DOING BUSINESS WITH LAWA

Procurement Services DivisionPresents:

INFORMATION

ON OPPORTUNITIES AT

LOS ANGELES

WORLD AIRPORTS

Overview

• Business & Job Resources Division

• Procurement Services Division

• Administrative Requirements

• Getting Certified

• Advantages of Doing Business with LAWA

Business & Job Resources Center

• Business Resource Center

• Outreach Events

• Database

• Airport RFP & RFB Announcements

• Minority/Women Business Organizations

• Facilitation/Airport Procurement

Requirements

• Certification Information

• Surety Bond Program

• Jobs & Internship Programs

What is BizConnect?

The Business and Job Resources Center (BJRC) created

BizConnect to connect all businesses that have made

contact with BJRC through outreach meetings, pre-bid

and pre-proposal meetings, conferences, etc. and have

expressed an interest in doing business with Los Angeles

World Airports (LAWA).

http://www.lawa.org/bjrc/ - > Business -> BizConnect

PROCUREMENT SERVICES

DIVISION

Procurement Services Division (PSD) Mission

• To provide consistent and timely procurement and contract-related

services to LAWA Divisions and the business community.

• Also, to efficiently, fairly, and effectively obtain goods and services

needed to support LAWA operations.

• This goal is accomplished in accordance with established policies,

procedures and guidelines set forth in the Los Angeles City Charter,

the Los Angeles Administrative Code, BOAC Resolutions, and

applicable Mayoral Directives.

PSD Functions

• Reviews Requests for Proposals/Bids/Qualifications (RFP/RFB/RFQ);

• Sets Administrative Requirements;

• Prepares Request for Bids (RFBs), researches potential bidders, conducts bidder conferences, and tabulates bid results.

• Operates LAWA’s warehousing and delivery functions, coordinates salvage of material, and manages LAWA’s Record Retention process.

• Attends Pre-Proposal/Pre-Bid meetings to explain Administrative

Requirements to potential proposers and bidders;

• Deems responsiveness;

• Reviews and Approves Board Reports (Internal Process);

• Posts RFB/RFP/RFQs on Mayor’s Website www.labavn.org and

coordinates their advertising.

• Conducts training for prospective vendors and LAWA employees.

Contracting Process at LAWA

LAWA procures over $500 million annually in goods, materials, and services (excluding major construction projects) through:

• Request for Proposals (RFP)

• Request for Qualifications (RFQ)

• Request for Bids (RFB)

Request For Proposals (RFP)

• A Request for Proposal is used for unique, scientific,

expert, or technical services.

• The award is made based upon weighted selection criteria

contained within the proposal.

Request For Qualifications (RFQ)

• Establishes a list of qualified firms

• Typically used when scopes of work have not been

defined

• For a number of similar type projects

• Selection is made based upon weighted criteria

contained within the RFQ.

Request For Bids (RFB)

• A Request for Bid is used for the purchase of materials,

supplies, equipment, construction projects and non-

professional services.

• The award is made to the lowest priced responsive and

responsible bidder who meets the specifications.

Types of Request for Bids (RFB)

• Fax bid – Signed response can be sent by fax or e-mailed to Procurement Analyst and must be received prior to the due date and time. Responses missing Administrative and other requirements will be rejected.

• Formal bid – typically over $25,000 – Response may be hand delivered or sent by mail and must be received by the due date & time, NO EXCEPTION! Formal bids are submitted sealed and publicly opened.

Types of RFB (cont.)

• Use of these thresholds may be modified according the best

interest of the Los Angeles World Airports (LAWA)

• Board of Airport Commissioners awards contracts over $150,000

and over one year in duration – Large construction RFB’s are

handled by the Airports Development Group.

• Bids can be for individual items, services, one-time purchase

orders, yearly contracts with a renewal option up to a maximum of

two (2) years in addition to the initial one (1) year contract.

Important Bid Information to Note

• NO EXCEPTIONS to due date and time, as recorded by the Purchasing Office clock and/or fax machine.

• Buyer’s Name (for questions & clarifications to be addressed in writing, the sooner the better, to specific buyer prior to bid due date and time)

• Location to which bid response should be returned (LAX Airport Purchasing or ONT Airport Purchasing)

• Bidder must sign his/her bid response and is advised to keep a copy of the response

• Bidders must comply with specifications or explain in writing the exceptions taken with bid response.

Please Read, Understand and Agree

• How prices are to be quoted (Firm fixed price, Total Lump sum, Labor Rates & Materials, Discount from Price List, etc.)

• General Conditions address various issues of bid award, specification change, default by supplier, payments, patent rights, attorney’s fees, bid protest, etc.

• Specifications, Make/Model of equipment or parts. When bidding on an alternate brand, make sure to specify the alternate brand and model number offered.

• Bid Response and Administrative Requirements must be filled out and returned complete, as received.

• If certified with City of Los Angeles, claim Small Local Business (SLB) preference and provide SLB number.

• Fill out Contractor’s License Requirements, if applicable.

Submit Where and as Required

• Invoice must be submitted in compliance with Invoice Instruction sheet provided in the bid.

• Payment Terms (Discount offered for payment of 25 days and greater) are taken into consideration for award.

• Be aware of and comply with time and delivery requirements (usually found in the specifications).

• Promotional materials, testimonials, and brochures are not required in the bid response, unless specifically requested.

Useful Tips from PSD

LAWA’s Expectations of Contractors

If you want to become a part of the dynamic LAWA

contracting family, you must:

1. Provide high quality goods, materials, supplies and equipment at

a competitive price.

2. Be able to provide those items in a timely manner.

3. For professional services, be an expert in your field of endeavor,

and provide fully qualified staff at a competitive price.

4. When responding to a solicitation, you should ensure that your

response is complete, well thought out, priced competitively,

meets all of the required qualifications and addresses all of the

administrative requirements.

Soliciting Bids/Proposals and Qualifications

All City of Los Angeles RFB/RFP/RFQs are available on:

the Los Angeles Business Assistance Virtual

Network web site: www.labavn.org

May be published in various media depending on the

scale.

Advantages of Using LABAVN:

• Automatically notifies registered companies about newly posted business opportunities

• Represents a great marketing tool for subcontractors as some primes perform their Good Faith Effort through BAVN

• Acts as a collective repository for the majority of City of Los Angeles projects since 2005

• Gives a full perception of what City buys, how often and what is usually required (specifications and contract clauses)

• Provides a contact person that may be available for questions for a particular type of projects

• Great tool to use for market pricing (Bid tabulations are made available)

• Offers information on Vendors/Contractors that bid on City projects

• Provides information about pre-bid/proposal meetings which may be great networking opportunities

• Sign-in sheets from Pre-Proposal/Pre-Bid meetings are posted, for Contractor/Vendor identification

ADMINISTRATIVE REQUIREMENTS

AND CERTIFICATIONS

Administrative RequirementsDue with proposal/ bid

• Vendor Identification Form (Form)

• Affidavit of Non-Collusion (Form)

• Municipal Lobbying Ordinance (Form, project specific)

• Bid Bond (Form, project specific)

• Contractor Responsibility Program (Form, project specific)

• Equal Benefits Ordinance (Form, project specific)

• Affirmative Action Plan (Language)

• Assignment of Anti-Trust Claims (Language)

• Child Support Obligations (Language)

• Labor Peace Agreement (Language, concessions only)

• Living Wage Ordinance/Service Contractor Worker Retention Ordinance (Language; if applicable, complete the Correct Exemption Form)

• Minority/Women/Disadvantaged/ Airport Concessions Disadvantaged Business Enterprise Program (Action required)

Administrative Requirements Website: http://www.lawa.org - > About LAWA - > Business Opportunities - > Administrative Requirements

Vendor Identification Form

Mandatory form that requires the following information:

• Bidder/Proposer’s business activity data, such as: DBA, address, licenses, location, years in business, type of ownership, available certification (WBE, MBE, DBE, SBE etc.)

• Company’s Equal Employment Opportunity Officer contact information

• Business Tax/Vendor Registration Number: Pursuant to the LAMC, Chapter 2, Article 1, Section 21.03, persons engaged in any business or occupation within the City of Los Angeles are required to register and pay the required tax. Businesses, including vendors, subject to this tax are issued a Business Tax Registration Certificate (BTRC) or a Vendor Registration Number (VRN).

• List of Other City of Los Angeles Contracts (during previous ten years): Pursuant to City of Los Angeles Resolution No. 56 (Council File #98-1331) adopted by Los Angeles City Council on July 21, 1998, Bidders/Proposers must submit a list of all City of Los Angeles contracts held within the last ten (10) years.

Affidavit of Non-

collusion

Required with All Bids/Proposals

Affidavit certifies that• the bidder has not conspired with or

solicited another company to create a fake bid for comparative purpose;

• that the bidder has not asked competitors to refrain from bidding;

• that the bidder has not conspired with a competitor or other company to create an unfair advantage over other bidders.

• Must be notarized by a registered Notary Public

• Must be signed by the authorized company officer

Municipal Lobbying

Ordinance

• Certifies that the bidder acknowledges and agrees to comply with the disclosure requirements and prohibitions regarding their lobbyist activity.

• Bidders are required to complete and submit the Bidder Certification CEC Form 50 with the bid.

• Any bid made without the CEC Form 50 may be considered not responsive.

Bid Bond

Mandatory for construction projects.

Bid Bond forms:

Certified Check from bank

within the City of Los Angeles;

Cashiers Check issued by

bank;

Surety Bond:

• Bidder notarized signature;

• Corporate Seal.

Bond assistance available. For further information, please check ttp://www.imwis.com

Contractor Responsibility Program

• The Los Angeles World Airports (LAWA) Contractor Responsibility Program (CRP) requires LAWA to make a determination that contractors have the necessary quality, fitness and capacity to perform the work set forth in the contract.

• Failure to comply with the provisions of the Contractor Responsibility Program can result in disqualification from the bidding process or contract termination.

• All bidders/proposers are required to complete and submit the Contractor Responsibility Questionnaire and Pledge of

Compliance with the bid/proposal.

Equal Benefits Ordinance

• The EBO requires City contractors who provide benefits to employees with spouses provide the same benefits to employees with domestic partners.

• Domestic partners are defined as two adults living together, jointly responsible for living expenses, committed to an intimate and caring relationship and registered as domestic partners with a governmental entity.

• City of Los Angeles Public Works determines Compliance with EBO.

• LAWA has two compliance processes (for DA and Non-DA projects), please refer to the RFB/RFP for instructions.

Affirmative Action Plan

Language must be read and agreed to, no form is required for submission.

• Pursuant to the Los Angeles Administrative Code, Division 10, Chapter 1, Article 1, Section 10.13, it is the policy of the City of Los Angeles to require each person or entity contracting for goods or services to comply with the Non-Discrimination, Equal Employment, and Affirmative Action provisions of the City of Los Angeles laws.

• Actions required:

Designate an Equal Employment Opportunity Officer and provide his/her contact info in the Vendor Identification Form.

Assignment of Anti-Trust Claims

Language must be read and agreed to, no form is required for submission.

• Pursuant to California Government Sections 4550 et seq. regarding Anti-Trust Claims, it is the policy of the City of Los Angeles to inform each bidder/proposer that in submitting a bid/proposal to LAWA the bidder/proposer offers and agrees to assign to LAWA all rights, title, and interest in and to all causes of action it may have under the Clayton Act or Cartwright Act, arising from purchases of goods, services, or materials. The assignment is made and becomes effective at the time LAWA tenders final payment to the contractor.

Child Support Obligations

Language must be read and agreed to, no form is required for submission.

Pursuant to the LAAC, Division 10, Chapter 1, Article 1, Section 10.10 et seq., contractors and subcontractors performing work for the City must comply with all reporting requirements and Wage and Earning Assignment Orders relative to legally mandated child support and certify that contractors/ subcontractors will maintain such compliance throughout the term of the contract.

Labor Peace Agreement (LPA)

LPA applies to Concession projects only.

Los Angeles World Airports (LAWA) requires prior to the contract

execution and/or contract amendment that:

(i) Concessionaire shall have a signed LPA with the labor organizations

representing or seeking to represent concession workers at the

premises covered by the Agreement;

(ii) Concessionaire shall have submitted to LAWA a copy of such LPA,

executed by all of the parties; and

(iii) such LPA shall prohibit such labor organizations and their members

from engaging in picketing, work stoppages, boycotts or other

economic interference with the business of Concessionaire at any of

the airports operated by LAWA for the duration of the Agreement.

Living Wage and Service Contractor Worker

Retention Ordinances

Language must be read and agreed to, no form is required for submission.

• Contractor agrees to pay employees a living wage – updated July 1st of every year*. The living wage is currently $10.30 per hour if the contractor pays for health benefits or, if health benefits are not provided, then $14.80 per hour for Airport Employees and $11.55 per hour for all other City Employees.

• Contractor must provide at least 12 compensated days off per year for each employee’s sick leave, vacation or personal necessity, and at least 10 days off uncompensated.

• Service Worker (if applicable) - Contractor agrees to offer to employ and retain for a 90-day period the employees who worked for at least 12 months for the terminated contractor/subcontractors earning less than $15.00 per hour.

* No increase for 2010-2011: The CPI applicable to the COLA for the July 2010 annual adjustment is -0.8% thereby resulting in a 0% adjustment to the Living Wage rate. Consequently, the rate remains unchanged.

Selected Contractor Requirements

Approved Insurance

First Source Hiring Program

Administrative Requirements Website: http://www.lawa.org - > About LAWA - > Business Opportunities - > Administrative Requirements

Insurance

• Do Not Spend Any Money to meet the insurance requirements until you are awarded the contract by LAWA. Get an estimate or quote from your insurance agent or brokers and factor that into the bid/proposal you are preparing.

• Coverage amount depends on nature of work to be done. Where required, both prime and subcontractors have to show proof of coverage prior to starting work.

• SPARTA Insurance Program - designed to provide Commercial General Liability, Professional Liability and Non-owned Automobile Liability coverage to tradesmen, artisans, contractors and tenants who would not otherwise be able to provide the insurance limits needed to successfully bid and compete for Public Entity business opportunities.

• Please go to http://www.lawa.org - > About LAWA - > Business Opportunities - > Administrative Requirements -> Insurance or contact the Risk Management, Insurance Compliance Services, for compliance instructions.

First Source Hiring Program

The First Source Hiring Program (FSHP) is LAWA’s automated employment program to assist current and new LAWA contractors in filling their open positions at LAX.

We present prescreened, qualified and badgeable candidates using several sources of information:

• Business and Job Resources Center database

• Worksource/One-Stop Centers

• Employment Development Department (EDD)

• Community and Faith Based Organizations

• Applicant Tracking System (ATS)

How the First Source Hiring Program Works

When a New Position is Available, Contractors are Required to:

• Post open positions on the BJRC website www.lawa.org/bjrc

• Interview the prescreened, qualified and badgeable FSHP

candidates before opening the positions to the general public

• Keep records of candidates for LAWA review on the LAWA secure

website

Next Steps for Selected Contractors:

• Designate a liaison to work with the FSHP (preferably Human

Resources personnel)

• Register your company with the FSHP ATS

• Post your positions on the LAWA website www.lawa.org/bjrc

• Provide feedback on candidates interviewed

- Your feedback helps us to improve our process!

First Source Hiring Program

For more information, please contact:

Business and Job Resources Center,

First Source Hiring Program,

6053 W Century Blvd. Ste 300,

Los Angeles, CA 90045,

(424) 646-7300, (424) 646-9257 f;

www.lawa.org/bjrc

Clarence R. Espinosa, Coordinator - LAWA FSHP, (424) 646-7304;

Kidadda Curtis, (310) 750-3411;

Gabriela Cortez, (310) 750-3410

Administrative Requirements (cont.)Minority Business Enterprise (MBE)

Women Business Enterprise (WBE)

Other Business Enterprise (OBE)

Airport Concessions Disadvantaged Business Enterprise (ACDBE)

Disadvantaged Business Enterprise (DBE)

MBE/WBE/OBE/ACDBE/DBE

LAWA administers 2 different programs:

• MBE/WBE/OBE (City of Los Angeles)

• Mayor’s Executive Directive

• MBE/WBE/OBE are provided an equal opportunity for contracting

• Anticipated Level of Participation established by LAWA

• Good Faith Effort Documentation required

• ACDBE (Federal Program)

• Required by Code of Federal Regulations 49, Parts 23 and 26

• Airports may lose Federal funding for non-compliance

• CFR defines airport activities considered Concessions

• Goal is established by LAWA

• Good Faith Effort Documentation may not be required

DBE Program (Federal Program)

Disadvantaged Business Enterprise (DBE) is a Race-Neutral program effective May 1, 2006

• No Goal is set

• No Good Faith Effort documentation required

• LAWA’s annual FAA approved DBE goal for fiscal year 2010 is 21.03%

• LAWA encourages bidders and proposers to assist us in attaining this goal

Anticipated Level of Participation

• LAWA projects with an estimated value of $50,000 or greater, will be reviewed for MBE/WBE/OBE subcontracting opportunities

• All Airport Concessions projects will be reviewed for ACDBE subcontracting opportunities

• Levels are set based on subcontracting opportunities and availability of certified MBE/WBE/ACDBE/DBE

Meeting the Good Faith Effort (GFE)

MBE/WBE/OBE

• Prime Contractor, regardless of status, must submit documentation of their “Good Faith Effort” to obtain certified MBE/WBE/OBE subcontractors

• 75 out of 100 points are required to pass Good Faith Effort documentation review for MBE/WBE/OBE.

ACDBE

• Prime Contractor must submit documentation of their “Good Faith Effort” to obtain certified ACDBE subcontractors (75/100 points)

• No GFE documentation required when:

• Prime Contractor is a Certified ACDBE

OR

• Prime Contractor meets or exceeds the goal with a pre-determined team of Certified ACDBE subcontractors

DBE (N/A)

Good Faith Effort Instructions

1. Level of MBE/WBE/ACDBE participation

No points

2. Attended pre-bid meeting

10 points

3. Sufficient work identified for subcontractors

10 points

4. AdvertisementNot less that ten calendar days prior to the submission of bids, the bidder advertised for sub-bids from interested business enterprises in one or more daily or weekly newspapers, trade association publications

9 points

5. Written notice to subcontractorsNot less that ten calendar days prior to the submission of bids

15 points

Good Faith Effort Instructions (cont.)

6. Follow-up on initial solicitation

• 10 points

7. Plans, specifications and requirements

• 5 points

8. Contacted recruitment/placement organizationsNot less that fifteen calendar days prior to the submission of bids

• 10 points

9. Negotiate in good faith

• 26 points

10. Bond, lines of credit, and insurance assistance

• 5 points

GETTING CERTIFIED

MBE/WBE/DBE/ACDBE and

Small Local Business Enterprise (SLBE)

MBE/WBE/DBE/ACDBE Certification

MBE/WBE DBE ACDBE

Ownership &

Control

Requirements

For-profit, independent business that is at least 51% owned and controlled by socially

and economically disadvantaged individuals (Asian-Pacific, Black, Hispanic, Native

American, Subcontinent Asian, Women).

Qualifying

Owner's Personal

Financial Limit

None $750,000 (excluding

equity in primary

residence & applicant

business)

$750,000 (excluding equity in primary

residence & applicant business, and up

to $3 million in personal assets required

to finance the business)

Business Gross

Receipts Limit

(Including

Affiliates)

None Small Business

Administration Industry

Size Standard, up to

$22.41 million (avg. over

3 yrs)

$52.47 million (average over 3 years)

Type of Business Any Any A business that is: (a) located on the

airport selling consumer goods or

services to the public (excludes taxi,

custodial, security services, &

aeronautical activities) OR (b) Suppliers

of goods and services to concessionaires

(includes management, advertising, &

web-based contractors)

Certification Process

1. Preliminary Review:

Submitted documents are checked for completeness.

2. Desk Audit:

Supporting documents are reviewed and additional information may be requested.

3. Site Visit*:

Interview applicant at the business location; physical verification that business exists.

4. Final Review for Approval / Denial.

*Site visit may not be required of all MBE/WBE applicants

Start the certification process today!

Advantages of MBE/WBE/DBE/ACDBE Certification

Certification provides additional opportunities in competing against non-certified subcontractors;

Marketing exposure through statewide and citywide databases;

One Stop Shop - the City's DBE/ACDBE certifications are honored throughout CA (includes CalTrans, Metro, etc.);

The City honors the Southern California Minority Business Development Council's (SCMBDC) Minority Business Enterprise (MBE) certification;

MBE/WBE/DBE/ACDBE certification is good for 5 years.

Small and Local Business Certification

Requirements:

• Principal office located in the County of Los Angeles;

• Gross receipts (including affiliates) for the previous fiscal year must be less than $3 million;

• City of Los Angeles Business Tax Registration Certificate.

Advantage:

Certified SLB responsible bidders on procurement contracts under $100,000 are given a 10% deduction on their bid amount.

Process:

The certification process is simple and is good for two years. Submit the one-page application form, copy of current taxes, and BTRC.

Getting MBE/WBE/DBE/ACDBE

and SLBE Certified

For more information:

http://bca.lacity.org

(213) 847-2684

Angela de la Rosa, LAWA

angela.delarosa@lacity.org

Kim Fitzpatrick, LAWA

kim.fitzpatrick@lacity.org

Directories of Certified Firms:

CUCP: http://californiaucp.com/

City of Los Angeles: http://bca.lacity.org/index.cfm?nxt=ots&nxt_body=otsindex.cfm

ADVANTAGES OF

DOING BUSINESS WITH LAWA

Conclusion

Advantages

1. The total amount of contracts awarded annually is more than $500,000,000 with the duration of each lasting from few months to years.

2. There is a variety of products/services that LAWA procures; you can definitely find a niche to offer your own products or services.

3. Working with LAWA and complying with Contract Responsibility Program and other Administrative Requirements can serve as a reference for your business partners.

4. As a City Department, LAWA offers special advantages for small enterprises:

• City of Los Angeles Bond Assistance Program;

• A 10% preference (discount) given to the bids of Small and Local Business certified companies;

• MBE/WBE/DBE/OBE/ACDBE Program;

• SPARTA Insurance Program

Next Steps…

1. Register on Los Angeles Business Assistance Virtual Network –

LABAVN at www.labavn.org.

2. Check the products and services that LAWA needs on www.lawa.org -> Business

Opportunities -> What LAWA Buys.

3. Contact LAWA Business and Job Resources Center

at (424) 646-7300 or go to www.lawa.org/bjrc.

4. Request from Procurement Services Division (Purchasing Unit) the list of the

contracts with upcoming expiration date at 424-646-7392.

5. Contact the Procurement Services Division (Purchasing Unit), send a business card to

the appropriate analyst with a note indicating your group(s) of products/services

at 424-646-7392.

6. If applicable, get certified (MBE/WBE/DBE/ACDBE/SLB).

For information, contact Department of Public Works at (213) 847-2684.

7. Network with minority/woman and other business associations

(see the list enclosed to the Good Faith Effort instructions).

8. Attend the pre-bid/proposal meetings (refer to RFB/P).

9. If applying, contact the Contract Administrators regarding

questions on the scope of work (refer to RFB/P).

10. Contact Procurement Services Division (Contract Services Unit) regarding

Administrative Requirements at (424) 646-5380 or go to www.lawa.org - > About LAWA

- > Business Opportunities - > Administrative Requirements.

Next Steps… (cont.)

Contact Information

Phone Fax Web

Business & Job

Resources Center

(424) 646-7300 (424) 646-9257 http://www.lawa.org/bjrc

Procurement Services

Division (Purchasing

Services Unit)

(424)646-7392 (424) 646-9274 -

Procurement Services

Division (Contract

Services Unit)

(424) 646-5380 (424) 646-9262 www.lawa.org - > About LAWA - > Business

Opportunities - > Administrative Requirements

City of Los Angeles

Bond Assistance

program

(213) 258-3000 (213) 258-3099 http://www.imwis.org

mquiroz@lawa.org

Insurance Compliance

Section

(424) 646-5480 (310) 215-5300 www.lawa.org - > About LAWA - > Business

Opportunities - > Administrative Requirements - >

Insurance

Department of Public

Works

(213) 847-2684 (213) 847-2777 http://bca.lacity.org

Los Angeles Business

Assistance Virtual

Network

- - http://www.labavn.org

Thank you

We look forward to working with you!!