Relating to aircraft owned and operated by the Department of Public Safety.

Contracts

• Termination Preparation: Review all Master Service Agreements (MSAs) with DPS. Expect termination notices under "convenience of the state" clauses prior to September 1, 2025.
• Pilot Agreements Voided: Section 2205.0331(c) legally requires pilots to be DPS employees. Any existing independent contractor agreements or staffing agency contracts for DPS pilots will be legally unenforceable on the effective date.
• Supply Chain Adjustments: The state anticipates saving $500,000 annually by eliminating vendor markups on parts. Parts suppliers must prepare for DPS to bypass third-party MROs and procure directly from OEMs or distributors.

Hiring/Training

• Workforce Retention: DPS has been funded to hire 11 Aircraft Mechanics and 2 Program Analysts. If you currently employ mechanics servicing DPS aircraft, they are prime targets for state recruitment. Review your non-compete agreements, though enforceability against state hiring is limited.
• Liability Tail: Ensure your "products-completed operations" insurance coverage extends beyond the contract termination date to cover liability for maintenance performed prior to the handover.

Reporting & Record-Keeping

• Chain of Custody: You must prepare comprehensive transfer packages for all aircraft logbooks (airframe, engine, propeller). Incomplete records will delay final invoice payments.
• Work Order Closure: All open maintenance tickets must be resolved and closed out before the effective date. The state will likely refuse payment for work extending past August 31, 2025.

Fees & Costs

• Revenue Impact: The Legislative Budget Board projects a direct loss of $2.7 million per year to the private sector in outsourced labor fees.
• Inventory Liquidation: Vendors holding consignment stock for DPS aircraft should initiate discussions to sell this inventory to the Department or liquidate it before the contract expires.