Memorandum of Understanding with GE Osmonics, Inc Memorandum of Understanding with GE Osmonics, Inc., for Procurement of AquaSel Brine Concentration Equipment Joe Mouawad, P.E. June 29, 2017

Background On May 18, 2016, Board awarded contract to CH2M to prepare construction plans for the AquaSel Demonstration Project and appropriated $290,700. On October 5, 2016, Board awarded contract to GE Water & Process Technologies to prepare specifications and other information needed by design consultant to complete the project and appropriated $213,000. The equipment package will be procured by the District’s selected contractor under a pre-negotiated equipment purchase agreement.

Sole Source Procurement of AquaSel Equipment The AquaSel brine concentration equipment is only available from GE Water & Process Technologies through their subsidiary GE Osmonics, Inc. The AquaSel equipment is in support of the proposed 100-gpm demonstration facility.

Memorandum of Understanding (MOU) MOU establishes scope of supply, delivery schedule, liquidated damages, responsibilities and liabilities, and other terms and conditions. Does not obligate the District to procure the equipment. Price of $1,349,544 has been negotiated with GE Water & Process Technologies, which includes a material discount of $150,000, as well as assistance during construction and start-up. District may assign the MOU and related terms and conditions to a contractor selected by the District through competitive bidding. GE has agreed to incentives to demonstrate their commitment to partner with the District to leverage advanced technologies to enhance potable water yields from existing local resources. MOU has been reviewed and approved by legal counsel.

Recommendation Authorize Execution by the General Manager of a Memorandum of Understanding with GE Water & Process Technologies, subject to non-substantive changes, for the procurement of the AquaSel brine concentration equipment.

Contact Information Joe Mouawad, P.E. Assistant General Manager - Planning, Engineering, and Construction (951) 928-3777 Ext. 4463 Email: mouawadj@emwd.org