B-196064.OM, JAN 3, 1980

B-196064.OM, JAN 3, 1980

PRECIS-UNAVAILABLE

DANIEL R. POPE, HYDRONICS, INC.:

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT HYDRONICS, INC., AND ITS PRESIDENT, DANIEL R. POPE, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276A (1976), IN THE PERFORMANCE AS A SUBCONTRACTOR ON CONTRACT NO. F33617-76-90195 FOR THE ALTERATION OF HEATING AND AIR-CONDITIONING SYSTEMS IN AIRMEN DORMITORIES AT RICKENBACKER AIR FORCE BASE, OHIO.

PURSUANT TO THE PROVISIONS OF SECTION 3(A) OF THE ACT, THE NAMES OF THE ABOVE INDIVIDUAL AND CORPORATION SHALL BE INCLUDED IN A LIST FOR PUBLICATION ON JANUARY 2, 1980, AND NO GOVERNMENT CONTRACT WILL BE AWARDED TO EITHER OF THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIPS, JOINT VENTURE, OR ASSOCIATION IN WHICH THEY OR EITHER OF THEM MAY HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THAT DATE.

INDORSEMENT

DIRECTOR, CLAIMS DIVISION

RETURNED. HYDRONICS, INC., AND ITS PRESIDENT, DANIEL R. POPE, INDIVIDUALLY, AND H. C. WEAR & ASSOCIATES AND ITS PRESIDENT, BARRETT R. WEAR, INDIVIDUALLY, ARE BEING NOTIFIED OF DEBARMENT FOR VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A (1976), IN ACCORDANCE WITH THE ATTACHED LETTERS AND FINDINGS (COPIES), AND THESE NAMES SHOULD BE INCLUDED ON THE LISTING OF INELIGIBLES TO BE PUBLISHED ON JANUARY 2, 1980.

ORIGINALLY, THE EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $48,854.42. THE REMAINING AMOUNT OF $43,784.42 DUE THE CONTRACTOR UNDER THE CONTRACT WAS TRANSFERRED TO YOUR OFFICE FOR PARTIAL RESTITUTION OF THE EMPLOYEES. SUBSEQUENTLY, THE DEPARTMENT OF LABOR (DOL) AND THE CONTRACTOR ENTERED INTO AN AGREEMENT REDUCING THE AMOUNT OWED THE WORKERS TO $32,500.00. SINCE WE HAVE NO REASON TO BELIEVE THAT THIS AGREEMENT WAS NOT ENTERED INTO IN GOOD FAITH OR THAT THE AMOUNT NEGOTIATED IS UNREASONABLE UNDER THE CIRCUMSTANCES, WE WILL NOT INTERPOSE ANY OBJECTION TO PAYMENT OF THE AGREED AMOUNT. ACCORDINGLY, THE AMOUNTS SET FORTH IN THE WAGE AND HOUR FORM WH-56, ENTITLED "SUMMARY OF UNPAID WAGES," SHOULD BE DISBURSED TO THE 42 AGGRIEVED WORKERS IN ACCORDANCE WITH ESTABLISHED PROCEDURES. HOWEVER, OUR LACK OF OBJECTION IN THIS CASE SHOULD NOT BE CONSTRUED AS AN ABDICATION OF OUR WAGE ADJUSTMENT AUTHORITY UNDER THE DAVIS-BACON ACT, WHICH IS THE AUTHORITY TO MAKE AN INDEPENDENT DETERMINATION, BASED ON THE COMPLETE RECORD, AS TO THE ACTUAL AMOUNT, IF ANY, OWED EMPLOYEES. B-185875 O.M., MARCH 16, 1976. ALSO, SEE B-193621- O.M., MARCH 7, 1979.

THE RECORD INDICATES THAT IN RETURN FOR THE RELEASE OF THE $32,500.00 BY THE CONTRACTOR, ALL WAGE CLAIMS AGAINST THE CONTRACTOR WERE RELEASED. HOWEVER, WE NOTE THAT THE AIR FORCE'S INVESTIGATION OFFICER RECOMMENDED THAT THE INTERNAL REVENUE SERVICE PERFORM AN AUDIT TO DETERMINE IF APPROPRIATE DEDUCTIONS WERE TAKEN FROM THE EMPLOYEE'S WAGES. SINCE THE RECORD DOES NOT INDICATE WHAT ACTION, IF ANY, WAS TAKEN ON THIS RECOMMENDATION, THE BALANCE OF THE FUNDS ON DEPOSIT WITH YOUR OFFICE SHOULD BE RETURNED TO THE AIR FORCE FOR DISBURSAL TO EITHER THE CONTRACTOR OR FOR OFFSET BY THE INTERNAL REVENUE SERVICE SHOULD IT HAVE ANY VALID CLAIMS AGAINST THE CONTRACTOR.