Chicago MWRD awards $409m contract for O'Brien Plant activated sludge facility

Chicago MWRD awards $409m contract for O'Brien Plant activated sludge facilityThe District has tapped Michels Construction for the massive Battery E project, while also greenlighting a $475 million bond issuance to finance ongoing capital improvements and refunding.

Michels Construction, Inc. was awarded the Battery E Activated Sludge Facility contract for a base amount of $389.9 million, plus a 5% change order allowance.

The Board authorized the sale of up to $475 million in General Obligation Capital Improvement and Refunding Bonds.

A $552,226 increase was approved for the Addison Creek Reservoir project, bringing the total contract value to $81.8 million.

The Metropolitan Water Reclamation District of Greater Chicago (MWRD) has approved a major capital investment for its O'Brien Water Reclamation Plant, awarding a nearly $410 million contract for a new activated sludge facility. During the Board of Commissioners meeting on June 18, 2026, the District awarded Contract 21-092-3P for the Battery E Activated Sludge Facility to Michels Construction, Inc. The contract was approved for a base amount of $389,933,408.76. With a 5 percent allowance for change orders totaling $19,496,670.44, the final authorized amount is not to exceed $409,430,079.20. The project was passed unanimously as part of the board's consent agenda. To support its broader infrastructure initiatives, the Board simultaneously authorized a significant financing package. Commissioners approved the sale of up to $475 million in General Obligation Capital Improvement and Refunding Bonds. As part of the authorization, the District appointed BofA Securities, Inc. as the Senior Managing Underwriter and Book-runner, alongside a syndicate of co-managing underwriters, with underwriting services capped at $430,000. The Board also approved related financial and legal advisory contracts to facilitate the bond sale. In addition to the O'Brien Plant upgrade, the Board authorized a budget increase for the ongoing Addison Creek Reservoir project in Bellwood, Illinois. Contract 11-186-3F with IHC Construction Companies, L.L.C. was increased by $552,226.21, raising the project's total not-to-exceed cost to $81,856,448.16. Other notable procurement decisions approved during the meeting included a $1.2 million authorization to advertise a contract for sluice gate valve actuator parts and repair services, and a $408,840 purchase order to Evoqua Water Technologies LLC for furnishing and delivering hydrogen peroxide.