B-148663, SEP. 21, 1962

B-148663: Sep 21, 1962

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BONCZAK: ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT PETER A. THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION OCTOBER 1. NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM. OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST UNTIL THREE YEARS 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-148663, SEP. 21, 1962

TO MR. PETER A. BONCZAK:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT PETER A. BONCZAK, DOING BUSINESS AS BOND ELECTRIC COMPANY, HAS DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT GS-02B-6102, FOR CONSTRUCTION REPAIRS AND IMPROVEMENTS AT THE UNITED STATES POST OFFICE BUILDING, PLAINFIELD, NEW JERSEY.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION OCTOBER 1, 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 HAVE ELAPSED FROM SUCH DATE.

FINDING

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 GS-02B-6102, IN EXCESS OF $2,000, FOR CONSTRUCTION REPAIRS AND IMPROVEMENTS AT THE UNITED STATES POST OFFICE BUILDING, PLAINFIELD, NEW JERSEY, WAS ENTERED INTO NOVEMBER 20, 1957, BY THE UNITED STATES (GENERAL SERVICES ADMINISTRATION) WITH BARBATO BUILDERS, INC. PORTIONS OF THE WORK WERE SUBCONTRACTED TO PETER A. BONCZAK, DOING BUSINESS AS BOND ELECTRIC COMPANY, AND THE APPLICABILITY OF REQUIREMENTS IN SECTION 1 OF THE ACT, WHICH WERE INCLUDED IN THE PRIME CONTRACT, HAS BEEN ACKNOWLEDGED.

INVESTIGATION BY THE PUBLIC BUILDINGS SERVICE, GENERAL SERVICES ADMINISTRATION, OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT BY THE SUBCONTRACTOR TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE INDICATING THAT TWO EMPLOYEES HAD BEEN UNDERPAID $1,973.55, SUBSTANTIALLY AS DETAILED BY THE ACTING SOLICITOR OF LABOR IN A LETTER TO THE SUBCONTRACTOR DATED JANUARY 26, 1961. PAYROLL REPORTS FURNISHED TO THE GOVERNMENT FAILED TO LIST ALL HOURS WORKED, INFLATED THE WAGES ACTUALLY PAID, AND FALSELY SHOWED FULL PAYMENT OF REQUIRED WAGES. DECEMBER 15, 1961, IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, MR. BONCZAK PLEADED GUILTY TO 16 COUNTS OF AN INDICTMENT CHARGING THAT HE HAD VIOLATED PROVISIONS OF THE FALSE INFORMATION ACT, 18 U.S.C. 1001, IN CONNECTION THEREWITH.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSIFICATIONS, 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 GENERAL SERVICES ADMINISTRATION AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT PETER A. BONCZAK, DOING BUSINESS AS BOND ELECTRIC 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.

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