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    Friday, April 19, 2024

    Niantic bridge contractor agrees to $580,000 settlement

    A Rocky Hill building company accused of overcharging the federal government for reconstruction of the Niantic River Bridge has agreed to pay $580,000 to resolve the allegations.

    URS Corp. AES's settlement comes after government officials alleged that the company violated the False Claims Act by charging Amtrak the maximum labor rate for the project rather than actual labor costs as required under its contract.

    "Federal contractors must abide by the billing requirements set forth in government contracts so that taxpayer dollars are not wasted," Deirdre M. Daly, U.S. attorney for the District of Connecticut, said in a statement.

    The Office of Inspector General at both Amtrak and the U.S. Department of Transportation investigated the allegations.

    Investigators noted that the bridge-replacement project was awarded to Washington Group International Inc. in 2007, a company later acquired by URS. The government charged in court filings that URS charged maximum labor rates "in most instances" while it was overseeing construction, resulting in overbillings.

    “This was a significant civil recovery for Amtrak, and one that sends an important message for contractors regarding their obligation to properly bill for services,” Amtrak Inspector General Tom Howard said in a statement.

    Amtrak replaced the more than century-old moveable bridge over the Niantic River over a two-year period between 2010 and 2012. The new bascule bridge represented the largest Amtrak project nationwide funded by the American Recovery and Reinvestment Act.

    In addition to bridge work, the project included expansion of the channel below, realignment of track, relocation of the nearby boardwalk and beach-restoration efforts.

    l.howard@theday.com

    Twitter: @KingstonLeeHow

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