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LA City Council approves $5B contract to fast-track LAX upgrades, boost small businesses, prepare for the 2028 Olympics

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LA City Council approves $5B contract to fast-track LAX upgrades, boost small businesses, prepare for the 2028 Olympics
Airports
Webp marqueece harrisdawson
Marqueece Harris-Dawson, LA City Council President | LAcity.gov

Los Angeles World Airports (LAWA) has secured approval for a $5 billion Design-Build and Construction Services Multiple Award Task Order Contract (MATOC). This initiative is set to accelerate infrastructure upgrades at Los Angeles International Airport (LAX), create new business opportunities for small enterprises, and prepare the airport for the 2028 Olympic Games, according to a February 19 press release.

The five-year contract, approved by Los Angeles City Council, introduces 13 first-time prime contractors and includes LAWA’s highest-ever subcontracting requirements, ensuring increased participation from small, local, and diverse businesses in airport modernization efforts.

“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,” said council member Traci Park, who represents Council District 11, which includes LAX. “As we gear up for the 2028 Olympic and Paralympic Games, it’s this kind of forward-thinking investment that will cement Los Angeles as a global leader in smart, innovative infrastructure with the added benefit of new contracting and employment opportunities throughout our city.”

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By pre-qualifying a pool of contractors, the MATOC system eliminates redundant qualification processes, allowing projects to move forward more efficiently. This is expected to support thousands of jobs and enhance airport facilities.

“With major events on the horizon, this program ensures LAX is equipped to handle increased demand, benefiting travelers, businesses, and the local economy alike,” said Council President Marqueece Harris-Dawson.

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

The Design-Build and Construction (DB&C) Services MATOC will support LAWA’s Capital Improvement Program, with 20 projects included in the contract set to begin in 2025. The contract is valid for five years, with two one-year renewal options available at LAWA’s discretion.

For TEC Constructors & Engineers, this contract marks a significant milestone.

“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. “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 contract also prioritizes diversity. Subcontracting requirements mandate that at least 30 percent of the work is awarded to Small Business Enterprises (SBE), 20 percent to Local Business Enterprises (LBE), 15 percent to Local Small Business Enterprises (LSBE), and three percent to Disabled Veteran Business Enterprises (DVBE). Additionally, prime contractors must submit inclusivity and workforce development plans, participate in tracking and reporting programs, and hire graduates from the HireLAX Apprenticeship Readiness Program. They must also offer internships and engage in STEM outreach at Title 1 K-12 schools.

Lucas Silva, Project Engineer at Lucas Builders, emphasized the impact of these opportunities. 

“Driven by diversity—both in our people and our construction expertise—Lucas Builders has created opportunities where they matter most. Now, with LAWA opening a door for us, we're ready to build on our foundation and deliver with excellence.”

The full list of DB&C MATOC prime contractors includes a mix of established and first-time LAWA contractors. Among the newly awarded firms are AECOM Hunt, Balfour Beatty, J-Squared General Contractors, Kemp Bros. Construction, Lucas Builders, Mata Construction Services, Mladen Buntich Construction, Pinner Construction, Premier Interior Development, Silverado Contractors, TEC Constructors & Engineers, The Whiting-Turner Contracting Company, and Xcel Mechanical Systems. 

Other selected firms include Austin Commercial LP, Birdi Systems, Clark Construction Group, Flatiron West, Granite Construction, Griffith Company, Hensel Phelps, McCarthy Building Companies, Myers & Sons Construction, PCL Construction Services, Skanska USA Civil West California District, Steve Bubalo Construction, Sully-Miller Contracting Company, Swinerton, Technion Contractors TCI, Turner Construction, W.E. O'Neil Construction, and Webcor Builders.

As the governing body overseeing LAX and Van Nuys Airport (VNY), LAWA is committed to advancing major infrastructure projects, enhancing airport facilities, and fostering economic growth. Through these efforts, the organization continues to support local businesses and create new job opportunities while ensuring safe and efficient air travel.

Organizations Included in this History
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