B-144939, FEB. 27, 1961

B-144939: Feb 27, 1961

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PRESIDENT: ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT LOUIS A. KINCL AND THE KINCL HARDWARE COMPANY HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION MARCH 1. NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM. 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-144939, FEB. 27, 1961

TO MR. LOUIS A. KINCL, PRESIDENT:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT LOUIS A. KINCL AND THE KINCL HARDWARE COMPANY HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF ENUMERATED CONTRACTS FOR CONSTRUCTION WORK ON BUILDINGS LOCATED AT FORT HOOD AND KILLEEN BASE, TEXAS.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION MARCH 1, 1961, 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 LOUIS A. KINCL, PRESIDENT, AND THE KINCL HARDWARE COMPANY, TAYLOR, TEXAS.

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 TIME OF PAYMENT, COMPUTED AT WAGE RATES NOT LESS THAN THAN ONCE A WEEK AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT, THE FULL AMOUNTS ACCRUED AT TIME OF PAYMENT, COMPUTED AT WAGE RAGES 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.'

THE KINCL HARDWARE COMPANY, AS A PRIME CONTRACTOR OR SUBCONTRACTOR UNDER CONTRACTS DA-41-093-AIV-1538, DA-41-093-AIV-1697, FH-6751-59, NCO-103, 4USA-CWF-59-60 AND 4USA-CWF-59-135, DATED JUNE 21, 1958, JUNE 29, 1959, JANUARY 9, 1959, NOVEMBER 19, 1958, JULY 21, 1959, AND OCTOBER 20, 1959, RESPECTIVELY, EACH IN EXCESS OF $2,000, PERFORMED CONSTRUCTION WORK ON BUILDINGS LOCATED AT FORT HOOD AND KILLEEN BASE, TEXAS. IT HAS ACKNOWLEDGED APPLICABILITY OF THE PROVISIONS CONTAINED IN SECTION 1 OF THE ACT.

AN INVESTIGATION BY THE CONTRACTING OFFICER (DEPARTMENT OF THE ARMY) OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE ESTABLISHING THAT EIGHT (8) WORKERS HAD BEEN UNDERPAID IN A TOTAL AMOUNT EXCEEDING $1,900 AND THAT, NONETHELESS, PAYROLL AFFIDAVITS HAD BEEN FURNISHED TO THE GOVERNMENT FALSELY SHOWING FULL PAYMENT OF REQUIRED WAGES. THE VIOLATIONS WERE CONCEDED BY MR. KINCL AND NECESSARY WAGE ADJUSTMENTS HAVE BEEN MADE OR ARRANGED FOR.

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 FURNISHED IN PAYROLL REPORTS WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND ENSURING COMPLIANCE. THE DEPARTMENT OF THE ARMY AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT LOUIS A. KINCL, PRESIDENT, AND THE KINCL HARDWARE COMPANY, 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.