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The Los Angeles City Council recently approved $5-billion worth of contracts for LAX's $30-billion overhaul ahead of the 2028 Olympics. The Feb. 19 decision establishes a Multiple Award Task Order Contract (MATOC) for design-build and construction services to accelerate modernization at LAX and Van Nuys Airport.
The contract includes 51 agreements with a pool of pre-qualified design-builders and construction contractors to support forthcoming projects in LAWA's Capital Improvement Program. The five-year initiative assembles 31 prime contractors, 13 of whom are engaging with LAWA in this capacity for the first time.
"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."
This development comes as passenger numbers at LAX continue to recover from pandemic lows. The airport served more than 76 million travelers in 2024, still below the pre-pandemic peak of 88 million in 2019. Officials had expected 110 million passengers in 2028 but now estimate a count closer to 90 million. The decrease in passenger forecasts prompted a shift in planning, with a greater focus on infrastructure updates over terminal expansion.
The contract increases opportunities for diverse, small, and local businesses by offering different award levels based on firm size and implementing inclusive subcontracting requirements. Officials said 20 of these projects are expected to begin later this year.
"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 Councilmember Traci Park, whose Council District 11 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."
The modernization comes amid a worldwide surge in air travel, with the number of scheduled passengers approaching five billion in 2024. This rebound in travel is putting pressure on airports to modernize and expand their facilities to accommodate increasing demand.
"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.
Funding for these contracts comes from revenue generated by LAWA, a proprietary department similar to the L.A. Department of Water and Power.
John Ackerman, CEO of LAX, said most projects will be completed by the Olympics. Those still underway when the Games arrive will take a pause, offering a rare break from construction at the airport that he said has not been experienced since the 1984 Olympics.
Ackerman emphasized the significance of the approval: "Today's approval of the Design-Build and Construction Services MATOC by the Los Angeles City Council marks a pivotal moment in our ongoing efforts to modernize and transform LAX into a world-class, gold-medal airport.”
“There will be a moment in time in 2028 when there will be no construction at LAX. There will be no jackhammers in the central terminal, there will be no orange cones,” he added. “That is the opportunity that we have to be kind of the first airport team in literally 40 years to get everything done.”
The contract streamlines the procurement process for upcoming projects, enabling LAWA to build the next generation of infrastructure and facilities at LAX using a quicker and more streamlined approach.
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