West Basin MWD uses delivery-time incentive to fast-track RO membrane procurement for refinery reuse

West Basin MWD uses delivery-time incentive to fast-track RO membrane procurement for refinery reuseFacing stricter water quality requirements from an industrial off-taker, the Californian district leveraged an evaluative delivery discount to award a $396,200 membrane contract to Toray Membrane USA.

West Basin MWD approved the purchase of 852 RO membranes to meet new low-pressure boiler feed water standards for the Marathon Refinery.

Toray Membrane USA secured the contract despite a higher base bid, earning a 14.75% evaluative discount by committing to a one-day delivery timeframe.

The accelerated replacement was required because existing membranes, installed in late 2022, could not meet the updated contractual specifications.

Toray's membranes were confirmed as Build America, Buy America (BABA) compliant, with final element construction taking place in San Diego, California.

West Basin Municipal Water District's Engineering and Operations Committee has approved the procurement of 852 reverse osmosis (RO) membranes for the Juanita Millender-McDonald Carson Regional Water Recycling Plant (JMMCRWRP), utilizing an innovative procurement incentive to ensure rapid delivery. The procurement is driven by a new agreement that took effect in October 2025 with Tesoro Refining & Marketing Company (Marathon Refinery). The updated contract established more stringent water quality parameters for the low-pressure boiler feed water produced by the plant. While the facility's existing RO membranes—installed in late 2022—would have met the previous contract's requirements, performance tracking indicated that two of the four RO trains needed immediate replacement to maintain compliance with the new standards. Recognizing the critical need to restore compliance, West Basin incorporated a delivery date incentive into its Invitation for Quotes. Vendors received a 0.25% evaluative discount for every day they could deliver ahead of the standard 60-day requirement. Two pre-qualified vendors bid on the contract. LG Water Solutions offered a lower base unit price of $371 per membrane and received a 3% Local Business Enterprise discount. However, Toray Membrane USA, which bid $410 per membrane, committed to delivering the components just one day after purchase order execution—59 days early. This earned Toray a 14.75% evaluative discount, making it the lowest evaluated bid. The final contract value is a not-to-exceed amount of $396,200.86, which includes spare parts, freight, and sales tax. The cost is covered by the refinery's $3.14 million annual fixed payment, which was negotiated to account for more frequent membrane replacements. To enforce the expedited timeline, the district included a liquidated damages penalty of $8,600 for each day delivery extends beyond the committed date. During the meeting, an engineering supervisor confirmed that Toray's product is Build America, Buy America (BABA) compliant. While the chemical flat-sheet membrane is manufactured overseas in Japan, the slicing, fiberglassing, and final element construction take place at a facility in San Diego County. Staff noted that no manufacturer currently produces the complete membrane element entirely within the United States. West Basin currently has only three membrane products pre-qualified for the facility, as products must demonstrate 5,000 hours of verified performance on the plant's specific water. Staff indicated plans to work with contract operator Jacobs to develop a program to qualify additional products in the future, potentially prioritizing manufacturers that can offer complete construction within the U.S.