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Agenda 09/22/2020 Item #16E 4 (Airbus Helicopters, Inc. as sole source vendor)09/22/2020 16. E.4 EXECUTIVE SUMMARY Recommendation to authorize expenditures from Airbus Helicopters, Inc. ("Airbus"), as a sole source vendor for the purchase of equipment parts, repairs, and services for the County's air ambulance helicopters, in an amount not to exceed $210,000 annually. OBJECTIVE: To provide for the safe and effective operation of the of the County's Air Ambulance service. CONSIDERATIONS: The Federal Aviation Administration ("FAA") Type Certification Requirement states that parts for helicopters must come from a factory authorized provider. Airbus is the manufacturer of the County's air ambulance helicopters and is the only approved sales representative in the United States for Airbus parts. Airbus is extending the County a discount on all parts. (see Back-up attached for current price discount) Parts and service will be procured using County -issued purchase orders. The proposed sole source purchase of goods and services from Airbus is expected to exceed the $50,000 per fiscal year competitive threshold required for formal solicitations by Collier County Purchasing Ordinance No. 2013-69, as amended (the "Ordinance"). Section Eleven, subsection 10, and Section Nineteen, subsection 6, of the Ordinance, authorizes the Board to waive the competitive process and approve sole source providers for purchases above the $50,000 formal competitive threshold. Staff requests authorization to make these purchases from Airbus Helicopters, Inc., as a sole source vendor for parts, repairs and services for FY 2021 thru FY 2025. FISCAL IMPACT: Funds for the Helicopter service requirements are budgeted annually in the Helicopter Operations Fund 490 operating budget. Total expenditures under this sole source agreement are not to exceed $210,000 annually. GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts associated with this action. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: To authorize sole source purchases for the County's air ambulance helicopters equipment parts, repairs and services from Airbus Helicopters, Inc., for the period FY 2021 thru FY 2025 and allow staff to make these purchases by issuing a standard Collier County Purchase Order. Prepared by: Erin Page, Supervisor Accounting, Emergency Medical Services ATTACHMENT(S) 1. FY20 Waiver Request 093 - Airbus Helicopters (PDF) 2. Airbus Discounts (PDF) Packet Pg. 1692 16. E.4 09/22/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.4 Doe ID: 13358 Item Summary: Recommendation to authorize expenditures from Airbus Helicopters, Inc. ("Airbus"), as a sole source vendor for the purchase of equipment parts, repairs, and services for the County's air ambulance helicopters, in an amount not to exceed $210,000 annually. Meeting Date: 09/22/2020 Prepared by: Title: Accounting Technician — Emergency Medical Services Name: Erin Page 08/24/2020 11:01 AM Submitted by: Title: Division Director - EMS Operations — Emergency Medical Services Name: Tabatha Butcher 08/24/2020 11:01 AM Approved By: Review: Procurement Services Procurement Services Administrative Services Department Emergency Medical Services Procurement Services Procurement Services Administrative Services Department County Attorney's Office Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners Opal Vann Level 1 Purchasing Gatekeeper Sandra Herrera Additional Reviewer Paula Brethauer Level 1 Department Reviewer Tabatha Butcher Additional Reviewer Sara Schneeberger Additional Reviewer Catherine Bigelow Additional Reviewer Len Price Level 2 Department Head Review Scott Teach Level 2 Attorney Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Laura Wells Additional Reviewer Sean Callahan Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 08/24/2020 1:27 PM Completed 08/24/2020 1:59 PM Completed 08/24/2020 2:46 PM Completed 08/25/2020 10:38 AM Completed 09/02/2020 8:47 AM Completed 09/02/2020 8:48 AM Completed 09/08/2020 3:27 PM Completed 09/09/2020 10:49 AM Completed 09/09/2020 11:26 AM Completed 09/09/2020 12:47 PM Completed 09/09/2020 2:56 PM Completed 09/14/2020 2:39 PM 09/22/2020 9:00 AM Packet Pg. 1693 16.E.4.a CnJer County Collier County Administrative Services Department Pr"urement SeNlces Division Instructions Waiver Request Form Completed waiver requests accompanied by any associated backup documentation (sole source letter, business case, etc.) must bt submitted to the division's Procurement Strategist for any procurement, without competition, in excess of $3,000. Waiver request. greater than $50,000 will require approval by the Board of County Commissioners. Sole source refers to a procurement where the selection of one particular supplier to the exclusion of all others may be based on havinc only one supplier in the market place, proprietary technology, copyright, patent, or a supplier's unique capability. Single source refers to a procurement directed to one source because of standardization, warranty, geographic territory, or other factors even though other competitive sources may be available. Requester Name: Steve Adams Division: EMS/Helicopter Operations Item/Service: Parts and service for EC135/H135 Helicopters Vendor Name: Airbus Helicopters Historical Is there an agreement associated with this Countywide $200 000 Requested 10/1/20 to 09/30/25 Not Fiscal Exceed $21 0, 000 waiver to be reviewed by Contracts? Spend: date range: per Fiscal Year: ❑✓ No ❑ Yes ❑✓ Sole Source ❑ Single Source ❑ One Time Purchase ❑✓ Multiple Purchases Description of Purchase: Enter a description of the item(s) that will be purchased under this waiver. Parts and service related to the general maintenance of the County's Airbus helicopters. Purpose: Describe in detail, the public purpose of the requested item(s) and why it is essential to County operations. It is essential to maintain the helicopters IAW Helicopter Operation's Maintenance procedures, Federal Aviation Administration regulations, and manufacturer's maintenance schedule for the safe operation of the aircraft and its occupants. The medical helicopters support EMS in its role to transport sick/injured residents and visitors of Collier County in a timely manner to the best care facilities available. Information Technology: Select Yes if the products/services are related to Information Technology. If yes, please provide the Purchasinc Compliance Code (PCC) number or email approval documentation. ❑ Yes ❑✓ No If yes, provide the PCC number: Packet Pg. 1694 16.E.4.a Justification: Identify the criteria that qualifies this purchase as a sole or single source. Select from the list below. Check all that apply (if box is checked, please make sure to provide an explanation below): ❑✓ Sole Source 0 Only Authorized Vendor or Distributor: Is this vendor the only vendor authorized to sell this product/service? If yes, explain below and provide documentation from the manufacturer confirming claims made by the distributors. ❑ No Comparable Product or Service: Is there another vendor who can provide a similar product/service, regardless of cost, convenience, timeliness, etc.? ❑✓ Product Compatibility: Does this product/service provide compatibility with existing equipment that prohibits switching to another comparable brand/vendor? If yes, provide the detailed explanation below, including what would occur if the other brand/vendor were used. ✓❑ Proprietary: Is this product/service proprietary? If yes, provide a detailed explanation below on how its use is restricted by patent, copyright or other applicable laws and provide documentation validating that claim. ❑ Single Source ❑ Standardization: Is this product/service part of a purchase that the County has already standardized on? If yes, please provide the detailed information below. Date of BCC Standardization: BCC Agenda Item number: ❑ Warranty: Is this the only vendor able to complete factory -authorized warranty services on County owned equipment? If yes, provide the documentation verifying the warranty. ❑ Geographic Territory: Is this vendor the only vendor authorized to sell this product/service in our region? If yes, provide documentation from the manufacturer confirming those claims. ❑ Other Factors: Any other reason not listed above, explain below. Explain: How does this purchase meet the identified sole or single source criteria listed above? All parts and service related to the maintenance of the helicopters are governed by applicable Federal Aviation Administration regulations which mandates parts/service items must be approved by the FAA for the individual OEM. No unauthorized parts or service may be applied to the aircraft outside of the provided service manuals provided by the OEM and approved by the FAA. Packet Pg. 1695 1 16.E.4.a How was the decision made to use this vendor? Describe in detail if a formal standardization process was performed via Procurement or if there is a historical precedence established for the use of the product, please explain purchase and use history and the current level of County investment in the product. Collier County used competitive bids >20 years ago as well as recently to choose the type of helicopterE deployed in the County. Collier County Helicopter Operations has purchased parts and service from Airbus since the original purchase of an AS350 helicopter and then 20 years ago the purchase of this EC135T1 helicopter. The services (parts and maintenance support) has been outstanding over these years. They support their aircraft to the letter. Explain why it is in the County's best interest to use this product/service rather than issuing a competitive solicitation: What are the benefits from the continued use? Are there costs that would be incurred if a different vendor/product was used? What would occur if another brand/vendor was used? Parts and services related to this EC135T1 helicopter can only come from the OEM. This was explained on the bottom of page 2 above. Federal Aviation Administration regulations govern all maintenance performed on the County owned helicopter. This means that parts cannot be purchased from any other vendor other than approved through the use of STC (Supplemental Type Certificate) CFR Parts 27/49. What would occur if the County used unapproved parts would be a violation of Federal regulations which could result in either a sizable fine, jail time for the County's mechanics, or in the case of unapproved parts failing in flight a fatal accident. Explain how this pricing compares to other vendors/products and is it considered to be fair and reasonable: Provide information on historical use and whether pricing has increased/decreased. If sole source and no other product is available, provide the cost for addressing the needs via an alternate approach. Due to the fact the County can ONLY use approved parts this block does not apply. The cost would be to change helicopter manufacturer. Will this purchase obligate the County to future ancillary products or services? Either in terms of maintenance or standardization. ❑ Yes ❑✓ No If yes, explain what types: Packet Pg. 1696 1 16.E.4.a Market research and market alternatives: When was the last time a market evaluation was performed to determine if either the technology or vendor offerings have changed? Based on the life expectancy of the product, when do you anticipate evaluating the market again? Please attach a detailed market evaluation report should the complexity, duration, and dollar amount of the purchase be a high ris/ to the County. 2015-2019 during the process of choosing the next medical configured helicopter for Collier County. The Director of Maintenance is continuously following the Federal Aviation Administration regulations to ensure compliance and safety of the helicopter operations. It is a felony to knowingly and intentionally circumvent a competitive process for commodities or services by fraudulently specifying sole source to obtain a benefit for any person or to cause unlawful harm to another. Florida Statute 838.22(2). Requested by: Steve Adams Digitally signed by Signature: AdamsSteven Adamssteven Date: 2020.05.11 10, 09,22 -04'00' Date: Division Director: Tabatha Butcher Digitally signed by Signature: ButcherTabatha ButcherTabatha Date: 2020.07.21 09:26:16 -04'00' Date: Department Head- Sandra Herrera on behalf of Len Price Required if over $50,000 Signature: Sandra Herrera DDatt'ea'2020.08.06y140825H04`0o Date: Procurement Strategist: Sara d by SchneebergerS Digitally rgeSar Signature: S4'00' er erSara Signature: ara Date: 2020.08.1813:28:36 -oa�oo� Date: Procurement Director:Catherine Bigelow 1l R Digitally signed by Cal Bigelow Cat BI eIOW DNcn=Cal Bigelowo-Collier County Signature: G... rbent.nu-Pr-r-ntBe,�inee. Date: Or designeeoa�el1=o 9 a;eloe:za�o°oaao.�.net.o=DB For Procurement Use Only: ❑✓ Approved ❑ Requesting Additional Information ❑ Requires RFI/Intent to Sole Source ❑ Rejected Procurement Comments: ElCurrent FY _ Approval ❑✓ Multi -Year Approval Start Date: 10/01 /2020 End Date: 09/30/2025 Packet Pg. 1697 16.E.4.b AIRBUSHELICOPTERS 03 June 2019 Dear Valued Customer, Airbus continues to improve support for our customers while increasing efficiencies in our daily operations by incentivising improved order planning. These changes afford opportunities for increased discounts based on Spare Parts order volume and ordering behavior. We're committed to keeping all our customers advised of any changes to our discount structure. Effective July 1, 2019 the following Spare Parts ECom-Keycopter discount will change from 2% to 1%. All other conditions remain the same. AOG Orders • AOG Orders will not receive discounts (Except where upgraded by AHI) Spare Parts Ordering Incentives • 1 % ECOM — KeycopterB2B order placement • 5% for planned orders (> 15 days) Tiered Volume Incentive Discount to Trade Account • 2% for Volume for greater than $0.5M to $1M Annual • 4% for Volume for greater than $1.0M to $2.5M Annual • 6% for Volume for greater than $2.5M to $5.5M Annual • 8% for Volume for greater than $5.5M Annual Be assured we continuously strive to provide the best possible support & services in the industry. If you have any specific questions regarding the content of this letter, please do not hesitate to contact me. I would like to take this opportunity to thank you for your business. Sincerely, Mike Muniz Director Customer Support Airbus Helicopters, Inc. Phone: (972) 641-3611 Mobile: (214)616-5163 E-mail: mike.muniz@airbus.com Airbus Helicopters, Inc. 2701 N. Forum Drive Grand Prairia TX 75052 7099 USA www airbushelicoptersinc.com Packet Pg. 1698