Settlement reached in TVA subcontractor overpayment case

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KNOXVILLE (WATE) – The United States, on behalf of TVA, has reached a settlement with a nuclear contractor who overbilled the federal utility for more than $2 million to complete construction at Watts Bar Nuclear Plant Unit 2.

Contractor Bartlett Holdings was alleged to have violated the False Claims Act by not refunding. Bartlett agreed to pay the federal government $2.8 million.

Bartlett entered into a subcontract in January 2008 with Bechtel Power Corporation, TVA’s engineering, procurement and construction contractor, to provide qualified personnel for the Watts Bar project. According to Bartlett’s subcontract, they were supposed to be reimbursed for actual costs for wages and related expenses, but an audit revealed Bartlett received excess payments and knowingly failed to timely identify, report and refund them.

The claims settled by the agreement are allegations only and there has been no determination of liability.

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