i KV BOARD..ii 001110*700 4 Los Angeles World Airports REPORT TO THE f Ai RPORT COMMISSIONERS Meeting Date: Approved by: Justin Erb cci, Ch of nnovation & Commercial Strategy Officer 2/21/2019 \ Sk 0 /1ci / 1/1'/V I Reviewed by: Samson Mengistu, hief Operating Officer CAO Review: 1 Completed Pending a p El 1 N/A "V:4' -...r A Reviewed for Date Approval Status 0.4 Ely _ Vrt'',77'1 Finance 2/7/2019 MY N NA RW CEQA 2/5/2019 ZY I=1 N JH Procurement 2/5/2019 IZY N Cond MT De... Flint - hief Executive Officer Guest Experience 2/5/2019 : ZY EN BY Strategic Planning 2/5/2019 I ZY N NA I SUBJECT: Second Amendment to Memorandum of Understanding with Vision- Box Systems, Inc. for the pilot testing of automated biometric selfboarding gates at Tom Bradley International Terminal Approve the Second Amendment to Memorandum of Understanding with Vision-Box Systems, Inc. to extend the term through February 29, 2020 and increase the contract authority by $520,600 for a new total amount not to exceed $820,599 for pilot testing of automated biometric self-boarding gates at the Tom Bradley International Terminal. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (6) 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. FURTHER FIND that, pursuant to Charter Section 371(e)(2), competitive bidding for these services would not be practicable or advantageous. Page 1
5. APPROVE the Second Amendment to Memorandum of Understanding with Vision-Box Systems, Inc. to extend the term through February 29, 2020 and increase the contract authority by $520,600 for a new total amount not to exceed $820,599. 6. AUTHORIZE the Chief Executive Officer to execute the Second Amendment to Memorandum of Understanding after approval as to form by the City Attorney. DISCUSSION: 1. Purpose To extend the term through February 29, 2020 and increase contract authority to continue the pilot testing of the self-service biometric boarding gates (egates) for a more comprehensive validation of enhanced passenger processing by simultaneously testing the egates with other biometric pilot programs at Tom Bradley International Terminal (TBIT). 2. Prior Related Actions July 11, 2018 - Resolution No. 26545 (2008) The BOAC approved the First Amendment to Memorandum of Understanding with Vision-Box Systems, Inc. for a term expiring on August 30, 2019 and to increase the contract authority by $150,000 for a total amount not to exceed $299,999. 3. Current Action As part of the Department of Homeland Security border security mission, the agency has been deploying new facial recognition biometric technologies to optimize the verification process of travelers' identities with minimum impact to airport operations. The egates help speed up the passenger boarding process simply by having passengers look into a camera, which eliminates the need for passengers to present a boarding pass or passport at the gates. egates expedites the boarding process and improves the guest experience. On October 26, 2017, Los Angeles World Airports (LAWA) entered into a Memorandum of Understanding with Vision-Box Systems, Inc. (Vision-Box) to conduct pilot testing of egates at TBIT. LAWA issued a contract authority also known as Service Agreement No. 4700001551 for $149,999 for the loan, temporary installation, and testing of three sets of egates at TBIT until August 30, 2018. LAWA has been collaborating with Customs and Border Protection (CBP), Vision-Box, and several airlines including British Airways, Lufthansa, Qantas, Air France, and KLM as part of this pilot. To date, egates reduced the time required to board passengers on large capacity aircraft, such as the Airbus A380, by approximately 40%. As an example, an airline boarded 350 passengers within 20 minutes by using one set of egates consisting of four lanes. Because of the existence of the biometric egate pilot, CBP launched the "Simplified Entry" biometric pilot at the Federal Inspection Services (FIS) area of TBIT in Q2 of 2018. The use of the biometric entry product is anticipated to result in significant time savings for passengers at immigration, and provide a safer and more secure identity verification process at the border. This pilot would not be possible if LAWA did not have and maintain the biometric exit pilot. CBP plans to continue this pilot indefinitely. Page 2
The Transportation Security Administration (TSA) also launched a biometric pilot test at the Ticket Document Checker stations of the Security Screening Check Points (SSCP) at TBIT. This pilot was a success and TSA is expected to provide an update regarding continuation of the pilot in the next few months. On July 11, 2018, LAWA issued the First Amendment to Service Agreement No. 4700001551 with Vision Box to increase the contract authority by $150,000 and extend the term until August 30, 2019 to continue the pilot testing of the egates in conjunction with the TSA and CBP biometric pilot program at TBIT. A Request For Proposals (RFP) for the implementation of new egates is scheduled to be released in March 2019. Implementation of new egates is expected to begin in the Fall of 2019. By extending the contract term and increasing the authority with Vision Box, LAWA stakeholders, including airlines, TSA and CBP, will be able to continue testing the egates with CBP's and TSA's biometric pilots until the implementation of the new egates. How this action advances a specific strategic plan goal and objective This action advances this strategic goal and objective: Innovate to Enhance Security, Efficiency, and Effectiveness. Implementation of egates will improve operations, security and guest experience by reducing the time required to board aircraft. Action Requested Staff requests that the Board authorize the Chief Executive Officer to execute the Second Amendment with Vision-Box Systems, Inc. to extend the term through February 29, 2020 and increase the contract authority by $520,600 for a total amount not to exceed $820,599 to continue the comprehensive testing of the egates. A summary of the current expenditures to date is listed below. Description Expenditures Initial six-month pilot testing of egates $ 149,999 Six-month extension of the egates under First Amendment $ 150,000 Current Total Expenditure to Date $ 299,999 Estimated services and expenditures under Second Amendment: Description Expenditures Additional as-needed pilot testing of egates $ 520,600 Current Contract Authority $ 299,999 Total Not-to-Exceed Contract Amount* $ 820,599 * Note: Costs for individual line items may vary, but the total expenditures shall not exceed $820,599. Page 3
Fiscal Impact Costs incurred under this contract will be recovered through landing fees, terminal rates and charges, as well as through non-aeronautical revenues. Expenditures for past fiscal years are as follows: - Fiscal Year 2017-18: $149,999 was used for the first six-month pilot testing of egates until September 2018. Fiscal Year 2018-19: $150,000 was used to second six-month pilot testing of the egates until February 2019. 4. Alternatives Considered Take No Action Without this amendment, LAWA will have to return the egates and will not be able to conduct a comprehensive end-to-end test of biometric solutions at the SSCP and exit gates. LAWA may not be considered for future innovations pilots from the TSA and CBP. APPROPRIATIONS: Funding for this contract is available in the Fiscal Year 2018-2019 Los Angeles World Airports Operating Budget in LAX Cost Center 1170072 - IT Airport Operations Division, Commitment Item 520 - Contractual Services. Funding for subsequent years will be requested as part of the annual budget process. STANDARD PROVISIONS: 1. The addition of safety and security devices for use in conjunction with existing structures, facilities or mechanical equipment, is categorically exempt from California Environmental Quality Act (CEQA) requirements pursuant to Article III, Class 1 (6) of the Los Angeles City CEQA Guidelines. 2. This proposed document(s) is/are 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 245. 4. Vision-Box Systems, Inc. is required by contract to comply with the provisions of the Living Wage and/or Service Worker Ordinances. 5. Procurement Services reviewed this action (File No.8695), No mandatory Small Business Enterprise, Local Business Enterprise, Local Small Business Enterprise, and Disabled Veterans Business Enterprise goals were set for this project, as no subcontracting opportunities were identified. 6. Vision-Box Systems, Inc. is required by contract to comply with the provisions of the Affirmative Action Program. 7. Vision-Box Systems, Inc. has been assigned Business Tax Registration Certificate No. 0003000435-0001-9. Page 4
8. Vision-Box Systems, Inc. is required by contract to comply with the provisions of the Child Support Obligations Ordinance. 9. Vision-Box Systems, Inc. has approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports. 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. Vision-Box Systems, Inc. has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Vision-Box Systems, Inc. is exempt from the provisions of the Equal Benefits Ordinance pursuant to Admin. Code Section 10.8.2.1(i)(1)(b) - Sole Source. 13. Vision-Box Systems, Inc. will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs. 14. Vision-Box Systems, Inc. has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 5