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HomeMy WebLinkAboutBack-Up DocumentsTO FROM : Rodolfo Llanes Chief of Police (Through channels) Ser_eant Rafael Borroto Aviation Detail Specialized Operations Section CITY OF MIIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE : OCta SUBJECT: Pure ase of HCare Main Package REFERENCES : ENCLOSURES: HCare Documents/Purchase Request On June 2016, the City of Miami Procurement Department concluded the negotiations for the purchase of the Department's Airbus AS350B2 Helicopter. As part of those negotiations, the Aviation Detail recommended that an Airbus HCare package be included for purchase by the City. The HCare Program allows the City of Miami to accurately forecast the cost of operating the helicopter from year to year based on the level of aviation coverage the City requires. The reason for this accuracy is the program's coverage of both scheduled and unscheduled replacement of airframe components by paying a per flight hour rate. Included in this package are the Airbus Sole Source Letter and Airbus Attachment describing the options and prices of the different levels of coverage. I recommend that the City purchase the paragraph 3 level, "PBH — BASIC — DYNAMICS — BLADES + Full -by -flour ($250,00 threshold), to maximize cost effectiveness during the full lifetime of the aircraft. The lower coverage leaves us vulnerable to a vast myriad of uncovered parts and the higher level of coverage is not recommended due to cost. Once the new aircraft is placed into service and the HCare program initiated, the Aviation Detail recommends that the current funding of $85,000 for scheduled/unscheduled maintenance be reduced by $50,000 to $35,000. The reduced amount will be allocated for Rotortech labor costs and parts, whose cost below $250.00 will be outside the scope of the HCare contract. The reduction in funding can be tran.sferred to a new HCare budget line item. Accordingly, the Aviation Detail respectfully requests that the City of Miami find that Airbus is a sole source provider and complete the purchase of the HCare Program. The City of Miami will no longer be liable for scheduled or unscheduled failures or overhauls that carry exorbitant increases in aviation costs from year to year. This action will insure that the new Airbus AS350B2 helicopter is maintained to the highest standards and remain at maximum availability throughout its projected service life of 15 years. AIRBUS HELICOPTERS October 11, 2016 Eduardo J. Falcon City of Miami 444 S.W. 2nd Ave 6th Floor Miami, FL 33130 Subject: Sole -Source Acquisition Justification: Airbus Helicopters Inc. (AHI) "HCare PBH" for AS350B2 Dear Mr. Falcon, Please note the below points for your consideration for placing your AS350B2 helicopter on the Airbus Helicopters' "HCare" Parts By the Hour (PBH) program, as well as its Turbomeca Support By the Hour (SBH) engine support program. 1. HCare Parts by the Hour (PBH) is the proprietary name of the pay by the hour support program from Airbus Helicopters, which covers the airframe components on the AS350B2 helicopter that Miami Police Department has just purchased. (Turbomeca USA offers a similar program known as "SBH" or Support -by -Hour for the Arriel 1 D1 engine.) 2. HCare PBH is the only program which offers Original Equipment Manufacturer (OEM) assurance of complete airframe coverage for the life of the aircraft (with some exclusions). This program offers several options from which Miami Police Department (MPD) can select in order to determine the level of coverage desired. Based on the level selected, MPD will pay AHI a fixed hourly rate that is based on the amount of flight hours flown per month. As components reach their scheduled overhaul time, they are removed from the helicopter, returned to AHI and replaced by an exchange or new component in a very short time. 3. The MPD Aviation Unit has years of experience operating an Airbus Helicopter, and is very familiar with the procedures through which customer support and services are provided by AHI. This will streamline the time required to process logistics support requests and optimize operational availability. Airbus Heliccpteis, Inc. 2701 N. Farum Drive Grand Prairie, Texas 75052-7C99 (972) 941-0000 www. a i rbus h el is ap le rsI n c. co m CONFIDENTIALITY NOTICE: This document may contain oonndential, privileged, or otherwise protected information. If you are not the intended recipient, please do not use, copy. forward. or disclose the contents of this dccumenL Instead, please inform the sender that you received the document and Then dFscard it. AIRBUS HELICOPTERS 4. HCare PBH will enable, MPD to accurately forecast the operational costs of its AS350B2 helicopter. The program provides coverage for scheduled and unscheduled removals of major airframe components, which will enable MPD to accurately predict the annual cost of operations, based on the hours flown on its helicopter. 5. Aircraft availability will be optimized through reduced lead-times for spare parts. Operational availability of key law enforcement assets is crucial to any agency, but it is especially critical to MPD with just one (1) helicopter available. When MPD determines that it is time to replace its AS350B2 helicopter, residual value will likely be a key concern whether the decision is to auction it on open market or trade it in toAHl. Regardless, OEM -programs for PBH, such as AHI's "HCare PBH" programs are viewed as a very positive factor for optimizing the residual value of used helicopters. We thank you for your continued business and look forward to discussing this further at the appropriate time. Sincerely, Brian K. Reid Director, Commercial Sales Airbus Helicopters North America 972-641-5246 Office 214-604-7765 Mobile brian.reid(a airbus.com www.airbushelicopters.com Page 2of2 Attachment A — AS35062 "HCare" for Miami Police Department 1. Based on previous discussions, the following options are provided for the AS350B2 helicopter as operated by Miami PD. Rates shown below are priced on a per -flight -hour basis. AHI standard warranty is 3,000 hours or 36 months, which will determine the "in warranty" rate below, Excluded equipment from the programs shown below includes: a. Engines and engine components (See TMUSA SBH Agreement) b. Equipment Installed through an STC or Field Approvals unless previously approved by AH c. Interior Furnishings —Seat covers, floor coverings, interior panels. d. Paints and Finishes — Exterior and interior paint finishes. e. Windshields and Windows f. Batteries g. Fuel tanks h. Primary structure: Airframe i. Medical Interiors and Equipment j. Floatation systems and rafts k. Non -Mandatory Changes I, Non -Authorized Parts m, Bulk Consumable Materials -All fuel, oil, lubricants, fluids, adhesives and solvents n. Ground Support Equipment and Tools o. Parts with a life limitation of more than 20,000 Flight Hours. p. Parts with a landing cycle limitation of 40,000. q. Parts with a calendar limitation of twenty-four (24) or more years. 2. Below table depicts Parts -by -Hour (PBH) rate for AS350B2 main rotor and tail rotor blades. Parts covered under this agreement are: a. Basic Equipment b. Main &Tail Gear Boxes c. Main Rotor Head d. Tail Rotor Head e. Main Rotor Blades f. Tail Rotor Blades PBH — BASIC — DYNAMICS - BLADES 3. Below table depicts PBH and Full -By -Hour (FBH) rates for dynamic components and all parts valued greater than $250. Parts covered under this agreement are: i. Basic Equipment ii. Main & Tail Gear Boxes iii. Main Rotor Head iv. Tail Rotor Head v. Main Rotor Blades vi. Tail Rotor Blades Plus vii. FBH = Paris with value greater than $250 PBH — BASIC — DYNAMICS — BLADES + Full -by -Hour (FBH; $250 Threshold) PBH FBH $140.63 $18.75 4. Below table depicts PBH and Full -By -Hour (FBH) rates for dynamic components and all parts valued greater than $250. Parts covered under this agreement are: i. Basic Equipment ii. Main & Tail Gear Boxes iii. Main Rotor Head iv. Tail Rotor Head v. Main Rotor Blades vi. Tail Rotor Blades Plus vii. FBH = Parts with $0 dollar threshold PBH — BASIC — DYNAMICS — BLADES + FBH ($0 Threshold) �n warran Please provide the following information in order to document the sole source request: 1. Explain why the product/service requested is the only product/service that can satisfy your requirements, and explain why alternatives are unacceptable. Be specific with regard to specifications, features, characteristics, requirements, capabilities, and compatibility. Describe what steps have been undertaken to make this determination. We have been an Airbus customer since 2005 and will remain so in the long term. Since then, we have had an exclusive parts and support relationship with Airbus and its Factory Support Center, Rotortech Services, Inc. The Airbus HCare program is the only program that provides its customers with complete OEM Parts support and can provide direct warranty billing through its Factory Support Center. 2. Explain why this services provider, supplier or manufacturer is the only practicably available source from which to obtain this product or service, and describe the efforts that were made to verify and confirm whether, or not, this is so. (Obtain and include a letter from the manufacturer confirming the claims made by the distributors or exclusive distributorships regarding the products or services, if that is cited as a reason for this Sole Source.) 3. An exhaustive Internet search failed to reveal any other company in the United States that can provide this service locally. An Airbus Sole Source Letter is included in this packet. 4. Will this product obligate us to a particular vendor for future purchases (either in terms of maintenance that only this vendor will be able to perform and/or if we purchase this item, will we need more "like" items in the future to match this one)? No. 5. Explain why the price for this product or service is considered to be fair and reasonable. We are purchasing this program in conjunction with an aircraft purchase. With this ZERO time aircraft, there is no "buy in" into the program or any such issue. All prices have been negotiated by Procurement and compared with other similar agencies. 6. Describe the negotiation efforts, if any, that have been made with the supplier to obtain the best possible price. See question 4. 7. Explain the consequences(s) to the City, including the dollar estimate of the financial impact if this Sole Source is not approved. The Hcare Program allows the City of Miami to accurately predict the full cost of operating the aircraft from year to year. Without the protection of this program, the City will bear the full cost of scheduled and more importantly, unscheduled repairs and parts. Ex: A scheduled gearbox corrosion inspection failure (failure unscheduled) cost $245,000 to return the aircraft to service. With HCare, the gearbox would have been overhauled at no additional cost to the city above the hourly HCare cost.