B-141197, DEC. 1, 1959

B-141197: Dec 1, 1959

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

ATLAS METAL PRODUCTS COMPANY: ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT THE ATLAS METAL PRODUCTS COMPANY AND LANCE M. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION DECEMBER 1. NO GOVERNMENT CONTRACT WILL BE AWARDED TO ANY OF THEM. OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST. UNTIL THREE YEARS SHALL HAVE ELAPSED FROM SUCH DATE. 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-141197, DEC. 1, 1959

TO MR. LANCE M. BRADSHAW, ATLAS METAL PRODUCTS COMPANY:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT THE ATLAS METAL PRODUCTS COMPANY AND LANCE M. BRADSHAW, OWNER, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF SUBCONTRACTS UNDER CONTRACTS DA-44 110-ENG-4260 AND NA- 1-3336, AWARDED TO THE CARTER CONTRACTING COMPANY, INC., AND C. W. LOCKWOOD AND SONS, INC., FOR CONSTRUCTION WORK AT FORT EUSTIS AND LANGLEY FIELD, VIRGINIA, RESPECTIVELY.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION DECEMBER 1, 1959, AND NO GOVERNMENT CONTRACT WILL BE AWARDED TO ANY OF THEM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST, UNTIL THREE YEARS SHALL HAVE ELAPSED FROM SUCH DATE.

FINDING

IN THE MATTER OF THE ATLAS METAL PRODUCTS COMPANY AND LANCE M. BRADSHAW, OWNER, WARWICK, VIRGINIA.

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, 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 DA-44-110-ENG-4260 AND CONTRACT NA-1-3336, EACH IN EXCESS OF $2,000 FOR CONSTRUCTION WORK AT FORT EUSTIS AND LANGLEY FIELD, VIRGINIA, RESPECTIVELY, WERE ENTERED INTO DECEMBER 27, 1957, AND MARCH 21, 1958, BY THE UNITED STATES (CORPS OF ENGINEERS AND NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS) WITH THE CARTER CONTRACTING COMPANY, INC., AND C. W. LOCKWOOD AND SONS, INC., RESPECTIVELY. PORTIONS OF THE WORK WERE SUBCONTRACTED TO THE ATLAS METAL PRODUCTS COMPANY, OF WHICH LANCE M. BRADSHAW WAS THE OWNER. THE CONTRACTS AND SUBCONTRACTS INCLUDED OR INCORPORATED PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

INVESTIGATIONS BY THE CORPS OF ENGINEERS AND THE DEPARTMENT OF LABOR OF COMPLIANCE WITH PERTINENT LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED THAT NINE (9) WORKERS HAD BEEN UNDERPAID IN THE TOTAL AMOUNT OF $547.87 AND THAT, NONETHELESS, PAYROLL AFFIDAVITS HAD BEEN FURNISHED TO THE GOVERNMENT FALSELY SHOWING FULL PAYMENT OF REQUIRED WAGES. THE VIOLATIONS WERE ADMITTED BY THE OWNER AND NECESSARY WAGE ADJUSTMENTS HAVE BEEN MADE.

MR. BRADSHAW HAS REQUESTED CONSIDERATION OF THE EXTENUATING CIRCUMSTANCES THAT HE PAYS HIS EMPLOYEES WAGES "WHETHER IT RAINS OR SHINES AND AT TIMES WHEN I DON-T HAVE ANYTHING FOR THEM TO O" AND THAT HE INTENDED TO MAKE UP SHORTAGES IN AMOUNTS PAID TO THEM BY ADDITIONAL PAYMENTS AT A LATER DATE. HOWEVER, NO SUCH ARRANGEMENTS WERE DISCLOSED TO THE GOVERNMENT, EVEN IF IT COULD BE ESTABLISHED THAT THEY EXISTED.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSE PAYROLLS SUBMITTED, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND CONTRACTUAL PROVISIONS. ONLY THROUGH INVESTIGATION AND DETECTION OF THE MISLEADING INFORMATION SUBMITTED IN AFFIDAVIT FORM WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND INSURING COMPLIANCE. THE DEPARTMENT OF THE ARMY, THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, AND THE DEPARTMENT OF LABOR HAD RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT THE ATLAS METAL PRODUCTS COMPANY AND LANCE M. BRADSHAW, OWNER, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THEIR 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 THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.