B-129967, JAN. 22, 1957

B-129967: Jan 22, 1957

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TO BROOKSIDE PAINT CONTRACTING COMPANY: THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF MY FINDING OF TODAY THAT JOSEPH WALKER AND KARL J. HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF SECTION 3 (A) OF THE DAVIS-BACON ACT OF AUGUST 30. THE NAMES OF THOSE PERSONS AND THE FIRM WILL BE INCLUDED ON THE NEXT LIST OF DEBARRED CONTRACTORS COMPILED FOR DISTRIBUTION TO ALL DEPARTMENTS AND AGENCIES OF THE GOVERNMENT. OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST. UNTIL THREE YEARS SHALL HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THAT LIST. TO WHICH THE UNITED STATES * * * IS A PARTY. - "* * * 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.

B-129967, JAN. 22, 1957

TO BROOKSIDE PAINT CONTRACTING COMPANY:

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF MY FINDING OF TODAY THAT JOSEPH WALKER AND KARL J. DANGEL, TRADING AS BROOKSIDE PAINT CONTRACTING COMPANY, HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES WITHIN THE 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. DA-36-109- ENG-5871.

PURSUANT TO SECTION 3 (A) OF THE ACT, THE NAMES OF THOSE PERSONS AND THE FIRM WILL BE INCLUDED ON THE NEXT LIST OF DEBARRED CONTRACTORS COMPILED FOR DISTRIBUTION TO ALL DEPARTMENTS AND AGENCIES OF THE GOVERNMENT, 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 SHALL HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THAT LIST.

FINDING

IN THE MATTER OF JOSEPH WALKER AND KARL J. DANGEL, PARTNERS, DOING BUSINESS AS THE BROOKSIDE PAINT CONTRACTING COMPANY, 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 PART, THAT---

"THE ADVERTISED SPECIFICATIONS FOR EVERY CONTRACT IN EXCESS OF $2,000, TO WHICH THE UNITED STATES * * * IS A PARTY, FOR CONSTRUCTION, ALTERATIONS, AND/OR REPAIR, INCLUDING PAINTING AND DECORATING, OF 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. DA-36-109-ENG-5871, DATED OCTOBER 27, 1954, IN EXCESS OF $2,000, FOR REPLACEMENT OF DAMAGED WALLBOARD, PREPARATION OF SURFACES AND THE INTERIOR PAINTING IN AIRMEN'S DORMITORIES NOS. 346, 347, AND 348, AT NEW CASTLE COUNTY, DELAWARE, WAS ENTERED INTO WITH JOSEPH WALKER AND KARL J. DANGEL. THE CONTRACT AND RELATED SPECIFICATIONS CONTAINED THE PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

IT APPEARS FROM THE OFFICIAL RECORDS OF THIS OFFICE THAT IN THE PERFORMANCE OF THE WORK BROOKSIDE PAINT CONTRACTING COMPANY DISREGARDED ITS "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THAT TERM AS CONTAINED IN THE DAVIS-BACON ACT. AN INVESTIGATION CONDUCTED BY REPRESENTATIVES OF THE DEPARTMENT OF THE ARMY DISCLOSED THAT SEVEN PAINTERS WERE PAID RATES RANGING FROM $2.00 TO $2.50 PER HOUR, WHEREAS THE PREDETERMINED PREVAILING WAGE RATE REQUIRED TO BE PAID UNDER THE TERMS OF THE CONTRACT WAS $2.70 PER HOUR. IN ORDER TO CIRCUMVENT THE REQUIREMENTS OF THE DAVIS-BACON ACT, FALSE PAYROLLS ADMITTEDLY WERE SUBMITTED BY THE CONTRACTOR SHOWING PAYMENT OF WAGES TO ITS EMPLOYEES AT THE CONTRACT RATE WHEREAS LESSER RATES WERE IN FACT PAID. UPON REVIEW OF THE RECORD IN THIS CASE THE DEPARTMENT OF THE ARMY AND THE DEPARTMENT OF LABOR BOTH RECOMMEND INVOKING THE INELIGIBILITY SANCTIONS OF THE DAVIS-BACON ACT.

IT IS EVIDENT THAT THE CONTRACTOR ATTEMPTED TO EVADE PAYMENT OF THE PREDETERMINED WAGE RATES MADE A PART OF THE CONTRACT BY THE FILING OF FALSIFIED PAYROLL RECORDS AND, THEREFORE, THAT GOOD FAITH WAS NOT EXERCISED TO MAINTAIN THE LABOR STANDARDS PRESCRIBED BY LAW. IN THOSE CIRCUMSTANCES, I HEREBY FIND THAT JOSEPH WALKER AND KARL J. DANGEL, TRADING AS BROOKSIDE PAINT CONTRACTING COMPANY, HAVE ACTED IN DISREGARD OF THEIR "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF SECTION 3 (A) OF THE ACT OF AUGUST 30, 1935, SUPRA. ACCORDINGLY, THEIR NAMES AND THE NAME OF THE FIRM WILL BE INCLUDED ON THE NEXT LIST OF DEBARRED CONTRACTORS PREPARED FOR DISTRIBUTION TO ALL GOVERNMENT DEPARTMENTS AND AGENCIES, AND NO CONTRACT SHALL BE AWARDED TO THEM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST UNTIL THREE YEARS SHALL HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.