Bechtel National Inc, Contract Fraud, WA 2023

RICHLAND, WA – Federal contractors Bechtel National Inc. (BNI), Bechtel Corp., and AECOM, on behalf of URS Corp., and URS Energy & Construction Inc. (URS) (collectively “the defendants”) will pay a hefty $125 million to settle allegations of systematic fraud related to the U.S. Department of Energy’s (DOE) Waste Treatment & Immobilization Plant project (“WTP”) at the Hanford Site. The Justice Department’s announcement details a decade-and-a-half of knowingly substandard work and a brazen attempt to influence Congress with taxpayer money.

The core of the case, unveiled today by the United States Attorney’s Office (USAO) for the Eastern District of Washington and the DOJ’s Civil Frauds Section, centers on allegations that BNI and URS falsely represented the quality of goods and services provided for the WTP, a project designed to treat hundreds of millions of gallons of dangerous radioactive waste stored at the Hanford Site. For over thirteen years – from January 1, 2001, to June 30, 2013 – the companies allegedly submitted false claims for payment despite knowing the materials and workmanship failed to meet rigorous nuclear quality standards. The fraud wasn’t limited to faulty parts; it extended to the testing procedures meant to *resolve* technical issues, according to allegations accepted by the United States.

But the alleged misconduct didn’t stop at shoddy construction. The settlement also resolves claims that BNI illegally funneled taxpayer dollars into a multi-year lobbying campaign aimed at securing even *more* funding for their continued work on the WTP. This blatant attempt to use public funds to influence congressional decisions adds another layer of corruption to an already damning case. The DOE has already poured billions into the WTP, and the defendants allegedly sought to pad their profits by manipulating the system.

This case originated with a qui tam complaint filed in February 2012 by whistleblowers Gary Brunson, Dr. Donna Busche, and Dr. Walter Tamosaitis, who bravely came forward to expose the alleged wrongdoing. The False Claims Act allows individuals with knowledge of fraud against the government to file lawsuits on its behalf, potentially receiving a share of any recovered funds. After a more than three-and-a-half-year investigation, the United States chose to “partially intervene” in the case on November 1, 2016, adopting the allegations of deficient nuclear quality procurements and illegal lobbying.

The negotiated settlement provides for the global resolution of all the Relators’ False Claims Act (FCA) allegations. In exchange for the dismissal of the lawsuit, the defendants have agreed to pay $125 million to the United States, while maintaining they committed no wrongdoing. United States Attorney Michael C. Ormsby minced no words, stating: “The allegations the United States chose to intervene in, including claims that BNI – URS recklessly purchased deficient materials and services with taxpayer money for more than a decade, are deeply concerning given the obvious importance of nuclear safety at the WTP.”

The WTP, once completed, is intended to safely clean up the legacy of decades of nuclear materials production at the Hanford Site. The fact that its construction was allegedly riddled with fraud and substandard work raises serious questions about the project’s long-term viability and the safety of the surrounding environment. This settlement sends a message – albeit a costly one – that defrauding the government and compromising nuclear safety will not be tolerated. The investigation remains open, and further accountability may be forthcoming.