CH2M Hill Plateau Remediation Co. , a former Hanford prime contractor, has agreed to pay a $3.04 million settlement to the feds for falsely and knowingly claiming two subcontractors were in Historically Underutilized Business Zones.
However, CH2M Hill does not admit guilt in agreeing to the payment. Until its contract expired early this year, CH2M Hill Plateau Remediation Co. was in charge of central Hanford’s cleanup for 12 years — projects such as tearing down the Plutonium Finishing Plant and tackling contaminated groundwater.
A HUBZone is a federally designed economically distress area in which a 1998 law requires that 3 percent of federal contract money goes to business in such areas. The Tri-Cities of Richland, Kennewick and Pasco are the home town to Hanford. It is a hodgepodge of HUBZones and non-HUBZone areas.
A Thursday U.S. Attorney General’s Office press release said CH2M Hill falsely declared two of its Tri-Cities subcontractors — Indian Eyes and Phoenix-ABC — has HUBZone businesses when the corporations knew they were not.
Among the criteria to be declared a HUBZone is that a company headquarters must be in the HUBZone and at least 35 percent of its employees must live in the HUBZone. Contractors face penalties when they do meet HUBZone subcontracting targets.
“Small business fraud not only harms the taxpayers and the vital cleanup mission at Hanford, but legitimate small disadvantaged businesses that do not have the opportunity to fairly compete for and perform subcontracts. This resolution demonstrates that we will continue to work with courageous whistleblowers and our law enforcement partners to ensure accountability for small business fraud at Hanford and elsewhere,” said Joseph Harrington, acting U.S. Attorney for the Eastern District of Washington, in the press release.
The case was brought to federal attention by a 2014 lawsuit filed by a Tri-Cities project and logistics management firm, Savage Logistics and its owner Salina Savage. Savage Logistics has since renamed itself Apogee Logistics.
Apogee will receives a whistleblower award $865,907 as a result of the settlement. The Department of Energy Office of Inspector General conducted the investigation.
