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APPROVE MOTION TO EXECUTE A THREE-YEAR COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT WITH ADVANCED HELICOPTER SERVICES FOR HELICOPTER MAINTENANCE IN AN AMOUNT NOT TO EXCEED $385,650
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to execute a three-year Cooperative/Piggyback Purchase Agreement between the City of Stockton and Advanced Helicopter Services (AHS) for helicopter maintenance not to exceed $385,650.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process; and
3. It is further recommended that the City Manager is hereby authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.
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Summary
On April 25, 2019, a Request for Proposals (RFP) (PUR 19-013) was published for Helicopter Maintenance. Proposals were due May 16, 2019. Two responses were received, and, after reviewing the proposals, the Selection Committee recommended contracting with AHS of Woodland, California, for a five-year term, not to exceed $1,244,000, to perform routine maintenance to the Stockton Police Department (SPD) helicopter, replace required parts/components, and be available for emergency call-outs at all times. Funding for the Agreement was included in the SPD’s budget proposal to City Council for FY 2019-2020. The annual amount of expenses incurred will vary based on actual flight hours. The current contract with AHS will expire June 30, 2024, leaving the Air Support Unit with an immediate need for a new contract. SPD is seeking Council approval for a three-year agreement (Attachment A) with AHS, in an amount not to exceed $385,650.
DISCUSSION
Background
On November 6, 2018, Council approved motion 2018-11-06-1107 to purchase a police helicopter. One of the fixed costs identified in that request was maintenance, with routine inspections occurring after every 50 hours of flight time. These inspections may occur at either the SPD hangar in Stockton or the contractor’s facility in Woodland, CA. The location of services provided is dependent on the type of maintenance needed. Generally, major maintenance service is needed about every 100 flight hours. Parts and necessary components will be replaced as needed based upon the manufacturer’s recommendations and in consultation with the maintenance contractor, SPD pilot, and as funding permits. As part of this Agreement, the contractor will be available for emergency calls as needed.
Present Situation
SPD has used AHS since the purchase of the Helicopter and has found that it meets the department’s needs. Following discussions between SPD and the City Procurement Division, staff recommends approval of a Cooperative/Piggyback Purchase Agreement for a three-year agreement, in an amount not to exceed $385,650. This approach would enable SPD to continue to provide effective maintenance and prevent the discontinuation of airborne law enforcement.
On July 19, 2019, Council approved a five-year Professional Service Agreement with AHS, Motion 2019-07-16-1108. AHS has provided helicopter maintenance service and support to law enforcement agencies in northern California for approximately 18 years. They currently provide helicopter maintenance and regulatory compliance services for City of Sacramento, Contra Costa County, and SPD. Additionally, they perform maintenance tracking and forecasting of services for each customer. AHS is certified to provide field maintenance services on Bell Helicopters per the Federal Aviation Administration’s Operations Specifications. During maintenance inspections (every 50 flight hours), parts and necessary components of the helicopter will be replaced as needed, based upon manufacturer’s recommendation and in consultation with the SPD pilot and within the available budget. The Agreement provides emergency call-out services 24 hours per day, seven days a week, should there be an immediate problem with the helicopter while in the field.
The AHS facility is within an acceptable flight distance from the SPD hangar, and they can meet the needs for the City’s helicopter maintenance requirements. The actual number of hours flown directly depends upon available fuel and maintenance funding within the SPD’s fiscal year operating budget. Similarly, actual expenditures under this proposed Agreement will be based on actual flight hours each year and the corresponding maintenance needs.
Findings
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirements in cases wherein the City Council has made findings that support and justify the purchase via a sole source vendor. Findings to support the purchase are as follows:
1. AHS maintenance facility possesses and maintains a valid Federal Aviation Administration (FAA) approved repair station certificate, as prescribed in Tile 14, Part 145 of the Code of Federal Regulations (14 CFR 145).
2. AHS’s facility is available 24 hours a day, seven days a week, should there be an immediate problem with the helicopter while in the field.
3. The purchase of the Maintenance Service will allow SPD to continue airborne law enforcement activities.
FINANCIAL SUMMARY
The total proposed cost is $385,650 for a three-year Cooperative/Piggyback Purchase agreement with AHS. Ongoing funding for year one is included in the FY 2024-25 Police Department General Fund Air Support Equipment Repairs/Maintenance Account.
Attachment A - Advanced Helicopter Services Cooperative Piggyback Purchase Agreement