B-125780, DEC. 9, 1955

B-125780, DEC. 9, 1955

TO MR. WILLIAM W. HODGES:

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF MY FINDING OF TODAY THAT WILLIAM W. HODGES HAS DISREGARDED HIS OBLIGATIONS TO EMPLOYEES WITHIN THE INTENT AND MEANING OF SECTION 3 (A) OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, IN CONNECTION WITH THE PERFORMANCE OF CONTRACT NO. AF 20/043/-190, DATED JUNE 30, 1950.

PURSUANT TO SECTION 3 (A) OF THE STATUTE, YOUR NAME WILL BE INCLUDED ON THE NEXT LIST COMPILED FOR DISTRIBUTION TO ALL GOVERNMENT DEPARTMENTS AND AGENCIES, AND NO GOVERNMENT CONTRACT SHALL BE AWARDED TO YOU OR TO ANY FIRM, CORPORATION, PARTNERSHIP OR ASSOCIATION IN WHICH YOU HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF THE PUBLICATION OF THE SAID LIST.

FINDING

IN THE MATTER OF WILLIAM W. HODGES, UNDER SECTION 3 (A) OF THE ACT OF AUGUST 30, 1935, 40 U.S.C. 276A.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. 276A, PROVIDES, IN PERTINENT 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, OF PUBLIC BUILDINGS OR PUBLIC WORKS OF THE UNITED STATES * * * AND WHICH PUBLIC BUILDINGS OR PUBLIC WORKS OF THE UNITED STATES * * * AND WHICH AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF

"* * * THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER

SECTION 3 (A) OF THE ACT PROVIDES: * * *.' THE CONTRACTOR OR SUBCONTRACTOR AND SUCH LABORERS AND MECHANICS OF ANY CONTRACTUAL RELATIONSHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN LESS THAN THOSE STATED IN THE ADVERTISED SPECIFICATIONS, REGARDLESS THE FULL AMOUNTS ACCRUED AT TIME OF PAYMENT, COMPUTED AT WAGE RATES NOT ONCE A WEEK, AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT, UPON THE SITE OF THE WORK, UNCONDITIONALLY AND NOT LESS OFTEN THAN SUBCONTRACTOR SHALL PAY ALL MECHANICS AND LABORERS EMPLOYED DIRECTLY SPECIFICATIONS SHALL CONTAIN A STIPULATION THAT THE CONTRACTOR OR HIS OF LABORERS AND MECHANICS * * * AND EVERY CONTRACT BASED UPON THESE CONTAIN A PROVISION STATING THE MINIMUM WAGES TO BE PAID VARIOUS CLASSES THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. REQUIRES OR INVOLVES THE EMPLOYMENT OF MECHANICS AND/OR LABORERS SHALL 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.'

UNDER DATE OF JUNE 30, 1950, CONTRACT NO. AF 20/043/-190 WAS ENTERED INTO BY THE UNITED STATES AIR FORCE AND WILLIAM W. HODGES, 74 QUINN ROAD, MT. CLEMENS, MICHIGAN, COVERING THE PAINTING OF THE EXTERIOR OF 19 PUBLIC BUILDINGS AND ENCLOSED WALKWAYS AT SELFRIDGE AIR FORCE BASE, MICHIGAN. THE CONTRACT CONSIDERATION WAS IN EXCESS OF $2,000 ($7,424.00) AND THE CONTRACT AND RELATED SPECIFICATIONS CONTAINED THE PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

FROM THE OFFICIAL RECORDS OF THIS OFFICE, IT APPEARS THAT IN THE PERFORMANCE OF THE CONTRACT WORK WILLIAM W. HODGES DISREGARDED HIS "OBLIGATIONS TO EMPLOYEES" WITHIN THE INTENT AND MEANING OF THE CITED STATUTE, AS HEREINAFTER SET FORTH. AN INVESTIGATION CONDUCTED BY REPRESENTATIVES OF THE DEPARTMENT OF LABOR AND THE DEPARTMENT OF THE AIR FORCE DISCLOSED THAT IN THE PERFORMANCE OF THE CONTRACT THE CONTRACTOR HAD UNDERPAID 12 PAINTERS IN AMOUNTS TOTALING $1,651.49 BY FAILING TO PAY THE SAID EMPLOYEES THE MINIMUM HOURLY RATE OF COMPENSATION REQUIRED BY THE CONTRACT TO BE PAID TO THIS PARTICULAR CLASSIFICATION OF LABOR. THE INVESTIGATORS WERE UNABLE TO FIND THE CONTRACTOR OR TO EXAMINE HIS RECORDS AND HIS PRESENT WHEREABOUTS APPEARS TO BE UNKNOWN. THE INVESTIGATION DISCLOSED THAT SOME OF THE SAID EMPLOYEES WERE EMPLOYED AS PAINTERS AT THE RATE OF $2 PER HOUR, ALTHOUGH THE CONTRACT SPECIFIED A RATE OF $2.10 PER HOUR, AND THAT OTHERS WERE EMPLOYED AS APPRENTICE PAINTERS AT THE RATE OF $1.47 PER HOUR, ALTHOUGH THEY SHOULD HAVE BEEN CLASSIFIED AS PAINTERS AT THE RATE OF $2.10 PER HOUR.

THE RECORD ALSO SHOWS LACK OF GOOD FAITH ON THE PART OF THE CONTRACTOR IN THAT HE FAILED TO MAKE FULL PAYMENT TO SOME EMPLOYEES EVEN AT THE LOWER RATE, FAILED TO MAKE PAYMENT FOR CERTAIN OVERTIME SERVICES RENDERED, AND MADE NO PAYMENT TO SOME EMPLOYEES. THE CONTRACT WAS TERMINATED WHEN APPROXIMATELY 80 PERCENT COMPLETED BECAUSE OF THE CONTRACTOR'S DEFAULT.

IN HIS LETTER DATED JUNE 17, 1955, TO THIS OFFICE, THE SOLICITOR OF LABOR INVITES ATTENTION TO THE RECOMMENDATION OF THE DEPARTMENT OF THE AIR FORCE THAT THE NAME OF THE CONTRACTOR, WILLIAM W. HODGES, BE INCLUDED ON THE INELIGIBLE LIST AND CONCURS IN THAT RECOMMENDATION.

IN VIEW OF THE FACTS OF RECORD, I HEREBY FIND THAT WILLIAM W. HODGES ACTED IN DISREGARD OF HIS ,OBLIGATIONS TO EMPLOYEES" WITHIN THE INTENT AND MEANING OF SECTION 3 (A) OF THE ACT OF AUGUST 30, 1935, SUPRA. ACCORDINGLY, THE NAME OF THE SAID PERSON WILL BE INCLUDED ON THE NEXT LIST FOR DISTRIBUTION TO ALL GOVERNMENT DEPARTMENTS AND AGENCIES PURSUANT TO SECTION 3 (A) OF THE ACT AND NO CONTRACT SHALL BE AWARDED TO SUCH PERSON OR TO ANY FIRM, CORPORATION, PARTNERSHIP OR ASSOCIATION IN WHICH SUCH PERSON HAS AN INTEREST UNTIL THREE YEARS SHALL HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST.