California Construction News staff writer
The Los Angeles City Council has approved Los Angeles World Airports’ (LAWA) latest Multiple Award Task Order Contract, or MATOC, for design-build and construction services. The overall contract, which is valued at $5 billion and includes 51 contractual agreements, assembles a pool of pre-qualified design-builders and construction contractors that can support forthcoming projects in LAWA’s multi-billion-dollar Capital Improvement Program.
“This is about our commitment to investing in LA small businesses and LA families,” Los Angeles Mayor Karen Bass said in a statement after the Feb. 19 council vote. “We are leading the way in how investment in infrastructure means investing in people, too.”
The five-year contract includes 13 first-time prime contractors as part of a pool of 31, and increases opportunities for diverse, small and local businesses. The contract enables LAWA to build the next generation of infrastructure and facilities at Los Angeles International (LAX) using a quicker and more streamlined procurement process.
“With major events on the horizon, this program ensures LAX is equipped to handle increased demand, benefiting travellers, businesses, and the local economy alike,” said Council President Marqueece Harris-Dawson.
A MATOC allows project owners, such as LAWA, to readily draw from a pre-qualified pool of contractors without requiring repeated qualification solicitations or approvals, as well as execute the award process faster. For pre-qualified contractors, a MATOC can provide a steady stream of work for the life of the contract, as firms will be able to respond to requests for a variety of scopes and services that best match their skills, knowledge and abilities.
In designing its MATOCs, LAWA sought to reduce barriers to competition for small firms. This was achieved by establishing three contract award levels based on a firm’s contracting size; implementing historically higher Business Enterprise (xBE) goals and evaluation criteria scoring; and providing small firms with contract capacity equal to that of large firms, LAWA said in a statement.
Size classification follows United States Small Business Administration standards: small, with capacity less than $45 million; medium, with capacity between $45-250 million; or large, with capacity greater than $250 million.
LAWA began an extensive outreach effort in January 2024, which included conferences, roundtable discussions, and other industry outreach events to engage with business leaders and solicit feedback from potential respondents about the contract.
The goal is to complete the work in time for the 2028 Olympic Games.
The Design-Build and Construction (DB&C) Services MATOC will support LAWA’s Capital Improvement Program and other key initiatives, with 20 projects included in the contract planned to begin in 2025. The MATOC will be valid for five years, with options for LAWA to exercise two one-year renewal options at its discretion.
Eric Stenman, president and CEO of Balfour Beatty U.S., expressed enthusiasm over the selection of his company among the 31 MATOC contractors.
“Being selected for LAWA’s MATOC allows us to continue our valued partnership with LAWA as well as support our strategic efforts in diversifying our aviation project portfolio,” he said in a statement.
Stenman further highlighted the company’s expertise in aviation infrastructure, particularly their ongoing work on the LAX Automated People Mover, which gives Balfour Beatty a deep understanding of LAWA’s project delivery expectations. “We’re excited to leverage our integrated team of experts from both our Civils and Buildings businesses — a winning combination that brings together specialized expertise and operational excellence to support LAWA’s vision for the future of LAX,” he said.
“The MATOC procurement has provided our company an opportunity to be a Prime General Contractor for the first time in 26 years at LAWA,” said Tim Coffey, President and CEO of TEC Constructors and Engineers. “The MATOC allows small business a seat at the table as a Prime General Contractor. This is an unprecedented feat for a large public agency like LAWA.”
The DB&C MATOC also furthers LAWA’s commitment to diversity and inclusivity with the highest xBE requirements ever included in a LAWA contract. All contractual agreements under the MATOC are subject to the following subcontracting requirements:
- Small Business Enterprise: 30%
- Local Business Enterprise: 20%
- Local Small Business Enterprise: 15%
- Disabled Veteran Business Enterprise: 3%
Additionally, prime contractors must submit inclusivity and workforce development plans and adhere to various tracking and reporting programs. Contractors must also include graduates of the HireLAX Apprenticeship Readiness Program, offer internship opportunities, and conduct STEM outreach to students at K-12 Title 1 schools.
“Driven by diversity — both in our people and our construction expertise — Lucas Builders has created opportunities where they matter most,” said Lucas Silva, Project Engineer, Lucas Builders. “Now, with LAWA opening a door for us, we’re ready to build on our foundation and deliver with excellence.”
A list of DB&C MATOC prime contractors is as follows (an asterisk indicates first-time LAWA prime contractor):
- AECOM Hunt *
- Austin Commercial LP
- Balfour Beatty *
- Birdi Systems, Inc.
- Clark Construction Group-CA, LP
- Flatiron West, Inc.
- Granite Construction Company
- Griffith Company
- Hensel Phelps
- J-Squared General Contractors, Inc. *
- Kemp Bros. Construction, Inc. *
- Lucas Builders, Inc. *
- Mata Construction Services, Inc. *
- McCarthy Building Companies, Inc.
- Mladen Buntich Construction Co., Inc. *
- Myers & Sons Construction, LLC
- PCL Construction Services Inc.
- Pinner Construction Co., Inc. *
- Premier Interior Development, Inc. *
- Silverado Contractors, Inc. *
- Skanska USA Civil West California District Inc.
- Steve Bubalo Construction Co.
- Sully-Miller Contracting Company
- Swinerton
- TEC Constructors and Engineers *
- Technion Contractors TCI, Inc.
- The Whiting-Turner Contracting Company *
- Turner Construction
- W.E. O’Neil Construction Co. of CA
- Webcor Builders
- Xcel Mechanical Systems, Inc. *
The five-year contract includes the option for two one-year extensions at LAWA’s discretion.
