STRATEGIC PRIORITY: Core
AGENDA DATE: March 26, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a five-year service price agreement for helicopter turbine engine overhauls, rebuilds, repairs, and associated rentals for helicopters for the Dallas Police Department - Keystone Turbine Services, LLC, lowest responsible bidder of two - Estimated amount of $9,727,460.00 - Financing: General Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service price agreement is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement.
This service price agreement will provide for helicopter turbine engine overhauls, rebuilds, repairs, and associated rentals for helicopters for the Dallas Police Department. With accumulated flight hours, each helicopter requires scheduled overhauls and rebuilds. Each engine is due a partial or complete overhaul service at 1,750 or 3,500 hours of engine usage and 2,000 or 4,000 hours. The helicopter unit flies approximately 1,550 hours a year spread over the three helicopters owned by the City. In 2023, the unit responded to 6,902 service calls and in 2024, it responded to 3,844 calls.
The helicopter unit operates 20 hours a day, 7 days a week, and has been in operation for over 55 years providing an aerial vantage in response to emergency calls. The helicopter unit responds primarily to police calls, but also assists the Dallas Fire-Rescue Department, Code Enforcement, and City Marshals. Frequently, the unit is first to respond to emergency calls and is able to provide advanced situational information to ground units also responding.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The calculated living wage during the solicitation process of this contract is $22.05; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 9, 2020, the City Council authorized a three-year cooperative purchasing agreement for helicopter turbine engine overhauls, rebuilds, repairs, and associated rentals for helicopters for the Police Department with Keystone Turbine Services through an lnterlocal Agreement with the City of Fort Worth by Resolution No. 20-1900.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$200,000.00 |
$200,000.00 |
$9,327,460.00 |
The contract amount for future years accounts for various commodities that may be needed. However, based on recent historical trends, the average annual cost has been approximately $277,000.00.
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$9,727,460.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• M/WBE goal waived due to no M/WBE availability. |
|
• Keystone Turbine Services, LLC - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BY24-00025364. We opened them on October 18, 2024. We recommend the City Council award this service price agreement in its entirety to the lowest responsive and responsible bidder.
*Denotes successful bidder
Bidders Address Amount
*Keystone Turbine Services, 885 Fox Chase Road $9,727,460.00
LLC, Suite 111
Coatesville, PA 19320
Airborne Engines Ltd 7762 Progress Way Non-responsive
Delta BC, V4G1A4, Canada
OWNER/EXECUTIVE
Keystone Turbine Services, LLC
David Mast, President