B-199701, SEP 25, 1980

B-199701, SEP 25, 1980

PRECIS-UNAVAILABLE

SUGG PAINTING & DECORATING, SUGG INDUSTRIES:

FINDING

IN THE MATTER OF SUGG PAINTING AND DECORATING A/K/A SUGG INDUSTRIES, 1116 WEST FORTH STREET, DAYTON, OHIO 45407.

SECTION 1(A) OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. SEC. 276A (1976), 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, OF 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. F33601-76-98032, IN EXCESS OF $2,000 FOR THE PAINTING OF CORRIDORS AND EXITWAYS OF 24 FACILITIES AT WRIGHT-PATTERSON AIR FORCE BASE, OHIO, WAS AWARDED BY THE DEPARTMENT OF THE AIR FORCE TO SUGG PAINTING AND DECORATING, DAYTON, OHIO. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT.

AN INVESTIGATION CONDUCTED BY THE UNITED STATES AIR FORCE AS THE RESULT OF COMPLAINTS MADE BY TWO OF THE CONTRACTOR'S EMPLOYEES TO THE UNITED STATES DEPARTMENT OF LABOR, WAGE AND HOUR DIVISION, CINCINNATI, OHIO, DISCLOSED THAT THE CONTRACTOR, SUGG PAINTING AND DECORATING A/K/A SUGG INDUSTRIES, HAVING FULL KNOWLEDGE OF ITS STATUTORY AND CONTRACTUAL RESPONSIBILITIES, DID NEVERTHELESS DISREGARD THESE OBLIGATIONS AS EVIDENCED BY THE DELIBERATE PAYMENT OF SUBMINIMUM WAGE RATES TO PERSONS EMPLOYED BY IT ON THE PROJECT. AS A RESULT OF THIS INVESTIGATION, 11 EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $11,081.06, IN VIOLATION OF THE DAVIS-BACON ACT. THE RECORD ALSO INDICATES THAT PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH APPLICABLE LABOR STANDARDS REQUIREMENTS.

BY LETTER DATED JULY 31, 1979, THE DEPUTY ADMINISTRATOR, WAGE AND HOUR DIVISION, UNITED STATES DEPARTMENT OF LABOR, NOTIFIED THE CONTRACTOR IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS CHARGED AGAINST THE FIRM. A LETTER OF REBUTTAL, DATED AUGUST 14, 1979, WAS RECEIVED FROM MR. WILLIAM E. SUGG, PRESIDENT AND OWNER OF THE FIRM. LETTER, DATED SEPTEMBER 6, 1979, THE CONTRACTOR WAS ADVISED BY THE DEPARTMENT OF LABOR THAT THE STATEMENT IN REBUTTAL WAS NOT SUFFICIENT TO STOP DEBARMENT ACTION. THE FIRM WAS GIVEN AN OPPORTUNITY TO REQUEST AN ORAL HEARING. HOWEVER, THE CONTRACTOR DID NOT REQUEST A HEARING.

IT IS CLEAR, PARTICULARLY IN LIGHT OF THE FALSIFIED PAYROLLS, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND THE CONTRACTUAL PROVISIONS. BOTH THE DEPARTMENT OF THE AIR FORCE AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT SANCTIONS.

WE THEREFORE FIND THAT SUGG PAINTING AND DECORATING A/K/A SUGG INDUSTRIES AND WILLIAM E. SUGG, PRESIDENT AND OWNER, INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS BACON ACT. ACCORDINGLY, THESE NAMES WILL BE INCLUDED ON A LIST FOR DISTRIBUTION TO ALL AGENCIES OF THE GOVERNMENT PURSUANT TO STATUTORY REQUIREMENTS AND NO CONTRACT SHALL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY OR EITHER OF THEM HAS AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.