Washington River Protection Solutions (WRPS) will pay the U.S. Department of Energy $6.5 million to resolve allegations that the Hanford site contractor overcharged the agency for millions of dollars in labor that was never performed.

The U.S. Attorney’s Office for Eastern Washington announced the settlement June 24. As part of the agreement, WRPS has admitted that between October 1, 2017, and December 31, 2024, it sought and received $3 million in reimbursements from DOE for labor hours made up of unallowable excessive idle time. The company also admitted that it did not schedule or assign sufficient work to be performed by its personnel.

“This is unfortunately not the first time that WRPS has settled allegations of committing fraud on the Tank Farms Contract,” acting U.S. Attorney Richard B. Barker said in a statement. He was referring to a 2017 False Claims Act settlement with WRPS where it paid $5.3 million to resolve allegations that it knowingly submitted false claims to DOE for overtime and premium pay as well as that it had failed to comply with its internal audit requirements. 

WRPS was responsible for management and operation of the 176 large underground storage tanks holding millions of gallons of hazardous and radioactive waste. It had a cost-plus-award-fee contract with DOE, meaning it could receive reimbursement for its claimed allowable costs, including labor.

The latest allegations came to light in December 2022 when a WRPS employee came forward with allegations of labor mischarging to federal authorities. The whistleblower then filed a qui tam complaint with the U.S. District Court under the False Claims Act. That requires federal officials to investigate and either intervene and take over the litigation or decline.

The whistleblower will receive $1.4 million as part of the settlement agreement, and is entitled to have their attorney fees paid by WRPS.

“The relator-whistleblower in this case is to be commended,” said Acting U.S. Attorney Barker.  “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, whether that’s through the filing of an under seal qui tam complaint or stepping forward as a witness,” continued Barker.

WRPS, which is owned by firms Amentum Environment and Energy and Atkins, with Orano as a subcontractor, was set to have its contract at the site end in 2024. However, legal challenges by contractor Hanford Tank Disposition Alliance (HDTA) of the new contract going to Hanford Tank Waste Operations and Closure, known as H2C, has led DOE to extend WRPS’ contract until the end of September, according to Energy Communities Alliance.

H2C is owned by Amentum along with BWXT Technical Services and Fluor Federal Service. HTDTA is owned by Atkins, Jacobs and Westinghouse.