Feds: Hanford Contractors to Pay 125 Million Settlement

[Eugene]

Source: Associated Press

Feds: Hanford Contractors to Pay $125 Million Settlement

By GENE JOHNSON AND PHUONG LE, ASSOCIATED PRESS SEATTLE — Nov 23, 2016, 7:19 PM ET

Bechtel National Inc. and a subcontractor have agreed to pay $125 million to settle a lawsuit alleging subpar work in building a nuclear waste treatment facility on the Hanford Nuclear Reservation in Washington state, along with accusations that Bechtel illegally used taxpayer money for lobbying.

The settlement, filed Wednesday in U.S. District Court in Spokane, resolves a lawsuit initially brought in 2013 by three whistleblowers — managers at the nuclear site who sued on behalf of the federal government because they worried about safety issues at the Hanford Waste Treatment Plant.

The waste is currently stored in aging underground tanks, dozens of which are leaking, threatening the Columbia River nearby.

Once completed, the multibillion-dollar facility is supposed to convert 56 million gallons of radioactive nuclear waste left over from the government's nuclear weapons program into glass for safe storage deep underground. But in joining the whistleblowers' lawsuit, the U.S. Justice Department said that for 13 years, Bechtel and subcontractor URS Corp. knowingly charged the Department of Energy for materials and services that failed to meet rigorous standards for nuclear facilities.

The government's investigation showed that the companies "recklessly purchased deficient materials and services with taxpayer money," said Spokane U.S. Attorney Michael Ormsby, which he called "deeply concerning given the obvious importance of nuclear safety" at the plant.

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Read more: http://abcnews.go.com/International/wireStory/feds-hanford-contractors-pay-125-million-settlement-43748108

[nitpicker]

1. From the DoJ PR

https://www.justice.gov/opa/pr/united-states-settles-lawsuit-against-energy-department-contractors-knowingly-mischarging

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The Justice Department announced today that Bechtel National Inc., Bechtel Corp., URS Corp. (predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.) have agreed to pay $125 million to resolve allegations under the False Claims Act that they made false statements and claims to the Department of Energy (DOE) by charging DOE for deficient nuclear quality materials, services, and testing that was provided at the Waste Treatment Plant (WTP) at DOE’s Hanford Site near Richland, Washington. The settlement also resolves allegations that Bechtel National Inc. and Bechtel Corp. improperly used federal contract funds to pay for a comprehensive, multi-year lobbying campaign of Congress and other federal officials for continued funding at the WTP. Bechtel Corp. and Bechtel National Inc. are Nevada corporations. URS Corp. is headquartered in California, and URS Energy & Construction Inc. is headquartered in Colorado.
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Between 2002 and the present, DOE has paid billions of dollars to the defendants to design and build the WTP, which will be used to treat dangerous radioactive wastes that are currently stored at DOE’s Hanford Site. The contract required materials, testing and services to meet certain nuclear quality standards. The United States alleged that the defendants violated the False Claims Act by charging the government the cost of complying with these standards when they failed to do so. In particular, the United States alleged that the defendants improperly billed the government for materials and services from vendors that did not meet quality control requirements, for piping and waste vessels that did not meet quality standards and for testing from vendors who did not have compliant quality programs. The United States also alleged that Bechtel National Inc. and Bechtel Corp. improperly claimed and received government funding for lobbying activities in violation of the Byrd Amendment, and applicable contractual and regulatory requirements, all of which prohibit the use of federal funds for lobbying activities.

The allegations resolved by this settlement were initially brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Gary Brunson, Donna Busche, and Walter Tamosaitis, who worked on the WTP project. The False Claims Act permits private parties to sue on behalf of the United States when they believe that a party has submitted false claims for government funds, and to receive a share of any recovery. The Act also permits the government to intervene in such a lawsuit, as it did in part in this case. The whistleblowers’ reward has not yet been determined.
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