Title
[Supplemental Contract] Ford OEM Parts and Repairs - Increase Not-to-Exceed [Published for 10-Day Review 02/19/2026]
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FileID
File ID: 2026-00505
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Supplemental Contract No. 2 to Contract No. 2024-0929 with Suburban Motors dba Future Ford of Sacramento increasing the contract amount by $4,800,000, for a revised contract not-to-exceed amount of $6,000,000 and extending the time of performance through June 25, 2029.
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Contact
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, schatman@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Supplemental Contract No. 2
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Description/Analysis
IssueDetail
Issue Detail: The Fleet Management Division of the Department of Public Works oversees purchasing, maintenance, and repair services for all City fleet assets. To maintain warranties and ensure safety and reliability, the City uses authorized service centers and Original Equipment Manufacturer (OEM) parts. Future Ford, the current Ford vendor, provides these services (based on the award of the City’s solicitation B24153311009). Because the City has standardized on the Ford brand for efficiency, Ford vehicles now make up 45% of the fleet. To keep parts and services available and accommodate the growing number of Ford vehicles, the contract must be increased to cover the remaining term of the agreement, June 25, 2029.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.090, which requires City Council approval for contracts with expenditures exceeding $250,000.
Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7 Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least 10 days prior to City Council action. This item was published for 10-day review on February 19, 2026, in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act Guidelines: No environmental review is necessary because the recommendations in this report involve the purchase of services and is not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
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Sustainability
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478) and California Air Resource Board (CARB) regulations.
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Commission/CommitteeAction
Commission/Committee Action: None.
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RationalforRecommendation
Rationale for Recommendation: On March 26, 2024, Fleet Management posted solicitation B24153311009 in search of contracting with OEM Ford providers. An RFP was utilized, rather than a competitive bid process, as it was in the City’s best interest to consider capacity, performance, and timeliness of service in addition to price. Three submittals were received, two deemed responsive. Given the number of Ford assets, both bidders were awarded a contract at the June 25, 2024 City Council meeting with Motion 2024-0202. The City Council suspended competitive bidding as being in the best interest of the City. Future Ford is the most responsive and efficient when vehicles are sent out for service so this contract has been expended at a higher rate than anticipated and needs to be increased to ensure continuation of services. Staff is requesting that City Council vest the City Manager or designee with the power to effectuate the increase not-to-exceed amount identified.
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FinancialConsiderations
Financial Considerations: Purchases made under this contract will be made from the Department of Public Works Fiscal Year (FY) 2025/26 operating budget (Fleet Fund, Fund 6501) and will be charged to the using Department upon purchase. Sufficient funding exists in the Department’s FY2025/26 operating budget to support the recommended purchase.
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LocalBusinessEnterprise(LBE)
Local Business Enterprise (LBE): Future Ford of Sacramento is an LBE vendor.
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