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HomeMy WebLinkAboutApprove Sole Source Justification in the amount of $130,000Dept ID PD-15-011 Pagel of 2 Meeting Date 2/1/2016 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 2/1/2016 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Robert Handy, Chief of Police SUBJECT: Approve Sole Source Justification in the amount of $130,000 with Helicomm Avionics for ongoing avionics upgrades of the Police helicopters Statement of Issue City Council approval is requested for a Sole Source Justification of using Helicomm Avionics for ongoing avionics upgrades in the Police helicopters Financial Impact The initial upgrade will be approximately $160,000 00 Funding will be provided from the Police Department FY 15/16 budget account number 10070208 Recommended Action Approve Sole Source Justification with Helicomm Avionics for ongoing avionics upgrades of the Police helicopters Alternative Action(s) Do not approve and direct staff accordingly Analysis In 2007, a company outside of Orange County was selected to perform significant work on one of our helicopters The company provided few updates, extended the completion date several times, and performed substandard work Upon return of the aircraft to Huntington Beach, several items had to be redone because of missed inspections and poor quality The process caused significant cost overruns and delays which had an impact on our ability to serve the City with air support services Several lessons were learned from the experience Extensive work should not be done at outside facilities when it can be avoided HBPD mechanics, who are FAA approved technicians, should closely supervise all maintenance performed by outside personnel When contract assistance is brought into our facility, HBPD mechanics can assist in the work which reduces the overall costs of the project and allows them to become familiar with the new equipment to avoid future outsourcing It has been our experience that the attention to detail and safety inspections of private subcontractors focus solely on their parts and not on the overall aircraft When our technicians are on site and directly supervising the work, other inspections and repairs are HB -79- Item 4. - I Dept ID PD-15-011 Page 2 of 2 Meeting Date 2/1/2016 made simultaneously, saving significant amounts of time and money in the long run Otherwise, if our technicians are not involved, disassembled parts of the helicopter are put back together without other inspections taking place With managing the upgrades bn site, the department will be in a position to,better identify any modifications, ensure_the quality of work performed, and avoid future repairs or inspections when appropriate Helicomm is being recommended for sole source approval due to their experience working on this type of upgrade' Helicomm is able to perform all of the maintenance at the HBPD heliport They are a Garmin avionics dealer allowing one layer of the purchasing process to be removed Helicomm was able to reduce their quote for the previous repairs to a different City helicopter because of our technicians' assistance Helicomm has previously done a similar upgrade to another helicopter recently and is familiar with the product and our helicopter platform which will reduce the amount of labor time Three other companies were contacted and they were not able to accommodate our requirement that the work be performed at our heliport nor would they allow our mechanics to provide oversight on the project As a result, these companies would not provide a quote The city sole source review and approval process has been completed and the documents are attached Environmental Status Not applicable Strategic Plan Goal Enhance and maintain public safety Attachment(s) 1 Sole Source Justification Item 4. - 2 xB -80- w° CITY OF HUNTINGTON BEACH DEC 02 r '5 Sole -Source Justification Finance Dep (For use on all goods and services acquisitions ) This justification document consists of two (2) pages All information must be provided and all questions must be answered The "Required Approvals" section must include a date for each signature, as appropriate for the transaction Requesting Department Information Date: November 19, 2015 Requestor Name: Sgt. Nesmith Division Manager: Capt. Bunetta (Typenames Do not si n Department: Police Department Head: Chief Handy (Typenames Do not sin Must be same as signature below Department Contact Information Contact Name: Sgt. Nesmith Street Address: 18401 Gothard Street Telephone: X-5997 Huntington Beach, CA 92648 Fax: 714 841-6747 Shipping Address: Same Cellular hone: 714 421-8626 Required Contact Information Contractor/Supplier Name: Helicomm Avionics Contractor/Supplier Address: 730 Ivy Lane Contractor/Supplier City/State/Zip: Paso Robles, Ca 93446 Original Contract Amount:" Amendment Amount:' (if applicable) New Contract Amount:' $--$160,000.00 $N/A $NIA ("Includes original contract and previously ('Includes original contract and all amendments, approved amendments) ('Current amendment only) including current amendment Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide: Provide and install avionics hardware Contract Type and Term Contract Type: Contract Term: What account number will be used to purchase? Select One ❑ Goods Begin 1-1-16 Business Unit 10070208 ❑ Service ® Goods & Services End indef Object Code 10070208 64570 Require Approvals D,,,��ppartment Head Fiscal Services Manager Di ctor of Finance Assistant ty Manager j�pprvved ❑ Denied 'I�Mppr ❑ DenieW Wpproved,❑ Denied ved ❑ Denied -Signs ure Signature Signature _ 1 -, I Date Signature Date Date - -�exceSO,000 (Transactionmust be a r HB -81- Item 4. - 3 ,e�utitkK� �4 Sole Source_ • (For use on all goods and services acquisitions Complete responses must be provided for all of the following items. A. THE GOODiSERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW: 1. Why is the acquisition restricted to this goods/services/supplier? (Explain why the acquisition cannot be competitively bid ) The Departmental helicopters were operating with antiquated avionics packages installed. As technology advanced and the responsibilities of the Air Support Unit increased a decision was made to upgrade the on -board systems so the crews could operate more effectively and safer in the air space over Huntington Beach and the contract cities. The process started with aircraft N523HB. The work on N523HB is almost completed. Helicomm Avionics was chosen to complete the upgrades due to their long experience in installing these avionics systems and their ability to perform the maintenance at the HBPD heliport. Using Helicomm Avionics for the upgrade of N522HB makes the most sense rather than using an outside company who cannot perform the maintenance at the HBPD heliport. Helicomm Avionics also has experience with the MD520N aircraft. 2. Provide the background of events leading to this acquisition. Aircraft N523HB was purchased in 2007 from MD Helicopters. it was purchased with no paint and and minimum avionics installed. The final completion was decided to be done by Jet Source, a company in San Diego county. The completion was slow and flawed. The company provided few updates and extended the completion date several times. Surprise inspections by HBPD personnel found the aircraft was not being worked on and the Department was given misleading information by the company. Eventually our aircraft was removed and returned to the heliport where HBPD mechanics completed the work. Due to lack of documentation and poor work several items had to be redone. This caused a waste of money and loss of time in bringing the aircraft into service. Several mistakes were learned from the experience. HBPD aircraft should not have extensive work done at outside facilities. HBPD mechanics should closely supervise all maintenance performed by outside personnel. HBPD mechanics can assist in the work to bring down the overall costs of the project and become more familiar with the new equipment. 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?). Helicomm was selected due to their experience in this type of upgrade. Helicomm is a Garmin avionics dealer taking one layer out of the purchasing process. Helicomm was able to perform all of the maintenance at the HBPD heliport. Helicomm reduced the quote for N523HB due to HBPD mechanics assisting in the upgrade. All hardware for the upgrade of N522HB was purchased through Helicomm's Garmin dealership. Since Helicomm has already worked on N523HB it would be most beneficial for the Department if Helicomm Avionics completed the upgrade on N522HB and future upgrades on N521HB. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier? There would be a loss of money due to all hardware already being purchased through Helicomm Avionics. HBPD personnel would lose control over the upgrade process of N522HB and N521HB. This would result in longer down times for the aricraft. HBPD mechanics would not be as familiar with the upgrades causing mote outside work to become necessary when routine maintenance is required. There is the possibility that the same circumstances would arise with N522HB and N521HB as occurred with the initial purchase of N523HB. The quality of work could not be monitored by HBPD mechanics if the upgrades were done at an outside location. Item 4. - 4 HB -82- a. What market research was conducted to substantiate no competition, including evaluation of other items considered? {Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable The names and addresses of suppliers contacted and the reasons for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not performed ) A number of avionics companies were identified as suitable installers for the upgrade to the helicopters. These were: Jet Source, Hangar One, and Air Comm. None of these companies would be able to complete the work at the HBPD heliport which is part of the requirement for the job. When speaking with these companies they were not able to accommodate HBPD mechanics assisting/supervising the work. These companies were not able to provide a quote due to not being able to meet our requirement of work being done at the HBPD Heliport with our mechanics involvement. B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the bans was for comparison and include cost analyses as applicable ) Helicomm Avionics was the only company identified that was able to complete the work as per our requirements. By completing the work at the HBPD heliport with HBPD mechanics involvemnet the project price was reduced with lower maintenance costs in the future. 2. Descrlbe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. The overall cost is reduced by the work being done at the HBPD heliport. This allows our mechanics to assist in the process lowering the labor costs as well as avoiding future costs when routine maintenace is necessary. Remit completed form to City of Huntington Beach — Purchasing Division 2000 Main Street, Huntington Beach, CA 92648-2702 HB -83- Item 4. - 5