Stantec, a provider of environmental development and engineering services based in Edmonton, Alberta, has agreed to pay $4 million to resolve allegations that it violated the False Claims Act by submitting false certifications in applications for U.S. Environmental Protection Agency brownfield redevelopment assessment grants, the U.S. Dept.of Justice said July 7.

The agency contends that between 2014 and 2022, Stantec, through subsidiaries, drafted or assisted in drafting requests for proposals and statements of work for the grants, then competed for them, successfully winning ones on which they had contributed to developing, without separation required under federal procurement rules and EPA guidelines. 

“Applicants for federal grant funds must comply with applicable procurement requirements … that are designed to prevent unfair competitive advantage,”  said Assistant Attorney General Brett A. Shumate, head of the department’s civil division, in a statement. Federal regulations bar any contractor that “develop[s] or draft[s] specifications, requirements, statements of work, or invitations for bids” from competing for those same procurements.

“[T]he Department of Justice and the Environmental Protection Agency have not levied any administrative, criminal or civil charges against Stantec,” a firm spokesman said in an email. “We have agreed to this settlement to avoid the costs, inconvenience and intrusion of further investigation.” He stated that, for nearly three decades, the company has “diligently followed” EPA guidelines on procurement practices related to brownfield projects.

Stantec practices for procuring brownfield grant writing and redevelopment design projects remain unchanged, said the spokesman, adding, “We stand firmly by the quality, nature and unparalleled attention to ethics and compliance in our work.”

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Developed in President Bill Clinton’s first term, the program provides federal funds and technical assistance to municipalities to assess, safely clean up and sustainably reuse properties contaminated by hazardous substances. Communities applying for the grants must certify compliance with procurement rules intended to prevent conflicts of interest among competing firms.

Justice said Stantec cooperated with the government’s investigation, and, under the settlement agreement, was not required to admit liability. 

“The deal underscores that consultants involved in grant preparation now face the same treble-damages and False Claims Act exposure as prime federal contractors,” said Trent Cotney, partner and head of Adams and Reese LLP’s construction practice group.