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.