'Los Angeles World Airports REPORT TO THE B0 A RD OF AIRPORT COMMISSIONERS. s( 1

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ElY IMY _,_7- - - Approved b. 0.21 'Los Angeles World Airports REPORT TO THE B0 A RD OF AIRPORT COMMISSIONERS ; 4 Dom Ne? Deputy Executive Director Meeting Date: 5/19/2014 hp,.6 -,.

Reviewed for : Date : Approval Status 13y At a -y Capital Budget i 5/5/2014 i NY D N C7 NA DS Operating Budget i 5/6/2014 i OYU N IZNA RW /011.-. - zi.

Award a three-year contract to SITA Information Networking Computing USA, Inc.

1 ElY IMY _,_ Approved b 'Los Angeles World Airports REPORT TO THE B0 A RD OF AIRPORT COMMISSIONERS ; 4 Dom Ne? Deputy Executive Director Meeting Date: 5/19/2014 hp,.6 -,.. El Completed Reviewed 4regir- ;' 7-- CAO Review:, eputy Executive Director A 0 Pending..00" Iv ID N/A, s( 1. Reviewed for : Date : Approval Status 13y At a -y Capital Budget i 5/5/2014 i NY D N C7 NA DS Operating Budget i 5/6/2014 i OYU N IZNA RW / zi., indsey - Executive Director CEQA i 5/ Procurement 4130/ N i MV ON I=1 Cod i MT SUBJ C : Contract Award to SITA Information Networking Computing USA, Inc. Award a three-year contract to SITA Information Networking Computing USA, Inc. to provide, implement and maintain Automated Passport Control Kiosks at Los Angeles International in an amount not to exceed $3,633,102, plus applicable sales taxes. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f. of the Los Angeles City CEQA Guidelines. 3. FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees. 4. FIND pursuant to Administrative Code Section 10.15(a)(10) under the circumstances presented that the products and services sought in this contract (i.e., the provision, installation, operation, maintenance, etc., of APC Kiosks) are such that the use of competitive bidding would be undesirable. Page Board Reportward APC Kiosks at LAX.docx

2 5. FURTHER FIND that the Request for Proposal process used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interests. 6. APPROVE award of a three-year contract to SITA Information Networking Computing USA, Inc. to provide, implement and maintain Automated Passport Control Kiosks at Los Angeles International in an amount not to exceed $3,633,102, plus applicable sales taxes. 7. AUTHORIZE the Executive Director to execute the contract after approval as to form by the City Attorney. DISCUSSION' 1. Purpose Expedite United States (U.S.) Customs and Border Patrol (CBP) processing of travelers arriving from foreign destination by installing Automated Passport Control kiosks in Federal Inspections Stations at Los Angeles International Airport (LAX). 2. Prior Related Actions None. 3. Current Action Background U.S. CBP has partnered with airports and private companies in the United States and Canada to develop and launch the Automated Passport Control (APC) Program. The APC Program was in response to long wait times experienced by arriving international passengers at airports throughout the United States over the last several years. During recent summer travel seasons, arriving passengers at Tom Bradley International Terminal (TBIT) have frequently experienced wait times of over 60 minutes and on some occasions the wait times approached 120 minutes. Other Federal Inspections Stations (FIS) at LAX had similar experiences. Unfortunately, these occurrences may repeat this summer absent the APC Program. CBP identified a phased approach to implementing the APC Program. The phases, based on the category of passengers eligible for processing via the kiosks, were established as follows: Phase I - U.S. Citizens only Phase II - U.S. and Canadian Citizens Phase III - U.S., Canadian Citizens, and Visa-Waiver Countries Phase IV - U.S., Canadian Citizens, Visa-Waiver and all others Recent implementations of APC kiosks at large-hub airports have resulted in improved wait times. For example, Miami International Airport reports that the wait time there was reduced by 36%. At Chicago O'Hare, United Airlines reports a reduction in wait time of 33%, with the number of passengers waiting over 60 minutes being reduced by 58%. Besides reduced wait times, benefits include: fewer passengers miss their connecting flights, all Page 2 Board Repot Mwaid APC Kiosks at LAX cloox

3 passengers (even those not eligible to use the kiosks) experience lower wait times, and CBP officers are freed up to perform tasks other than data input. Because of the number of combined U.S. and Visa-Waiver passengers, LAWA Executive Management determined to pursue initial implementation of the Phase Ill kiosks in TBIT to address the anticipated summer international travel surge. During the term of the contract, LAWA may also deploy APC kiosks in T2 and T7. Implementation of APC kiosks in T5 will be spearheaded by Delta Airlines. Procurement Process On April 3, 2014, LAWA posted a Request for Proposals (RFP) for Automated Passport Control (APC) Kiosks on the Mayor's Los Angeles Business Assistance Virtual Network (LABAVN). To ensure that the maximum number of travelers could take advantage of this streamlining tool, the RFP required that the APC kiosks be approved by the U.S. CBP for Phase III processing; this would allow holders of US and Canadian passports as well as those passengers from U.S. Visa-Waiver countries to use the kiosks. Approximately 65% of all passengers arriving at the new TBIT will be able to take advantage of this expedited process. To ensure that LAWA would get a product that was reliable and fully tested, the RFP also required proposers to demonstrate successful APC operations at at least two large-hub airports in the U.S. or equivalent non-u.s. airport with U.S. CBP pre-clearance. On April 15, 2014, LAWA posted Addendum No. 1.0 which included a revised Scope of Work and Service Level Requirements, a revised Draft Contract, and responses to questions that LAWA received from potential proposers. Addendum No. 1.0 also extended the due date from April 17, 2014 at 2:00 p.m. to April 22, 2014 at 2:00 p.m. LAWA received three proposals by the April 22, 2014, deadline from the following entities: GCR Inc. Dedo Interactive, Inc. SITA Information Networking Company USA, Inc. LAWA staff reviewed these proposals and found that the proposals submitted by GCR and Dedo were not responsive as they failed to meet the minimum qualifications listed in the RFP. GCR has U.S. CBP approval for Phase II (U.S. and Canadian passport holders) but not for Phase III. Apart from the processing of U.S. and Canadian passport holders, Phase III functionality allows APC kiosk processing of travelers arriving from countries where the U.S. has a reciprocal Visa-Waiver agreement. Visa-Waiver passengers represent 28% of all passengers arriving through TBIT. The RFP also required proposers to demonstrate successful operations at a minimum of two large-hub airports in the U.S. or equivalent non-u.s. airport with CBP pre-clearance. GCR did not meet this minimum qualification as it has APC kiosks installed at only one large-hub airport. Dedo recently obtained approval from the U.S. CBP to install APC kiosks with Phase III functionality, however by the proposal submittal deadline it had APC kiosks installed and operational at only one large-hub airport. Page 3 Board Roport-Award APC Kiosks at LAX,docx

LAWA staff and the Proposal Evaluation Panel concurred that neither the proposal from GCR nor the one from Dedo were responsive to the RFP and should be eliminated from further consideration.

4 LAWA staff and the Proposal Evaluation Panel concurred that neither the proposal from GCR nor the one from Dedo were responsive to the RFP and should be eliminated from further consideration. LAWA staff found and the proposal evaluation panel concurred that the proposal from SITA did meet the minimum qualifications, as it has both U.S. CBP approval for Phase Ill processing and APC kiosks installed and functional at two large-hub airports. The Vancouver Airport Authority also expressed interest in proposing and stated their proposal, which was en-route via FedEx, was held up in U. S. Customs in Memphis, Tennessee and thus it did not meet the proposal submittal deadline. While a portion of this proposal was ed to LAWA, the complete proposal never made it to LAWA's Procurement Services Division and so was not considered. The SITA proposal was reviewed by a five-member evaluation panel composed of the following LAWA employees: Deputy Executive Director, Information Management Technology Group Chief Financial Officer, Finance and Budget Chief Management Analyst, Commercial Development Group Chief Airport Planner II, Airports Development Group Airport Manager II, Operations and Emergency Management Group The evaluation panel reviewed the one responsive proposal submitted by SITA and applied the evaluation criteria listed below: Item Evaluation Criteria Points 1 Forecast delivery, installation and testing schedule 20 2 ADA and accessibility compliance 10 3 Additional system features and requirements 10 4 Cost per unit, including pricing after initial purchase 30 5 Annual maintenance cost and warranty proposal 30 Total Points 100 After review of the submitted proposal, the proposal obtained an average score as follows: Contractual Provisions Proposer Score 92.4 SITA The contract provides for acquisition, installation, implementation and maintenance of 40 Automated Passport Control (APC) kiosks that will be used to pre-validate passengers entering the United States prior to processing by CBP. Each APC kiosk and operating system must be certified for U.S. CBP Phase III processing and be ADA compliant. SITA will perform all services on the kiosks to ensure each is fully functional 24 hours per day, 7 days a week, throughout the term of the contract. SITA will be required to meet all security policies and standards stipulated by, but not limited to, LAWA, the Transportation Security Administration, and the Federal Aviation Administration. SITA will install the 40 APC kiosks 'age 4 Board Pcpcü-Award ARC Kiosks at LAX.cio(;x

5 within 45 days of notice to proceed. LAWA may request that SITA install additional kiosks during the term of the contract. Action Requested Staff requests the Board to approve a three-year contract with SITA Information Networking Computing USA, Inc. in an amount not to exceed $3,633,102, and applicable sales taxes and authorize the Executive Director to execu e the contract to provide, install, implement and maintain APC kiosks at LAX. Costs under the contract include but are not limited to: APC Kiosks Cost per Number Totals Unit of Units Initial 40 units $36, $1,459,960 ist Additional Bulk of 10 Units $36, Subsequent Additional bulk of 10 units $36, Additional bulk of 20 Units $36, $724,860 Sub-Total $2,184,820 Optional Features. Cost per Unit Totals Additional Existing Languages $2,800 0 Additional Future Languages $400 0 Ambassador Application Licenses (40 $18,000 0 Kiosks) Sub-Total $0 Year Maintenance Per Unit Recurring Costs Warranty (Per Unit) Totals (40 units) One $ 6,690 N/A $267,600 Two $ 6,690 N/A $401,400 Three $ 6,690 N/A $401,400 One N/A 0 0 Two N/A $2,884 0 Three N/A $2,884 0 Spare Parts N/A $25,000 $25,000 Sub-Total $1,095,400 Consumables Year Monthly Fee Annual Cost One $2,800 $33,600 Two $2,800 $50,400 Three $2,800 $50,400 Sub-Total $134,400 Board Report-"er-rd APC Kiosks al Page 5 X.docx

6 Cost Summary Item Cost APC Kiosks $2,184,820 Optional Features 0 Maintenance/Warranty/Spare Parts $1,095,400 Consumables $134,400 Contingency (10% of Kiosk cost) $218,482 Grand Total *$3,633,102, plus applicabale sales taxes but the total expenditures shall not exceed $3,633,102, plus *NOTE: Costs for individual line items may vary, ADDITIONAL WORK: LAWA may authorize additional work either on a lump sum, turnkey or time and materials basis for any required adds, moves or changes. When work is authorized on a time and materials basis, SITA will be paid as follows: City Council Action item. POéition Title Hititir Ili Rat 4' " 1 Project Manager $ Programmer $ Technician $ Software Engineer $ In order to expedite installation and operation of the Automated Passport Control kiosks at LAX, the City Council waived review, pursuant to Charter Section 245(b), of this contract at their meeting on May 13, Fiscal Impact Staff estimates the equipment for the Automated Passport Control Kiosk project will cost approximately $3.6 million. Infrastructure supporting this project will be delivered within the scope of the current renovations project in Bradley West. The project cost will be amortized over the useful life of the equipment and recovered through the FIS charge set annually by the Board under the Passenger Terminal Tariff at LAX. This cost is expected to add between $ per deplaned international passenger over the next several years. 4. Alternatives Considered Take No Action If LAWA does not enter into a contract with SITA, the U.S. CBP will not be able to improve wait times for passengers arriving from foreign countries at the new TBIT during the peak summer travel season nor thereafter. This will adversely impact customer services levels and could also limit the number of daily aircraft operations that can be accommodated at the terminal. Page 6 Boaki Repo/Lk/cad APC kiosks at LAX clock

7 APPROPRIATIONS: Staff requests that funds in the not-to-exceed amount of $3,633,102 for the SITA contract and funds (for sales taxes which will be paid by LAWA) in the not-to-exceed amount of $253,770 be appropriated and allocated from the LAX Revenue Fund to WBS Element (Automated Passport Control Kiosk Project) as may be required. STANDARD PROVISIONS: 1. This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f. of the Los Angeles City CEQA Guidelines. 2. This contract is subject to approval as to form by the City Attorney 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section SITA will comply with the provisions of the Living Wage Ordinance. 5. Procurement Services reviewed this action (File No. 6734) No mandatory Small Business Enterprise goal for this project has been established, as no subcontracting opportunities were identified. 6. SITA will comply with the provisions of the Affirmative Action Program. 7. SITA has been assigned Business Tax Registration Certificate No SITA will comply with the provisions of the Child Support Obligations Ordinance. 9. SITA will have approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports prior to issuance of a Notice to Proceed. 10. Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees. 11. SITA has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. SITA must be determined by Public Works, Office of Contract Compliance, to be in full compliance with the provisions of the Equal Benefits Ordinance prior to contract execution. 13. SITA will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. SITA has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Pag / Board Report-Awatd APC Kiosks at LAX.d x

Los Angeles World Airports

Los Angeles World Airports im RESOLUTION NO. 25829 BE IT RESOLVED that the Board of Airport Commissioners approved award of a three (3)year Agreement to MV Transportation, Inc., with two (2) one (1)-year