Alleged Violations of the Davis-Bacon Act

B-200292: Oct 8, 1980

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A firm was awarded a contract in excess of $2000 by the Department of the Interior. The contract contained the stipulations and representations required by the Davis-Bacon Act. However, an investigation showed that the firm, while 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 on the project. The record also revealed that certified payrolls submitted to the contracting agency contained incorrect information designed to simulate compliance with the applicable labor standards requirements. The Department of Labor recommended the imposition of debarment sanctions. Accordingly, the name of the firm was included on the debarred list for distribution to all agencies of the Government.