B-160403, FEB. 27, 1967

B-160403: Feb 27, 1967

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TO CROMER AND LOUTHIAN: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 3. WERE DEBARRED FOR VIOLATIONS OF THE DAVIS-BACON ACT. WHICH IS PREDICATED UPON THE OFFICIAL WRITTEN RECORD. IS SET OUT FULLY IN THE FINDING TO WHICH YOU REFER. AS DETAILED THEREIN THE DEBARMENT WAS BASED UPON THE WILLFUL DISREGARD OF OBLIGATIONS TO EMPLOYEES. SUCH ACTION WAS ACCOMPLISHED ONLY AFTER INVESTIGATION AND DETECTION BY THE GOVERNMENT OF THE MISLEADING INFORMATION FURNISHED IN THE PAYROLL REPORTS. WE BELIEVE THAT APPLICATION AND ENFORCEMENT OF THE STATUTORY DEBARMENT IS MANDATORY IN THE CIRCUMSTANCES OF THIS CASE. THIS OFFICE IS REQUIRED BY 40 U.S.C. 276A-2 (A) TO PUBLISH AND DISTRIBUTE A LIST OF ALL PERSONS FOUND TO HAVE VIOLATED THEIR OBLIGATIONS TO EMPLOYEES IMPOSED BY THE PRECEDING PROVISIONS OF THE DAVIS-BACON ACT.

B-160403, FEB. 27, 1967

TO CROMER AND LOUTHIAN:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 3, 1967, REQUESTING RECONSIDERATION OF THE ACTION TAKEN JANUARY 4, 1967, BY THIS OFFICE BY WHICH THE CUTTER CONCRETE COMPANY AND JOHN F. CUTTER, INDIVIDUALLY, WERE DEBARRED FOR VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN CONNECTION WITH THE PERFORMANCE OF WORK UNDER CONTRACT NO. FA-64SO 3666 BETWEEN THE FEDERAL AVIATION AGENCY AND DERRICK ELECTRIC COMPANY.

THE BASIS FOR OUR ACTION, WHICH IS PREDICATED UPON THE OFFICIAL WRITTEN RECORD, IS SET OUT FULLY IN THE FINDING TO WHICH YOU REFER. AS DETAILED THEREIN THE DEBARMENT WAS BASED UPON THE WILLFUL DISREGARD OF OBLIGATIONS TO EMPLOYEES, CONSISTING OF THE PAYMENT OF CERTAIN LABORERS AND MECHANICS EMPLOYED ON THE SITE OF THE CONTRACT WORK AT RATES LESS THAN THOSE STIPULATED BY THE CONTRACT, AND ATTEMPTED CONCEALMENT THEREOF BY THE SUBMISSION OF CERTIFIED PAYROLLS CONTAINING INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH THE APPLICABLE LABOR STIPULATIONS. IN FACT, AS INDICATED BY THE RECORD, MR. CUTTER ADMITTED TO THE SUBMISSION OF THE FALSE PAYROLLS IN A LETTER DATED DECEMBER 7, 1964, ADDRESSED TO THE SOLICITOR OF LABOR. WHILE MR. CUTTER EVENTUALLY DID MAKE FULL RESTITUTION TO HIS AGGRIEVED WORKERS, SUCH ACTION WAS ACCOMPLISHED ONLY AFTER INVESTIGATION AND DETECTION BY THE GOVERNMENT OF THE MISLEADING INFORMATION FURNISHED IN THE PAYROLL REPORTS.

WE BELIEVE THAT APPLICATION AND ENFORCEMENT OF THE STATUTORY DEBARMENT IS MANDATORY IN THE CIRCUMSTANCES OF THIS CASE. THIS OFFICE IS REQUIRED BY 40 U.S.C. 276A-2 (A) TO PUBLISH AND DISTRIBUTE A LIST OF ALL PERSONS FOUND TO HAVE VIOLATED THEIR OBLIGATIONS TO EMPLOYEES IMPOSED BY THE PRECEDING PROVISIONS OF THE DAVIS-BACON ACT, AND THE CONSEQUENCE OF DEBARMENT FROM GOVERNMENT CONTRACTS FOR THREE YEARS IS PRESCRIBED DIRECTLY BY THE STATUTE AND CANNOT BE VARIED OR WAIVED.

REPRESENTATIVE ALBERT W. WATSON HAS EXPRESSED AN INTEREST IN THIS MATTER. PURSUANT TO HIS REQUEST, WE ARE SENDING HIM A COPY OF THIS DECISION.