URS C&E Holdings Inc.—the successor firm to the former Washington Group International Inc. construction company—has agreed to pay the federal government $9 million to resolve alleged violations of federal statutes on U.S.–funded infrastructure contracts in Egypt, the U.S. Dept. of Justice says.

The settlement, which DOJ announced on Jan. 6, centers on five U.S. Agency for International Development water and wastewater projects awarded in the 1990s.

The contracts were awarded to a team of Washington Group International, Contrack International Inc., which is headquartered in McLean, Va., and Misr Sons Development S.A.E. of Egypt.

The U.S. filed a lawsuit in 2004 in federal district court against the three companies charging that they violated the False Claims Act and Foreign Assistance Act.

It noted that firms seeking to bid on the contracts, in some cases, were required to be U.S. companies.

The government contended that the joint venture concealed that Misr Sons was part of the team. The lawsuit said that prevented U.S. AID from evaluating the companies’ qualifications accurately and, the government alleged, the firms won contracts for which they weren’t eligible.

The department also noted that the claims covered by the settlement are allegations and added that there has been no determination of liability.

Los Angeles-based AECOM, which acquired URS Corp. in 2014, did not immediately reply to ENR requests for comment.

Contrack settled with the U.S. in July 2013, paying $3.5 million, and denied the allegations.  

In a 2013 statement, Contrack denied “any wrongdoing or knowledge of illegal conduct.” It added, “Contrack’s management simply concluded that a prolonged legal process would not be in the best interest of the company.”

Justice said that it “is continuing to pursue its claims against” Misr Sons.