Veolia asks MMSD for independent review of wastewater contract proposals

The Milwaukee Metropolitan Sewerage District is reviewing proposals for a new 10-year wastewater operations contract, with Veolia questioning the recommended Jacobs Engineering due to concerns over cost savings and employee impacts.

Veolia is asking the Milwaukee Metropolitan Sewerage District (MMSD) Board of Commissioners to independently review competing proposals for the district’s next 10-year wastewater operations contract after an ad hoc committee recommended Jacobs Engineering for the work.

Veolia, which has operated MMSD’s wastewater treatment facilities for 18 years, raised concerns about the recommendation in a letter to the district. The company questioned whether Jacobs can achieve projected cost savings without compromising system performance and raised concerns about potential impacts to wages and benefits for union employees.

The ad hoc committee recommended Jacobs last month following a review of proposals from Jacobs and Veolia. The committee said selecting Jacobs could save MMSD an estimated $54 million over the 10-year contract and cited the company’s experience with data-driven operations and maintenance technologies.

The contract, valued at approximately $625 million, would begin in 2028. MMSD is conducting a separate performance audit of Veolia following whistleblower allegations of mismanagement at the district’s wastewater facilities. Veolia has denied the allegations.

MMSD Commission Chair Corey Zetts said the commission is responsible for reviewing the procurement process and asking questions before making a final determination.

The full commission is scheduled to vote on the contract later this month.

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