Hanford Mission Integration Solutions (HMIS), a federal contractor based in Richland, Washington, has agreed to pay $3.45 million to the U.S. Department of Justice following allegations that it overcharged the Department of Energy (DOE) for labor hours that were not worked.
The settlement addresses claims under the False Claims Act that HMIS management allowed inflated labor hours to be billed to DOE. The government alleged that HMIS employees recorded time as if they had worked full shifts, even when they had not been assigned enough work to fill those hours. These false claims led DOE to reimburse HMIS with federal funds for unworked hours.
HMIS has held a multi-billion dollar contract with DOE since 2020 for infrastructure and site services related to environmental cleanup efforts at Hanford. According to court filings, the company admitted that between August 17, 2020, and September 30, 2025, it sought and received reimbursement from DOE for excessive idle time that was not allowable under its contract terms. Of the total $3.45 million settlement amount paid by HMIS, $1.725 million is restitution.
“Corporate fraud perpetrated upon the taxpayer at Hanford distracts from DOE’s vital clean up mission,” stated First Assistant U.S. Attorney S. Peter Serrano. “This resolution shows our continuing commitment to fighting fraud at Hanford and to ensuring that those tasked with the responsibility of essential environmental cleanup do not abuse our trust in them. I am grateful that HMIS ultimately did the right thing by admitting its conduct and paying back twice what it took from the taxpayers. I hope every individual and business that contracts with the federal government sees this settlement and knows there’s a real risk of prosecution when the United States is defrauded.”
The case began when an HMIS employee filed a qui tam complaint under seal in December 2021 alleging labor mischarging by HMIS under the False Claims Act in U.S District Court for Eastern Washington (EDWA). In May 2024, this same whistleblower submitted a second sealed qui tam complaint making further allegations of fraud by HMIS. Under these circumstances, federal law requires authorities to investigate such complaints before deciding whether or not to intervene directly or allow private parties—known as relators—to pursue litigation on behalf of the United States; relators are eligible for a share in any recovery.
This settlement resolves both complaints brought forward by the whistleblower who will receive $793,500 from the agreement as well as coverage for attorney fees.
“I thank and commend the relator-whistleblower for bringing serious and credible allegations of fraud to our attention,” said Serrano. “Through the relator’s information and years’ long investigation, we are able to uncover fraud and hold HMIS accountable. I hope the public sees this and understands that when viable information is reported to law enforcement, whether that's through filing an under seal qui tam complaint or stepping forward as a witness, they allow DOJ to do its job and hold fraudsters accountable.”
Assistant Inspector General for Investigations Lewe Sessions added: “The Office of Inspector General remains committed to ensuring integrity of Department’s contractors by detecting and holding accountable those who engage in schemes to defraud Government... This settlement is result of collaborative effort with our Office of Investigation’s team and U.S Attorney’s Office who have repeatedly demonstrated their dedication...”
The investigation was conducted jointly by attorneys from both offices including Frieda K Zimmerman; Jacob E Brooks; Molly M S Smith; Tyler H L Tornabene representing USAO while Smith & Lowney PLLC; Mehri & Skalet PLLC; Hanford Challenge represented relator.
