TITLE
Recommendation to adopt Specifications ITB No. FS16-172 Rebid and award a contract to Heli-One American Support, of Fort Collins, CO, for the purchase of helicopter engine overhaul services with interim rental or overhaul/exchange services for two Turbomeca Arriel 1D1 engines installed in the 2003 Eurocopter AS350 B-2 helicopters, in a total amount of $910,005, and authorize a 20 percent contingency in the amount of $182,000, for a total amount not to exceed $1,092,005, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Heli-One American Support to provide helicopter engine overhaul and interim engine rental services for the City’s two 2003 Eurocopter AS350 B-2 helicopters. These mandatory overhaul services are required by the Federal Aviation Administration, CFR Title 14, after 3600 hours of engine flight time is logged. The main engines in both of the helicopters are scheduled for this service during FY 17, and expected repairs will be completed by September 30, 2017. The costs for the engine overhaul/exchange are included in the FY 17 Police Department budget through the Fleet Services MOU. A contingency is requested for additional repairs that may be discovered during the teardown and inspection process.
The bid was advertised in the Long Beach Press-Telegram on August 30, 2016, and 5,622 potential bidders specializing in transportation, automotive parts, and services were notified of the bid opportunity. Of those bidders, eight downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Purchasing Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 22 local, minority, and women-owned business groups. Two bids were received on September 15, 2016. Of those bidders, none were Minority-owned Business Enterprises (MBEs), Women-owned Business Enterprises (WBEs), certified Small Business Enterprises (SBEs), or Long Beach businesses (Local). Heli-One American Support, of Fort Collins, CO (not an MBE, WBE, SBE or Local), was the lowest responsible bidder.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Bids Online database to download bid specifications. Through outreach, 342 Long Beach vendors were notified to submit bids, of which none downloaded or submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on October 14, 2016 and by Assistant Finance Director Lea Eriksen on October 18, 2016.
SUSTAINABILITY
The engine rebuild specification is in full compliance with Federal Aviation Administration requirements.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB FS16-172 Rebid and award a contract concurrently is requested on November 1, 2016, to ensure that a contract is in place expeditiously.
FISCAL IMPACT
The total purchase amount will not exceed $1,092,005, and is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). The purchase costs for helicopter engine overhaul are funded by 50 percent of FY 16 year-end surplus. The remaining 50 percent of the costs will be collected through regular charges to the Police Department (PD) and General Fund (GF), as budgeted in the Fleet MOU. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER