Consolidated Nuclear Security LLC (CNS), a Delaware company with its main operations in Tennessee, will pay the United States $18.4 million to settle False Claims Act violations.

From July 2014 through June 2020, CNS knowingly submitted doctored timesheets to the National Nuclear Security Administration (NNSA) for employees working at NNSA’s Pantex Site. The Pantex Site is the United States’ main facility for nuclear weapons production. CNS entered a contract with NNSA to manage and operate at the Amarillo, Texas site, which required CNS to ensure that all claims submitted to NNSA were truthful and accurate. However, CNS admitted that their technicians reported time on their timesheets that they did not actually work. The United States then paid those technicians based on those false claims.

The U.S. attorney for the Northern District of Texas admonished CNS, stating that “Taxpayers should never be on the hook for the cost of work that was not performed … Government contractors who misrepresent hours will be held accountable.”

CNS received credit in the settlement for self-reporting these false claims and cooperating in the investigation. They are taking additional steps to ensure their procedures safeguard against fraud. While there was no whistleblower in this case, whistleblowers are crucial to protecting taxpayer dollars, especially since company self-disclosure is not a frequent phenomenon.