City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00505 3/3/2026
[Supplemental Contract] Ford OEM Parts and Repairs - Increase Not-to-Exceed [Published for 10-Day Review 02/19/2026]
File ID: 2026-00505
Location: Citywide
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.
Contact: Stacey Chatman, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Contract No. 2
Description/Analysis
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.
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.
File ID: 2026-00505 3/3/2026
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.
Economic Impacts: None.
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.
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.
Commission/Committee Action: None.
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.
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.
Local Business Enterprise (LBE): Future Ford of Sacramento is an LBE vendor.
02for initial contract2026- for Supplement 2
CONTRACT AMENDMENTCHANGE IN SCOPE AND NOT-TO-EXCEED AMOUNT Contract Amendment, change in scope and NTE amount - Approved by CAO 10-10-2025 Contract Name: Original Equipment Manufacturer (OEM) Parts & Repairs Contract Number: 2024-0929 Contract Amendment No.: 02 The City of Sacramento (City) and SUBURBAN MOTORS dba FUTURE FORD OF SACRAMENTO (Contractor), as parties to that certain contract designated as Contract Number 2024-0929 , including any and all prior amendments modifying the contract (the contract and all amendments are hereafter collectively referred to as the Contract), hereby amend the Contract as follows: 1. The scope set forth in Exhibit A of the Contract is amended as follows: Paragraph 4, Time of Performance, is hereby amended to extend time of performance through June 25, 2029. 2. The maximum not-to-exceed amount that is specified in the Contract for payment of Contractors fees and expenses is increased by $4,800,000.00, and the maximum not-to-exceed amount is amended as follows: original not-to-exceed amount: $1,200,000.00 Net change by previous amendments: $ 0.00 Not-to-exceed amount prior to this amendment: $1,200,000.00 Increase by this amendment: $4,800,000.00 New not-to exceed amount including all amendments: $6,000,000.00 3. Contractor agrees that the amount specified in section 2 above shall fully compensate Contractor under the Contract, as modified by this amendment, including any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, and costs associated with any changes and/or delays in schedules or in the delivery of other services by Contractor. 4. Contractor warrants and represents that the person or persons executing this contract amendment on behalf of Contractor is duly authorized by Contractor to sign this amendment and bind Contractor to the terms hereof. 5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform as required under the Contract, as modified by this amendment. [SIGNATURES ON FOLLOWING PAGE] GOODS and NPSA Signature Page – Approved by CAO 11-1-2019 Executed as of the day and year first above stated.CITY OF SACRAMENTOA Municipal CorporationBy: _____Print name: Ryan MooreTitle: Assistant City ManagerFor:, City Manager ATTEST: ______City ClerkAPPROVED AS TO FORM:______City Attorney AttachmentsExhibit A Technical SpecificationsExhibit B PaymentExhibit C Insurance Exhibit D General Conditions GOODS and NPSA Signature Page – Approved by CAO 11-1-2019 CONTRACTOR:______________________________________NAME OF FIRM______________________________________Federal I.D. No.______________________________________ State I.D. No.______________________________________City of Sacramento Business Op. Tax Cert. No.TYPE OF BUSINESS ENTITY (check one): _____ Individual/Sole Proprietor_____ Partnership_____ Corporation (may require 2 signatures)_____ Limited Liability Company_____ Other (please specify: ______________)______________________________________ Signature of Authorized Person______________________________________ Print Name and Title______________________________________ Additional Signature (if required)______________________________________ Print Name and Title