B-147565, MAR. 6, 1962

B-147565: Mar 6, 1962

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ATLAS FLOOR COMPANY: ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT WILLIAM E. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION MARCH 15. 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. 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.'.

B-147565, MAR. 6, 1962

TO MR. WILLIAM E. MAHONE, ATLAS FLOOR COMPANY:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT WILLIAM E. MAHONE, DOING BUSINESS AS THE ATLAS FLOOR COMPANY, HAS DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT AF 41 (606/-1127 FOR REPAIRING AND PAINTING CERTAIN BUILDINGS AT RANDOLPH AIR FORCE BASE, TEXAS.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION MARCH 15, 1962, 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 WILLIAM E. MAHONE, DOING BUSINESS AS THE ATLAS FLOOR COMPANY, SAN ANTONIO, 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 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 AF 41 (606/-1127, IN EXCESS OF $2,000, FOR REPAIRING AND PAINTING CERTAIN BUILDINGS AT RANDOLPH AIR FORCE BASE, TEXAS, WAS ENTERED INTO FEBRUARY 20, 1959, BY THE UNITED STATES (AIR FORCE) WITH THE G. S. EIDELBACK CONSTRUCTION COMPANY. PORTIONS OF THE WORK WERE SUBCONTRACTED TO WILLIAM E. MAHONE, DOING BUSINESS AS THE ATLAS FLOOR COMPANY, AND THE APPLICABILITY OF REQUIREMENTS IN SECTION 1 OF THE ACT HAS BEEN ACKNOWLEDGED.

INVESTIGATION BY THE AIR FORCE OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE INDICATING THAT AT LEAST ONE WORKER HAD BEEN UNDERPAID $349. NONETHELESS, PAYROLL AFFIDAVITS FURNISHED TO THE GOVERNMENT BY MR. MAHONE, THROUGH THE EMPLOYMENT OF RATES IN EXCESS OF THOSE PAID AND HOURS LESS THAN THOSE ACTUALLY WORKED, FALSELY SHOWED FULL PAYMENT OF REQUIRED WAGES. (VARIOUS ADDITIONAL UNDERPAYMENTS AND IRREGULARITIES UNDER OTHER CONTRACTS, BOTH AS PRINCIPAL AND AS A SUBCONTRACTOR, WERE DISCLOSED BY THE EVIDENCE, SUBSTANTIALLY AS DETAILED BY THE SOLICITOR OF LABOR IN A LETTER TO MR. MAHONE DATED MAY 29, 1961.) ON NOVEMBER 24, 1961, IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS, CRIMINAL NO. 22068, MR. MAHONE ENTERED A PLEA OF GUILTY TO A CRIMINAL CHARGE GROWING OUT OF THE FALSIFICATION OF PAYROLLS (UNDER THE PROVISIONS OF 18 U.S.C. 1001) AND WAS FINED $1,000.

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 AIR FORCE AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT WILLIAM E. MAHONE, DOING BUSINESS AS THE ATLAS FLOOR COMPANY, HAS 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.