Chicago MWRD defers $409.4M Battery E activated sludge contract at O'Brien WRP
Metropolitan Water Reclamation District of Greater Chicago, Illinois · Meeting date: May 21, 2026 · Published: May 26, 2026
A massive construction contract slated for Michels Construction has been delayed following competing contractor comments, while the District pushes forward with new maintenance leadership and west side stormwater storage.
Key points
- Board President Kari K. Steele deferred the $409.4 million Battery E Activated Sludge Facility contract at the O'Brien Water Reclamation Plant.
- Edward J. Staudacher was appointed Director of Maintenance and Operations, with a mandate to pursue renewable energy and battery storage for peak shaving.
- The District confirmed a $6 million investment toward a $12 million project for two wing storage facilities on Chicago's west side.
- Contract increases were approved for the Addison Creek Channel Improvements ($79.5 million total) and Stickney WRP Service Tunnel Rehabilitation ($29.5 million total).
Full report
The Metropolitan Water Reclamation District of Greater Chicago (MWRD) has paused the award of a $409.4 million contract for the Battery E Activated Sludge Facility at the O’Brien Water Reclamation Plant (OWRP).
During the District's May 21 meeting, Board President Kari K. Steele deferred the contract, which had been recommended for award to Michels Construction, Inc. The proposed agreement included a base amount of $389.9 million plus a 5% allowance for change orders. The deferral followed public comments from competing firms, with a representative from OHLA Central raising concerns about the item, while a representative from Michels Construction spoke in support. The Board did not publicly discuss the specific reasons for the delay.
While the major wastewater treatment plant upgrade was put on hold, the MWRD advanced other strategic operational and stormwater initiatives.
The Board unanimously approved the appointment of Edward J. Staudacher as the new Director of Maintenance and Operations. During the meeting, it was noted that Staudacher plans to prioritize renewable energy initiatives across the District. His strategy includes collaborating with other departments to explore battery storage solutions to assist with peak shaving and managing the utility's growing energy needs.
On the stormwater front, Executive Director Murray provided updates on the District’s partnership projects and ongoing coordination with the Chicago Department of Water Management. Murray announced that the MWRD is contributing a $6 million investment toward a $12 million project for two wing storage facilities located on the city's west side. The District is also exploring expansions of its flood mitigation programs, including potential downspout disconnection projects and new initiatives at Chicago Park District facilities.
Additionally, the Board approved several capital project adjustments, including a $194,700 contract increase to Judlau Contracting for the Addison Creek Channel Improvements, bringing the project total to $79.5 million. A $110,166 increase was also granted to IHC Construction Companies for Phase Three of the Service Tunnel Rehabilitation at the Stickney Water Reclamation Plant, raising the total contract value to $29.5 million.
This summary was generated by AI based on the source document and may contain errors.
Source: Board of Commissioners, Metropolitan Water Reclamation District of Greater Chicago