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WRPS Coughs Up $6.5M for Faking Labor Hours at Hanford Site
Richland, WA – In a stunning display of corporate greed, Washington River Protection Solutions, LLC (WRPS), a federal contractor, has agreed to pay $6,500,000 to the U.S. Department of Justice (DOJ) to settle allegations of fraudulent labor hour claims at the Hanford Site.
The allegations, which arose under the False Claims Act, claimed that WRPS’ management was aware of and failed to prevent inflated labor hours being charged to the U.S. Department of Energy (DOE). According to court documents, WRPS employees were not scheduled or assigned sufficient work to perform, resulting in the submission of false claims for payment of those labor hours.
Under the cost-plus-award-fee contract with DOE for the management and operation of the Hanford Site’s Tank Farms, which consist of 176 large underground storage tanks holding millions of gallons of mixed hazardous and radioactive waste, WRPS was able to receive reimbursement for its claimed allowable costs, including labor. However, WRPS fraudulently inflated reimbursable costs by failing to provide its employees with work assignments sufficient to fill an entire shift and then directed those same employees to record their time as if they had worked the entire shift.
WRPS has admitted to seeking and receiving reimbursement from DOE for labor hours made up of unallowable excessive idle time between October 1, 2017, and December 31, 2024. The company has paid a total settlement amount of $6,500,000, of which $3,000,000 is restitution, meaning that WRPS has had to pay more than double the damage it caused to DOE and the taxpayers.
Acting U.S. Attorney Richard R. Barker stated, “This is unfortunately not the first time that WRPS has settled allegations of committing fraud on the Tank Farms Contract.” WRPS previously paid $5.275 million in 2017 to resolve allegations of knowingly submitting false claims to DOE for overtime and premium pay.
A WRPS employee came forward with allegations of labor mischarging in December 2022, filing a complaint under seal in the U.S. District Court (EDWA) under the False Claims Act. The whistleblower, known as a “Relator,” will receive $1,400,000 of the settlement amount and is entitled to have WRPS pay attorney fees.
Acting U.S. Attorney Barker commended the whistleblower, stating, “This individual came forward with serious and credible allegations of fraud that were then investigated for years. We are able to uncover fraud and hold fraudsters accountable only when good people come forward and report it to law enforcement.”
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime,Fraud & Financial Crimes
- Source: Official Source ↗
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