Alberta-based Stantec agrees to pay $4-million settlement to U.S. government

The U.S. Environmental Protection Agency building is seen in Washington, Saturday, Dec. 7, 2024. (AP Photo/Jose Luis Magana)

Edmonton-based Stantec Inc. has agreed to a US$4-million settlement with the U.S. government over allegations that it violated the U.S. False Claims Act to secure lucrative federal grants.

According to the U.S. Department of Justice, the settlement pertains to Stantec’s involvement in Environmental Protection Agency (EPA) brownfields grants, which help communities clean up and redevelop contaminated properties, such as shuttered gas stations and dry cleaning facilities.

U.S. authorities allege that between 2014 and 2022, subsidiaries of the design and engineering firm helped draft requests for proposals and statements of work for EPA brownfields assessment grants. They then allegedly competed for and won such grants in violation of federal regulations that state “contractors that develop or draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements.”

The EPA’s brownfields assessment grants can range in value from approximately US$200,000 to $2 million.

“The EPA’s Brownfields Grant Program aims to help communities around the country transform contaminated sites into community assets,” acting EPA inspector general Nicole Murley explained in a press release. “Fair competition is critical to the integrity of this program, and the EPA Office of Inspector General will vigorously pursue allegations of false certifications to protect both the program and the taxpayer dollars that fund it.”

The allegations pertain to Stantec subsidiaries Stantec Consulting Servies and Cardno Consulting, which Stantec acquired in 2021. The US$4 million (C$ 5.5 million) settlement includes nearly $2.7 million (C$3.6 million) in restitution.

Founded in Edmonton in 1954, Stantec describes itself as “a global leader in sustainable engineering, architecture, and environmental consulting.” The company employs 32,000 people across six continents and has been part of major projects like the Keystone Pipeline from Alberta to the U.S. and a Panama Canal expansion. In June, Time Magazine named Stantec as one of the world’s most sustainable companies. The company has recently faced criticism in Toronto for its contract with the province of Ontario to help remove bike lanes in the city.

Under the terms of the settlement, Stantec did not admit to any liability or wrongdoing.

In a statement to CTVNews.ca, a Stantec spokesperson claimed the company has “diligently followed EPA guidance on procurement requirements” for more than 30 years.

“We have agreed to this settlement to avoid the costs, inconvenience and intrusion of further investigation,” the Stantec spokesperson said. “Our practices for the procurement of brownfield grant writing and redevelopment design projects remain unchanged. We stand firmly by the quality, nature and unparalleled attention to ethics and compliance in our work.”

Stantec says it has secured or implemented more than 550 EPA brownfield grants in 45 states since 2000.

“We’ve helped award over $1 billion in EPA grants,” the company’s website explains. “We approach brownfields as development projects, not costly clean-up jobs.”

In a U.S. Department of Justice press release, assistant attorney general Brett A. Shumate said applicants for federal grant money must comply with applicable requirements.

“The department will hold accountable those who undermine the integrity of the federal grant process by falsely certifying compliance with regulations that are designed to prevent unfair competitive advantage,” Shumate said.