release of final request for proposals consolidated rental

Release of final Request for Proposals Consolidated Rental Car Facility at LAX

Consolidated Rental Car FacilityFinal Request for Proposals

PROJECT OVERVIEW

PROCUREMENT PROCESS

PROPOSAL EVALUATION

2

PAYMENT FOR WORK PRODUCT

NEXT STEPS

Consolidated Rental Car FacilityProject Overview

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The primary elements of the ConRAC facility:

Ready/Return Facility: A multi-level facility where customers will pick up and return rental vehicles. There will be approximately 7,600 parking stalls

Customer Service Building (CSB): Houses the RACs Customer Service Counters and Lobby Area

APM ConRAC Station: Integrated into the Ready/Return Facility close to the CSB

Idle Storage Facility: A multi-level structure to house 10,000 overflow rental vehicles

Quick Turn Around (QTA): The facility where rental vehicles are cleaned, fueled, and prepared for rental

Employee Parking (ConRAC, Airport/LAWA): 2,900 stalls for ConRAC& Airport Employees and 75 Visitor stalls

Bus Plaza: A plaza with capacity for a minimum of 12 buses

Roadways: New and improved roadways around Manchester Square• Concourse Way (new)• West Arbor Vitae Blvd (existing)• La Cienega Blvd (existing)

Consolidated Rental Car FacilityProject Overview

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•Orange – Ready/Return– Location for customers to pick up

and drop off vehicles– RAC customer service area to

complete transactions– APM station– Employee parking

•Green – Idle Storage– Used by RACs to manage ebbs and

flows in demand

•Yellow – Quick Turn Around (QTA)– Fueling– Cleaning– Light maintenance

•Pink – Support yard– Fuel and other deliveries– Vehicle corrals for new and old

vehicles– Power substation

Procurement ProcessConsolidated Rental Car Facility at LAX

Why DBFOM?

Creates opportunity for innovation in design, construction and operations

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Emphasizes the importance of on-time, high quality delivery and for all parties to structure work accordingly

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Aligns design, construction and operations to ensure project decisions add value around guest experience, improved asset management, sustainability, and inclusivity

Transfers some risks from LAWA to the Developer and encourages Developer to mitigate potential risks

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DESIGN

BUILD

FINANCE

OPERATE

MAINTAIN

What is DBFOM? DBFOM is a public-private-partnership (P3) contracting model that enables public sector agencies to harness private sector innovation and expertise, while sharing risks and responsibilities for financing. In exchange, private partners earn a reliable revenue stream (subject to performance.)

DBFOM

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Consolidated Rental Car FacilityDelivery Method

To deliver the ConRAC, LAWA & The Recommended Developer will enter into a 28 year DBFOM Agreement CONTRACT VALUE INCLUDES:

DEVELOPER WILL RECEIVE:

AGREEMENT• 4 YEARS- Design & Construction (D&C)• 24 YEARS- Operations & Maintenance

(O&M)

• Design and Construction costs

• Cost of 24 Years O&M, with inflation escalation

• Cost of Developer’s construction financing

• Milestone Payments- during Construction

• Annual Availability Payments- during O&M, disbursed in monthly increments


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• ConRAC Instructions to Proposers and DBFOM Agreement• Used APM documents as base

• Changes limited to differences between the projects

• Type of facility (building vs. transit)• Nature of project site

• Involvement of rental car companies

• ConRAC Technical Provisions

• Used APM administrative requirements to extent possible

• Differences due to different type of facility


COMMON ELEMENTS OF CONRAC AND APM RFP’S

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KEY DIFFERENCES FOR CONRAC AGREEMENT

• Rental Car Companies (RACs)

o Turnover for RAC Improvements

• Milestone payment upon turnover to RACs

• RACs have nine months for tenant improvements

• APM Station Interface

o Specified deadline for turnover

o Milestone payment upon turnover

RFP DEVELOPMENT

SHORT-LISTED TO:•ConRAC Partners•LA Gateway Partners•LAX Consolidated Solutions•Plenary Infrastructure

Airports

DEVELOPER ENGAGEMENT• Aesthetic Review

• Technical Meetings• Commercial Discussions

EVALUATION

TECHNICAL PROPOSAL

EVALUATION

PRICE PROPOSALS

EVALUATION

MAY 5 NOV 2 NOV 15 APR 19 AUGJUN/JUL

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2016 2017 2018PROPOSAL

DEVELOPMENT

Procurement Schedule

NOV 2

PRE-QUALIFYING

DECNOV

CLOSING ACTIVITIES

2019 2020 2021 2022 2023

NOV 2

JAN AUG JUL MAR

Design and Construction Schedule

ConRAC Partners

Equity Member:• Meridiam ConRAC

LLC• Skanska

Infrastructure Development Inc.

Lead Contractor:• McCarthy Building

Companies Inc.• Skanska USA Building

Inc.Lead Designer:• HKS Architects Inc.Lead O&M Provider:• Honeywell

International Inc.QTA Manager:• Fuel Facility

Management Inc.

LA Gateway Partners

Equity Member:• Fengate Capital

Management Ltd• PCL Investments• MVI Finance LLCLead Contractor:• PCL Construction

ServicesLead Designer:• Pierce Goodwin

Alexander & Linville Inc.• AC Martin Partners Inc.• Lead O&M Provider:• Johnson Controls Inc.QTA Manager:• MVI Holdings LLC

LAX Consolidated SolutionsEquity Member:• ACS Infrastructure

Development Inc.• AECOM Capital Inc.• John Laing

Investments Ltd.Lead Contractor:• Dragados USA Inc.• Hunt Construction

Group Inc.• AECOM Energy &

Construction Inc.Lead Designer:• AECOM Technical

Services Inc.Lead O&M Provider:• TBDQTA Manager:• ACS Infrastructure

Development Inc.• AECOM Capital Inc.

Plenary Infrastructure Airports

Equity Member:• Plenary Group USA

Ltd• JLC Infrastructure

Fund L.PlLead Contractor:• Austin Commercial• Sundt Construction

Inc.Lead Designer:• Demattei Wong

ArchitectureLead O&M Provider:• ENGIE Services Inc.QTA Manager:• Conrac Solutions LLC

Consolidated Rental Car FacilityShort-listed Qualified Teams

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Proposal Evaluation and ScoringConsolidated Rental Car Facility at LAX

ConRAC Developer selection process is a qualification-based evaluation with two independent steps to determine Lowest Ultimate Cost Proposer (LUCP)

Steps in Evaluation

Percentage of Total Evaluation

Scoring

2. Evaluate Financial Proposal

1. Evaluate Technical Proposal

30% 70%

3000 Points 7000 Points

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Consolidated Rental Car FacilityEvaluation and Scoring

EVALUATION & SCORING

COMPONENTS

TECHNICAL EVALUATION & SCORING

A. Technical Merit *

B. ArchitecturalAppeal

POINTS

Facility Layout, Functionality and Flexibility

Approach to Design and Construction

Inclusivity

Sustainability

Architectural Appeal of the ConRAC Facilities

Approach to Tenant Coordination and Logistics

Approach to Operations & Maintenance

TOTAL 3000

800

700

600

300

200

200

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200

* Proposers must achieve a total Technical Merit score of at least 70% to be considered a Tier 1 proposer and have their Price Proposal evaluated.

FINANCIAL PROPOSAL EVALUATION & SCORING

Commitments and transparencyEach Financial Proposal will also include: Commitment Letters: Evidence of Proposer’s financial

commitments to obtain debt and equity to fund the project Financial Model: Quantitative financial model that provides

transparency to LAWA regarding how price was determined

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Price Score components (max of 7000 points), based on information in the Price Proposal form: Affordability Bonus: Provides incentive for bidders to

innovate to get within LAWA’s target project budget AP Score: Maintains focus on balance between project cost

and operating cost efficiency D&C Payments Score: Recognizes value of lower upfront

cash requirements by LAWA

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Each financial proposal will receive a Price Score based on its relative cost to LAWA.

Proposals below LAWA’s target affordability level will also receive bonus points.

This approach strongly incentivizes Proposers to bid an affordable capital cost and the lowest total price.

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Payment for Work ProductConsolidated Rental Car Facility at LAX

Consolidated Rental Car FacilityPayment for Work Product

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• Industry Standard Practice for DBFOM projects of this size.

• Upon financial close with the selected developer, LAWA will pay $2M to the Proposer Teams that were not selected.

• LAWA obtains rights to use of designs, technical concepts, and other intellectual property.

What is the Payment for

Work Product?

• Increases industry interest and competition.

• Encourages innovations and creative solutions.

• Allows integrations of the best ideas into the final DBFOM contract.

• Minimizes procurement process protests.

Benefits to LAWA

Next StepsConsolidated Rental Car Facility at LAX

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ACTION DATE

Issue final RFP 4/25/18

Alternate Technical Concepts (ATC) Submission Deadline 5/2/18

Pre-Proposal Conference 5/14/18

Deadline for LAWA to provide final response to Proposers regarding ATC Submissions

5/16/18

One-on-One Meetings (Fourth Round) 5/22-25/18

Technical Proposal Due Date 7/13/18

Financial Proposal Due Date 8/7/18

Selection Notice 8/2018

BOAC Approval of Early Works Agreement (Optional) 8/2018

BOAC Approval of Award Recommendation 10/2018

City Council Approval 11/2018

Commercial Close 11/2018

Financial Close (Expected) 12/2018

End of Proposal Validity Period 2/2019

Consolidated Rental Car FacilityNext Steps

release of final request for proposals consolidated rental

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