Richland company to pay $2M for improper Hanford contract

RICHLAND, Wash. (AP) - A Richland company has agreed to pay $2 million to resolve allegations of improper subcontracting at the Hanford Nuclear Reservation.

Federal Engineers & Constructors admitted no liability in the settlement.

The company was accused of using a woman-owned company, Sage Tec, as a front company to earn money for work set aside for certain small businesses, including businesses owned by women.

Former Hanford contractor Washington Closure Hanford was required by the Department of Energy to award a percentage of its work to companies that the Small Business Administration determined were disadvantaged, which includes women-owned firms

A lawsuit was filed by Savage Logistics - a small, woman-owned business doing Hanford work - in 2010 alleging, among other complaints, that two subcontracts worth millions of dollars were improperly awarded to Sage Tec.