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B-142608, MAY 2, 1960

B-142608 May 02, 1960
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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. 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.'. WERE ENTERED INTO JUNE 30. PORTIONS OF THE WORK WERE SUBCONTRACTED TO A. EMPLOYEES HAVE ADVISED THAT THEIR WAGE DEFICIENCIES WERE ADJUSTED FOLLOWING INSTITUTION OF THE INVESTIGATION. IT IS CLEAR.

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B-142608, MAY 2, 1960

TO MR. AUGUST P. ANNICCHIARICO:

IN THE MATTER OF AUGUST P. ANNICCHIARICO, DOING BUSINESS AS A. P. ANNICCHIARICO, BUILDER AND MASON CONTRACTOR, JERSEY CITY, NEW JERSEY.

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 OF 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 NBY-21386, AND 21388, EACH IN EXCESS OF $2,000, FOR CERTAIN CONSTRUCTION WORK AT THE U.S. NAVAL SUPPLY DEPOT, BAYONNE, NEW JERSEY, WERE ENTERED INTO JUNE 30, 1959, BY THE UNITED STATES (BUREAU OF YARDS AND DOCKS, DEPARTMENT OF THE NAVY) WITH THE AMERICAN HEATING COMPANY. PORTIONS OF THE WORK WERE SUBCONTRACTED TO A. P. ANNICCHIARICO, WHO HAS ACKNOWLEDGED THE APPLICABILITY OF THE REQUIREMENTS OF SECTION 1 OF THE ACT.

INVESTIGATION BY THE BUREAU OF YARDS AND DOCKS OF COMPLIANCE WITH PERTINENT LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED THAT EIGHT (8) WORKMEN HAD BEEN UNDERPAID IN THE TOTAL AMOUNT OF $374.20 AND THAT, NONETHELESS, PAYROLL AFFIDAVITS HAD BEEN FURNISHED TO THE GOVERNMENT FALSELY SHOWING FULL PAYMENT OF REQUIRED WAGES. ON JANUARY 28, 1960, IN THE UNITED STATES DISTRICT COURT, NEWARK, NEW JERSEY, THE SUBCONTRACTOR PLEADED GUILTY TO A CHARGE OF VIOLATING THE CRIMINAL PROVISIONS OF 18 U.S.C. 1001 BASED UPON SUBMISSION OF THE FALSE PAYROLLS, EMPLOYEES HAVE ADVISED THAT THEIR WAGE DEFICIENCIES WERE ADJUSTED FOLLOWING INSTITUTION OF THE INVESTIGATION.

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 DEPARTMENT OF THE NAVY HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT AUGUST P. ANNICCHIARICO, DOING BUSINESS AS A. P. ANNICCHIARICO, BUILDER AND MASON CONTRACTOR, HAS DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, HIS NAME 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 HIM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH HE HAS AN INTEREST, UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.

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