The U.S. Justice Department and the contractor that manages the Department of Energy’s Savannah River Site in South Carolina hope a civilian board will soon offer an opinion on whether the company overcharged the federal government by $5 million.
Before a decision can be made, the two sides must wrap up a weeks-long hearing in a lawsuit, according to a joint status report filed Monday.
The Justice Department filed the lawsuit in March 2016, alleging that Savannah River Nuclear Solutions (SRNS) and Fluor, one of its parent companies, used federal dollars to purchase items that were not covered under the contract. Specific purchases were not listed, but the federal government alleged SRNS overcharged the government $5 million by filing 573 unlawful reimbursement claims, from Oct. 8, 2008, to Dec. 31, 2015.
In a December 2016 ruling, U.S. District Judge J. Michelle Childs dismissed the notion that SRNS wrongly benefited from the contract, but did not dispute the claim that the contractor wrongfully charged the federal government for home office expenses and bid proposals.
Instead, Childs asked the independent federal Civilian Board of Contract Appeals (CBCA) to provide give an opinion on the charging matter before she issues a final ruling. Childs has also asked for status reports every four months, the latest delivered on Monday.
In the report, the two sides said evidentiary hearings were held in late October and early November. Additional days were slated for last month, but were postponed by the federal government’s partial shutdown.
The two sides said they expect the CBCA to “reschedule those remaining days, permit the parties to file post-hearing briefs after the hearing concludes, then complete its advisory opinion.” There is currently no timeline for that to occur, but Childs’ court will be notified if an opinion is issued before the next status report, which should come in June.
The Justice Department is seeking up to $15.6 million, or three times the amount of the amount the federal government was allegedly overcharged.
In addition to Fluor, SRNS’ parent companies are Honeywell and Stoller Newport News Nuclear. Its missions at the Savannah River Site encompass waste cleanup, building deactivation and decommissioning, tritium production for nuclear weapons, and operation of the Savannah River National Laboratory.
After its $9.5 billion contract ran its course, SRNS received a one-year extension last summer, keeping the contractor on the job through July 2019 while DOE seeks a successor. The Energy Department has not set a target date for issuing its request for proposals.
