5 construction teams vie for $2.7B LAX people-mover P3 contract

Dive Brief:

Los Angeles World Airports (LAWA) officials have identified the five teams that will submit proposals for the Los Angeles International Airport's $2.7 billion people-mover contract, according to MyNewsLA.com.
The group with the winning proposal will, in essence, operate as a public-private partnership (P3) and design, build, operate and maintain the people-mover.
Airport officials said the fact that the same group that builds the people-mover will be maintaining and operating it gives the winning team extra incentive to "deliver a quality project within budget."

Dive Insight:

LAWA solicited team qualifications earlier this year, and the five bidders are:

Gateway Connectors (Kiewit-Skanska USA)
LA Connext Partners (Ferrovial-Bechtel)
LAX Connecting Alliance (OHL-Acciona-Charles Pankow)
LINXS (Fluor-Balfour Beatty-Flatiron-Dragados)
PWA (Walsh-Granite-URS)

The list represents a who's who in the world of large infrastructure/transportation projects, and some of the players are leading significant P3s, as more public entities aim to take advantage of the potential design and cost advantages of the structure. Some states like New Hampshire are even amending state law so that government agencies are able to enter into P3s.

Skanska is leading the P3 responsible for the $4 billion LaGuardia Airport terminal project in New York City, which will see the old "third world" structure replaced with a new 1.3-million-square-foot, 35-gate facility dubbed "Terminal B." The project is the largest P3 in the U.S., and Skanska announced in June it is the company's biggest project to date. Skanska is also leading the $2.3 billion overhaul of Interstate 4 in Orlando, FL, also a P3. The 21-mile project is expected to ease traffic flow on what is the most heavily used east-west route in Florida.

Bechtel recently launched a company business unit dedicated to P3s and has already won a $1.8 billion light rail project in Alberta, Canada. Bechtel, a global infrastructure leader, is headed up by Brendan Bechtel, who made a plea last year via a USA Today op-ed piece for American legislators to make the country's infrastructure a priority. He also advocated for the use of P3s in the article.

Fluor is also a P3 leader and its JV was chosen to lead the $5.6 billion, 16-mile Maryland Purple Line light rail system project, the second transportation project in the U.S. to use private funding. However, construction is on hold until authorities and developers resolve a legal action brought by local residents who oppose the project.