Today, due to whistleblower claims, the Hanford contractors involved in the long-running effort to build the site’s Waste Treatment Plant have agreed to pay a $57.75 million settlement to the U.S. Justice Department. Whistleblower claims alleged fraudulent overcharges that inflated the hours of labor and billed for work that was not actually performed.
The settlement announced Tuesday with Bechtel Corp., AECOM Energy & Construction, and an AECOM subsidary covers work undertaken to build the Waste Treatment Plant. The on-going construction at Hanford has taken up billions of federal dollars to develop a complex able to treat and stabilize hazardous chemical and radioactive wastes for long-term storage.
Hanford was created in World War II to produce plutonium for atomic weapons, including the bomb dropped on Nagasaki, Japan. For more than 40 years, it produced most of the plutonium for the nation’s nuclear arsenal. In this century, Hanford has been the focal point of a marathon cleanup. The Columbia River flows along the site for approximately 50 miles (80 km), forming its northern and eastern boundary.
A statement released Tuesday by Joseph E. Harrington, first assistant attorney general for the Eastern District of Washington.
“It is stunning that, for nearly a decade, Bechtel and AECOM chose to line their corporate pockets by diverting important taxpayer funds from this critically essential effort."
Teri L. Donaldson, the inspector general for the Department of Energy, said “Bechtel National Inc., AECOM Energy & Construction Inc. and (the AECOM subsidiary) Waste Treatment Completion Company LLC, engaged in a massive scheme to submit tens of millions of dollars of false claims to the U.S. Government for unallowable and unjustified costs over a period of years – a pattern of conduct that continued even after U.S. authorities notified the defendants that these costs were unallowable.”
The whistleblowers, no longer employed by the contractors are Kip Daily, a scheduler; Scott Turner a scheduler and planner; Justin Rohrer, a millwright and union steward; and Julee Levee, a turnover transition specialist, according to the attorneys and court documents.The whistleblowers were awarded a 23.8% share of the settlement, according to their attorneys.
In 2016, Bechtel and subcontractor URS agreed to pay $125 million to settle allegations of subpar work and accusations of using taxpayer dollars illegally to fund a multiyear lobbying campaign. The case began when whistleblowers Dr. Walter Tamosaitis, Donna Busche and Gary Brunson — all key former managers on the vitrification plant project — filed a sealed complaint in federal court in 2013. The U.S. Attorney for Eastern Washington said: “The use of federal taxpayer dollars to pay lobbyists in an attempt to elicit more taxpayer dollars is unacceptable,”
After more than three and a half years of investigation into their claims, the U.S. Department of Justice agreed to join the case at the first of this month on some of the plaintiffs’ allegations of nuclear quality violations and illegal lobbying. The case was unsealed after settlement agreement was filed Wednesday. The whistleblowers together are expected to receive 15 percent to 25 percent of the settlement — up to $31.25 million — under the False Claims Act, which allows whistleblowers to collect a portion of any damages awarded.
Tamosaitis also filed a workplace retaliation lawsuit after he was demoted subsequent to bringing his concerns to management about working not being completed. Dr. Tamosaitis and his research team were charged with trying to figure out how to keep the sludge mixed so it could be pumped into the WTP processors. Bechtel and URS were to receive and split a $6 million bonus if the mixing issue was resolved by the end of July 2010. Dr. Tamosaitis opposed Bechtel’s claims that mixing issues regarding the sludge had been resolved. Tamosaitis settled his separate federal whistleblower retaliation lawsuit against Hanford contractor URS for $4.1 million dollars.
Bechtel recrently lost two multi-billion dollar contracts for cleanup at Hanford when they came up for bid and is appealing them.
https://www.enr.com/articles/48582-bechtel-protest-of-big-hanford-cleanup-award-is-second-at-site