B-155051, SEP. 14, 1964

B-155051: Sep 14, 1964

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ARAMINI: ATTACHED IS A COPY OF OUR FINDINGS OF TODAY THAT ARAMINI PAINTING CONTRACTORS. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. THESE NAMES WILL BE INCLUDED IN A LIST FOR PUBLICATION SEPTEMBER 15. 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. 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.

B-155051, SEP. 14, 1964

TO JOHN M. ARAMINI:

ATTACHED IS A COPY OF OUR FINDINGS OF TODAY THAT ARAMINI PAINTING CONTRACTORS, ALSO DOING BUSINESS AS ARAMINI AND COMPANY, PAINTING CONTRACTORS, AND RESPONSIBLE OFFICIALS, JOHN M. ARAMINI AND ANGELO MORENO, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT NO. GS-02B-9719, FOR THE PAINTING OF THE U.S. POST OFFICE, PASSAIC, NEW JERSEY.

PURSUANT TO THE PROVISIONS OF SECTION 3A OF THE ACT, THESE NAMES WILL BE INCLUDED IN A LIST FOR PUBLICATION SEPTEMBER 15, 1964, 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

IN THE MATTER OF ARAMINI PAINTING CONTRACTORS, ALSO DOING BUSINESS AS ARAMINI AND COMPANY, PAINTING CONTRACTORS, AND ITS RESPONSIBLE OFFICIALS, JOHN M. ARAMINI AND ANGELO MORENO.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 46 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, ALTERNATION, 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 NO. GS-02B-9719, IN EXCESS OF $2,000, FOR PAINTING THE U.S. POST OFFICE, PASSAIC, NEW JERSEY, WAS ENTERED INTO OCTOBER 31, 1962, BY THE UNITED STATES (GENERAL SERVICES ADMINISTRATION) WITH ARAMINI PAINTING CONTRACTORS. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE ACT.

AN INVESTIGATION CONDUCTED BY THE COMPLIANCE DIVISION OF THE GENERAL SERVICES ADMINISTRATION DISCLOSED THAT THE CONTRACTOR, HAVING FULL KNOWLEDGE OF HIS STATUTORY AND CONTRACTUAL RESPONSIBILITIES, DID NEVERTHELESS DISREGARD THESE OBLIGATIONS AS EVIDENCED BY THE DELIBERATE PAYMENT OF SUBMINIMUM WAGE RATES TO MECHANICS EMPLOYED ON THE SUBJECT PROJECT. AS A RESULT OF THIS INVESTIGATION, FOUR EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $1,426,50 IN VIOLATION OF THE DAVIS-BACON ACT UNDER THE TERMS OF THE CONTRACT. THE INVESTIGATION REPORT ALSO REVEALED THAT CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH THE APPLICABLE LABOR STANDARDS REQUIREMENTS. IN PARTICULAR, THE CONTRACTOR MINIMIZED THE NUMBER OF HOURS WORKED TO INDICATE COMPLIANCE WITH THE CONTRACT RATES AND DID NOT RECORD ANY HOURS WORKED AS OVERTIME. REGISTERED LETTER DATED MAY 17, 1964, THE SOLICITOR OF LABOR NOTIFIED THE CONTRACTOR AND ITS RESPONSIBLE OFFICIALS IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS CHARGED AGAINST THEM, AND THEY DO NOT APPEAR TO HAVE PRESENTED ANY EVIDENCE IN REBUTTAL. ON JANUARY 21, 1964, THE CONTRACTOR'S RESPONSIBLE OFFICIALS HAD PLEADED GUILTY TO CRIMINAL CHARGES GROWING OUT OF THE FALSIFICATION OF PAYROLLS (UNDER THE PROVISIONS OF 19 U.S.C. 1001) AND WERE SENTENCED TO ONE YEAR AND A DAY. THE SENTENCES WERE SUSPENDED WITH THE CONTRACTOR'S OFFICIALS BEING PLACED ON PROBATION FOR TWO YEARS ON CONDITION THAT THEY MAKE FULL RESTITUTION TO WORKERS. THIS HAD NOT YET BEEN DONE.

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 GENERAL SERVICES ADMINISTRATION AND DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

UPON CONSIDERATION OF THE RECORD WE THEREFORE FIND THAT ARAMINI PAINTING CONTRACTORS, ALSO DOING BUSINESS AS ARAMINI AND COMPANY, PAINTING CONTRACTORS, AND ITS RESPONSIBLE OFFICIALS, JOHN M. ARAMINI AND ANGELO MORENO, INDIVIDUALLY, HAVE 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, PURSUANT TO THE STATUTORY REQUIREMENTS, AND 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.