B-141631, FEB. 8, 1960

B-141631: Feb 8, 1960

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FRANK DEANGELIS: ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT EBSTEIN AND DEANGELIS. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION FEBRUARY 15. 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-141631, FEB. 8, 1960

TO MR. HOWARD EBSTEIN AND MR. FRANK DEANGELIS:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT EBSTEIN AND DEANGELIS, EBSTEIN AND DEANGELIS, INC., AND HOWARD EBSTEIN AND FRANK DEANGELIS, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACTS GS -02B-4569 AND GS-02B-4644, FOR INSTALLATION OF FLUORESCENT LIGHTING FIXTURES IN A BUILDING LOCATED AT 250 HUDSON STREET, AND THE U.S. CUSTOM HOUSE, NEW YORK, NEW YORK, RESPECTIVELY.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION FEBRUARY 15, 1960, 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 EBSTEIN AND DEANGELIS, EBSTEIN AND DEANGELIS, INC., AND HOWARD EBSTEIN AND FRANK DEANGELIS, INDIVIDUALLY, CAMBRIA HEIGHTS, NEW YORK.

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.'

CONTRACTS GS-02B-4569 AND GS-02B-4644, EACH IN EXCESS OF $2,000, FOR INSTALLATION OF FLUORESCENT LIGHTING FIXTURES IN A BUILDING LOCATED AT 250 HUDSON STREET, AND THE U.S. CUSTOM HOUSE, NEW YORK, NEW YORK, RESPECTIVELY, WERE ENTERED INTO JUNE 29 AND JULY 31, 1956, BY THE PUBLIC BUILDINGS, SERVICE, GENERAL SERVICES ADMINISTRATION, WITH EBSTEIN AND DEANGELIS. THE CONTRACTS CONTAINED PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

AN INVESTIGATION BY THE GENERAL SERVICES ADMINISTRATION OF COMPLIANCE WITH PERTINENT LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED THAT EIGHT (8) WORKERS HAD BEEN UNDERPAID IN THE TOTAL AMOUNT OF $2,329.93 (INCLUDING OVERTIME). NUMEROUS INSTANCES, NONETHELESS, SWORN PAYROLLS WERE SUBMITTED SHOWING FULL PAYMENT OF REQUIRED WAGES. IN THIS CONNECTION, HOWARD EBSTEIN AND FRANK DEANGELIS HAVE PLEADED GUILTY AND HAVE BEEN FINED IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ON SEVEN COUNTS OF AN INFORMATION FILED UNDER THE FALSE STATEMENT ACT, 18 U.S.C. 1001 AND 1002.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSE PAYROLLS, 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 LABOR AND THE GENERAL SERVICES ADMINISTRATION HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT EBSTEIN AND DEANGELIS, EBSTEIN AND DEANGELIS, INC., AND HOWARD EBSTEIN AND FRANK DEANGELIS, INDIVIDUALLY, 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.