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B-155004, OCT. 13, 1964

B-155004 Oct 13, 1964
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RALPH CHILD CONSTRUCTION COMPANY: ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT THE RALPH CHILD CONSTRUCTION COMPANY AND RALPH CHILD. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION OCTOBER 15. OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST. UNTIL THREE YEARS HAVE ELAPSED FROM SUCH DATE. TO WHICH THE UNITED STATES * * * IS A PARTY. SECTION 3 (A) OF THE ACT PROVIDES THAT: "* * * THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS.

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B-155004, OCT. 13, 1964

TO MR. RALPH CHILD, PRESIDENT, RALPH CHILD CONSTRUCTION COMPANY:

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT THE RALPH CHILD CONSTRUCTION COMPANY AND RALPH CHILD, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT NO. 14-16-0008-606 FOR CONSTRUCTION OF SEVERAL BUILDINGS AT THE NATIONAL FISH HATCHERY, WILLOW BEACH, ARIZONA.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION OCTOBER 15, 1964, AND NO GOVERNMENT CONTRACT SHALL BE AWARDED TO THEM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST, UNTIL THREE YEARS HAVE ELAPSED FROM SUCH DATE.

FINDING

IN THE MATTER OF RALPH CHILD CONSTRUCTION COMPANY AND RALPH CHILD, INDIVIDUALLY, SPRINGVILLE, UTAH.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. 276A, PROVIDES IN PART THAT:

"THE ADVERTISED SPECIFICATIONS FOR EVERY CONTRACT IN EXCESS OF $2,000, TO WHICH THE UNITED STATES * * * IS A PARTY, FOR CONSTRUCTION, ALTERATION, AND/OR REPAIR, INCLUDING PAINTING AND DECORATING, OR PUBLIC BUILDINGS OR PUBLIC WORKS OF THE UNITED STATES * * * AND WHICH REQUIRES OR INVOLVES THE EMPLOYMENT OF MECHANICS AND/OR LABORERS SHALL CONTAIN A PROVISION STATING THE MINIMUM WAGES TO BE PAID VARIOUS CLASSES OF LABORERS AND MECHANICS * * * AND EVERY CONTRACT BASED UPON THESE SPECIFICATIONS SHALL CONTAIN A STIPULATION THAT THE CONTRACTOR OR HIS SUBCONTRACTOR SHALL PAY ALL MECHANICS AND LABORERS EMPLOYED DIRECTLY UPON THE SITE OF THE WORK, UNCONDITIONALLY AND NOT LESS OFTEN THAN ONCE A WEEK AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT, THE FULL AMOUNTS ACCRUED AT TIME OF PAYMENT, COMPUTED AT WAGE RATES NOT LESS THAN THOSE STATED IN THE ADVERTISED SPECIFICATIONS, REGARDLESS OF ANY CONTRACTUAL RELATIONSHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN THE CONTRACTOR OR SUBCONTRACTOR AND SUCH LABORERS AND MECHANICS * * *.'

SECTION 3 (A) OF THE ACT PROVIDES THAT:

"* * * THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. NO CONTRACT SHALL BE AWARDED TO THE PERSONS OR FIRMS APPEARING ON THIS LIST OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH SUCH PERSONS OR FIRMS HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST CONTAINING THE NAMES OF SUCH PERSONS OR FIRMS.'

CONTRACT NO. 14-16-0008-606 FOR CONSTRUCTION OF SEVERAL BUILDINGS AT THE NATIONAL FISH HATCHERY, WILLOW BEACH, ARIZONA, WAS ENTERED INTO ON JANUARY 4, 1961, BY THE UNITED STATES (DEPARTMENT OF THE INTERIOR) WITH THE RALPH CHILD CONSTRUCTION COMPANY. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT.

AN INVESTIGATION CONDUCTED BY THE BUREAU OF SPORT FISHERIES AND WILDLIFE, DEPARTMENT OF THE INTERIOR, DISCLOSED, AND WE SO FIND, THAT CERTIFIED PAYROLLS SUBMITTED BY THE CONTRACTOR CONTAINED INCORRECT INFORMATION INTENDED TO SIMULATE COMPLIANCE WITH THE DAVIS-BACON ACT, WHEREAS IN FACT CERTAIN EMPLOYEES WERE NOT PAID THE AMOUNTS THEREON AND WERE PAID LESS THAN WAGES PROPERLY DUE AT THE RATES STIPULATED IN THE CONTRACT. FOR EXAMPLE, ALTHOUGH THE CONTRACT CALLED FOR PAINTERS TO RECEIVE NOT LESS THAN $4.10 PER HOUR, AND ALTHOUGH CERTIFIED PAYROLLS SHOWED COMPLIANCE WITH THIS REQUIREMENT, THE INVESTIGATION BY THE BUREAU OF SPORT FISHERIES AND WILDLIFE REVEALED THAT JAMES AND DOUGLAS DILLINGHAM, TWO OF THE CONTRACTOR'S PAINTERS, RECEIVED ONLY $2.25 AND $2.60 PER HOUR, RESPECTIVELY. THE INVESTIGATION FURTHER REVEALED THAT EMPLOYEES H. M. DILLINGHAM, KENNETH TANNER, ALLEN HORTON, LEE JORGENSEN AND JOHN LAWRENCE WERE PAID LESS THAN THE AMOUNTS PROPERLY DUE AT THE RATES SPECIFIED FOR THE CLASSIFICATIONS IN WHICH THEY WERE ADMITTEDLY EMPLOYED.

BY LETTER OF DECEMBER 3, 1963, THE SOLICITOR OF LABOR INFORMED THE CONTRACTOR OF THE NATURE AND EXTENT OF THE CHARGES. THE LETTER, IN PART, CHARGED THAT BASED UPON THE EVIDENCE FOUND IN THE INVESTIGATION BY THE BUREAU OF SPORT FISHERIES AND WILDLIFE, 14 EMPLOYEES WERE UNDERPAID IN THE TOTAL AMOUNT OF $1,594.52. THE CONTRACTOR SUBMITTED A LETTER DATED DECEMBER 20, 1963, DENYING THE CHARGES, AND ALSO, AT HIS REQUEST, WAS GIVEN FURTHER OPPORTUNITY TO PRESENT WRITTEN AND ORAL TESTIMONY REGARDING THE CHARGES AT A CONFERENCE HELD ON MARCH 10, 1964, AT THE DEPARTMENT OF LABOR'S SAN FRANCISCO, CALIFORNIA, REGIONAL OFFICE.

IN REGARD TO SEVEN OF THE EMPLOYEES LISTED IN THE SOLICITOR OF LABOR'S CHARGING LETTER OF DECEMBER 3, 1963, THE RECORD SHOWS, AND WE SO FIND, THAT DEDUCTIONS MADE FROM THESE EMPLOYEES' WAGES WERE FOR THE PURPOSE OF REIMBURSING THE CONTRACTOR FOR ADVANCES OF WAGES PREVIOUSLY MADE AND, IN THE CASE OF ONE WORKER, FOR THE PAYMENT OF A FINE. HOWEVER, THE EVIDENCE OF RECORD CLEARLY SHOWS, AND WE SO FIND, THAT THE CONTRACTOR FAILED TO PAY TO SEVEN OF THE EMPLOYEES LISTED IN THE SOLICITOR OF LABOR'S LETTER WAGES TO WHICH THEY WERE ENTITLED UNDER THE CONTRACT PROVISIONS, AND THAT THERE WAS A FAILURE TO EXERCISE GOOD FAITH IN COMPLYING WITH THE DAVIS-BACON ACT AND CONTRACTUAL PROVISIONS. AS TO THREE OF THE EMPLOYEES INVOLVED, THE CONTRACTOR STATED THAT THE WAGE UNDERPAYMENTS WERE SO SMALL HE WOULD PREFER TO PAY THEM RATHER THAN INCUR THE EXPENSE AND TROUBLE OF INVESTIGATING THEM FURTHER. AS TO TWO OF THE EMPLOYEES LISTED--- ALLEN HORTON AND H. M. DILLINGHAM--- THE CONTRACTOR COULD GIVE SATISFACTORY JUSTIFICATION FOR ONLY A PORTION OF THE UNDERPAYMENTS. FINALLY, AS TO THE REMAINING TWO EMPLOYEES--- JAMES AND DOUGLASS DILLINGHAM--- THE CONTRACTOR'S ATTEMPTED EXPLANATIONS OF THE SUBSTANTIAL WAGE DISCREPANCIES VARIED (AT ONE TIME HE SAID THEY WERE DEDUCTIONS FOR GASOLINE FURNISHED; AT ANOTHER, THEY WERE OUT-OF-POCKET FINES; AND, FINALLY, THEY WERE FOR EQUIPMENT FURNISHED) AND NONE OF THEM COULD BE RECONCILED WITH CONTEMPORANEOUS EVIDENCE OF RECORD OR ANY EVIDENCE SUBSEQUENTLY FURNISHED BY THE CONTRACTOR. ONLY THROUGH INVESTIGATION AND DETECTION OF THE MISLEADING INFORMATION FURNISHED IN PAYROLL REPORTS WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND ENSURING COMPLIANCE. THE DEPARTMENT OF THE INTERIOR AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT THE RALPH CHILD CONSTRUCTION COMPANY AND RALPH CHILD, INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE NAMES WILL BE INCLUDED ON A LIST FOR DISTRIBUTION TO ALL AGENCIES OF THE GOVERNMENT AND, PURSUANT TO THE STATUTORY DIRECTION, NO CONTRACT SHALL BE AWARDED TO THEM, OR TO ANY FIRM, CORPORATION,PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.

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