City Receives $292.4M Bid for Plant Upgrades
PKG Contracting, Inc. of Fargo, North Dakota submitted the lowest of three bids for the first phase of wastewater treatment plant improvements.
Updated on Nov. 9, 2026 in Construction
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Sioux City received a $292.4 million low bid from PKG Contracting, Inc. for the first phase of wastewater treatment plant facility plan improvements. The bid came in about 10% below the engineer's construction estimate of $325 million, and City Council must consider the contract award subject to city reviews and approvals.
Why it matters
The city declined a Guaranteed Maximum Price submitted in July and instead pursued traditional competitive bidding, which produced the lowest base bid in the range of three submissions. The outcome will shape the cost and timeline of upgrades to the city's wastewater infrastructure.
The lowest of three public bids came in at $292,376,900, roughly $32.6 million or about 10% below the $325 million engineer's estimate, with competing bids at $308,649,600 and $322,722,493. The final cost remains unresolved pending Council approval and the inclusion of engineering, oversight and contingency costs in the total project budget.
The players
PKG Contracting, Inc.
A contractor based in Fargo, North Dakota, that submitted the lowest base bid for the wastewater treatment plant improvements.
Hazen and Sawyer
The city's engineering consultant, which reviewed the bids and recommended awarding the base construction contract to PKG Contracting.
The details
Bids for the first phase of the project were publicly opened on Oct. 29 after advertisement on Sept. 15. The city's engineering consultant, Hazen and Sawyer, recommended awarding the base construction contract to PKG Contracting and rejecting all bid alternates.
Timeline
July: City declined the Guaranteed Maximum Price submitted through the Construction Manager at Risk process.
Sept. 15: Project advertised for competitive bidding.
Oct. 29: Bids publicly opened.
Nov. 9, 2026: City issued a statement announcing the low bid.
Market Landscape
Sioux City's decision to reject a Guaranteed Maximum Price in July and pursue open bidding tests whether competitive procurement can beat negotiated delivery models on municipal wastewater projects. The result, with the low bid landing about 10% under the engineer's estimate, will be compared against the cost outcomes of the Construction Manager at Risk approach the city set aside.
Residents will ultimately bear the cost of the wastewater upgrades through city budgets, so the final approved contract amount will determine what the city must fund. The bid results suggest the project may cost less than the engineer's original estimate, though council approval and added project costs are still pending.
The takeaway
Competitive bidding produced a price below the engineer's estimate for Sioux City's wastewater project, a useful benchmark as the city weighs contract approval. Watch for the final budget once engineering, oversight and contingency costs are added.
What happens next
City Council is expected to consider the contract award, subject to city reviews and approvals.
Further reading
Explore more construction industry coverage for context on local infrastructure contracts like this one.
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