B-199699.OM, SEP 8, 1980

B-199699.OM: Sep 8, 1980

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THE EVIDENCE OF RECORD IS SUFFICIENT TO SUPPORT THE CONCLUSION THAT THE WORKERS IN QUESTION WERE UNDERPAID. WE DO NOT BELIEVE THAT DEBARMENT OF THE CONTRACTOR IS WARRANTED. ONLY THREE WORKERS WERE UNDERPAID AND THE UNDERPAYMENTS OF TWO OF THESE WORKERS. FOR WHICH PROMPT RESTITUTION WAS MADE BY THE CONTRACTOR. WERE MINOR IN NATURE AND APPARENTLY THE RESULT OF OVERLOOKING THAT THE WAGE SCHEDULE REQUIRED OPERATORS OF HEAVY BACKHOES TO BE PAID $.25 AN HOUR MORE THAN OPERATORS OF LIGHT BACKHOES RATHER THAN A WILLFUL INTENT TO VIOLATE THE DAVIS-BACON ACT. THE UNDERPAYMENT OF THE THIRD WORKER APPEARS TO HAVE BEEN THE RESULT OF THE CONTRACTOR'S VIEW THAT DUE TO THE WORKER'S LACK OF EXPERIENCE HE WAS NOT ENTITLED TO BE PAID A JOURNEYMAN'S RATE OF PAY RATHER THAN A WILLFUL INTENT TO UNDERPAY THE WORKER.

B-199699.OM, SEP 8, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR - FGMS DIVISION - CLAIMS GROUP:

INDORSEMENT

RETURNED. THE EVIDENCE OF RECORD IS SUFFICIENT TO SUPPORT THE CONCLUSION THAT THE WORKERS IN QUESTION WERE UNDERPAID. HOWEVER, WE DO NOT BELIEVE THAT DEBARMENT OF THE CONTRACTOR IS WARRANTED. ONLY THREE WORKERS WERE UNDERPAID AND THE UNDERPAYMENTS OF TWO OF THESE WORKERS, FOR WHICH PROMPT RESTITUTION WAS MADE BY THE CONTRACTOR, WERE MINOR IN NATURE AND APPARENTLY THE RESULT OF OVERLOOKING THAT THE WAGE SCHEDULE REQUIRED OPERATORS OF HEAVY BACKHOES TO BE PAID $.25 AN HOUR MORE THAN OPERATORS OF LIGHT BACKHOES RATHER THAN A WILLFUL INTENT TO VIOLATE THE DAVIS-BACON ACT. THE UNDERPAYMENT OF THE THIRD WORKER APPEARS TO HAVE BEEN THE RESULT OF THE CONTRACTOR'S VIEW THAT DUE TO THE WORKER'S LACK OF EXPERIENCE HE WAS NOT ENTITLED TO BE PAID A JOURNEYMAN'S RATE OF PAY RATHER THAN A WILLFUL INTENT TO UNDERPAY THE WORKER. MOREOVER, THE AMOUNT OF DAVIS- BACON UNDERPAYMENTS ($1,721.98) IS RELATIVELY SMALL WHEN COMPARED WITH THE TOTAL CONTRACT AMOUNT ($11,543,865). SEE B-178561-O.M., FEBRUARY 14, 1974. NEITHER THE DEPARTMENT OF LABOR NOR THE CONTRACTING AGENCY RECOMMENDS THAT THE CONTRACTOR BE DEBARRED.

THE FUNDS ON DEPOSIT WITH YOUR OFFICE MAY BE DISBURSED TO THE AGGRIEVED WORKER IN ACCORDANCE WITH ESTABLISHED PROCEDURES.

DIGEST

DEBARMENT OF CONTRACTOR IS UNWARRANTED SINCE UNDERPAYMENTS OF TWO WORKERS WERE MINOR, RESULTING FROM OVERSIGHT OF WAGE SCHEDULE REQUIREMENT, WHILE UNDERPAYMENT OF THIRD WORKER RESULTED FROM VIEW BY CONTRACTOR THAT DUE TO WORKER'S INEXPERIENCE HE WAS NOT ENTITLED TO JOURNEYMAN'S WAGE RATE. MOREOVER, DAVIS-BACON UNDERPAYMENTS ($1,722) WERE MINOR WHEN COMPARED TO TOTAL CONTRACT AMOUNT WHICH WAS IN EXCESS OF $11 MILLION.