Veolia has filed a federal lawsuit against the Milwaukee Metropolitan Sewerage District, alleging the district's procurement process for its next wastewater operations contract was flawed and that commissioners were predisposed to select competitor Jacobs Solutions.

The lawsuit, filed Sept. 11 in U.S. District Court for the Eastern District of Wisconsin, comes as MMSD prepares to select an operator for a new 10-year contract worth up to $700 million. Veolia has operated the district's wastewater treatment facilities for 18 years, while Jacobs was recommended for the contract last month by an MMSD ad hoc committee.

Veolia alleged that MMSD failed to follow its established procurement process and was influenced by public pressure from advocacy organizations and elected officials. The company has also raised questions about Jacobs' proposed labor costs, sewer-cleaning estimates and plans to replace technology associated with Palantir.

MMSD Commission Chair Corey Zetts said the district established its procurement process, criteria and timeline in 2024 and has followed the process as outlined. Zetts said the commission has not yet made a final decision.

The lawsuit arrives as MMSD continues an independent audit of Veolia's performance following allegations of mismanagement raised by whistleblowers and the advocacy group Common Ground. The commission was expected to consider extending the audit through the end of October ahead of its final contract decision.