: r 1 k. Vak- tra-ct) CALttl IT,... v CRY/STATE/ZIP: ;:c.( 14wun <yrkv-i4 oc, CI :/-2 GENDER: IV\ CONTACT ---ras -.--m Lt r-n,ejr---;!--q-0,.. TELEPHONE NO./ ( p.7-.6,- RG1.'".V.--, C4 (P NAICS: eq3c0'4/0 --/n Ca-Linra_a<; NAmE: 1,41 keirt 2..e,...t_i(- twi_ce.)(5 05 g. /c.:, j?)...4:1- n nett:ana- kv-6-12q- ba-r CITY/STATE/ZIP: it-f5 c_a 9 2 (7 f GENDER: ryl h's zg950z A ri, CONTACT K-1 A fl&jr4i TELEPHONE NoJ qis-i- peitiy -(f). LI 3 Naira V15 NAICS: g3-3? an GRoup:orn6q )86 S O 'I %..02-i-D5 t13 (gr76,47 f '' g' tm,(troc-:9)-(71.(j- t/p i-ft00---f1 Cty ont---1"c- A - ETHNICITY: it+ Cox/STATE/ZIP: F ) jerr 4::/-7,0.-:T GENDER: CONTACT ni {,ke la(),-:5-3 TELEPHONE No./ /(670-.q-3-A - F, ; -5,:3 - Cyd4TAxIS ETHNICTTY: 11-i a NAmE: \-se, rf /14ill 0-1 '.:4 ci-ly1 /14::-1.._ D 6 E 7 to t3 /(0/,9).. (.1-* a curimak... A-TAoty ETHNICITY: (1_ CITY/STATE/Z1P: 62/7 ia...i---(/), r- toulitari GENDER: -F- 10/ 0:53 Wjiqt.f> CONTACT ( - pr3//ye- L, itri 0 itf>, I, ' 42:4:` 4,..Rx NAICS:4;1937.2/ (-)... -,,1),5?(-) ay, e..-p/1 /1(krt..:n 4- 'Pp 1' ,.. TELEPHONE NOJ cieg- 3 - /17;5 NAICS:r3ia t 4Q3../0,1-71/4/qo.1.../ 1 N () still-ef-a-. * JC "--1CD)!).9,t)c)c", a) ' i-:51/5" 0 vimi ryn-yr-(1,- ETHNIciTY: 1--/- --rrvr,k_i n6- (WI i/ CeS Ig), CIn'/STATE/ZIP: -1"--ekre(WAA 69- C,,95CZ" GENDER: fri fj 02)2.-1, CONTACT ( I) a.._ 14,z 7.--ef,-- CERTFYING AGENCY: ",e) r/ -1-7Z r TELEPHONE No./ q.)---/ -(-.5 -m-cr.../ 41 ehzipls NAICS: 4,23-7,370..) Q,...3.oc 7/ v - ETHNICITY: Cox/STATE/ZIP: GENDER: - CONTACT TELEPHONE No JEmmu NAICS: r Revised 3.21/12 1 I 1 I: MI II.1. JIFF I

10 - a CRY/STATE/ZIP: CONTACT TELEPHONE No./Ewa: CrrY/STATE/ZIR: CONTACT TELEPHONE NO./ CITY/STATE/ZIP: CONTACT TELEPHONE NO./ CITWSTATE/ZJP: CONTACT TELEPHONE No./ CITY/STATE/DR: CONTACT TELEPHONE No./EmAL SUBCONTRACTOR PARTICIPATION PLAN 4 1 ZFI44 - ETHNICIrr GENDER: ETHNIcITY: GENDER: ETHNICRY: GENDER: ETHNICITY: GENDER: CER11FYING AGENCY: ETHNICITY: GENDER: CERTIFYING AGENGY: NAICS: NA1CS: NAICS: NAICS: NAICS: Page 2 I certify under the penalty of perjury that the information contained on this form is true and correct and that the firms listed are the subcontractors/sublessees that will be utilized If this contract is awarded to the above prime. I agree to comply vvith any applicable prolisions for substitutions and I further understand and agree that any and all changes or substitutions must be authorized by LAWA Procurement Services Division prior to their implementation. Participafion Level proposed by Bidder/Proposer Anticipated Level of Participation stated in the Request for Bid/Proposal: ao oxica_ 64-z-d-9(U 1:3 SBE MNVBE ID DBE ADOBE titelak_ riy-prriklj SIGNATURE Colleen Coffman President, DATE NAME TrrLE PHONE Revised 8/21/12 I..

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