200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: JULY 16, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: RATIFY PURCHASE ORDER AND ACCEPT THE PROPOSAL
FOR HELICOPTER ENGINE OVERHAUL/MID-LIFE
INSPECTION AND RENTAL
ATTACHMENT (Y/N): NO ITEM # 13
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, accept the bid and ratify the purchase order with Safran Helicopter Engines USA, Inc. (Safran), in the amount of $810,197, plus applicable tax for the 3,600 hour helicopter engine overhaul/mid-life inspection and engine rental for the Police Air Support Division; and authorize the Purchasing Agent or their designee, to execute documents as necessary related to the purchase order, and exercise any necessary change order required to complete the engine overhaul, subject to available budget appropriations, all in accordance with RFP #9778.
DISCUSSION:
Purchasing solicited proposals from known providers and posted the bid on the City’s bid portal. Sealed proposals were received by 2:00 pm, April 9, 2024, from the following vendors and were publicly opened immediately thereafter.
Firm Rank
Safran Helicopter Engines USA, Inc. 1
Grand Prairie, Texas
Standard Aero Limited 2
Richmond, British Columbia, Canada
The City operates an Airbus AS350 B2 helicopter fitted with an Arriel 1D1 engine which has reached 3,600 hours of flight time. In order to remain in compliance with manufacturer’s specifications, which mandate that helicopter engines must be overhauled after a specific number of flight hours have been reached, the City is required to have a 3,600-hour engine overhaul/mid-life inspection. Proposers were asked to provide pricing based on the overhaul/mid-life inspection of various engine modules and fuel control unit overhaul all in accordance with the manufacturer’s standard guidelines.
Ratify Purchase Order and Accept the Proposal for Helicopter Engine Overhaul/Mid-Life Inspection and Rental July 16, 2024
The cost for a rental engine and fuel control unit was also included to allow the City to continue operating the aircraft during the overhaul period. The City received two proposals from qualified servicers, Safran and Standard Aero Limited in the respective amounts of $810,197 and $971,703.
For purposes of continuity of service and to mitigate the likelihood of service interruption staff issued a purchase order to Safran, the engine manufacturer, their overall bid has the lowest cost, and they scored the highest in the evaluation. Factors considered during the evaluation were the proposer’s qualifications, experience, references, available resources to perform work, turn-around time, completeness of response, compliance with the RFP requirements and cost. Because of the unique nature of engine overhauls, and the many unforeseeable variables associated with this type of service, it is common that upon teardown, additional repairs will be required. The awarded vendor will only bill the parts and labor hours that are actually required to complete the overhaul related repairs. The actual cost, whether higher or lower, will not be known until the engine is disassembled and inspected. All engine overhaul work will be monitored and approved by the Police Department, Air Support Bureau.
IMPACT ON BUDGET:
Sufficient funds are available in the Police Department’s Narcotic Asset Forfeiture Fund budget.
Respectfully submitted, Concurred by,
John Vasquez Rick P. Armendariz
Acting Purchasing Agent Chief of Police