Report to the BOARD OF AIRPORT COMMISSIONERS

Transcription

1 09/10/13 r -osoll. L os A ngeles 7 nil A Donis I, Report to the BOARD OF AIRPORT COMMISSIONERS Ap roved Inti.1. Dur -m, Chief Airports Engineer is Revii es pr 2( hnson, Deputy Executive Director 1.1 lr, /".- Meeting Date: CAO Review: / b Reviewed for 1 City At ney - kilde l/ ', / Gina Marie Lindsey - Executive 'rector October 15, 2013 Date e i Completed i Pending i NIA Approval Status! By I Capital Budget 09/17/13 I e Y III N O NA 1 DS Operating Budget 09/17/ YONIZNAIRW CEQA 09/24/ YON 1ES Procurement J YEINOCondl MT e = SUBJECT: Exercise the Construction Services Option and approve First Amendment to Contract No, DA-4849 with Clark/McCarthy A Joint Venture Exercise the Construction Services Option and approve First Amendment to Contract No. DA-4849 with Clark/McCarthy A Joint Venture for the "Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition" project at Los Angeles International Airport, in the amount of $234,297,275, delegate signature authority for change orders, and appropriate capital funds in the amount of $264,132,707 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 III, Class 1(18)(c)of the Los Angeles City CEQA Guidelines. 3. EXERCISE the Construction Services Option and APPROVE the First Amendment to Contract No. DA-4849 with Clark/McCarthy A Joint Venture for the "Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition" project at Los Angeles International Airport (LAX) in the amount of $234,297,275, which is subject to change order authority. 4. AUTHORIZE the Executive Director to approve and execute change orders to the contract up to $1,000,000 provided that prior to execution of these change orders, the Board of Airport Commissioners will be notified within 24 hours. 5. APPROPRIATE capital funds in the amount of $264,132,707 for this project. Page 1

2 6. AUTHORIZE the Executive Director to exercise the construction services option and execute the First Amendment to contract DA-4849 with Clark/McCarthy A Joint Venture upon its approval as to form by the City Attorney. DISCUSSION: 1. Purpose Clark/McCarthy A Joint Venture (CMJV) has commenced with preconstruction services for "Tom Bradley International Terminal Renovation, Aprons, and Concourse Demolition" project at Los Angeles International Airport (LAX). Approval of this action will allow Los Angeles World Airports (LAWA) to exercise the Construction Services Option and execute the First Amendment to Contract No. DA-4849 with CMJV in the amount of $234,297,275. Completing this construction will improve customer service and convenience within the existing Tom Bradley International Terminal core building, enable the East Aircraft Gates in Bradley West to become operational and improve the Tom Bradley International Terminal's infrastructure to better meet current and future demands. This is the last major construction project under Capital Budget 1. This action also appropriates capital funds in the amount of $264,132,707 and authorizes the Executive Director to approve and execute change orders to the contract up to $1,000,000 provided that the Board of Airport Commissioners is notified prior to execution of these change orders. Change orders in excess of $1,000,000 are subject to Board approval, and such approval will become final pursuant to Charter Section Prior Related Actions October 20, Resolution No The Board approved the use of Alternative Project Delivery Methods and a Competitive Sealed Proposal Selection Process for LAWA projects including the Bradley West project and its related components at LAX pursuant to City Charter Section 371(b). On October 24, 2008, Los Angeles City Council adopted Ordinance No approving the Board's action. July 9, Resolution No The Board authorized the Executive Director to advertise and release a Request for Proposals (RFP) using Competitive Sealed Proposals to procure a Construction Manager at Risk to construction the "Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition" project at LAX. August 20, Resolution No (DA-4849) The Board affirmed staff's recommendation to award a contract to CMJV as the successful bidder for the Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition project based upon Lowest Ultimate Cost to the City. In addition, the Board approved a not-to-exceed amount of $26,356,880 for CMJV's General Conditions and preconstruction services, and appropriated $2,635,690 for City services, for a total not-to-exceed appropriation amount of $28,992,570, to initiate the project at LAX. Page 2

3 Below is a timeline of major milestones for the Bradley West project: I I, October 20 Board authorizes the use or Alternative Delivery Methods and a CompetitiveSealed Proposal Selection Process October 24 Los Migeles City Council adopted Ordinance No affirming Board action. April 21 Board awards Construction Manager al Risk (CMAR) Contract No DA4337 to Walsh-Austin Joint Venture MAW) for pre-construction services for tne Bradley West gales October 19 Boardexercises Me Construc ton Services Option of DA-4337 for the Bradley West gates October 19 Board awards CMAR Contract No. DA to WAN for pte-constniction services and construction of Me Bradley West core February 22 Ceremonial groundbreaking for Me Bradley West project October 27 Interim West Bus Terminal (IWBT) opens for full operations. January 1 Major construction undenvay on the Bradley West gates and core July 9 Board authorizes RFP releaseusing CompetilWe Seated Proposals to procure a CMAR for the Torn Bradley Renovation. Aprons. and Concourse Demolition project September 6 Gatels4 opens for operations March 5 North Concourse opens for operations March 19 Beardawards Design-Bund Conhact No. DA to Tamer Construction Company for Me Torn Bradley International Terminal/ Terminal 4 Connector. August 20 Board awards CIAAR Contract No. DA to clerk Mc Canny Joint Venture (MN) for Me Tom Bradley International Terminal Renovation, Aprons, and Concourse Demolition project October 2 South Concourse East Gates and Cenhafived Security Screening Checkpoint (Phase]) scheduled to open. April 4 Centralized Security Screening Checkpoint PhaSe 0) scheduled to open. July 14 North Concourse East Gates scheduled to Open July 26 Opening of the 2015 Special Olympics World Games in Los Angeles_ September 26 Torn Bradley Renovation Aprons, and Concourse Dernoblion project completion. 3. Current Action Section 371 of the Los Angeles City Charter requires that all contracts, other than certain enumerated exceptions, "shall be let to the lowest responsive and responsible bidder." Traditionally, compliance with this Section has resulted in the use of Design-Bid-Build (DBB) delivery method. As an alternative to DBB, the Charter states that "Design-Build (DB) or other appropriate project delivery systems may be used when justified by the type of project and approved by the contracting authority." (Charter Section 371(b)). Accordingly, with certain justifications, DB and Construction Manager at Risk (CMAR), along with DBB are available for consideration. Staff evaluated the different delivery methods available and selected CMAR for the Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition project at LAX. Staff determined that CMAR is better suited than the other construction delivery methods to deliver the project within budget and within the required time frame due to the project's complexity. The ability to phase and sequence the project to lessen the impact that the construction would have on airport operations was a key consideration in choosing the CMAR delivery method. On October 24, 2008, the Los Angeles City Council adopted Ordinance No which approved the use of Alternative Project Delivery Methods and a Competitive Sealed Proposal Selection Process for the Bradley West project and its related components. On March 21, 2013, LAWA released an RFP using Competitive Sealed Proposals to provide construction services for the Tom Bradley Terminal Renovation Aprons and Concourse Demolition project at LAX. The procurement outlined a three-step process: Administrative Requirements & Technical Proposal, Interview, and GMP. The following firms submitted proposals: Page 3 BW Renovation, Apnons & Demo Contract Award

4 CMJV Hensei Phelps Construction Company PCL Construction Services Skanska W.E. O'Neil Joint Venture Walsh Construction Company Soon after, Hensel Phelps Construction Company withdrew their proposal. The remaining four firms' proposals were evaluated and the firms interviewed by LAWA staff on May 16 and 17, 2013 to better understand and evaluate the firms experience, understanding of the project scope, capabilities, and team make-up. At the conclusion of the technical review and interview process, CMJV and Skanska W.E. O'Neil Joint Venture had the highest total scores and were invited to submit pricing proposals. CMJV was selected because their proposal provided the lowest ultimate cost to the City of Los Angeles and they were awarded Contract No. DA The initial Board action regarding this contract authorized CMJV to commence pre-construction services and appropriated the needed funding for that effort. As part of pre-construction services, CMJV was tasked with re-phasing and re-sequencing the project to open gates sooner and minimize disruptions to current aircraft and tenant operations and participated in a value engineering process aimed at reducing project costs. These negotiated value engineering changes and modifications to the project requirements are reflected in the Construction Services Option and First Amendment. This project, which is subject to LAWA's Project Labor Agreement, is the last phase of construction associated with the new Bradley West Terminal. The overall scope of work for this project is as follows: Base Proiect Scope of Work Tom Bradley International Terminal (TBIT) Existing Core Renovation - Make major functional modifications to TBIT and integrate TBIT with the new Bradley West Core. This renovation will create a new twenty-lane Security Screening Check Point (SSCP) on Level 4, expand the Customs and Border Protection (CBP) Secondary Inspection station, renovate the CBP Operations Center, reconfigure the existing baggage handling systems, remodel existing lounge areas, and new loading docks on the north and south sides of the terminal building. Apron and Concourse Demolition and Apron Paving - Demolish the existing TBIT South and North Concourses and aprons, modify TBIT Gate 123, construct a new aircraft apron, reconstruct underground utilities, grading, drainage, airfield signage and lighting; install Los Angeles Department of Water and Power (LADWP) power and communication duct banks, LAWA power and communication duct banks, install new Passenger Boarding Bridges and ramp equipment to activate the East Gates of the new Bradley West concourses. Bradley West Connection - Construct a connection between the existing TBIT Core to the new Bradley West Core. The construction will require modifications to exiting and egress routes to allow exiting from the occupied new Core and North and South concourses and allow phased construction, extension of the sterile corridor connection between TBIT and Terminal 4 at Level 2, utility tie-ins, a new recycle bin room, vehicle Page 4

5 access paths, a south loading dock ramp and enclosure, and Closed Circuit Television (CCTV) cameras and display screens located at new Bradley West Gates. Temporary SSCP Checkpoint - Construct a temporary Security Screening Check Point (SSCP) on Level 3 for a period of approximately nine to twelve months until the permanent facility on Level 4 is substantially complete, at which time all security functions will be moved from Level 3 to Level 4. Additional Proiect Scope of Work Allowances - Since a big part of the project includes renovation to the existing TBIT core building, the contractor will be required to improve terminal systems like IT, expand and upgrade departure lobby ticket counters, abate hazardous material, repair exterior walls, replace main departure and arrivals automatic doors, and other tasks. These additional scope items will be performed by the contractor if requested by LAWA first, using budget allowances that are set in the contract. This contract is Guaranteed Maximum Price (GMP). CMJV guarantees that the cost of work will not exceed the contract value. LAWA will pay actual costs up to the GMP. CMJV is required to bid the work to the trades in an open bidding process observed by LAWA staff. CMJV is required to get obtain a minimum of three bids for each trade package. If the bids are less than the budgeted GMP amounts, the savings moves into the Contractor's Contingency so it stays visible to LAWA and LAWA then controls the use of it should it be needed for other shortfalls in bidding, etc. The allowances in the contract are controlled through the use of task orders and are priced and reviewed similar to change orders. Staff will track all costs in Prolog and report to management and the Board monthly on all critical activities for the project including all change orders. Action Requested Staff requests approval to exercise the Construction Services Option and execute the First Amendment to Contract DA-4849 with CMJV for the Tom Bradley International Terminal Renovation, Aprons, and Concourse Demolition project at LAX, all in the amount of $234,297,275, and requests authorization of the Executive Director to approve and execute change orders up to $1,000,000 provided that the Board is notified prior to execution of these change orders. Staff also requests the Board appropriate capital funds in the not-to-exceed amount of $264,132,707 for this project. The total contract will be as follows: CMJV Pre-Construction, General Conditions Services Cost $26,356,880 CMJV Construction Cost $234,297,275 Total CMJV Construction Contract Cost $260,654,155 Fiscal Impact The overall total budget for this project is $355,497,974. This includes the cost of the CMJV contract, project soft costs, budgeted owner's contingency, and LAWA and City support services (inspection, survey, testing, permits and general administration). Page 5 BW Renovation, Aprons 8, Demo Contract Award

6 An original project budget prepared in 2009 and re-estimated in 2011 established the total cost at $290,488,000. The $65,009,974 difference between the original and current budget is due to enhancements made to base project scope, added new scope items, additional design expenses for completing the construction documents and for designs of added new scope items, and escalation costs over the course of last 2.5 years. Enhancements made to base project scope include reconfiguration of Level 5 corridor and new escalators, Star Alliance lounge demolition and shell space, new terrazzo floors at Level 1 - FIS Level, Level 5 catwalk ceiling replacement, Bradley West connector package, modifications to T31T4 Connector bridges, new Level 5 wings above SSCP, phasing complexities, Art piece installation and coordination, and the addition of Furniture, Fixture and Equipment (FF&E) package for the USCBP areas. These changes to the scope resulted in an approximate added cost of $27,440,387. In order to mitigate these increased costs, CMJV, as part of their preconstruction services, were tasked with completing a value engineering effort which to reduce the cost of these items, resulting in a reduction of $7,503,199. Therefore, the net construction cost added to the project due to these changes is $19,937,188. Additional costs due to escalation since the original budget was established back in 2009 are estimated to be approximately $7,800,000. In addition to changes to base project scope, several new scope items were added to the project, which were not part of the original scope or budget. Since a big part of the project includes renovation to the existing TBIT core building, the need to improve terminal systems like IT, expand and upgrade departure lobby ticket counters, abate hazardous/contaminated material, repair exterior walls, replace main departure and arrivals automatic doors, and other similar tasks were identified. The total cost of these items is $28,500,000. The changes to project scope not only affected the hard construction cost but also the soft cost budget was accordingly increased by $8,772,786, to $61,842,786. The increase in soft costs is due to the added design services required for the enhancement of project base scope of work, the services needed to better define the allowance scope of work items, and the anticipated management and oversight services needed for a project of this scope being constructed in a fully operational terminal. The new soft cost budget of $61,842,786 equals 23.9% of the construction cost which is below LAWA's goal of 27%. The guaranteed maximum price by CMJV will be bid to the trade contractors after award of the contract. There are potential savings that may occur as the work is awarded to the trades. Current Project Costs are estimated on the following page. Page 6

7 Cost of Construction: CMJV Pre-Construction Services Cost $26,356,880 First Amendment - CMJV Construction Cost $234,297,275 Other Construction Cost $4,176,033* Total Hard Construction Costs: $264,830,188 Project Soft Costs: Design and Construction Administration $26,719,294 Project Management Services $31,477,370 City Services (Inspection, Testing, LADBS etc.) $ Total Soft Costs: $61,842,786 Budgeted Owner's Contingency: 11% of Hard Construction Cost $28,825,000 Total Contingency: $28,825,000 TOTAL PROJECT COST $355,497,974 Prior Appropriated Proiect Cost Design and Construction Administration $26,719,294 Project Management Services $31,477,370 Pre-Construction Services $26,356,880 City Services $2,635,690 Other Construction Cost $4,176,033 Total Prior Appropriations: $91,365,267 TOTAL REQUESTED APPROPRIATION $264,132,707 * Other Construction Cost includes expansion of the project laydown and parking area along Westchester Parkway, work performed by the Los Angeles Department of General Services, air emission credit costs, and terminal public areas furniture, fixtures, and equipment package, all procured through other contracts. Staff requests a budgeted owner's contingency of $28, , which is 11% of construction cost, to address any changed or unforeseen field conditions and/or the potential need for contractor acceleration necessary to maintain the aggressive project schedule. 4. Alternatives Considered Defer the Project LAWA could defer this action. However, this project is considered high priority as it enables the new east gates to become operational at the new Bradley West facility. Page 7

8 APPROPRIATIONS: "Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition" is a Board approved capital improvement project at Los Angeles International Airport (LAX). It is recommended that the Construction Service Option and First Amendment in the amount of $234,297,275 be exercised and executed with CMJV for the construction of the "Tom Bradley International Terminal Renovation, Aprons and Concourse Demolition" project at LAX. Staff requests funds for this project be appropriated and allocated in the amount of $264,132,707 from the LAX Airport Revenue Fund to WBS Element (Bradley West) and other Board approved Capital Projects and their respective WBS elements as may be required. STANDARD PROVISIONS: 1. The issuance of permits, leases, agreements, and renewals, amendments or extensions thereof, or other entitlements granting use of an existing airport facility involving negligible or no expansion of use and/or alteration or modification of the facilities or its operations beyond that previously existing or permitted is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article Ill, Class 1(18)(c) of the Los Angeles City CEQA Guidelines. Please also note EXCEPTIONS, LAWA Design & Construction Handbook. 2 This item is subject to approval 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 Clark/McCarthy JV is required by contract to comply with the provisions of the Living Wage Ordinance. 5. Procurement Services reviewed this action (File No. 5812). LAWA's annual FAA-approved Disadvantaged Business Enterprise goal for fiscal year 2012 is 18.05% which will be achieved through race-neutral measures since a Good Faith Effort cannot be required. Subcontractors are unknown at this stage, as work will be bid out at a later time. Clark/McCarthy JV will submit a Subcontractor Participation Plan prior to work commencement. 6. Clark/McCarthy JV is required by contract to comply with the provisions of the Affirmative Action Program. 7. Clark/McCarthy JV has been assigned Business Tax Registration Certificate number Clark/McCarthy JV is required by contract to comply with the provisions of the Child Support Obligations Ordinance. 9. Clark/McCarthy JV has approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports. Page

9 10. Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees. 11. Clark/McCarthy JV has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Clark/McCarthy JV 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. Clark/McCarthy JV will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. Clark/McCarthy JV has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 9