West Basin overhauls procurement incentives to include veteran-owned businesses

West Basin overhauls procurement incentives to include veteran-owned businessesThe Californian water district is revamping its bidding framework to allow contractors to stack incentives for small, local, and veteran-owned designations, while easing compliance language surrounding its 10% annual participation target.

The proposed amendment adds Veteran Owned Business Enterprises (VOBEs) and a disabled veteran sub-tier to the district's procurement incentive program.

Bidders can now earn a 3% bid reduction or 3 evaluation points per qualifying category (Small, Local, or Veteran), capped at a maximum of 10% or 10 points.

Disabled veteran-owned businesses will receive an additional 1% bid reduction or 1 evaluation point.

The district's 10% annual participation target will be reclassified from a 'requirement' to a 'goal' to avoid noncompliance issues during market downturns.

West Basin Municipal Water District's Finance & Administration Committee advanced an amendment on July 21, 2026, to formally incorporate Veteran Owned Business Enterprises (VOBEs) into its procurement incentive program. Chief Financial Officer Wendy O'Kelley outlined the new structure, which relies on federal and state certification standards rather than a district-specific verification process. The policy update also introduces a specific sub-tier for disabled veterans, defined as those with a service-connected disability rating of greater than 10% from the Department of Defense or the Department of Veterans Affairs. Under the new framework, the district is replacing a flat dual-bonus system with a stackable, per-category structure. Prime contractors bidding on goods, professional services, or non-professional services can earn a 3% bid reduction or 3 evaluation points for each qualifying category they meet: Small Business Enterprise, Local Business Enterprise, or Veteran Owned Business Enterprise. Disabled veteran-owned businesses receive an additional 1% reduction or 1 point. Contractors can also earn a 1% reduction or 1 point if they utilize a qualifying subcontractor for at least 30% of the total contract compensation. The total available incentives across all categories are strictly capped at 10 evaluation points or a 10% bid reduction. Additionally, the amendment changes the language of the district's 10% annual participation target, shifting it from a mandatory "requirement" to an aspirational "goal." O'Kelley noted this change ensures the district is not viewed as noncompliant during market downturns or specific situations where the 10% threshold cannot be achieved. The committee unanimously recommended moving the amendments forward. Staff will prepare a formal resolution to adopt the Administrative Code changes for consideration at the next full Board of Directors meeting.