Tetra Tech EC Inc., a subsidiary of Tetra Tech, Inc., has agreed to pay $57 million to settle allegations that it falsified soil test results for the U.S. Department of the Navy. The settlement resolves claims that the company fabricated work and falsified data related to the former Hunters Point Naval Shipyard in the San Francisco Bay.
The allegations, filed under the False Claims Act, stated that Tetra Tech was required to investigate soil and buildings at the shipyard and remediate any areas with excessive radiation. However, the government alleged that the company instructed technicians to discard contaminated soil samples and replace them with “clean” samples.
The complaint further alleged that Tetra Tech manipulated scan results in its database to falsely represent that scans were conducted by the same technician at the same time. The government claimed that the company benefited from this misconduct by receiving unearned contract award fees and avoiding additional remediation work.
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Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division stated that the settlement demonstrates the Department’s commitment to holding accountable those who fail to fulfill their responsibilities in providing services to the U.S. military.
The settlement was the result of a coordinated effort between the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of California, and other agencies.
The Justice Department also expressed appreciation for the assistance provided by the Department of Navy, the Environmental Protection Agency, and the Nuclear Regulatory Commission. The settlement resolves allegations filed under the qui tam provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims.
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The relators, former employees and contractors of Tetra Tech, will receive approximately $11,970,000 as their share of the settlement. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
In practice, this development means that the government is taking a stronger stance against companies that engage in fraudulent activities, particularly those that put public health and safety at risk. The settlement highlights the importance of accountability and transparency in government contracting.
