Title
Safran Helicopter Engines USA, Inc. Aircraft Parts and Services - RFA 18-138 (Ordinance S-45920)
Description
Request to authorize the City Manager, or his designee, to proceed with a contract for aircraft parts and services for the Police Department's Air Support Unit’s helicopters and to waive, or make an exception to, Phoenix City Code, section 42-18 (Chapter 42 Risk Management, Contract provisions; indemnification prohibition). Further request authorization for the City Controller to disburse all funds related to this item. The aggregate value of this contract over the initial five-year term will not exceed $4,000,000.
Report
Summary
The Police Department, Air Support Unit, helicopters are critical to support patrol officers, provide crime suppression and conduct mountain rescue services. The Federal Aviation Administration (FAA) mandates that routine maintenance and overhauls are performed to ensure the safe operation of the aircraft fleet. The Airbus helicopter N353FB needs repair / overhaul on the hydro mechanical unit (HMU) because the component has reached its operating limits. Once an aircraft component reaches its service life limit or time between overhauls, the aircraft is restricted from flying until the appropriate maintenance is accomplished. Therefore, repairs must be completed in a timely manner.
Safran Helicopter Engines USA, Inc. (Safran) is the only FAA authorized repairer for the City’s HMU and other helicopter parts. Safran will not deviate from its standard terms and conditions, which includes a limitation of liability clause to the cost of repair(s), the City indemnifying Safran from any and all claims related to the City’s property, and no additional named insured on Safran’s policy. They request the City’s insurance cover Safran. Additionally, Safran’s contract will contain clauses with the venue in Texas, request for arbitration for disputes, and other changes from the City’s standard terms and conditions that the City agrees to for this special circumstance.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived for a Special Circumstance Without Competition Determination Memo based on Safran as the aircraft parts, maintenance and repair provider for the Police Department helicopters. The memo was completed and approved by the Deputy Finance Director recommending acceptance of the contract with Safran.
Contract Term
The contract term will begin on or about July 10, 2019 and end on or about July 9, 2024, with the option to extend up to five years, in one year increments.
Financial Impact
Expenditures against this contract shall not exceed $4,000,000. Funds are available in the Police Department's budget.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Police Department.