B-145996, JUL. 6, 1961

B-145996, JUL. 6, 1961

TO BEECO CONTRACTORS EQUIPMENT COMPANY, INCORPORATED:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT BEECO CONTRACTORS EQUIPMENT COMPANY, INCORPORATED, AND WILLIAM BANSCH, PRESIDENT, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT NO. DA-36 109-ENG- 7122, FOR CONSTRUCTION WORK AT MCGUIRE AIR FORCE BASE, NEW JERSEY.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION JULY 3, 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 BEECO CONTRACTORS EQUIPMENT COMPANY, INCORPORATED AND WILLIAM BANSCH, PRESIDENT, MARLTON, 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 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-36-109-ENG-7122, IN EXCESS OF $2,000, FOR CONSTRUCTION WORK AT MCGUIRE AIR FORCE BASE, WRIGHTSTOWN, NEW JERSEY, WAS ENTERED INTO APRIL 6, 1959, BY THE UNITED STATES (CORPS OF ENGINEERS) WITH WALTER C. LEHNEIS AND PORTIONS OF THE WORK WERE SUBCONTRACTED TO BEECO CONTRACTORS EQUIPMENT COMPANY, INCORPORATED (IDENTIFIED AT THAT TIME AS BEECO, INCORPORATED). THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 AND THEIR APPLICABILITY TO THE SUBCONTRACT WAS ACKNOWLEDGED.

INVESTIGATION BY THE CORPS OF ENGINEERS AND THE DEPARTMENT OF LABOR OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE INDICATING THAT WORKERS HAD BEEN UNDERPAID, IN THE TOTAL AMOUNT OF $1,299, SUBSTANTIALLY AS DETAILED BY THE SOLICITOR OF LABOR IN A LETTER TO THE SUBCONTRACTOR DATED MARCH 13, 1961. NONETHELESS, PAYROLL REPORTS SWORN TO BY WILLIAM BANSCH, PRESIDENT, WERE FURNISHED TO THE GOVERNMENT FALSELY (THROUGH THE EMPLOYMENT OF RATES IN EXCESS OF THOSE ACTUALLY PAID) SHOWING FULL PAYMENT OF REQUIRED WAGES. THE SUBCONTRACTOR DOES NOT APPEAR TO HAVE CONTESTED THE ADMINISTRATIVE DETERMINATION OF UNDERPAYMENTS AND APPROPRIATE WAGE ADJUSTMENTS HAVE BEEN MADE BY THE PRIME CONTRACTOR.

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 BEECO CONTRACTORS EQUIPMENT COMPANY, INCORPORATED, AND WILLIAM BANSCH, PRESIDENT, 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.