The Milwaukee Metropolitan Sewerage District (MMSD) Commission has selected Jacobs Solutions to operate the district’s wastewater system under a 10-year contract beginning in 2028, but a lawsuit filed by incumbent operator Veolia North America is expected to delay the agreement.

The commission voted unanimously Sept. 28 to select Jacobs following a multiyear competitive procurement process. Jacobs’ proposal was scored higher than Veolia’s and was approximately $54 million lower over the life of the contract.

Veolia, which has operated MMSD’s wastewater system since 2008, sued the district Sept. 11 alleging that the procurement process was flawed and that MMSD was predisposed to select Jacobs. MMSD has denied the allegations and said it followed the criteria and timeline established for the procurement.

A district judge has allowed MMSD to select an operator but the district agreed not to sign the contract while the case proceeds. Briefs are due in December and the judge is expected to rule by the end of January.

The procurement is MMSD’s fourth 10-year operator selection process. An ad hoc committee of five former MMSD commissioners reviewed the proposals and recommended Jacobs before the full commission vote. The process differed from the district’s previous procurement in 2018, when MMSD extended Veolia’s contract without a competitive bid.

The selection followed months of scrutiny of both companies. MMSD commissioned an independent audit of Veolia’s performance after whistleblowers and an advocacy group raised concerns about its wastewater operations. The audit remains incomplete and has been extended through October.

MMSD commissioners also questioned Jacobs about its proposed costs, its relationship with Palantir and its plans for employees currently working under Veolia. Jacobs said it would use another provider for MMSD’s wastewater data system and would rehire at least 180 current Veolia employees.

Jacobs has operated in Milwaukee for about 50 years and employs approximately 160 people in the city. The company will face the legal challenge before it can formally begin preparing for the 2028 transition.