B-168425, APR. 24, 1970

B-168425: Apr 24, 1970

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WILL BE INCLUDED IN NEXT PUBLISHED DEBARRED LIST PURSUANT TO PROVISIONS OF ACT. NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM. OR ASSOCIATION IN WHICH THEY HAVE INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM DATE OF PUBLICATION. FINDINGS INDICATE IT IS CLEAR THAT CONTRACTOR DID NOT SHOW GOOD FAITH IN COMPLYING WITH ACT AND CONTRACTUAL PROVISIONS. DWIGGINS: ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT LITTLE MOE CONSTRUCTION COMPANY AND ITS OWNER. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT. THESE NAMES WILL BE INCLUDED IN THE NEXT PUBLICATION OF THE DEBARRED LIST. NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM. OR ASSOCIATION IN WHICH SUCH PERSON OR FIRM HAS AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION.

B-168425, APR. 24, 1970

BIDDERS--DEBARMENT--LABOR STIPULATION VIOLATIONS--DAVIS-BACON ACT--BASIS CONSTRUCTION COMPANY AND OWNER, WHO DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN MEANING OF DAVIS-BACON ACT BY DELIBERATELY PAYING SUBMINIMUM WAGE RATES IN PERFORMANCE OF ROAD CONSTRUCTION CONTRACT, WILL BE INCLUDED IN NEXT PUBLISHED DEBARRED LIST PURSUANT TO PROVISIONS OF ACT, AND NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM DATE OF PUBLICATION. FINDINGS INDICATE IT IS CLEAR THAT CONTRACTOR DID NOT SHOW GOOD FAITH IN COMPLYING WITH ACT AND CONTRACTUAL PROVISIONS, PARTICULARLY IN LIGHT OF FALSE PAYROLLS SUBMITTED.

MR. MERVIN F. DWIGGINS:

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT LITTLE MOE CONSTRUCTION COMPANY AND ITS OWNER, MR. MERVIN F. DWIGGINS, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT, 49 STAT. 101, 40 U.S.C. 276 (A), IN THE PERFORMANCE AS A PRIME CONTRACTOR UNDER UNITED STATES FOREST SERVICE CONTRACT NO. 15-446 AWARDED DECEMBER 30, 1964, FOR CONSTRUCTION OF A PORTION OF THE WILD BILL STUDY ROAD, COCONINO NATIONAL FOREST, ARIZONA.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED IN THE NEXT PUBLICATION OF THE DEBARRED LIST, AND NO GOVERNMENT CONTRACT WILL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH SUCH PERSON OR FIRM HAS AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION.

FINDING

IN THE MATTER OF LITTLE MOE CONSTRUCTION COMPANY AND ITS OWNER, MR. MERVIN F. DWIGGINS.

SECTION 1 (A) 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 NO. 15-446, IN EXCESS OF $2,000, FOR CONSTRUCTION OF A PORTION OF THE WILD BILL STUDY ROAD, COCONINO NATIONAL FOREST, ARIZONA, WAS ENTERED INTO ON DECEMBER 30, 1964, BY THE UNITED STATES FOREST SERVICE WITH LITTLE MOE CONSTRUCTION COMPANY, WILLIAMS, ARIZONA.

THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 (A) OF THE ACT AND THE SECRETARY OF LABOR'S PREVAILING WAGE RATE DECISION NO. AD 6682, DATED OCTOBER 22, 1964, WHICH WAS INCLUDED IN THE ADVERTISED SPECIFICATIONS.

INVESTIGATIONS CONDUCTED BY THE FOREST SERVICE AND THE DEPARTMENT OF AGRICULTURE 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 LABORERS AND MECHANICS EMPLOYED ON THE SUBJECT PROJECT. A RESULT OF THIS INVESTIGATION EIGHT EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $3,734.67 (IN ADDITION TO $4,181.43 PAID BY THE CONTRACTOR'S SURETY AFTER THE CONTRACTOR'S FAILURE TO PAY THE SAME) IN VIOLATION OF THE WAGE STIPULATIONS 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.

BY REGISTERED LETTER DATED FEBRUARY 17, 1970, THE GENERAL ACCOUNTING OFFICE NOTIFIED THE CONTRACTOR IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS FOUND BY THE CONTRACTING AGENCY, AND OFFERED HIM THE OPPORTUNITY TO REFUTE THE FINDINGS, BUT NO ANSWER WAS RECEIVED THERETO.

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 THE PAYROLL REPORTS WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND ENSURING COMPLIANCE.

WE, THEREFORE, FIND THAT THE LITTLE MOE CONSTRUCTION COMPANY AND ITS OWNER, MR. MERVIN F. DWIGGINS, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE NAMES WILL BE INCLUDED ON A LIST FOR DISTRIBUTION, AND NO CONTRACT SHALL BE AWARDED TO THEM OR 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.