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HomeMy WebLinkAboutMarket ResearchMARKET RESEARCH Contract No.: Current Term: Expiration Date: Title: AS350B2 Aircraft Recommendation: // Sole Source Contract ❑ Solicit Competition ❑ Access Contract ❑ Other Procurement Contracting Officer: Anthony Hansen Background: This market research is intended to determine the resources available for the procurement of an AS350B2 aircraft. The Police Department (Police) was provided with an offer from Airbus Helicopters, Inc. (see attached Letter of Intent), to procure one (1) AS350B2 aircraft (Serial Number 8089), for $2.8 million (see attached quote). The aircraft will be used for various civil missions within the City of Miami (City) area. There is currently no contract with the City that can fulfill the department's need. Research Conducted: Market research was conducted to source other municipality contracts, which may be active, pertaining to civil aircraft or helicopters. A review of the Miami -Dade County contracts showed that a Request for Proposal (RFP) No. 528 for the Purchase of Helicopters, Parts, and Tools, expired on June 30, 2015. This RFP was for the purchase of four (4) new AS350B3 Turbine Engine Helicopters from American Eurocopter, LLC / Airbus Helicopters, Inc. Each new helicopter was priced for $3.8 million. There were no contracts with Miami -Dade County for AS350B2 aircrafts. Next, a thorough review of the State of Florida, Department of Management Services' contracts page was completed. No contracts, relating to Airbus Helicopters, Inc., AS350B2, or procuring helicopters were found. Procurement contacted the Airbus Helicopters, Inc.'s Regional Sales Manager, Glenn Murray. He provided Purchase Agreements from Lee County, and Pinellas County, each for the procurement of a new aircraft. Lee County had no information to provide concerning the method of procurement, because the buyer, Commander Mike Warner, who purchases items independently, is currently on vacation. Pinellas County used Sole Source as their method of procurement, because the rest of their fleet of seven (7) total aircrafts are all Airbus models. They did not complete a letter for Sole Source purposes because their Procurement Department did not find it necessary, since they had procured items from Airbus Helicopters, Inc. previously. Comparable Contracts: No comparable contracts for the model of aircraft that the City is seeking. Recommendation: It is recommended that the Procurement Department issue a Sole Source Purchase Order to Airbus Helicopters, Inc., in order to purchase the AS350B2 aircraft. Pursuant to Section 18.92 (a)(1), Sole Source Contracts of the City's Procurement Code; a sole source is recommended due to the compatibility of equipment. The current Police helicopter is an Airbus Helicopters Inc. aircraft model EC120B, this helicopter was procured in 2005 for $1.67 million. Airbus Helicopters, Inc. has offered to accept the EC120B as a trade-in, with the credit going towards the purchase of the new AS350B2. Additionally, Glenn Murray stated that there are no authorized resellers for any new Airbus Helicopters, Inc, aircrafts. The new helicopter has higher cruise speeds, is able to perform longer missions over a larger area of operation, and the low operating costs (see attached Aircraft Cost Evaluator for a comparison between the AS350B2 and the EC120B) make the AS350B2 the primary option for a new helicopter for the Miami Police Department. Procurement Contracting Officer: 7 Date: 1/%y.6-b, Director/Asst. Director: Date: L