Report Prepared by: Julio C. Márquez, Purchasing Supervisor, Finance Department.
Title
SUBJECT: Award Bid by Line Item to Ferguson Enterprises LLC, PACE Supply Corp., and Core & Main LP and Approve Issuance of Purchase Orders (PO) in a Combined Amount not to Exceed $440,000 Per Year for Two Years for the Procurement of Waterworks Supplies and Allow the Purchase of Listed Items from Alternate Vendors When Awarded Vendors Cannot Fulfil Orders
REPORT IN BRIEF
Considers awarding the water works supplies’ bid by line item to Ferguson Enterprises LLC, PACE Supply Corp. and Core and Main LP in accordance with the attached price list which shows the low bidder for each item for years one and two. Allow the purchase of listed inventory items from alternate vendors when awarded vendors cannot fulfill orders. Approve the issuance of POs for the procurement of water works supplies in a not-to-exceed amount of $440,000 in combined purchases for each calendar years 2026 and 2027. The total combined amount of all POs (regardless of the vendor) will not exceed the $440,000 maximum approved amount in each calendar year. All unused POs will be set to expire by December 31, 2027.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the bid for the supply of water works supplies to Ferguson Enterprises LLC, PACE Supply Corp. and Core & Main LP; and,
B. Allowing the purchase of supplies under the same authorization from alternate vendors when none of the awarded vendors can fulfil orders; and,
C. Authorizing the Purchasing Supervisor to issue POs to each vendor for 2026 and 2027 for an amount of $440,000 provided that the combined amounts of the POs regardless of the vendor do not exceed the aforesaid total maximum approved amount.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1111-Competitive bidding, and Merced Municipal Code Chapter 3.04.050- Requisitions and 3.04.120 Written Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2025-2026 Adopted Budget.
DICUSSION
History and Past Actions
The Purchasing Division assists the Water Department with keeping an inventory of water works supplies. It is part of the overall inventory under the responsibility of the Purchasing Division’s Central Stores. The City has met its needs for water works supplies in the past two years through a Council-approved bid award. It consists, in general, of the ongoing purchase on an as-needed basis of water works supplies as listed in Exhibits A and B.
Purchasing issued a request for bids (RFB 12162025) for the procurement of water works supplies and conducted a public bid opening on December 23, 2025. Ferguson, PACE, and Core & Main submitted a response. Exhibits A and B contain the bid pricing from Ferguson, PACE and Core & Main for years 1 and 2 respectively. Pricing highlighted in green indicates the lowest bid for each item.
Purchasing staff recommends Council to award the bid to these vendors and allow the issuance of POs as needed during calendar years 2026 and 2027 with the following understanding:
Each vendor will be awarded only those line items for which it was the lowest bidder. Should the vendor had been awarded the line items for which it was the lowest bidder fail to fulfill the order timely, completely, or per bid pricing, Purchasing will order those same items from the next low bidder.
Additionally, purchasing staff requests permission to purchase from alternate vendors when awarded vendors cannot fulfil order requirements due to force majeure events. Staff will ensure that products offered by alternate suppliers are comparable in function, manufacturing quality, and cost to the products normally sourced from the awarded vendors. This permission will allow Purchasing staff flexibility to source supplies from wherever available apart from the awarded vendors during situations of major supply chain disruptions such as seen since the pandemic. This request mirrors the permissions authorized by Council on agenda item 24-920 and will only be invoked if necessary.
The table below shows the calculated yearly average spend based on purchase records for the past two years. The last two have been unusual years due to the lingering effects of record-high inflation in 2024, lingering international armed conflicts, last year’s tariffs, manufacturing challenges, and overall market uncertainty. It is expected that expenses will surpass $400,000 in 2026 and continue to climb for 2027 due to normal City growth trends and recent annexations. Thus, Purchasing requests Council to award the bid and approve the issuance of the POs as described above in order to meet current and short term needs.
|
Calendar Year |
Total/Year |
|
2024 |
$ 381,488.59 |
|
2025 |
$ 391,031.96 |
|
Yearly Average |
$ 386,260.28 |
IMPACT ON CITY RESOURCES
Purchases for the items in the pricing list are put into inventory. Items are expensed when Purchasing staff issues them to departments. Funding is available within the departments’ FY2025-26 adopted budget. Future year costs will be included in the budget process.
ATTACHMENTS
1. Exhibit A-Year 1 Pricing
2. Exhibit B-Year 2 Pricing