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Contract No.: 16-17-015
Title: H-Care Airbus Helicopter Parts by the Hour
(PBH)
Procurement Contracting Manager:
Eduardo Falcon
Current Term:
Expiration Date:
Recommendation:
El Sole Source Contract
❑ Solicit Competition
❑ Access Contract
❑ Other
Background:
This market research is being conducted on behalf of the City of Miami Police Department (Police) for the
procurement of "a parts by the hour (PBH) maintenance plan," for the recently acquired Airbus model AS350B2
helicopter. The PBH plan is designed to establish a fixed parts cost, for most parts on the helicopter, on a per
flight hour basis, and will be active for as long as the helicopter is owned by Police. The PBH plan may be
terminated at any time, and a refund will be provided for any monies not utilized for the parts. However, if parts
utilized exceed the monies paid into the PBH plan, an invoice will be issued for the outstanding balance.
In February 2014 when the recently replaced Police helicopter was sent to Rotortech Services Inc. far
inspection, it was found that the main rotor gearbox had a corrosion issue, and needed to be sent directly to
Airbus Helicopter for repair or overhaul. An estimate was provided to Police in the amount of $245,000, for the
repair or overhaul. Since monies had not been allocated for said repairs, the helicopter was out of service for
approximately 18 months. Had there been a PBH plan in place, the cost of the parts would have been the same,
however, the helicopter would have been repaired immediately, and the City would not have incurred additional
repair costs due to the amount of time the helicopter was not utilized.
Research Conducted:
Market research was conducted by the Department of Procurement's (Procurement) staff to source the industry
and identify potential providers of parts for Airbus Helicopters. Currently, Airbus Helicopters Inc. is the sole
distributor of helicopter parts for Airbus helicopter aircraft operating within the North American geographic area.
All service facilities are contractually obligated to purchase their parts from them. In addition, Airbus Helicopters
Inc., does not allow replacement parts to be manufactured, produced, or provided by another firm.
Comparable Contracts:
Three counties were identified that have Airbus Helicopters. Of the three, only one, Placer County Sherriffs
Department, in Northern California, has the PBH program, and has been very satisfied. The two other counties,
Lee County, and Pinellas County, both in Florida, pay for parts, as needed.
Recommendation:
This contract is a Sole Source, as Airbus Helicopters Inc. is the sole distributor of helicopter parts for the Airbus
helicopter aircraft, operating within the North American geographic area. All service facilities are contractually
obligated to purchase their parts from Airbus Helicopters Inc. This program will allow Police to properly budget
for maintenance and repairs of the helicopter, without having to declare an emergency, when an expected or
unexpected repair or maintenance is needed.
Procurement Contracting Manager:
Senior Procurement Contracting Manage
Director/Asst. Director:
Date: if .`1.l )7
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