Mark HovatterDirector of Procurement

Los Angeles Unified School DistrictMay 2, 2012

Los Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictLos Angeles Unified School DistrictProject Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)Project Labor Agreement (PLA)

Building and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentBuilding and Construction Trades DepartmentNational Legislative ConferenceNational Legislative ConferenceNational Legislative ConferenceNational Legislative ConferenceNational Legislative ConferenceNational Legislative ConferenceNational Legislative ConferenceNational Legislative Conference

� Proposition BB…• Approved in April 1997• $2.4 Billion

� Measure K…• Passed in November 2002• $3.35 Billion

� Measure R…• Passed in March 2004• $3.87 Billion

� Measure Y…• Passed in November 2005• $3.985 Billion

� Measure Q…• Passed in November 2008• $7 Billion

$28 BILLION $28 BILLION $28 BILLION $28 BILLION $28 BILLION $28 BILLION $28 BILLION $28 BILLION BondBondBondBondBondBondBondBond--------funded Construction Program…funded Construction Program…funded Construction Program…funded Construction Program…funded Construction Program…funded Construction Program…funded Construction Program…funded Construction Program…

160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…160 Completed New Schools…

Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…Over 25,000 Completed Modernization Projects…

…would not have been …would not have been …would not have been …would not have been …would not have been …would not have been …would not have been …would not have been possible without the possible without the possible without the possible without the possible without the possible without the possible without the possible without the

support of the support of the support of the support of the support of the support of the support of the support of the Building Trades and our Building Trades and our Building Trades and our Building Trades and our Building Trades and our Building Trades and our Building Trades and our Building Trades and our Project Labor AgreementProject Labor AgreementProject Labor AgreementProject Labor AgreementProject Labor AgreementProject Labor AgreementProject Labor AgreementProject Labor Agreement

� LAUSD Labor Compliance DepartmentCalifornia Department of Industrial Relations – Office of the DirectorCertificate of Appreciation

� LAUSD Facilities Services DivisionGreen California Schools Summit & Expo"Hall of Fame District Award: Greening Schools in the Golden State“

� Miguel Contreras Learning Center ($85,155,000)Clark ConstructionJohnson Fain ArchitectsCA Construction's Best of '07 Awards"Best Overall Design""Outstanding Architecture""Best of K-12“

� LAUSDLiberty Mutual Insurance Group2007 Silver Safety Award

Partial List of Construction Partial List of Construction Partial List of Construction Partial List of Construction Partial List of Construction Partial List of Construction Partial List of Construction Partial List of Construction –––––––– Related AwardsRelated AwardsRelated AwardsRelated AwardsRelated AwardsRelated AwardsRelated AwardsRelated Awards

� LAUSD Labor Compliance Department

LA/OC Building and Construction Trades Council

Certificate of Recognition

� "We-Build" Program2007 Electrical Industry Award Los Angeles National Electrical Contractors Association (NECA)& International Brotherhood of Electrical Workers (IBEW) Local 11

� LAUSD Facilities Services DivisionWWCOT ArchitectsPanorama High School ($62,590,000)CEFPI Regional Conference 2007"Monarch Award for Planning, Design & Construction“

� NEW Academy Canoga Park Charter School ($15,318,821)New Economics for Women (NEW)Maxwell Awards of ExcellenceFannie Mae Foundation"Most Successful Public/Private Partnership“

� Facilities Services Division, LAUSD2006 American Planning Association (California Chapter)Comprehensive Planning, Large Jurisdiction Award

� Facilities Services Division, LAUSD2006 Urban Land InstituteAward of Excellence

� Facilities Services Division, LAUSDNational Association of Minority Contractors2006 Major Government Partner of the Year Award

� LAUSD Labor Compliance Department

Mayor Villaraigosa – City of Los Angeles

Certificate of Recognition

� Facilities Services Division, LAUSD2005 Construction Management Association of AmericaExcellence in Program Management Award

� LAUSD Labor Compliance Department

2009 Electrical Industry Award

NECA and IBEW Los Angeles, Local 11

� Los Angeles Unified School District2005 Black Business AssociationGovernment Agency of the Year Award

� Facilities Services Division, LAUSD2005 GLAAACC Awards GalaPublic Service Award

� Facilities Services Division, LAUSD2004 Los Angeles Area Chamber of Commerce69th Annual Construction Industry Awards LuncheonIra Yellin Distinguished Achievement Award

� Facilities Services Division, LAUSD2004 American Subcontractors AssociationOwner of the Year Award

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) and The Orthopaedic Hospital Medical Magnet ($18,778,150)2004 Los Angeles Downtown NewsDowntowners of Distinction Award

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) 2004 The Los Angeles Council of Engineers and ScientistsProject Achievement Award

� Top Public Owner 2008

California Construction Magazine

� Ramon C. Cortines School for the Visual and Performing Arts ($171,900,000)

2009 Q Award

� Robert F. Kennedy Community Schools ($578,703,565)

2011 Los Angeles Business Journal Award for Public Projects

� 2011 Liberty Mutual Silver Award for Safety

� Robert F. Kennedy Community Schools ($578,703,565)

2011 Q Award

DESIGN AWARDS

� Central Region High School #13 ($122,173,800)AIA Pasadena/Foothill Chapter2007 Merit Award

� Miguel Contreras Learning Center ($85,155,000) Concrete & Masonry Association of California and Nevada2007 Concrete & Masonry Design Awards"Education & Design Honor Award“

� Maywood Academy ($34,990,000)2007 Sustainable Leadership Awards for Design and Development"Highly Commended" Semi-Finalist

� Central Region High School #13 ($122,173,800)Los Angeles Unified School DistrictHMC Architects2007 California's Coalition for Adequate School Housing Conference"Leroy F. Greene Award of Honor“

� Frank del Olmo Elementary School ($18,323,000)LAUSDPerkins & Will2007 CMAA Southern California Chapter Annual Awards "Project Achievement Award“

� Dr. Theodore Alexander Jr. Science Center School ($40,585,000) Morphosis, ArchitectAmerican Institute of Architects (AIA) 2007 National Convention and Design Expo"Institute Honor Award“

� Lake Street Primary School ($10,979,000)Los Angeles Unified School DistrictWilliam Loyd Jones Architect, IncAmerican School & University Magazine's"Outstanding Building Award“

� Central Los Angeles High School #9 ($171,900,000)2006 American Institute of Architects, Pasadena/Foothill ChapterHonor Award, Unbuilt

� Central Region Elementary School #14 ($29,378,042)Los Angeles Unified School DistrictTDM Architects, Inc.2006 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Award of Honor

� Dena Primary Center ($64,575,479)Los Angeles Unified School DistrictRachlin Architects2006 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Award of Honor

� South Los Angeles High School #1 ($67,604,111)Los Angeles Unified School DistrictHMC Architects2006 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Award of Honor

� Valley Region Elementary School #6 ($40,597,283)Los Angeles Unified School DistrictMVE Institutional, Inc.2006 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Award of Merit

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) 2005 -- 35th Annual Los Angeles Architectural AwardsLos Angeles Business CouncilPreservation Award

� Los Angeles Unified School District2004 The Los Angeles Business Council's 33rd Los Angeles Architecture AwardsGrand Prize Winner

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000)2004 American Institute of Architects/Los Angeles Awards GalaBuilding Coalitions Award

� 6th Avenue Elementary School ($2,476,000)Royal Institute of British Architects (RIBA-USA)Trelease Architects is one of only 24, chosen from entrants throughout the U.S by an international jury convened at the British Consulate General in Los Angeles.RIBA-USA Diverse City International Touring Exhibition

� Southeast Area New Middle School #3 ($28,880,000) Gonzalez/Goodale2003 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Honor Award of Merit

� Central L.A. Area New High School #1 ($64,477,000)HMC Architects2003 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS“

Honor Award for Design

� East Valley High School #3 ($62,590,000)Widom Wein Cohen O' Leary Terasawa2003 The American Institute of Architects/ San Fernando Valley Chapter - In Recognition of Design ExcellenceHonor Award for Merit

� Los Angeles Unified School DistrictWestside Prize 2002 Westside Urban ForumFor LAUSD's renewed commitment to excellence in the planning, design and construction of community-oriented, integrated educational environments on behalf of the families and neighborhoods they serve.

� Accelerated Charter School ($29,608,197)Marmol/Radzinger2002 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Honor Award for Design

� Central L.A. Area New High School #1 ($64,477,000) Perkins & Will2002 California's Coalition for Adequate School Housing - The American Institute of Architects, California Council "LEROY F. GREEN DESIGN AWARDS"Honor Award for Design

� Central Middle School #4 ($41,379,529)2002 Southern California EdisonEnergy Efficient Schools Award

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) 2002 The Chicago Athenaeum's American Architectural Award

� South East High School #2 ($50,840,000)2002 American Institute of ArchitectsNational Design Award for a High SchoolSouth East Middle School #3 ($28,880,000)2002 American Institute of ArchitectsNational Design Award for a Middle School

� Southeast Learning Center2002 Southern California EdisonEnergy Efficient Schools Award

� Belmont/Hollywood New Primary Center ($8,713,000)Rios Associates2001 The American Institute of Architects/Los Angeles ChapterHonor Award for Merit

� MOCA Exhibition: "What's Shakin': New Architecture in L.A." Sept. 2001- Jan. 2002

� Southeast Area High SchoolGonzales/Goodale2000 The American Institute of Architects/ Pasadena and Foothill ChapterHonor Award

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) 1993 Progressive Architectural Award

� Dr. Theodore T. Alexander Jr. Science Center School ($40,585,000) 1999 The American Institute of Architects/Los Angeles ChapterNext Los Angeles Award

� South Region Elementary School #12 ($23,551,841)

2010 Award of Excellence

C.A.S.H./AIACC Leroy F. Greene Design + Planning Awards Program

� South Region Elementary School #2 ($43,978,000)

2011 AIA-LA Design Award

2012 AIA- San Fernando Design Award

And some more, but you get the idea………

Why would you want one?

Project Labor AgreementsProject Labor AgreementsProject Labor AgreementsProject Labor AgreementsProject Labor AgreementsProject Labor AgreementsProject Labor AgreementsProject Labor Agreements

Myth #1Myth #1Myth #1Myth #1

Limits open competitionLimits open competitionLimits open competitionLimits open competition

NONONONO: One third of our repeat contractors are non-union and successfully work under the PLA

Myths about PLAs:Myths about PLAs:Myths about PLAs:Myths about PLAs:Myths about PLAs:Myths about PLAs:Myths about PLAs:Myths about PLAs:

NONONONO: We have both and our SmallBusiness Program is very successful.

Myth #2Myth #2Myth #2Myth #2Can’t have both an effective Small Can’t have both an effective Small Can’t have both an effective Small Can’t have both an effective Small

Business Program and a PLABusiness Program and a PLABusiness Program and a PLABusiness Program and a PLA

NONONONO: PLA requires State of California

Prevailing Wages.

Myth #3Myth #3Myth #3Myth #3Increases Cost of LaborIncreases Cost of LaborIncreases Cost of LaborIncreases Cost of Labor

NONONONO: : : : Costs a significant amount to do construction in Los Angeles but the PLA does not drive the costs.

Myth #4: Myth #4: Myth #4: Myth #4: PLA Drives up the Cost of ConstructionPLA Drives up the Cost of ConstructionPLA Drives up the Cost of ConstructionPLA Drives up the Cost of Construction

�Makes Smart Business Sense

� Commitment to a Local Construction Workforce� Qualified and Skilled Journeyman Workforce� Access to Joint Labor-Management Apprenticeship Programs

� Safe Job Sites� OCIP Savings - $20 million

�Work Stability

� Program called a PSA –• Project Stabilization Agreement

� No Delays� Structured Dispute Resolution Process

Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:Other Positive Attributes of PLAs:

Labor Friendly Labor Friendly Labor Friendly Labor Friendly Contracting OptionsContracting OptionsContracting OptionsContracting Options

JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)JOB ORDER CONTRACTING (JOC)

Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:

� Incorrect Number of Apprentices Used

� Bid Shopping

�Workers not assigned out of the hall

� Lack of timely notification to the trades

�Contractors assign work to the wrong trades

� Results in contractors who are barely qualified

� Forces organizations to award to the lowest bidder

JOC ISSUES JOC ISSUES JOC ISSUES JOC ISSUES JOC ISSUES JOC ISSUES JOC ISSUES JOC ISSUES

�Use incorrect number of apprentices

� Bid Shopping

�Workers not assigned out of the hall

� Lack of timely notification from the contractor to the trades

�Assign work to the wrong trades

� Barely qualified

� Low Bidder

Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:Problems with Standard Low Bid Contracts:

The problem is not JOC; The problem is not JOC; The problem is not JOC; The problem is not JOC;

it is bad conduct by it is bad conduct by it is bad conduct by it is bad conduct by contractors.contractors.contractors.contractors.

�Allows us to Reward Good Conduct

�Allows us to Punish Bad Conduct

Best Value JOCBest Value JOCBest Value JOCBest Value JOCBest Value JOCBest Value JOCBest Value JOCBest Value JOC

� Incorrect Number of Apprentices Used

� Bid Shopping

�Workers not assigned out of the hall

� Lack of timely notification to the trades

�Contractors assign work to the wrong trades

�Results in contractors who are barely qualified

� Forces organizations to award to the lowest bidder

Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:Why people say they do not like JOC:

In conclusion,In conclusion,

life is tough, it’s life is tough, it’s

tougher when tougher when

you are stupid.you are stupid.