South Coast Water District advances pre-procurement for Doheny desal plant to cut GMP by $3m
South Coast Water District, California · Meeting date: July 6, 2026 · Published: July 7, 2026
The district's engineering committee has recommended a $570,000 contract amendment for the Filanc-Acciona joint venture to accelerate the design and procurement of specialized tunneling and slant well materials ahead of a November Phase 2 award.
Key points
- A $570,000 amendment to the progressive design-build-operate-maintain (PDBOM) contract will allow the Filanc-Acciona team to prepare pre-procurement packages for microtunneling casings and super alloy steel for slant wells.
- Staff estimate the upfront spending will reduce the project's overall guaranteed maximum price (GMP) by approximately $3 million.
- The committee also approved a $298,849 amendment to keep GHD on board as technical owner's engineer through November, when the Phase 2 contract is expected to be awarded.
- The district is currently revising its marine mitigation acreage calculations, expecting to significantly reduce the current 7.45-acre, $12 million requirement.
Full report
The South Coast Water District (SCWD) is moving to lock in specialized materials for its Doheny Ocean Desalination Project to shield the project from cost escalations and schedule delays. At a July 6, 2026, Engineering and Operations Committee meeting, members recommended a $570,000 amendment to the progressive design-build-operate-maintain (PDBOM) contract held by the Filanc-Acciona Desal Partners joint venture.
The funding will allow the design-build team to prepare pre-procurement packages ahead of the project's Phase 2 contract award, which is currently targeted for November 2026. A staff member explained that accelerating this work is critical so the district can immediately purchase materials for the project's first construction activities. These include casing materials for a microtunnel extending from Doheny State Beach to the desalination plant site, as well as specialized super alloy steel required for the facility's slant wells.
By funding the pre-procurement design work now, staff estimate the district will reduce the overall guaranteed maximum price (GMP) of the construction project by approximately $3 million. The upfront costs are expected to be offset by grant funding, with a staff member noting that 25 percent of the project costs are reimbursable, which should yield roughly $900,000 to cover the early expenditures without drawing from district reserves.
To support the project through the anticipated November Phase 2 award, the committee also recommended a $298,849 contract amendment for GHD. The firm will continue providing technical owner's engineer support services, which includes reviewing the definitive project submittal and the GMP prepared by the Filanc-Acciona joint venture. GHD will also conduct a Phase 2 environmental site assessment on the 30-acre desalination site to ensure site conditions are fully understood before construction clearing begins.
Meanwhile, the district is working to finalize regulatory permits and refine its environmental mitigation obligations. Applications for Coastal Development Permit amendments have been submitted to the Coastal Commission and State Lands Commission, with hearings hoped for in August or September. Concurrently, SCWD is revising its marine mitigation calculations for the Regional Water Quality Control Board. The project is currently approved for 7.45 acres of mitigation—which accounts for approximately $12 million in the district's cost of water calculations—but staff indicated that issues were found in previous calculations and the revised acreage requirement is expected to be "very low."
In separate business, the committee advanced a $5.1 million construction contract to CHI Construction for the Del Obispo Recycled Water Expansion Project. Supported by a $3.4 million grant from the US EPA, the pipeline project will convert 16 existing potable water irrigation customers to recycled water, saving approximately 320 acre-feet of potable water per year.
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Source: Engineering & Operations Committee Meeting - Jul 06, 2026, South Coast Water District