LAX

LA/ Ontario

Van Nuys

City of Los Angeles

Antonio R. Villaraigosa Mayor

Boarli of Airport Commissioners

Michael A. Lawson President

Va leriu C. Velasco Vice President

Joseph A. Aredas Rollert D. Beyer Boyd Hight Fernando M. Torres-Gil Walter ZW1in

Gina Marie lindsey ExBcutive Di r€ctor

June 28, 2011

The Honorable City Council Of the City of Los Angeles City Hall, Room 395 Los Angeles, CA 90012

Subject: CONSIDER AND APPROVE A JOB ORDER CONTRACTING ORDINANCE

RECOMMENDATION FOR CITY COUNCIL

1.

2.

ADOPT Resolution No. 24467 (attached} which was approved by the Board of Airport Commissioners at their meeting held on June 6, 2011.

FIND that the recommended action is exempt from the requirements of the California Environmental Quality Act as provided by Article II Section 2(m) of the Los Angeles City CEQA Guidelines.

MAYOR'S TRANSMITTAL

Enclosed is the approval by the Mayor and the Office of City Administrative Officer.

FISCAL IMPACT STATEMENT

There is no fiscal impact to the City's General Fund as a result of this action.

Very truly yours,

'---' Sandra . iller, Secretary BOARD OF AIRPORT COMMISSIONERS

cc: Trade, Commerce and Tourism Committee Councilmember Hahn, E-file Councilmember Rosendahl, E-file Councilmember LaBonge, Enc. CAO (Airport Analyst), E-file CLA {Airport Analyst}, E-file City Clerk's Office, Enc. (one original and one copy)

tAX

RESOLUTION NO. 24467

WHEREAS, on recommendation of Management, there was presented for approval, a Resolution requesting the Los Angeles City Council to consider and approve an ordinance allowing the Board of Airport Commissioners to authorize its Executive Director to establish a Job Order Contracting Program which will allow Los Angeles World Airports to award Job Order Contracts for facilities improvements pursuant to a competitive, sealed~proposal method; and

WHEREAS, Los Angeles International Airport (LAX) is launching an unprecedented number of new construction projects, each with specific time and budget constraints. Every

van Nuys construction project produces small, adjacent but unforeseen construction needs. Today, City of to• Angeles Los Angeles World Airports (LAWA) is not structured to respond to this short-term spike in ,o\,

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1,_,,,; ... ,, construction needs. Establishing a Job Order Contracting (JOC) Program will provide an

"''''i"' ·· efficient mechanism to handle changed or unforeseen circumstances, providing LAWA with a

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8 ,,,0 ol Airport way to manage multiple, unforeseen, small, projects with lower costs and speedier results; Commissioners and

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WHEREAS, Section 371(b) of the Los Angeles City Charter permits awarding contracts pursuant to a competitive, sealed-proposal method, in accordance with criteria established by an ordinance adopted by at least two-thirds of the City Council, and also allows for the use of design-build or other appropriate project delivery systems when justified by the type of project and approved by the contracting authority. With this action, LAWA seeks an ordinance to award Job Order Contracts based on lowest ultimate cost; and

WHEREAS, JOC is an approved project-delivery method under State of California Public Contracting Code for recurring minor construction work, the scope and timing of which is difficult to know in advance. This work often involves repair, remodeling or other repetitive work, JOC enables owners to complete multiple small projects with a single qualifications­based, competitively bid contract, eliminating the time and expense of completing the administrative process associated with conventional contracting for each minor project; and

WHEREAS, each job under a Job Order Contract outlines a specific set of tasks. Properly managed, JOG significantly decreases project duration and cost, while increasing contractor reliability and quality. Numerous government agencies have established successful JOG programs including several county agencies within the State of California including Los Angeles, Orange, Sacramento, San Bernardino, San Diego, San Luis Obispo, Ventura and Kern counties; and

WHEREAS, the JOC Program will be used to accommodate workload peaks and will not eliminate any LAWA staff or any services provided by LAWA staff. No bargaining unit employee shall be terminated from employment or shall have reduction in work hours, nor shall unit staff levels be reduced due to work normally performed by unit employees being contracted out. The JOC program is not meant in any way to replace bargaining unit employees. Before issuing any orders under LAWA's JOC Program, LAWA managers will be offered first right of refusal on any project tasks. The JOC Program will be used when the workload associated with a job order exceeds the capacity or capability of LAWA personnel. Work provided by a JOG contractor will be managed by a LAWA supervisor of similar craft; and

Resolution No. 24467 -2-

WHEREAS, following adoption of the ordinance by the City Council, LAWA will implement its Program and begin soliciting JOC proposers via a qualifications-based, competitively bid process, returning to the Board of Airport Commissioners with requests to award Job Order Contracts. Each contract solicitation will specify the total contract value. No contract will exceed three (3) years or $3,000,000 and no Job Order will exceed $500,000; and

WHEREAS, tasks performed under Job Order Contracts are typically light, general contracting. Scope may include interior remodeling, small building construction, and installation of common building equipment. Crafts used may include carpentry, mechanical, electrical, glazing, and plumbing, masonry, carpet laying, painting, interior metal framing, and interior concrete. Each contract solicitation will describe the type of work, the location, and the anticipated dollar value range of the contract to be awarded; and

WHEREAS, LAWA will solicit consultant services to procure a LAW A-specific Unit Price Book (UPB) based upon an industry-accepted pricing format, modified to suit the geographic and technical complexities of LAWA work. It will define detailed repair and construction tasks, including task descriptions, specifications, units of measurement, and unit prices for each task; and

WHEREAS, following release of each Request for Proposals (RFP) and prior to a pre­proposal conference, staff will hold JOG informational sessions with the contracting community to inform them about the JOC process and answer questions. Outreach to small, local Minority/Women Business Enterprise (MIWBE) communities will be conducted to ensure they are aware of this new contracting process and are prepared to compete for inclusion under Job Order Contracts. The size of the contracts and required skill sets appeal to small businesses. Pricing will be competitive. RFPs will reference a LAWA-specific UPB based on LAWA Standard Specifications; and

WHEREAS, JOC proposer evaluation and selection will be based on "Lowest Ultimate Cost" evaluation criteria. Sixty percent of the total score will be qualifications-based criteria. The specific criteria will be described in the individual Job Order Contract solicitations. The criteria will be in accordance with the accepted areas of pre-qualification pursuant to City Charter Section 375 including relevant experience in providing specialized services, financial ability to complete the anticipated work, bonding capability, safety record, and evidence of a denial of prequalification or award of contract, disbarment, or other irregularities with respect to any federal, state, or local government or procurement agencies. Forty percent of the total score will be based on a proposer-submitted coefficient factor applied to the UPB cost; and

WHEREAS, the UPB and coefficient factor will be used to determine the costs of each job/task during the term of the contract. The RFP will also explain how LAWA will price "non­pre-priced items" necessary materials, or crafts not in the UPB. The industry practice is to negotiate a fixed-unit price for "non-pre-priced items" to be added to the UPB before a job order is approved. JOC proposers selected for contract award will be those whose proposals present the lowest ultimate cost as determined by LAWA Given the large number of small projects envisioned for the near future, LAWA intends to enter into an agreement with multiple JOG proposers for the same general scope. This will ensure greater depth to perform these contracts, encourage competitiveness between the successful JOC proposers for upcoming jobs, and provide greater opportunities for small contractors and their subs. To the extent that multiple contracts are awarded under a single RFP, LAWA reserves the right to issue job-order work at its sole discretion and a contractor who is awarded a JOC is not guaranteed any particular amount of work; and

Resolution No. 24467 -3-

WHEREAS, the benefits of the JOC process include the following:

• Project schedule is shortened by greatly reducing or eliminating the time required for design, bid, contract execution, and contractor mobilization for each task executed under the contract.

" During the term of the contract, quality is ensured through a clear understanding of scope due to mutual development and concurrence on tasks and the necessary UPB line items for each job.

" Pricing is firm, objective, consistent, and essentially a fixed price/lump sum. During the term of the contract, individual job orders can be scoped, priced and based on the same pricing criteria.

• The projects are attractive to small and minority contractors because, normally, the type of work for any one job order requires only a few trades.

M Dependability is encouraged because contractors are motivated to maintain a good relationship with the owner to gain successive work. There are virtually no contractor claims; any changes are owner-initiated or due to unforeseen conditions .

.. Efficiencies are realized because the design work associated with job orders need only be of sufficient detail for the contractor to understand the scope intent and quantities needed, obtain subcontractor quotes, obtain permits, and comply with regulatory requirements; and

WHEREAS, the adoption of ordinances that do not result in impacts on the physical environment is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II Section 2(m) of the Los Angeles City CEQA Guidelines; and

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 250;

NOW, THEREFORE, BE IT RESOLVED that the Board of Airport Commissioners determined that this action is exempt from the California Environmental Quality Act requirements; found that because the use of a competitive, sealed-proposal selection method for Job Order Contracting will increase the quality of the work, reduce overall project costs and increase local small and minority participation, the awarding of Job Order Contracting to the lowest responsive and responsible bidder is not practicable or advantageous; and approved a resolution requesting the Los Angeles City Council to consider and approve an ordinance allowing the Board of Airport Commissioners to authorize its Executive Director to establish a Job Order Contracting Program which will allow Los Angeles World Airports to award Job Order Contracts for facilities improvements pursuant to a competitive sealed proposal method.

oOo

I hereby certify that this Resolution No. 24467 is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Mond June 6, 2011.

Sandra J. Miller- Secretary BOARD OF AIRPORT COMMISSIONERS

TRANSMITTAL

~ina Marie Lindsay, Executive ~~rector ~~o~T~ lOU Department of Airports

COUNCIL FILE NO.

FROM COUNCIL DISTRICT

The Mayor ~~---~---~--~~-----....... -- .. --~------'--------------1

Request for Council Consideration of a Proposed Ordinance to Allow the Executive Director of the Los Angeles World Airports to Establish a

Job Order Contracting Program as a Means to Expedite Smaii~Scale Construction and Facility Improvement Projects

Transmitted for further processing, including Council consideration. See the City Administrative Officer report attached.

MAYOR~~' L j Mt <1-t i;;f' I c..k $."-> 11)

MAS:WDC: 101101191

-~-----------~-··-----------' CAO 649-d

REPORT FROM

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: June 20, 2011 CAO Fife No. 0150-09550-0000 Council File No. Council Dlsldct:

To: The Mayor

From: Miguel A. Santana, City Administrative Office~ C · J;J..--. Reference:

Subject:

SUMMARY

Transmittal from the Department of Airports dated March 16, 2011; Referred by the Mayor for Report on March 17, 2011

REQUEST FOR COUNCIL CONSIDERATION OF A PROPOSED ORDINANCE TO ALLOW THE EXECUTIVE DIRECTOR OF THE LOS ANGELES WORLD AIRPORTS TO ESTABLISH A JOB ORDER CONTRACTING PROGRAM AS A MEANS TO EXPEDITE SMALL~SCALE CONSTRUCTION AND FACILITY IMPROVEMENT PROJECTS

The management of the Los Angeles World Airports (LAWA; Department) requests consideration of a proposed ordinance (Attachment 1) authorizing the Department to award what are known as "Job Order Contracts" for light general contracting for recurring, routine small-scale construction work (projects of limited size, scope, and duration) for which LAWA does not have adequate in··house resources, at the City's four airports using the competitive sealed bid proposal method pursuant to City Charter Section 371 (b). This method of contracting for airport facilities improvement projects is intended to expedite minor construction work; reduce costs, including LAWA administrative costs; supplement the work of LAWA construction crews; increase construction management decision making capabilities; accelerate decision making; and provide the Department with an additional means to expedite construction projects.

The Job Order Contracting (JOG) program for LAWA facilities-especially those where the project scope and timing are difficult to accurately predict-while new to the City, has been successfully used by the federal government and numerous municipal agencies, including the County of Los Angeles, the County of San Bernardino, San Diego County, and the County of San Luis Obispo. The process has several advantages when compared to the traditional Design/Bid/Build method used for most City construction, including the following:

• Increased contractor responsiveness and reliability • Shorter project duration • Greater flexibility • Cost savings * Increased opportunities for participation by small and minority businesses Ill Improved relationships and communication between LAWA and contractors

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0150-09550-0000 2

• Increased overall value (ratio of cost to quality) to the City • Reduced LAWA administrative costs

According to the Department, the JOG method is well suited for repairs, interior remodeling, repair and construction of small buildings, installation of common building equipment, and other routine work involving carpentry, electrical, glazing, plumbing, masonry, carpet laying, painting, and interior concrete. At the same time, the JOG method complies with the City's policies regarding competitive bids, sealed proposals, and other appropriate project delivery systems that are in the best interest of the City (Charter Section 371 ). Additionally, implementation of Job Order Contracting is consistent with the City's efforts to adapt various innovative construction methods (e.g., Design/Build and Construction Manager at-Risk) in order to expedite capital improvement projects, reduce costs, improve the quality of both design and construction, and leverage limited City project administration resources. According to the Department, LAWA has found innovative construction delivery methods to be effective in addressing ongoing development at LAX (e.g., the Bradley West Core and Concourses and the Central Utilities Plant Replacement) during the past few years in terms of (1) cost and scheduling efficiencies, (2) improved design, (3) the avoidance of constructability issues and change orders, and (4) reduced disruption to airport operations.

In terms of innovative construction methods successfully employed by LAWA, the use of the Construction Manager-at-Risk method for the Bradley West Core and Concourses project has allowed the project manager to participate in the design phase, early value engineering, and development of procurement opportunities which, In turn, resulted In both timely completion of the project and minimizing of interference with ongoing airport operations. Likewise, the Design/Build method has been used for the highly technical LAX Central Utilities Replacement Project, which allowed the construction contractor to be involved early in the design phase resulting in improved design, pre-construction work, and actual construction, as well as-the avoidance of constructability issues.

Establishment of the JOG approach is proposed not as a replacement for the existing Design/Bid/Build process but, rather, as a means to provide the most responsive construction support possible for specific projects where (1) traditional Design/Bid/Build may not be cost effective, or (2) the number of LAWA construction crews and administrative staff are insufficient to address the number of and schedule for the numerous small-scale construction projects.

The Department has provided a draft ordinance that, if approved, would allow LAWA to execute Job Order Contracts pursuant to a competitive sealed proposal method as specified in Charter SecUon 371(b) and establish criteria for the letting of those contracts between LAWA and successful contractors for recurring, minor construction work. Approval of the proposed ordinance would also allow for the establishment of a method to expedite the construction of small-scale facility improvement projects, beginning in early 2012, that could result in both time and actual cost savings of between six and 17 percent for "soft costs" (e.g., for consultants, LAWA staff, and other City agency support services including, but not limited to, design, design support through construction, construction support, inspection, surveying, testing, permits, plan checks, and general administration) when compared to the traditional Design/Bid/Build method. The savings estimate does not include additional savings that may be obtained from (1) no, or minimal, change orders; (2) no, or minimal, unforeseen costs; (3) less administrative time by the contractor; (4) the pre~job

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0 150~09550-0000 3

collaboration between LAWA and the contractor; and (5) one~time versus multiple contractor mobilizations for each job. According to the Department, soft costs for traditional Design/Bid/Build projects typically run 27 percent of the construction costs; using the more innovative Design/Build method, soft costs could average 19 percent of construction costs. For Job Order Contracting, those same soft costs average 13 percent of construction costs. For the reasons listed above, the actual construction costs are anticipated to be less, as well. As an example, for change orders alone, which typically average between 1 0 and 15 percent of construction costs, the Department estimates that costs can be reduced to less than five percent of construction costs.

The Department estimates that no more than 10 contracts would be entered into during a given five­year period with estimated not-to-exceed expenditures totaling $30 million for an average annual expenditure of $6 million. The above-referenced aspects of the proposed ordinance, and this rep_art, are based upon revised information received from the Department subsequent to the initial request submittal.

BACKGROUND

Current and Proposed Contracting Authority

Charter Sections 371 and 375, respectively, permit (1) the letting of contracts pursuant to a competitive sealed proposal method in accordance with criteria established by ordinance adopted by at least a two~ thirds vote of the Council, and (2) the pre qualification of bidders where the selection process is clearly described in 1he bid specifications or request for proposals and the contracting authority makes a written finding that utilization of such process would benefit the City. Furthermore, Section 371 provides that "consistent with competitive bidding requirements, Design/Build or other appropriate project delivery systems (italics added) may be used when justified by the type of project and approved by the contracting authority."

The Department is proposing that, consistent with the authority and guidelines specified in the Charter, the Job Order Contracting method for obtaining small-scale construction services be implemented using the standard City competitive sealed proposal method and RFP process, where the selection criteria is established by LAWA and described in the RFP, where the Department establishes criteria for executing contracts with the successful contractors, and where final awards are reviewed and authorized by the Board of Airport Commissioners. Details of the Job Order Contractor Solicitation Process are included in Attachment 2 to this report.

Justification for lAWA Request- Department Impact

A comparison of the advantages and disadvantages of the Department's traditional method (Design/Bid/Build} for addressing small~scale facility improvements and the proposed method (Job Order Contracting) is included In Attachment 3 to this report.

According to the Department, the following benefits would result from the establishment of a Job Order Contracting program for small~scale construction repairs and improvements at Los Angeles World Airport facilities:

! i I.

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0150-09550~0000 4

Reduced project schedules due to shortened or eliminated time for design, bid, contract execution, and contractor mobilization for individual projects Enhanced project quality resulting from a LAWA/contractor partnership combined with more defined scope, tasks, Unit Price Book (UPB) pre­established unit costs, and costs determined jointly by LAWA and the contractor Firm, objective, consistent pricing criterion (essentially a fixed price/lump sum pricing model) Enhanced contractor dependability and reduced legal claims, both of which result from contractor motivation to be awarded future work Fewer change orders since changes are restricted to those initiated by LAWA only and/or unforeseen conditions Once JOG is implemented, overall administration is generally less than with the Design/Bid/Build approach Small and minority contractors are encouraged to participate since the normal work awarded only requires a few trades (e,g., carpentry, mechanical, electrical, plumbing, carpet laying, etc.) and bonding requirements are minimal Complexity of project design is less, requiring only enough detail to determine scope, quantities of material, and trades; obtain subcontractor quotes and permits; and comply with regulatory requirements Completion of projects on time and within budget is enhanced, as is the Department's flexibility Allows for the completion of multiple small projects with contractors selected through a qualifications"based, competitively bid contract with efficiencies obtained due to the elimination of the normal Design/Bid/Build sequential process

The JOG method is predicated on the City obtaining what is known as the "lowest ultimate cost" (Charter Section 371{a}) from its relationship with the successful contractor(s). To assist LAW A with obtaining contractor proposals that are the most advantageous to the Department C'lowest ultimate cost"), LAWA plans to hire (in a separate action) one or more professional services consultants. The consultants will be responsible for helping to develop,· procure, implement, and execute a customized JOG system, including preparing what is referred to as a "Unit Price Book" (UPB), a document containing pre-established unit prices for specific construction tasks (including repair and construction tasks, task descriptions, specifications, units of measurement, and unit prices for each task) taking into consideration the geographical and technical complexities of the LAWA work. For each JOG contract solicitation, a description of the general type of work, the location, and the anticipated dollar value range will be provided to the proposers.

With respect to LAWA's compliance with the Charter Section 1022 process ("Use of Independent Contractors"), the Department met with representatives of the Building and Construction Trades Council, Plumbers Local78, IBEW (International Brotherhood of Electrical Workers) Local11, SEIU (Service Employees International Union) local 347, and LIUNA (Laborers' International Union of North America) Local 777 regarding the proposed JOC program. By virtue of the fact that (1) LAW A's JOG construction work will be contracted on an as~needed basis; (2) implementation of the

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0150q09550-0000 5

JOG program will neither impact existing LAWA employees nor will it result in any job dlsplacement; and (3) since the majority of work to be done under the JOC program will be based on the Unit Price Book, labor rates (which are included In the Unit Price Book) will be calculated using the California prevailing wage rates that are in accordance with the California labor Code and applicable federal, state, and local labor laws, no union opposition to the JOC proposal has been identified.

If the JOC program is approved, LAWA will begin implementation ln the fall of 2011 and will solicit JOC proposers based upon qualifications and competitive bids; at that point, LAWA will seek approval from the Board of Airport Commissioners to award multiple JOG contracts. Each solicitation will contain a total JOC contract value with a term no longer than three years. In addition, informational sessions will be held with the contracting community; outreach to the small, local MBE/WBEs (Minority Business Enterprises/Women Business Enterprises) will be conducted; a pre­proposal meeting will be held to explain the JOG process to interested contractors; and interested parties will be asked to respond to a Request for Proposals (RFP). Proposers selected for a contract award will be those whose proposals (1) are most advantageous to LAWA and (2) offer the lowest ultimate cost.

Because of the large number of facility improvement projects anticipated for the near future, LAWA intends to enter into multiple agreements with JOG proposers for the same general scope of services. The Department believes that this approach will ensure greater depth in terms of available construction companies, provide increased competitiveness, and provide greater opportunities for small contractors and subcontractors. If, as the Department anticipates, multiple contracts are awarded under one RFP, LAWA reserves the right to Issue JOG work at its sole discretion. At the same time, the Department plans to notify proposers that a contractor who is awarded a contract is not necessarily guaranteed work.

Alternatives to the Proposed Job Order Contracting Program

With respect to alternatives to the proposed establishment of a Job Order Contracting program for facility improvements at City airports, the only feasible alternative is to maintain the status quo which combines LAWA construction crews and the traditional Design/Bid/Build process using private contractors. The concern with continuing the current process for minor construction and repair is that LAWA staff, especially given the current multiqbillion dollar development program for LAX, are stretched very thinly and the Design/Bid/Build process is not always cost effective and is often time consuming. Alternatively, use of the innovative Design/Build method, which is usually reserved for medium- to large-scale construction projects, would necessitate the adoption of an ordinance by the Mayor and Council for each separate project.

Compliance with California Environmental Quality Act (CEQA) Guidelines

With respect to the proposed Job Order Contracting program's compliance with CEQA guidelines, since adoption of the proposed ordinance does not impact the physical environment, the JOG program is exempt from the Los Angeles City CEQA guidelines pursuant to Article IJ, Section 2(m).

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0150"09550~0000 6

Conclusion

Given that (1) LAWA Is in need of expedited small-scale construction services to supplement those of its in*house crews, (2) the proposed Job Order Contracting program is a proven method used by other municipal agencies (e.g., County of Los Angeles, the County of San Bernardino, San Diego County, and the County of San Luis Obispo) and is consistent with City guidelines for competitive bidding, (3) significant cost and time savings may result from the establishment of a JOG program, (4) the Department's past experience with similarly innovative construction methods has been positive, and (5) the Department will benefit from increased flexibility and improved contractor responsiveness, it is recommended that the Department's proposal, and proposed draft ordinance, be approved by the Mayor and Council. However, In order to verify that the anticipated benefits and efficiencies from the implementation of a Job Order Contracting program are realized, it is recommended that the Department's proposal be approved with the following conditions and with corresponding revisions to the draft ordinance:

Ill Require that the ordinance expire after five years and include an optional renewal clause to be exercised by the Mayor and Council

• Require the Executive Director to submit annual reports to the Board of Airport Commissioners on the number and dollar value of the contracts authorized by the Executive Director under the provisions of the proposed ordinance

• Require LAWA to submit a report to the Mayor and Council prior to the conclusion of the five­year initial review period evaluating the effects of and benefits to the Department of the implementation of the Job Order Contracting program and submit a recommendation as to whether the program should be concluded or continued beyond the initial five~year period

• Request the City Attorney to revise the draft ordinance to incorporate the above~referenced conditions

RECOMMENDATIONS

That the Council, subject to approval by the Mayor:

1. Approve, subject to City Attorney approval as to form, the draft ordinance proposed by the Los Angeles World Airports to allow the Board of Airport Commissioners to authorize the Executive Director of the Los Angeles World Airports (LAWA) to establish a Job Order Contracting (JOC) Program to allow LAWA to award Job Order Contracts for facility improvement projects consistent with City Charter Sections 371 and 375, revised to reflect the following changes:

a. Include a requirement that the ordinance expire five years from its effective date

b. Include an optional renewal clause that would extend the expiration date beyond the initial five-year review period (the time period to be determined by the Mayor and Council) at the discretion of the Mayor and Council

c. Include a provision that the Executive Director submit annual reports to the Board of Airport Commissioners on the number and dollar value of the

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0150-09550-0000 7

contracts authorized by the Executive Director under the provisions of the proposed ordinance

d. Include a provision that the Los Angeles World Airports submit a report to the Mayor and Council prior to the conclusion of the fiveMyear initial review period evaluating the effects of and benefits to the Department of the implementation of the Job Order Contracting program and submit a recommendation as to whether the program should be concluded or continued beyond the initial five­year period

2. Request the City Attorney to revise the proposed ordinance to incorporate the above-referenced conditions; and

3. Return the request to the Department for further processing, including Council consideration.

FISCAL IMPACT STATEMENT

At this time, there is no estimated direct, measurable economic impact resulting from the approval of the Job Order Contracting method; however, there are anticipated time savings; cost avoidance in terms of LAWA administrative support and oversight; savings from reduced project duration and change orders; and, according to the Department, an increase in contractor reliability and the quality of the construction work. Approval of the proposed ordinance will have no impact on the Citis General Fund.

Time Limit for Council Action

The City Attorney has advised that there is no time limitation on this action due to the ordinance approval requirement.

MAS:WDC;10110119