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  4. ›Agriculture
  5. ›RFP for Hay Brokerage Services

City of Merced·California

RFP for Hay Brokerage Services

Closes 8/4/2026$20k – $50kRequest for Proposal
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Description

The City of Merced seeks a qualified broker to market, sell, and manage the proceeds from hay (and silage) grown on its Land Application Area. The broker will retain a percentage‑based brokerage fee from each ton sold and remit the net proceeds to the City. Proposals must be submitted in paper form by the deadline, and the contractor must maintain $1 M liability insurance and comply with California labor and conflict‑of‑interest rules. The contract runs until May 1 2029 with possible one‑year extensions. • Scope limited to hay brokerage only – harvesting, baling, or field operations are excluded (per Addendum 1). • Compensation is performance‑based: broker’s fee is a % of fair‑market value per ton of hay/silage sold. • Contractor must deliver harvested hay to market within 10 business days of harvest and remit payment to the City within 30 days of each sale. • Required insurance: $1 M general liability, workers’ comp, and related coverages; no upfront payments. • Mandatory paper‑only sealed proposals; questions due by August 1 2026; site inspection can be arranged via phone.

Attached files

Contact

Bill Osmer(Public Works Manager)

[email protected]

Key dates

Opened
7/21/2026
Questions due
8/1/2026
Closes
8/4/2026
Duration
33 months

Last updated

Details

Type
Request for Proposal
Industry
Agriculture
NAICS
541618
Solicitation №
08042027

Budget estimate

$20,000 – $50,000

Because the contract pays the broker a percentage of hay sales rather than a fixed fee, we estimate annual hay production at roughly 1,000 tons, valued at $200 per ton ($200k revenue). Assuming a 5‑10 % brokerage fee, annual earnings would range from $10k to $20k. Over the 2‑year‑plus contract term, total earnings could be $20k‑$50k, depending on actual yields and market prices.

AI estimate from the solicitation

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