DATE: October 22, 2024
TO: Board of Supervisors
SUBMITTED BY: John Zanoni, Sheriff-Coroner-Public Administrator
SUBJECT: Retroactive Agreement with DFC, Inc., dba Advanced Helicopter Services for Aircraft Maintenance Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive Agreement with DFC, Inc., dba Advanced Helicopter Services, for aircraft maintenance services for the Sheriff’s Office aircrafts consisting of one MD530F, two MD500E helicopters, and one Cessna T206H airplane, effective October 1, 2024, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $8,000,000.
REPORT
There is no increase in Net County Cost associated with the recommended action. On August 1, 2024, the County of Fresno Purchasing Division of the Internal Services Department issued a Request for Quotation (RFQ) which solicited proposals to provide aircraft maintenance for the Sheriff’s Air Support Unit located at the Fresno Yosemite International Airport. DFC, Inc. has provided services since 2016 with the previous Agreement No. A-21-134, which expired at the three-year base term on July 31, 2024. Due to price increases, DFC, Inc. was unable to support the current contract pricing to extend the term for another year, therefore the County issued an RFQ. Two quotations were received, and DFC, Inc. was the lower bidder, and is the recommended vendor to provide aircraft maintenance to the Sheriff’s Air Support Unit. DFC, Inc. have won the Sheriff’s Office RFQ’s for the last three bidding cycles and has performed services for the Sheriff’s Air Support Unit for over eight years. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. DFC, Inc., submitted the lower bid out of the two vendors for the RFQ. If the recommended action is not approved, the Sheriff’s Air Support Unit would not be able to obtain an aircraft maintenance services agreement with DFC, Inc., however, these aircrafts must be maintained, serviced, and repaired in accordance with applicable Federal Aviation Regulations.
RETROACTIVE AGREEMENT:
This recommended agreement is retroactive to October 1, 2024, due to negotiations and review of the recommended agreement. The recommended agreement was signed and received by DFC, Inc. on September 30, 2024.
FISCAL IMPACT:
There is no additional Net County Cost associated with the recommended action. The Agreement is in the amount of $8,000,000. There are no pending invoices. The amount is included within the FY 2024-25 Adopted Budget for the Sheriff-Coroner-Public Administrator’s Org 3111. Costs for additional years will be included in subsequent requested budgets.
DISCUSSION:
On April 27, 2021, your Board approved Agreement No. 21-134 with DFC, Inc. to provide maintenance services for the Sheriff’s Air Support Unit of one MD530F, two MD500E helicopters, and one Cessna T206H airplane. The term of this agreement was made effective August 1, 2021, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extension. However, the Contractor was unable to support the current contract pricing and written extension to extend the term for twelve months was not executed with the result of agreement expiration date of July 31, 2024. The Purchasing Division of the Internal Services Department issued a temporary Blanket Purchase Order with an approved Suspension of Competition Acquisition request to cover necessary aircraft maintenance because the Sheriff’s Air Support does not have an active agreement in place, until your Board approves the recommended agreement.
To provide for continued aircraft maintenance services, RFQ No. 25-009 was released on August 1, 2024, by the Purchasing Division of the Internal Services Department, and on August 15, 2024, DFC, Inc. and Fresno Flight & Air Repair, LLC submitted quotations in response to RFQ No. 25-009. On August 22, 2024, the County posted the tentative award notice for DFC, Inc., with the lower bid.
Under the recommended agreement, DFC, Inc. will provide two mechanics on site Monday through Friday, 8:00 a.m. to 5:00 p.m., for full aviation management and aircraft maintenance services for the Sheriff’s Air Support Unit’s one MD530F, two MD500E helicopters, and one Cessna T206H airplane at a flat rate charge of $55,400 per month for a total of $664,800 (55,400 x 12) per year. In addition to the maintenance service fees, the Sheriff’s Air Support Unit is expected to expend an estimated amount of $935,200 per year for additional services and replacement parts for the four aircrafts. The annual flat rate of $664,800 and estimated services and replacement parts cost of $935,200 is a total of $1,600,000 per year, for the maximum compensation over five years of $8,000,000.
Authorized additional mechanic(s), overtime hours exceeding eight hours per day and any weekends or holidays hours will be compensated at $180 per hour. A minimum of two hours will be charged for any mechanic call out, other than the normal scheduled days and hours. The recommended agreement also provides for payment for reimbursement for specialized tool rentals and travel costs for DFC. Inc.’s mechanics, if the mechanic is required to travel to a location other than the assigned facility. The Sheriff’s Air Support Unit needs to continue with an ongoing agreement to provide these necessary services, which will retroactively begin October 1, 2024 with the recommended agreement.
REFERENCE MATERIAL:
BAI #25, April 27, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with DFC, Inc., dba Advanced Helicopter Services
CAO ANALYST:
Fine Nai