B-199260.OM, AUG 13, 1980

B-199260.OM: Aug 13, 1980

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WHILE THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE WORKERS WERE. IS WARRANTED. IF WE WERE TO INITIATE DEBARMENT PROCEEDINGS AT THIS TIME. THE SUBCONTRACTOR WOULD HAVE TO BE ACCORDED DUE PROCESS. SINCE THERE WAS NOT SUFFICIENT FUNDS WITHHELD TO COVER THE DAVIS-BACON ACT UNDERPAYMENTS. COMPTROLLER GENERAL WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT. DETAILS OF THE VIOLATIONS AND ADMINISTRATIVE RECOMMENDATIONS CONCERNING DEBARMENT ARE CONTAINED IN THE ATTACHED INVESTIGATIVE REPORT AND DEPARTMENT OF LABOR TRANSMITTAL LETTER. OUR PROPOSAL AND THE MATTER OF WHETHER THE CONTRACTOR'S NAME SHOULD BE PLACED ON THE DEBARRED BIDDERS LIST FOR VIOLATIONS UNDER THE DAVIS-BACON ACT ARE FORWARDED FOR YOUR CONSIDERATIONS AND INSTRUCTIONS.

B-199260.OM, AUG 13, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP:

INDORSEMENT

RETURNED. WHILE THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE WORKERS WERE, IN FACT, UNDERPAID, WE DO NOT BELIEVE THAT UNDER THE PRESENT CIRCUMSTANCES DEBARMENT OF THE SUBCONTRACTOR, SITE CONTRACTORS, INC., IS WARRANTED. WE RECOGNIZE THAT THE SUBCONTRACTOR'S REFUSAL, AFTER THE DISAPPROVAL OF ITS REQUEST FOR NEW CLASSIFICATIONS, TO PAY ITS WORKERS THE HIGHER WAGE RATE MIGHT BE CONSIDERED A BASIS FOR DEBARMENT. HOWEVER, IF WE WERE TO INITIATE DEBARMENT PROCEEDINGS AT THIS TIME, THE SUBCONTRACTOR WOULD HAVE TO BE ACCORDED DUE PROCESS. DUE PROCESS IN THIS CASE WOULD ENTAIL, AT THE MINIMUM, NOTICE AND SOME TYPE OF HEARING. THEREFORE, SINCE IT HAS BEEN IN EXCESS OF 3 YEARS SINCE THE VIOLATIONS OCCURRED AND ANY FURTHER ADMINISTRATIVE PROCEEDINGS WOULD FURTHER DELAY PAYMENT OF THE WORKERS, WE CONCUR WITH THE DEPARTMENT OF LABOR THAT DEBARMENT SANCTIONS SHOULD NOT BE IMPOSED. SEE B-196698-O.M., FEBRUARY 1, 1980.

THE FUNDS ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED TO THE AGGRIEVED EMPLOYEES IN ACCORDANCE WITH ESTABLISHED PROCEDURES. SINCE THERE WAS NOT SUFFICIENT FUNDS WITHHELD TO COVER THE DAVIS-BACON ACT UNDERPAYMENTS, THOSE FUNDS SHOULD BE DISBURSED ON A PRO RATA BASIS.

COMPTROLLER GENERAL

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, AND THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, 40 U.S.C. 327 ET SEQ., BY SITE CONTRACTORS, INC., WHICH PERFORMED WORK UNDER DEPARTMENT OF THE NAVY, CONTRACT NO. N62477 75-C-0030 AT THE MARINE CORPS DEVELOPMENT EDUCATION COMMAND, QUANTICO, VIRGINIA.

DETAILS OF THE VIOLATIONS AND ADMINISTRATIVE RECOMMENDATIONS CONCERNING DEBARMENT ARE CONTAINED IN THE ATTACHED INVESTIGATIVE REPORT AND DEPARTMENT OF LABOR TRANSMITTAL LETTER.

WE PROPOSE, WITH YOUR APPROVAL TO DISBURSE THE $8,110.00 ON DEPOSIT HERE TO THE 13 AGGRIEVED WORKERS ON A PRO RATA BASIS IN ACCORDANCE WITH ESTABLISHED PROCEDURES. OUR PROPOSAL AND THE MATTER OF WHETHER THE CONTRACTOR'S NAME SHOULD BE PLACED ON THE DEBARRED BIDDERS LIST FOR VIOLATIONS UNDER THE DAVIS-BACON ACT ARE FORWARDED FOR YOUR CONSIDERATIONS AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT GLENN WOLCOTT ON EXTENSION 53218.