B-199703.OM, AUG 22, 1980

B-199703.OM: Aug 22, 1980

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THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE WORKERS IN QUESTION WERE UNDERPAID. WERE THE RESULT OF THE CONTRACTOR'S PRECARIOUS FINANCIAL CONDITION. BANKRUPTCY IS INEVITABLE. IT IS LIKELY THAT WE WOULD HAVE TO DO SO WITHOUT AFFORDING THE CONTRACTOR NOTICE AND AN OPPORTUNITY TO SUBMIT EVIDENCE AGAINST DEBARMENT SINCE NEITHER THE VETERANS ADMINISTRATION (WHO WAS THE CONTRACTING AGENCY WITH THE SMALL BUSINESS ADMINISTRATION ON THE TWO 8(A) CONTRACTS WITH THE CONTRACTOR) NOR THE DEPARTMENT OF LABOR WERE ABLE TO CONTACT THE FIRM OR ITS OWNER.

B-199703.OM, AUG 22, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP:

RETURNED. THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE WORKERS IN QUESTION WERE UNDERPAID. HOWEVER, THE RECORD INDICATES THAT THE VIOLATIONS, AS WELL AS THE CONTRACTOR'S DEFAULT ON THE CONTRACT, WERE THE RESULT OF THE CONTRACTOR'S PRECARIOUS FINANCIAL CONDITION. THE FIRM HAS APPARENTLY GONE OUT OF BUSINESS AND, ACCORDING TO THE RECORD, BANKRUPTCY IS INEVITABLE. THEREFORE, WE AGREE WITH THE DEPARTMENT OF LABOR THAT UNDER THE CIRCUMSTANCES DEBARMENT WOULD NOT BE APPROPRIATE. SEE B-195749-O.M., DEBARMENT SANCTIONS AT THIS TIME, IT IS LIKELY THAT WE WOULD HAVE TO DO SO WITHOUT AFFORDING THE CONTRACTOR NOTICE AND AN OPPORTUNITY TO SUBMIT EVIDENCE AGAINST DEBARMENT SINCE NEITHER THE VETERANS ADMINISTRATION (WHO WAS THE CONTRACTING AGENCY WITH THE SMALL BUSINESS ADMINISTRATION ON THE TWO 8(A) CONTRACTS WITH THE CONTRACTOR) NOR THE DEPARTMENT OF LABOR WERE ABLE TO CONTACT THE FIRM OR ITS OWNER. SEE B-194243-O.M., APRIL 13, 1979.

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