The City of Los Angeles in California, USA has canceled the procurement process for Los Angeles Street Civic Building P3 project considering recommendations from the joint report of Bureau of Engineering (BOE) and the Office of the City Administrative Officer (CAO). The RFQ was cancelled and RFP was not issued.

The decision was taken considering these points :

1. Increase in estimated capital cost
2. Increase in estimated operation and maintenance cost
3. Reduction of the estimated offsets from selling another City asset
4. Lack of savings that might have resulted from terminating a City office lease
5. The City's other critical fiscal priorities

In two years since the project was conceived the estimated capital cost increase approximately US$ 35 million. Although the PPP procurement is canceled the city is considering the continuation of the redevelopment of the Civic Center, including a civic office at the Los Angeles Street site. The Bureau if Engineering will assess the alternatives to the procurement process. The procurement alternatives are:

1. A Request for Information ("RFI") may be issued to the development community soliciting their input for a comprehensive development within the Civic Center. This may include phased development for housing, retail and/or office uses, of which
   the LASCB site may be a component. An RFl may also consider a revised P3 procurement process, in conjunction with the development of a new Civic Center Master Plan to be studied pursuant to the California Environmental Quality Act ("CEQA"), that balances the incorporation of City office and civic space needs with private development of residential, recreational, retail, and/or commercial office opportunities while providing City cost off-sets.
2. A Design-Build project utilizing the technical documents, specifications and guidelines currently prepared for the P3 LASCB Project, with the development of added design details. There will be a need to modify some of the programming details for this new project delivery method.
3. A Design Bid Build project, utilizing the traditional project delivery method.