An independent opinion that could help determine the outcome of a federal lawsuit claiming a Savannah River Site contractor overcharged the federal government by $5 million is still being decided after nearly three years, according to a status report recently filed in the case.
The joint status report was submitted by the U.S. Department of Energy and Savannah River Nuclear Solutions (SRNS), the agency’s management contractor at the 310-square-mile facility near Aiken S.C.
The Department of Justice sued SRNS, and primary parent company Fluor, in March 2016 on allegations they used federal dollars to purchase items that were not covered under the contract. Specific purchases were not listed, but the Justice Department said SRNS overcharged the government $5 million by filing 573 unlawful reimbursement claims, from Oct. 8, 2008, to Dec. 31, 2015.
The Justice Department is seeking up to $15.6 million, or three times the amount the federal government was allegedly overcharged.
In December 2016, U.S. District Judge J. Michelle Childs dismissed from the lawsuit the claim that SRNS wrongly benefited from the contract. However, she did not dispute the Justice Department assertion that the contractor wrongfully charged the federal government for home office expenses and bid proposals.
For that decision, Childs that month requested an opinion from the Civilian Board of Contract Appeals (CBCA), an independent tribunal that helps resolve disputes between government contractors and agencies. The civilian board’s assignment in this case is to provide an opinion on whether SRNS misused federal funds.
The board conducted evidentiary hearings in October and November 2018, plus a final session in July 10 of this year. Both parties submitted post-hearing briefs to the civilian board on Friday, Oct. 10, 90 days after the final hearing. The briefs summarized each parties’ argument in the case as laid out during the three hearings.
The two parties have until Nov. 12 to file responses to each other’s briefs. Following the responses, the CBCA will schedule a date for oral arguments, which will give the parties an opportunity to discuss the briefs. The parties will update Childs if the civilian board reaches a decision before the next status report, which is scheduled for Feb. 11, 2020. There is no schedule for a trial or for the CBCA to issue its opinion.
Savannah River Nuclear Solutions and the federal government are required to submit status reports every four months, updating Childs on the CBCA proceeding.
A spokesperson for Savannah River Nuclear Solutions said the contractor could not comment on litigation or offer a copy of the briefs. The CBCA and Justice Department did not respond to similar queries.
Savannah River Nuclear Solutions is a partnership of Fluor, Honeywell, and Huntington Ingalls through its Newport News Nuclear subsidiary. The site manager is currently operating under a 14-month extension to its DOE contract, through September 30, 2020.
