PPP ‘best suited’ for Los Angeles Airport projects

Los Angeles Airport owner and operator LAWA will deliver at least two components of its $5bn modernisation programme as PPPs.

Los Angeles World Airports, which owns and operates Los Angeles International Airport (LAX), has decided to procure at least two of the five projects that comprise its $5 billion Landside Access Modernisation Programme (LAMP), as public-private partnerships (PPPs).

“In comparison to the design-bid-build delivery method, DBFOM [design-build-finance-operate-maintain] can result in cost savings, greater cost control/cost certainty, schedule acceleration, increased access to private sector innovation, an ability to transfer appropriate risks to the private sector, life-cycle efficiencies, fixed operations and maintenance payments for the life of the project, and reduced administrative costs,” LAWA said in a statement announcing its decision.

One of the two eligible projects for PPP delivery, which LAWA described as “the centerpiece of LAMP”, is the Automated People Mover (APM) that will connect the central terminal with a new Consolidated Rent-a-Car facility (ConRAC), also to be delivered as a PPP.

The APM system includes an elevated 2.25 mile guideway, six train stations, moving walkways and parking garages. The ConRAC project involves constructing a customer service building, vehicle storage space and a facility for vehicle maintenance.

A Request for Qualifications (RFQ) is expected to be issued in the first half of 2016, followed by a Request for Proposals (RFP) in the second half of next year, according to a presentation LAWA made before the Board of Airport Commissioners last week. Construction would begin in 2017, with delivery of these two projects scheduled for early 2023.

The other three components of LAMP include creating a transit connection to the Metro 96th Street Station, two intermodal transit facilities, including pick-up/drop-off curbs, and road improvements. LAWA will determine which delivery methods it will use for those projects at a later date, according to the statement.

The agency, which is a proprietary department of the City of Los Angeles, has already initiated the environmental review and clearance process for LAMP.

“Today’s announcement of our preferred delivery method is reflective of a 21st century solution that will allow us to reach across the global, regional and local marketplace to bring the very best teams together to deliver a complex and innovative structure for one of the world’s busiest airports,” said Deborah Flint, LAWA’s executive director.

In addition to operating LAX – the second busiest airport in the US and the fifth busiest in the world – LAWA also owns and operates LA/Ontario International and Van Nuys general aviation.

Before launching a procurement process, LAWA will host an industry forum on 4 February 2016 to provide programme information and receive industry feedback on the delivery and procurement framework.