An ad hoc committee recommended Jacobs Solutions as the Milwaukee Metropolitan Sewerage District’s next wastewater operator, passing over the current operator, Veolia.
The announcement came during a special commission meeting Aug. 17 at the sewerage district’s headquarters. The competition for the 10-year, $700 million contract − which has grown contentious in its final stretch − is down to two finalists: Veolia North America and Jacobs.
Veolia, a French company with North American headquarters in Boston, is vying for a third term. Jacobs, headquartered in Dallas, has recently expanded its wastewater-treatment work. As the two largest private sewerage system operators in the country, they have gone head-to-head before.
Dennis Grzezinski, chair of the ad hoc committee and a former MMSD commissioner, announced that the committee unanimously recommended Jacobs for the contract, set to begin in 2028.
Grzezinski said Jacobs’ bid was $54 million lower than Veolia’s, giving it a significant cost advantage. The committee also cited Jacobs’ more systematic approach and deeper experience using real-time, data-driven tools − capabilities it said are crucial to meeting the district’s goals.
The announcement was met with surprise − and striking silence. No one in the room spoke as the ad hoc committee members adopted the motion, then passed around the paperwork to sign.
As part of its final bid, Jacobs agreed to end its partnership with Palantir, the controversial software company that has helped ICE find and deport undocumented immigrants.
Concerns about the ties – first reported by the Milwaukee Journal Sentinel – prompted a July 20 rally, where organizers with Comité Sin Fronteras, the Wisconsin Democracy Campaign and Black Leaders Organizing for Communities urged commissioners not to choose Jacobs. The partnership even garnered the attention of civil rights leader Rev. Al Sharpton, who noted it during a press conference in Madison on Aug. 14.
In response to concerns, MMSD had said the operator that is chosen would not have access to private individual data, while Jacobs had said any client data would be protected by strict safeguards.
However, during negotiations, Jacobs said it would choose another company for its data analysis.
“We appreciate the confidence MMSD placed in us and we look forward to next steps,” the company said in a statement after the announcement.
The scoring process weighed several factors: price, 60%; approach, 25%; staffing, training and workforce development, 10%; and community partnerships, 5%.
Jacobs’ proposal received a score of 96.8, compared with 84.9 for Veolia’s proposal.
“We are surprised and disappointed by the recommendation announced today,” said Adam Lisberg, Veolia spokesperson.
“Veolia is very proud of the work that we’ve done over the last 18… we think we’ve served the people of this community very well in that time,” Lisberg said.
A years-long process that unfolded quietly − until last spring
The high-stakes decision has grown increasingly contentious, drawing intense scrutiny to a process that was quietly unfolding for years.
Tensions escalated after the advocacy group Common Ground and whistleblowers accused Jacobs’ competitor, Veolia, of mismanagement and data fabrication. In April, Veolia asked MMSD to pause or cancel the bidding process, citing concerns about interference.
The dispute ultimately prompted the MMSD Commission to order an independent audit of Veolia, which is underway.
Grzezinski said during the Aug. 17 announcement that the audit was separate from the committee’s review and recommendation.
Milwaukee’s sewerage district has operated one of the nation’s largest publicly owned wastewater-treatment systems under private contract since 1998. The wastewater operator is in charge of the Jones Island and South Shore wastewater plants, Deep Tunnel system, Milorganite fertilizer factory and regional sewer infrastructure that serves 1.1 million people.
The ad hoc committee’s recommendation is the last step before the official selection in the fall.
The committee of five former commissioners was appointed by the MMSD Commission to oversee the selection process, review proposals and make a recommendation. It’s the Commission, though, that gets the final say.
That decision is expected in September.
Will MMSD follow the recommendation?
Past contracts offer few clues about how much weight the MMSD Commission will give to the committee’s recommendation, because the selection process has varied over the years.
MMSD’s first contract began in 1998, estimated at $326 million, went to New Jersey-headquartered United Water Services after a competitive bidding process involving three other companies. An advisory committee oversaw that process.
Veolia won the two subsequent 10-year contracts: the first beginning in 2008 and the second beginning in 2018.
In the 2008 bid, Veolia prevailed over United Water, winning a contract estimated at $400 million. The selection process was led by MMSD staff who made a recommendation to the Commission.
Veolia won the second contract, worth $500 million, without having to go through a bidding process, Instead, the MMSD Commission approved a noncompetitive, staff-recommended extension of Veolia’s existing contract.
With such a lucrative, decade-long contract at stake, both bidders have assembled well-connected local teams.
Veolia hired former Milwaukee officials Ashanti Hamilton and Ghassan Korban and consultant Michael D’Amato, who previously served as a Milwaukee aldernman. Jacobs enlisted Wisconsin political and public affairs advisers Thad Nation, Eric Petersen and Mike Tate.
Audit of alleged Veolia mismanagement is underway
The process took a much different course this time, marked by its own twists and turns.
Bob Connolly, co-chair of Common Ground, previously told the Journal Sentinel that it asked the commissioners to delay choosing a bidder until the Veolia audit was complete.
The MMSD Commission authorized the independent audit in June, setting aside up to $100,000 for the audit and another $100,000 for related professional services. In July, commissioners selected EMA Inc., an employee-owned utility consulting firm headquartered in St. Paul, Minnesota, to conduct the audit.
A five-member independent advisory committee is overseeing the audit, which is examining Veolia’s compliance with its contract as well as MMSD’s oversight.
According to the request for proposals, the audit company is expected to conduct confidential interviews, review relevant records and data, assess findings and present the issues to the Commission.
The audit results are expected in September. Once the findings are available, the Commission is expected to consider EMA’s recommendations, corrective action and policy improvements.
Veolia has strongly defended its record and, in July, sent Common Ground a cease-and-desist letter that raised the prospect of legal action over the group’s claims. MMSD Executive Director Kevin Shafer has also said he is confident Veolia is properly managing the district’s wastewater-treatment plants.
Lisberg, from Veolia, said he’s confident the results of the audit will help towards MMSD’s final decision.
Connolly said Common Ground is looking forward to the results of the audit, and said it will work with the Commission on what recommendations and changes need to be made so the system is better managed moving forward.
This story was updated to add more information.
Mary Spicuzza and Isabella Russomanno contributed to reporting on this story.
Caitlin Looby covers the Great Lakes and the environment for the Milwaukee Journal Sentinel. Contact: clooby@gannett.com. Follow her on X @caitlooby.
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This article originally appeared on Milwaukee Journal Sentinel: Jacobs nabs MMSD committee backing, pledges to cut Palantir
Reporting by Caitlin Looby, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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By Caitlin Looby, Milwaukee Journal Sentinel | USA TODAY Network
