HomeMy WebLinkAboutSubmittal-Javier Ortiz-Estimate of Scheduled MaintenanceEstimate of Schedule Maintenance Items Savings Over Three Years
$757,390.00
Estimate of Aircraft Market Valuation (12 year inspection lowers the
price because that costs about 200k)
$515,000
Approximate savings of purchasing this last model from EC120B to B2
$400,000
Savings of $1,672,390 by purchasing last model
Quote from Airbus 2,805,000
- 1,672,390 (savings)
$1,132,610
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Submitted into the public
record a ite s
on City Clerk
HELICOPTERS
May 11, 2016
Annie Perez, CPPO
Director of Procurement
City of Miami Procurement Department
444 SW. 2 Avenue, 6th Floor
Miami, FL 33130
Subject; Aircraft M.arket Valuation; EC12013 (N380.A'IP; SN1406)
Dear Ms. Perez,
Airbus Heliccipters, Inc. (AHI) sincerely appreciates the business we have conducted with the City of
Miami and its Police Department, and look forward to assisting you with an upgrade to the AS350B2
helicopter. Per a recently received letter of intent to purchase, we have allocated the lastnew production
AS3 50132 helicopter to the City of Miami.
Per request fTani Sgt-RafaelBorroto at City of Miami Police Department, we considered the following
factors when assessing the estimated value of your helicopter:
• 12-year scheduled inspection will be due for completion in 2017
• Major components have approximately 75% remaining of their respective times before
overhaul. (TI3O) or service life limits (SLL). At this level, HeliValueS (independent aircraft
valuation company) assesses a fair market value (FMV) of approximately $765,000, without
factoring in the costs to perform the above 12-year inspection, which average $200,000. This
yields an adjusted FMV of $565,000.
• The resale market for pre -owned EC120B helicopters has been trending downward at an
annual rate of 7.6% since 2010.
• Airbus Helicopters will assume carrying costs and marketing / resale costs for the aircraft for
approximately one year from time of trade-in.
AHI estimates trade-in value of N3ROMP to be $5 15,000 as of May 11, 2016
We appreciate your continued interest in Airbus Helicopters and look forward to assisting in your process.
Respectfully,
l
/Paul D. Peterson
Airbus lieh opicrs.
270 N. Forum Drive
Grand Prmrie, Texas roux-7O9i
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Submitted into the public(\
record fi r ite (s �L
City Clerk
Estimate of Scheduled Maintenance Items of Airbus EC120B
2016 estimate based on 200 flight hours. End of year Hobbs: 4000 +/-
One 100 hour inspections totaling $20,000.00
One 500 hour inspection totaling $35,000.00
Three Upper Adaptors totaling $10,695.00
Two Servo overhauls totaling $30,000.00
Two Main Rotor Blade overhauls $36,000.00
2016 Total operation cost +/- = $131,695.00
2017 estimate based on 400 flight hours. End of year Hobbs: 4400 +/-
Four 100 hour inspections totaling $80,000.00
One 1500 hour inspection totaling $60,000.00
One Annual inspection totaling $30,000.00
One 12 Year (The big one) inspection totaling $150,000.00
One Generator overhaul totaling $2,500.00
2017 Total operation cost +/- = $322,500.00
2018 estimate based on 400 flight hours. End of year Hobbs: 4800 +/-
Four 100 hour inspections totaling $80,000.00
One Annual inspection totaling $30,000.00
One Tail Rotor Gearbox overhaul $35,000.00
2018 Total operation cost+/- = $145,000.00
2019 estimate based on 400 flight hours. End of year Hobbs: 5200 +/-
Four 100 hour inspections totaling $80,000.00
One 500 hour inspection totaling $35,000.00
One Annual inspection totaling $30,000.00
Three Lower Adaptors totaling $10,695.00
One Generator overhaul totaling $2,500.00
2019 Total operating cost +/- = $158,195.00
Total cost combined for remainder of 2016 plus three years = $757,390.00
Submitted into the public(
record f r ite (s 1JJ '
on City Clerk
Benchmark Assessment of Police Helicopter Trade -In Timelines
Commissioner Russell's office requested an assessment of police helicopter replacement periods by
other law enforcement agencies. While a database of this information does not exist, the Aviation Detail
contacted Mr. Richard Bray of the Alachua County Sheriff's Office's Aviation Unit. Mr. Bray is also the
Regional Director for the Southeast Region of the Airborne Law Enforcement Association (ALEA). ALEA is
a 501(c) (3) non-profit organization, dedicated to support and encourage the use of Law Enforcement
Aviation Assets throughout the United States.
During the discussion with Mr. Bray, we determined that after a 10 to 12 year operational period, police
helicopters become expensive to maintain above and beyond normal maintenance procedures. Aging
aircraft issues unique to South Florida such as corrosion cause the operational costs of such aircraft to
become exponentially more expensive just to deal with items that wear out before their scheduled
lifetime. Many agencies such as Miami -Dade and Hillsborough County Sheriff find that replacing
airframes during this 10 year period not only maintain value for trade-in, but make the maintenance
expenses more efficient by not dealing with aging airframe issues.