B-143230, JUN. 29, 1960

B-143230, JUN. 29, 1960

TO GUYE CONSTRUCTION COMPANY:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT THE GUYE CONSTRUCTION COMPANY AND W. P. GUYE, OWNER, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT 061-32 (FEDERAL HOUSING ADMINISTRATION), FOR INTERIOR DECORATING AT THE MYRTLE COURT APARTMENT PROJECT, AUGUSTA, GEORGIA.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION JULY 1, 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 GUYE CONSTRUCTION COMPANY AND W. P. GUYE, OWNER, AUGUSTA, GEORGIA.

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.'

CONTRACT 061-32 (FEDERAL HOUSING ADMINISTRATION), IN EXCESS OF $2,000, FOR INTERIOR DECORATING AT THE MYRTLE COURT APARTMENT PROJECT, AUGUSTA, GEORGIA, WAS ENTERED INTO NOVEMBER 15, 1957, BETWEEN THE UNITED STATES AND THE GUYE CONSTRUCTION COMPANY. THE CONTRACT CONTAINED PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

INVESTIGATIONS BY THE FEDERAL HOUSING ADMINISTRATION AND THE DEPARTMENT OF LABOR OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE ESTABLISHING THAT EIGHT (8) WORKERS HAD BEEN UNDERPAID, IN THE TOTAL SUM OF $922.38, AS DETAILED IN A LETTER TO THE CONTRACTOR DATED NOVEMBER 30, 1959, FROM THE CLAIMS DIVISION OF THE UNITED STATES GENERAL ACCOUNTING OFFICE. THE CONTRACTING AGENCY ADVISED THAT REPEATED REQUESTS FOR APPROPRIATE ADJUSTMENTS HAD BEEN DISREGARDED. THE IRREGULARITIES AND UNDERPAYMENTS WERE DISCUSSED WITH MR. GUYE WHEN HE CONFERRED PERSONALLY WITH REPRESENTATIVES OF THE CLAIMS DIVISION ON FEBRUARY 23, 1960. AT THAT TIME, APPARENTLY ACCEPTING THE GOVERNMENT'S POSITION, HE ADVISED THAT A CHECK FOR THE $222.38 BALANCE ($700 OF THE CONTRACT PRICE HAD BEEN RETAINED AGAINST THE WAGE UNDERPAYMENTS) WOULD BE PRESENTED PRIOR TO MARCH 1, 1960. MR. GUYE HAS NOT BEEN HEARD FROM SINCE THAT TIME, AND IT WILL BE NECESSARY TO MAKE DIRECT PAYMENT TO THE AGGRIEVED EMPLOYEES BY PRORATING THE $700 AGAINST THE WAGE DEFICIENCIES OF $922.38.

EVEN THE EXTRAORDINARY MEASURES ADOPTED BY THE GOVERNMENT TO ENSURE COMPLIANCE AND TO PROTECT THE EMPLOYEES FALL SHORT OF DOING SO, AND IT IS CLEAR THAT THE CONTRACTOR HAS NOT SHOWN GOOD FAITH IN COMPLYING WITH THE ACT AND CONTRACTUAL PROVISIONS. THE FEDERAL HOUSING AGENCY AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT THE GUYE CONSTRUCTION COMPANY AND W. P. GUYE, OWNER, HAVING 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.