A small business near Hanford, i-3 Global, has been accused of failing to pay $446,618 to another small business two years after it was named Department of Energy Protege of the Year. I-3 Global was named in a civil lawsuit filed by Integrated Global Staffing in Benton County Superior Court in Washington state.
Integrated Global Staffing, also located near Hanford, provides staff augmentation and has the status of being 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 contractor Mission Support Alliance (MSA) but failed to use the money to pay for MSA work i-3 Global had 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 alleges. 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, protege to Hanford Site services contractor MSA, for what the Energy Department called i-3 Global’s “outstanding customer service during a year of significant growth and accomplishment.”
DOE said that 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 mentor-protege program, i-3 Global grew from five employees to more than 40 employees in less than a year, according to DOE. I-3 Global advertised providing staff augmentation, creative services and information technology.
MSA said that in April it found other suppliers to complete graphics work being done by i-3 Global, because i-3 Global was no longer able to do the work after reportedly laying off its creative staff. MSA also said it found other employers for staff augmentation workers who had ties to i-3 Global.