Contractors involved in a multibillion decontamination effort at the notorious Hanford nuclear site have been accused of defrauding US taxpayers, according to a lawsuit against Mission Support Alliance and Lockheed Martin.
MSA has a 10-year, $3.2 billion contract with the Department of Energy (DOE) to support the decontamination effort at the decommissioned nuclear production complex known as the Hanford Site. Allowed to pick subcontractors for the nation’s largest and most expensive environmental cleanup at its own discretion, MSA abused its authority and awarded “improper favorable treatment” for kickbacks, the Justice Department claimed this week.
The lawsuit alleges that Lockheed Martin Corporation (LMC) and Lockheed Martin Services Inc. (LMSI) paid more than $1 million to executives of MSA – which was conveniently co-owned by another Lockheed subsidiary at the time – in order to secure a $232 million subcontract to provide management and technology support at the Washington state nuclear site from 2010-2016.
The services were provided at “inflated rates” and in some cases the DOE was even billed twice, by both MSA and Lockheed, for the same work. In addition, the suit accuses Jorge Francisco Armijo, who served as both the Vice President of LMC and President of MSA, of abusing his authority for financial gain by his simultaneously held posts.
Read more: Feds sue Lockheed Martin for kickbacks & fraud in Hanford nuclear site clean-up contracts
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