Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Award Bid to Razzari Ford for the Purchase of One (1) 2026 or Newer Ford F-150 XLT 2WD Super Crew Pickup for a Cost of $53,620.84 for the Public Works Administration Division to Replace W-1377, and to Santos Ford for the Purchase of One (1) Fully Electric Transit Cargo Van for a Cost of $57,616.35 for the Facilities Division as a New Acquisition for the New Custodian Position
REPORT IN BRIEF
Considers awarding the bid to Razzari Ford for the purchase of one (1) 2026 or newer Ford F-150 XLT 2WD Super Crew Pickup for the Public Works Administration Division for a total cost of $53,620.84, and to Santos Ford for one (1) 2026 or newer fully electric Transit Cargo Van for a cost of $57,616.35 for the Facilities Division.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding the bid to Razzari Ford for the purchase of one (1) 2026 or newer Ford F-150 XLT 2WD Super Crew Pickup for the Public Works Admin Division for a total cost of $53,620.84, and to Santos Ford for one (1) 2026 or newer fully electric Transit Cargo Van for a cost of $57,616.35 for the Facilities Division; and,
B. Authorizing the City Buyer to issue the Purchase Order(s), and approval of change orders not to exceed 10% of the total purchase price; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny; or,
3. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
4. 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 (MMC) Chapter 3.04, Article III - the purchase of materials, supplies, equipment, and contractual services of an estimated value greater than forty-one thousand dollars ($41,000.00), the "contract threshold," shall be made by the purchasing supervisor by written contract with the lowest responsible bidder.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27 Adopted Budget.
DISCUSSION
Staff prepared bid specifications for up to three (3) 2026 or newer Ford F-150 XLT 2WD Super Crew Pickups, and up to three (3) 2026 or newer Ford E-Transit Cargo Van, T-350 Medium Roof. The invitation for bids was advertised both in the Merced County Times newspaper and the City’s website. Bids were publicly opened on August 18, 2026, at 2:00 p.m., with the following results:
• Santos Ford (Los Banos, CA)
• F-150 XLT 2WD Super Crew Pickup $51,803.32 EA
• E-Transit Cargo Van, T-350 Med. Roof $57,616.35 EA
• Razzari Ford (Merced, CA)
• F-150 XLT 2WD Super Crew Pickup $53,620.84 EA
• E-Transit Cargo Van, T-350 Med. Roof $64,293.21 EA
Bids were evaluated based on the following criteria: purchase price, delivery time, warranty, and past performance.
Based on available funding, and the Purchasing Division’s direction to apply Resolution 2018-18 Local Business Preference to the individual vehicle bid; award the bid to Razzari Ford for the purchase of one (1) 2026 or newer Ford F-150 XLT 2WD Super Crew Pickup for the Public Works Administration Division for a total cost of $53,620.84, and to Santos Ford for one (1) 2026 or newer fully electric Transit Cargo Van for a cost of $57,616.35 for the Facilities Division.
The vehicle, W-1377, assigned to the Public Works Admin Division, has reached the end of its operational service life. Vehicles with high mileage and years of daily use are prone to more frequent mechanical failures, leading to unplanned downtime and escalating repair costs that often approach or exceed the vehicle’s remaining value. Continued reliance on aging units places an undue burden on Fleet Services staff, diverts maintenance resources away from other critical fleet assets, and creates unpredictable gaps in operational coverage. Replacing W-1377 with a 2026 or newer Ford F-150 XLT 2WD Super Crew pickup will ensure that the Public Works Administration Division staff have access to a dependable, modern vehicle equipped with current safety features and technology, reducing both maintenance expenses and the risk of unexpected service interruptions. Proactive replacement of end-of-life vehicles is a fiscally responsible strategy that protects the City’s long-term investment in its fleet and ensures uninterrupted delivery of public services.
The fully electric Ford E-Transit Cargo Van, T-350 Medium Roof, to be assigned to the Facilities Division, is a new acquisition and does not replace an existing asset. This vehicle is being procured to support the new Custodian position recently added to the Facilities Division. Without a dedicated vehicle, the new Custodian must rely on a vehicle that makes it difficult and inefficient to transport the equipment, supplies, and materials necessary to perform their daily responsibilities across City facilities.
The selection of a fully electric Transit Cargo Van also aligns with the City’s obligations under California Air Resources Board (CARB) mandates, which require an increasing percentage of municipal vehicle purchases to be zero-emission vehicles. Incorporating electric vehicles into the fleet now positions the City to meet these regulatory requirements while also reducing long-term fuel and maintenance costs associated with internal combustion engine vehicles.
Local Business Preference Policy
In 2018, City Council adopted the Local Business Preference Policy (See Resolution No. 2018-18). The policy allows a 5% local preference for quantitative comparisons. Based on the submitted bids, Razzari Ford was the lowest bidder for the F-150 XLT 2WD Super Cab at $50,939.80 when the 5% local preference is applied. Santos Ford was the lowest bidder for the Ford E-Transit Cargo Van at $57,616.35, with the 5% local preference applied to Razzari Ford’s bid.
IMPACT ON CITY RESOURCES
These vehicles were approved in the FY 2026/27 adopted budget under Fund 7006-Vehicle Replacement projects; no additional appropriation is needed.
ATTACHMENTS
1. Santos Ford Bid
2. Razzari Ford Bid
3. Resolution 2018-18 - Local Business Preference