B-199711.OM, AUG 25, 1980

B-199711.OM: Aug 25, 1980

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THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE SUBCONTRACTOR. WHICH WAS THE MOST SERIOUS VIOLATION. WAS THE RESULT OF THE SUBCONTRACTOR'S INABILITY TO MEET ITS FINANCIAL OBLIGATIONS AND NOT A DELIBERATE ATTEMPT TO AVOID CONTRACTUAL LABOR STANDARDS. WE DO NOT BELIEVE THAT DEBARMENT IS WARRANTED. COMPTROLLER GENERAL HERE IS 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 CONSIDERATION AND INSTRUCTIONS.

B-199711.OM, AUG 25, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR, FGMS DIVISION - CLAIMS GROUP:

RETURNED. THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE SUBCONTRACTOR, JON ELECTRICAL CONSTRUCTION, INC., VIOLATED THE DAVIS-BACON ACT BY (1) NOT DEPOSITING REQUIRED FRINGE BENEFIT PAYMENTS IN THE APPROPRIATE FRINGE BENEFIT TRUST FUNDS AND (2) ITS FAILURE TO PAY ONE EMPLOYEE FOR 2 HOURS OF WORK. HOWEVER, THE RECORD INDICATES THAT THE SUBCONTRACTOR'S FAILURE TO PAY THE FRINGE BENEFITS, WHICH WAS THE MOST SERIOUS VIOLATION, WAS THE RESULT OF THE SUBCONTRACTOR'S INABILITY TO MEET ITS FINANCIAL OBLIGATIONS AND NOT A DELIBERATE ATTEMPT TO AVOID CONTRACTUAL LABOR STANDARDS. THEREFORE, WE DO NOT BELIEVE THAT DEBARMENT IS WARRANTED. SEE B-193615-O.M., MAY 7, 1979. ACCORDINGLY, THE $2,273.87, REPRESENTING UNDERPAYMENT OF FRINGE BENEFITS MAY BE PAID DIRECTLY TO THE APPROPRIATE FRINGE BENEFIT TRUST FUNDS. THE $23.40 REPRESENTING THE DAVIS-BACON WAGE UNDERPAYMENT MAY BE DISBURSED TO THE UNDERPAID EMPLOYEE.

COMPTROLLER GENERAL

HERE IS THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS BACON ACT, 40 U.S.C. 276A, BY JON ELECTRICAL CONSTRUCTION, INC. WHICH PERFORMED WORK UNDER MARINE CORPS EXCHANGE COMPLEX, CONTRACT NO. N62477 75-C-0031 AT 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 $2,297.27 ON DEPOSIT HERE TO THE 21 AGGRIEVED WORKERS 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 CONSIDERATION AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT KENNETH R. SCBUTT ON EXTENSION 53213.