B-143096, JUN. 15, 1960

B-143096, JUN. 15, 1960

TO MR. JOHN P. BROOME:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT THE J. P. BROOME CONSTRUCTION COMPANY AND JOHN P. BROOME, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF A SUBCONTRACT UNDER CONTRACT NO. DA-40- 058-ENG-3950, FOR CERTAIN CONSTRUCTION WORK AT THE SEWART AIR FORCE BASE, TENNESSEE.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION JUNE 15, 1960, AND NO GOVERNMENT CONTRACT WILL 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 SUCH DATE.

FINDING

IN THE MATTER OF THE J. P. BROOME CONSTRUCTION COMPANY AND JOHN P. BROOME, INDIVIDUALLY, NASHVILLE, TENNESSEE.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1081, 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 THAT 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-40-058-ENG-3950, IN EXCESS OF $2,000, FOR CERTAIN CONSTRUCTION WORK AT THE SEWART AIR FORCE BASE, TENNESSEE, WAS ENTERED INTO DECEMBER 29, 1958, BY THE UNITED STATES (CORPS OF ENGINEERS) WITH THE GENERAL BUILDERS CORPORATION. PORTIONS OF THE WORK WERE SUBCONTRACTED TO THE J. P. BROOME CONSTRUCTION COMPANY, WHICH HAS ACKNOWLEDGED THE APPLICABILITY OF THE REQUIREMENTS OF SECTION 1 OF THE ACT.

INVESTIGATION BY THE CORPS OF ENGINEERS OF COMPLIANCE WITH PERTINENT LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED THAT AT LEAST FIVE EMPLOYEES HAD BEEN UNDERPAID IN THE TOTAL AMOUNT OF $320.55, IN PART DUE TO EMPLOYMENT OF INCORRECT CLASSIFICATIONS FOR WORK PERFORMED AND IN PART DUE TO FAILURE TO OBSERVE MINIMUM RATES. THE RECORD ESTABLISHES THAT MR. BROOME REFUSED TO FURNISH PAYROLL RECORDS, TO PERMIT THE FEDERAL INVESTIGATOR TO WITNESS PAYMENTS MADE IN CASH TO EMPLOYEES, AND TO COMPLETE WAGE ADJUSTMENTS AGREED TO WHEN UNDERPAYMENTS WERE BROUGHT TO HIS ATTENTION. AS A RESULT OF MR. BROOME'S NONCOOPERATION, ABANDONMENT OF BUSINESS, AND DEPARTURE FROM THE STATE, THE PRIME CONTRACTOR WAS REQUIRED TO ADJUST THE WAGE DEFICIENCIES.

IT THUS IS CLEAR THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND CONTRACTUAL PROVISIONS, AND IT WAS NECESSARY FOR THE GOVERNMENT TO ADOPT EXTRAORDINARY MEASURES TO ENSURE COMPLIANCE AND TO PROTECT THE EMPLOYEES INVOLVED. THE DEPARTMENT OF LABOR HAS RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT THE J. P. BROOME CONSTRUCTION COMPANY AND JOHN P. BROOME, INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE 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.