Title
[Contract Supplement]: Original Equipment Manufacturer (OEM) Parts and Repair Services [Two-Thirds Vote Required] [Published for 10-day Review on xx/xx/2026]
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FileID
File ID: 2026-01737
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion with two-thirds vote authorizing the City Manager or designee to: 1) suspend competitive bidding in the best interest of the City for Contract 2023-1704, Supplement No. 4 and Contract 2023-1443, Supplement No. 4 for original equipment manufacturer parts and repair services; and 2) execute the three following contract supplements:
• Owen Equipment Sales (Contract 2023-1704, Supplement No. 4): Increase contract amount by $1,250,001, for a revised total contract not-to-exceed amount of $1,500,000.
• Braun Northwest, Inc (Contract 2023-1443, Supplement No. 4): Increase contract amount by $370,000, for a revised contract not-to-exceed amount of $550,000.
• Golden State Emergency Vehicle Service, Inc (Contract 2022-0895, Supplement No. 8): Increase contract amount by $300,000, for a revised contract not-to-exceed total of $750,000.
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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-Owen Equipment Contract 2023-1704-04
3-Braun Northwest Contract 2023-1443-04
4-Golden State Emergency Vehicle Service, Inc Contract 2022-0895-07
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Description/Analysis
IssueDetail
Issue Detail: The City’s Fleet Division relies on specialized Original Equipment Manufacturer (OEM) parts and repair services to maintain critical vehicles and equipment used in Public Works and emergency response. Competitive bidding is typically required for City contracts; however, OEM parts and services are often only available from authorized vendors, making competitive bidding impractical and potentially delaying essential repairs.
Authorized vendors are typically sole sourced due to availability and specialty. Two of these three contracts fell under that category and the initial authority granted to the City Manager with use of a Sole Source Justification was deemed to be sufficient during the span of the contract term (five years) for the two contracts. For the third contract, the City Council has previously suspended competitive bidding. Unfortunately, due to aging equipment as well as higher equipment usage, the needs of each of these vendors have changed and additional authority is required to ensure continuity of operations and timely maintenance. Because the contract amounts for two of the contracts exceeds the limits allowed with a Sole Source Justification under City Manager authority, City Council must approve the suspension of competitive bidding to award contract supplements for contract 2023-1704 and contract 2023-1443. Council suspended competitive bidding for Contract 2022-0895 on September 6, 2022.
Staff recommend that the City Council approve the three contract supplements and suspend competitive bidding pursuant to City Code Section 3.56.230, City Code Section 3.56.120.B for the contract supplements for contract 2023-1704 and contract 2023-1443:
• Owen Equipment (Contract 2023-1704, Supplement No. 4) for Vactor OEM parts and repair services. This supplement increases the contract amount by $1,250,001, resulting in a revised contract not-to-exceed amount of $1,500,000.
• Braun Northwest (Contract 2023-1443, Supplement No. 4) for Braun OEM parts and repair services. This supplement increases the contract amount by $370,000, for a revised contract not-to-exceed amount of $550,000.
• Golden State Emergency Vehicle Service, Inc (Contract 2022-0895, Supplement No. 8) for Pierce and Skeeter OEM parts and repair services. This supplement increases the contract amount by $300,000, for a revised contract not-to-exceed total of $750,000.
Suspending competitive bidding for the two supplements will allow the City Manager or designee to execute agreements with the sole authorized vendors, ensuring the City’s fleet remains operational and responsive to service needs. The revised contract amounts reflect increased demand for OEM parts and services due to aging fleet assets and expanded operational requirements.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with
City Code as follows:
Contract Authority Limits: Section 3.04.020 and Section 15.A of the Non-Professional Services Policy, contract amendments that result in a cumulative agreement total of $250,000 or more exceed administrative approval authority and require City Council approval. Execution of Amendment No. increases the total contract value from $249,000 to $1,000,000, necessitating council authorization.
Suspension of Competitive Bidding: (2/3 Vote Requirement) Under City Code Section 3.56.230., City Code Section 3.56.120.B, and Section 3.2.D.3 of the Non-Professional Services Policy, competitive solicitation is required for non-professional services contracts of $250,000 or more unless suspended by a two-thirds (2/3) vote of the City Council upon finding that an alternative procurement method is in the City’s best interest. A sole-source award was previously justified for two of the contracts under the original authority of $249,999 and is warranted to go beyond due to lack of availability of original manufacturer parts and repair services. These services are necessary for continuity of operations and regularity maintenance.
Public Notification: Sacramento City Code Section 4.04.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, require a 10-day posting period for labor agreements and all agreements greater than $1 million. This item was published for 10-day review 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 (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of parts and services and are 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: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: These contracts cover Original Equipment Manufacturer (OEM) parts and repair services for the City’s fleet. Maintaining access to qualified vendors is essential because City fleet shops have limited staffing and resources, as well as insufficient proprietary tools and infrastructure for certain repairs.
Owen Equipment Contract 2023-1704 was initiated February 1, 2024, through approval of a sole source justification (SSJ96893) for an initial contract not-to-exceed amount of $50,000 to provide Vactor OEM parts and repair services. Spending increased 45% in FY26 and the trend continues, due to age of equipment and general pricing increases in the industry requires the need to increase the contract to accommodate.
Braun Northwest Contract 2023-1443 was initiated October 2, 2023 through approval of a sole source justification (SSJ95705) for an initial contract not-to-exceed amount of $90,000 to provide Bruan OEM parts and repair services. Spending increased over the past fiscal year and is on trend to stay the same resulting in the need for increased compensation to cover the remaining term of the contract.
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Golden State Emergency Vehicle Service, Inc Contract 2022-0895 was initiated September 13, 2022 including City Council suspension of competitive bidding, (SSJ87596) for an initial contract not-to-exceed amount of $450,000 to provide Pierce and Skeeter OEM parts and repair services. Heading into this last year of the agreement, the contract has expended 50% but forecasts of current needs for higher priced parts and repair result in a request to increase the contract to cover the remaining term.
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FinancialConsiderations
Financial Considerations: Sufficient funding exists in the Department of Public Works fiscal year 2026/27 operating budget (Fleet Fund, Fund 6501) through June 30, 2027. Purchase of services made after June 30, 2027, are subject to funding availability in the adopted budget of the applicable fiscal year.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Owen Equipment and Braun are not LBE, this is waived per City Code Chapter 3.64. Golden State Fire is an LBE.
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