DATE: August 9, 2016
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Coroner
SUBJECT: Agreement with Advanced Helicopter Services to provide Maintenance Services for two MD500 Helicopters and one Cessna 206 Airplane
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Agreement with Advanced Helicopter Services for aircraft maintenance services for the Sheriff-Coroner’s Office aircrafts consisting of two McDonnell Douglas (MD) 500 helicopters and one Cessna 206 airplane, effective August 9, 2016 through July 31, 2021 not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $3,500,000.
REPORT
There is no increase in Net County Cost associated with the recommended action. On March 3, 2016 the County of Fresno Purchasing Division issued a Request for Proposal (RFP) which solicited proposals to provide aircraft maintenance for the Sheriff-Coroner’s Air Support Unit located at the Fresno Yosemite International Airport. The Air Support Unit currently operates two MD500E helicopters and one Cessna 206 airplane. Advanced Helicopter Services (AHS) is the recommended vendor to provide aircraft maintenance to the Sheriff-Coroner’s Air Support Unit.
ALTERNATIVE ACTION(S):
The three vendors that submitted bids for this RFP are Advanced Helicopter Services, Big Valley Aviation, Inc. and Federico Helicopters, Inc. Your Board could choose one of the other vendors that responded to the RFP process, but were not recommended.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The Agreement is in the amount of $3,500,000 ($700,000 per year). Funding for this Agreement is included the Sheriff-Coroner’s FY 2016-17 Adopted Budget for Org 3111 and will be included in future requested budgets.
DISCUSSION:
Federico Helicopters, Inc. (FHI) was the Sheriff-Coroner’s Air Support primary vendor for aircraft maintenance services for over four years since April 2012. On July 15, 2014 your Board approved Agreement No. 14-391 with FHI to provide aircraft maintenance services for the Sheriff-Coroner’s Air Support Unit effective from July 1, 2014 through December 31, 2016. The Sheriff-Coroner’s Office received notice on September 9, 2015 (letter dated September 5, 2015) from FHI to terminate Agreement 14-391 effective December 31, 2015 stating the existing agreement paid for labor only creating a financial shortfall and proposed a new contract to provide a full service aviation management and maintenance services that would include reimbursement for additional aircraft(s), overtime, double-time for time worked on Sundays and holidays, call out time, expenses incurred for support provided away from the hangar and special tool rental costs with a request to renew the agreement with their updated terms.
FHI agreed to continue providing services pending a revised agreement with the updated terms. However, a suspension of competition Agenda Item that the Department planned to present to the Board in December 2015 to renew the Agreement with FHI with their requested updates did not move forward after another vendor advised they could provide the same service. Therefore, a Request for Proposal process was initiated by the Department; FHI continued supplying maintenance service until they received notification they were not recommended on May 30, 2016.
An RFP was released on March 3, 2016 and on April 14, 2016 three proposals were received from Advanced Helicopter Services, Big Valley Aviation, Inc. and Federico Helicopters, Inc. An evaluation committee was formed, consisting of personnel from the Fresno Police Department Air Support Unit and Sheriff-Coroner’s Office with oversight from the Purchasing Division of the Internal Services Department, to review and rate the bids on May 5, 2016. The evaluation committee recommended AHS based on being the most organized, comprehensive bid proposal and the lowest rates.
Under the recommended contract, AHS 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-Coroner’s Air Support Unit’s two MD500E helicopters and one Cessna 206 airplane at a flat rate charge of $24,000 per month for a total of $288,000 per year. Authorized additional mechanic(s), overtime hours exceeding eight hours per day and any weekends or holiday hours will be compensated at $115 per hour. A minimum of three hours will be charged for any mechanic call out, other than the normal scheduled days and hours. In addition to the maintenance services fees, the Sheriff-Coroner Air Support Unit is also expected to expend $412,000 per year for additional services and replacement parts for three aircrafts. The total in the recommended Agreement is $700,000 per year.
It should be noted that currently the Sheriff-Coroner’s Air Support Unit does not have an active agreement for aircraft maintenance services. In order to cover these necessary services beginning June 1, 2016, the Department worked with the Purchasing Division to create a blanket purchase order to pay AHS for aircraft maintenance services until a new agreement is approved by your Board.
REFERENCE MATERIAL:
BAI # 27, July 15, 2014
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Advanced Helicopter Services
CAO ANALYST:
Jeannie Z. Figueroa