A Rocky Hill construction firm must pay $580,000 to settle federal allegations that it overcharged for labor used on a shoreline bridge-renovation project for Amtrak, prosecutors say.
URS Corp. AES agreed to the civil settlement to resolve allegations it violated the federal False Claims Act about its bridge reconstruction in the Niantic section of East Lyme, Connecticut U.S. Attorney Deirdre M. Daly said Wednesday.
According to Amtrak and federal transportation-department investigators, Amtrak in 2007 awarded a contract to Washington Group International Inc. (WGI) to oversee replacement of the Niantic River rail bridge. In 2008, URS acquired WGI, assuming responsibility for the contract.
The contract allowed URS to apply a fixed labor-rate schedule, including a maximum rate per worker classification, in billing Amtrak for reimbursement of labor costs on the bridge renovation.
However, prosecutors contend that URS charged Amtrak the maximum labor rate per worker, rather than the actual rate, for each employee listed as working on the project, resulting in overbilling to U.S. taxpayers.
URS officials could not immediately be reached Wednesday for comment.
