A small business that worked at the Hanford Site in Washington state, i-3 Global, has been accused of failing to pay $446,618 to another small business two years after being named Department of Energy Protege of the Year.
Kennewick, Wash.-based I-3 Global, a provider of information technology and other services, was named in a civil lawsuit filed by Integrated Global Staffing in Benton County, Wash., Superior Court.
Integrated Global Staffing, also located near Hanford, provides staff augmentation. It is designated as a small business owned by a woman and a service-disabled veteran.
I-3 Global is a HUBZone-certified corporation owned by Kris Lapp.
Integrated Global Staffing said in court documents that i-3 Global received payments of $446,618 from Hanford prime services contractor Mission Support Alliance (MSA) but failed to use the money to pay for work it subcontracted to Integrated Global Staffing.
Lapp “fraudulently spent, misappropriated, and/or diverted money received from i-3 Global’s general contractor, MSA, for his own personal benefit rather than on Integrate Global’s invoices,” the lawsuit says. Lapp did not respond to requests for comment.
I-3 Global was founded in 2013 and became involved with Mission Support Alliance in the Energy Department’s Mentor-Protege Program. The program encourages DOE prime contractors to assist small disadvantaged businesses. In 2017, DOE recognized i-3 Global for “outstanding customer service during a year of significant growth and accomplishment.”
The Energy Department said i-3 global had completed a scope of information technology work, which led to the small business managing its first multimillion-dollar fixed-price contract. Due to the success of the protege program, i-3 Global grew from five employees to more than 40 in less than a year, according to DOE. I-3 Global advertised providing staff augmentation, creative services, and information technology.