Hanford Contractor, Washington River Protection Solutions (WRPS), Agrees to Pay $6.5 Million to Resolve Allegations of Fraud

Richland, Washington – Today Acting United States Attorney Richard R. Barker announced that federal contractor Washington River Protection Solutions, LLC (WRPS), has paid $6,500,000to the U.S. Department of Justice (DOJ) as part of a settlement agreement resolving allegations that WRPS fraudulently overcharged the U.S. Department of Energy (DOE) for millions of dollars in labor hours.

According to court documents, the False Claims Act claim arose from allegations that WRPS’ management was aware of and failed to prevent inflated labor hours being charged to DOE, including labor hours in which WRPS employees, paid for with federal funds, were not scheduled or assigned sufficient work to perform.  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.  According to the allegations filed in court, 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.  This false recording of time resulted in WRPS knowingly submitting false claims for the payment of those labor hours.

Under the settlement agreement entered into with the U.S. Attorney’s Office, WRPS has now admitted that between October 1, 2017, and December 31, 2024, it sought and received reimbursement from DOE for labor hours made up of unallowable excessive idle time.  WRPS has further admitted in the settlement agreement that it did not schedule or assign sufficient work to be performed by its personnel.  WRPS 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.

“This is unfortunately not the first time that WRPS has settled allegations of committing fraud on the Tank Farms Contract,” stated Acting U.S. Attorney Barker, referring to a 2017 False Claims Act settlement with WRPS where it paid $5.275 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. “As a result of its past record, and its more recent conduct, WRPS has had to admit to that conduct and has been forced to pay more than twice as much as the money taken from DOE and the taxpayers. This is appropriate where the falsely charged labor hours were based, in part, on WRPS’ failure to assign and provide sufficient work to its employees, which were paid for with federal taxpayer money.”

In December 2022, a WRPS employee came forward with allegations of labor mischarging. This whistleblower, known as a “Relator,” filed a qui tam complaint under seal in the U.S. District Court (EDWA) under the False Claims Act. When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. As part of the settlement agreement, the relator will receive $1,400,000 of the settlement amount and is entitled to have WRPS pay attorney fees.

“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.

“The Office of Inspector General is committed to ensuring the integrity of Department contracts by detecting and holding accountable those who choose to engage in false claim schemes. This settlement is a result of our staff’s dedicated work to ensure public funds are used for the mission-related purposes for which they are intended,” stated Assistant Inspector General for Investigations Lewe Sessions. “We appreciate the efforts of the Department of Justice in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”

The settlement was the result of an investigation jointly conducted by the United States Attorney’s Office (USAO) and the Department of Energy Office of Inspector General. The USAO’s investigation and prosecution was handled by Assistant United States Attorney Tyler H.L. Tornabene. The Relator was represented by the law firms of Mehri & Skalet PLLC, Teller & Associates, PLLC, and Smith & Lowney, PLLC.

The settlement agreement can be viewed at the link below: