Loading...
HomeMy WebLinkAboutApprove Sole Source Justification with Helimart, Inc for ongDept ID PD-15-012 Page 1 of 2 Meeting Date 2/1/2016 440�bl/4�6 4 -o 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 with Helimart, Inc for ongoing purchase of parts for the Police helicopters Statement of Issue ' City Council approval is requested for a Sole Source Justification of using Helimart, Inc for ongoing purchase of parts for the Police helicopters Financial Impact The purchases would be ongoing and dependent on maintenance requirements for each FY The funds are budgeted in account number 10070208 The initial FY 15/16 budget amount designated for this account was $250,000 00 Recommended Action Approve Sole Source Justification of using Helimart, Inc for ongoing purchase of parts for the Police helicopters Alternative Action(s) Do not approve and direct staff accordingly Analysis The HBPD Air Support Unit has used Helimart Inc, as its primary parts supplier for over 20 years Helimart is an MD Helicopter certified parts supplier and they offer the HBPD a 10% discount from the MD suggested prices Helimart is located in Costa Mesa and provides free shipping and same day service on in stock parts Helimart has the largest inventory of MD parts in the nation, which helps reduce time aircraft are out of service due to unavailability of parts Repair parts are required on a regular basis Helimart is the most convenient source of equipment and there is a cost savings due to their close proximity to Huntington Beach There are other parts suppliers, however, none are located within Orange County The next closest MD parts suppliers are Ro-Wing Aviation located in Camarillo, CA and Sea Side Helicopters in Oceanside, Ca Their pricing is the same as Helimart but both of their inventories are much smaller, requiring waiting time for parts Neither company can provide same day free pickup and delivery Using a different supplier would increase shaping costs and cause aircraft to be out of service for extended periods of time Under some circumstances, the mechanics would have to drive to these counties to retrieve parts instead of using a local supplier These issues would be avoided by continuing to use Helimart as the vendor for helicopter parts Item 5. - 1 HB -84- Dept ID PD-15-012 Page 2 of 2 Meeting Date 2/1/2016 The department is requesting authorization to use Helimart, Inc for ongoing purchases of parts for the police helicopters 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 HB -85- Item 5. - 2 RECE1= ° , rN lkk CITY OF i savy'` Sole -Source Justification (For use on all goods and services acquisitions DEC 0 2 Finance De.:, 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 30, 2015 Requestor Name: Sgt. Nesmith Division Manager: Capt. Bunetta (Type names Do not sign Department: Police Department Head: Chief Handy (Typenames Do not sin Must be same as signature below - Department Contact Information - r 1 , - x , Contact Name: Sgt. Nesmith Street Address: 18401 Gothard St. Huntington Beach, Ca 92648 Telephone: X-5997 Fax: 714 841-6747 Shipping Address: 18401 Gothard St. Huntington Beach, Ca 92648 Cellular hone: Required Contact Information Contractor/Supplier Name: Helimart Inc. Contractor/Supplier Address: 3184 airway Ave. Unit E Contractor/Supplier City/State/Zip: Costa Mesa CA 92626 Original Contract Amount:* c'..svc_r—, Amendment Amount:* (if applicable) New Contract Amount:* $ContinualI6 ()0� c���r 3 $NJA $NIA (Includes original contract and previously e,� (*Includes original contract and all amendments, approved amendments) . _i- < Y :. - x 'Current amendment only) including current amendment Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide: Miscellaneous helicopter parts 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 Indefinite Object Code 10070208 64570 Require Approvals - D partment Head Fiscal Services Manage Director of Finance As i Aant City Manager O-Approved ❑ Denied [ Ap ❑ Dent 4J,;0proved ❑ Denied ved ❑ Denied Signaturre^ / Signature Signature Date Date Date Date - (Transactions exceedin g TO must be approved b City Coun Item 5. - 3 HB -86- CITY OF • JustificationSole Source r, use on all goods(For Complete responses must be provided for all of the following items. A. THE GOODISERVICE REQUESTED 1S RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW: 1. Why is the acquisition restricted to this goodslservices/supplier? (Explain why the acquisition cannot be competitively bid ) The HBPD Air Support Unit has used Helimart as its primary parts supplier for over 20 years. Helimart is an MD Helicopter parts supplier. MD suggests prices for their suppliers and Helimart gives the HBPD a 10% discount from the MD suggested prices. Helimart is located In Costa Mesa and they provide free shipping and same day service on in stock parts. Helimart has the largest inventory of MD parts in the nation which prevents aircraft from being down due to parts. 2. Provide the background of events leading to this acquisition. Helimart is the primary source for parts for city owned aircraft. Parts are required on a regular basis. Helimart provides free shipping and same day service. Helimart is the most convenient source of parts and there is a cost savings due to their close proximity saving on shipping costs. 3. Describe the uniqueness of the acquisition (why was the goodiservicelsupplier chosen?). Helimart was chosen due to it being an MD Helicopters authorized parts supplier and its close proximity to the HBPD Heliport. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed -j supplier? If another MD parts supplier is chosen the shipping costs of parts will go up dramatically. The flight time of the helicopters will be reduced due to having to wait on shipping time from suppliers who are not local. S. 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 goodstservices, 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 ) The next closest MD parts suppliers are Ro-Wing Aviation located in Camarillo, CA and Sea Side Helicopters in Oceanside, Ca. The pricing for parts is the same as Helimart but both of their inventories are much smaller requiring waiting time for parts to be in stock. Neither company can provide same day free pick up and delivery provided by Helimart. The cost of shipping parts from either of these two supplers would be substantial. HB -87- Item 5. - 4 B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable ) The prices charged by Helimart are the same as the next closest competitors. 2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. The HBPD does a great deal of business with Helimart. If another suppler is used shipping costs would .f cause a great strain to the budget. Maintenance would also be slowed due to waiting on parts from other parts of the country. Remit completed form to City of Huntington Beach — Purchasing Division 2000 Main Street, Huntington Beach, CA 92648-2702 Item 5. - 5 HB -88-