Los Angeles City Council approves $5B contract for LAX design and construction services

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Los Angeles City Council approves $5B contract for LAX design and construction services

Airports

John Ackerman Chief Executive Officer | Los Angeles World Airports

By Sky Industry News

Feb 19, 2025

The Los Angeles City Council has approved a $5 billion contract for design and construction services at Los Angeles International Airport (LAX). The five-year Multiple Award Task Order Contract (MATOC) involves 31 contractors, including 13 first-time prime contractors, aimed at increasing opportunities for small and local businesses.

"This is about our commitment to investing in LA small businesses and LA families,” stated Mayor Karen Bass. “We are leading the way in how investment in infrastructure means investing in people, too."

The MATOC will allow the Los Angeles World Airports (LAWA) to streamline procurement processes and build new infrastructure more efficiently. Council President Marqueece Harris-Dawson highlighted the benefits of this program: "With major events on the horizon, this program ensures LAX is equipped to handle increased demand, benefiting travelers, businesses, and the local economy alike."

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Councilmember Traci Park emphasized the importance of this initiative: "Today’s approval of LAWA’s Design-Build and Construction MATOC is a major win for our city. This strategic initiative will accelerate LAX’s infrastructure upgrades while expanding access for small businesses and creating thousands of good-paying jobs." She added that it would help prepare the city for the upcoming 2028 Olympic and Paralympic Games.

Karim Webb, President of the Board of Airport Commissioners, praised LAWA's efforts: "LAWA once again has raised the bar for contracting inclusivity and procurement efficiency with today's Design-Build and Construction MATOC."

John Ackerman, CEO of Los Angeles World Airports, expressed gratitude towards city officials: "Today's approval... marks a pivotal moment in our ongoing efforts to modernize and transform LAX into a world-class, gold-medal airport."

The contract includes stringent diversity requirements with specific subcontracting goals: Small Business Enterprise (30%), Local Business Enterprise (20%), Local Small Business Enterprise (15%), and Disabled Veteran Business Enterprise (3%).

Tim Coffey from TEC Constructors & Engineers highlighted the opportunity provided by MATOC: “The MATOC procurement has provided our company an opportunity to be a Prime General Contractor for the first time in 26 years at LAWA.”

Lucas Silva from Lucas Builders echoed similar sentiments regarding opportunities created by this initiative.