B-200298.OM, OCT 16, 1980

B-200298.OM: Oct 16, 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 THE VIOLATIONS WERE OF SUCH A WILLFUL NATURE AS TO WARRANT DEBARMENT. MOST OF THE UNDERPAYMENTS WERE THE RESULT OF AN UNAUTHORIZED DEDUCTION OF $0.20 PER HOUR MADE BY THE CONTRACTOR FOR EDUCATION AND/OR APPRENTICESHIP TRAINING. THE CONTRACTOR WAS UNDER THE MISTAKEN IMPRESSION THAT THIS DEDUCTION WAS AUTHORIZED BY THE WAGE DETERMINATION FOR SUPPORT OF APPRENTICESHIP PROGRAMS. WHEN IN FACT THE $0.20 PER HOUR MENTIONED IN THE WAGE DETERMINATION IS A FRINGE BENEFIT TO BE ADDED TO THE WORKERS' BASE PAY. WHO WAS AUTHORIZED TO HAVE AN APPRENTICE PROGRAM. DID MAKE THE DEDUCTIONS IN GOOD FAITH AS EVIDENCED BY THE FACT THAT THE DEDUCTIONS WERE DEPOSITED IN A SPECIAL BANK ACCOUNT.

B-200298.OM, OCT 16, 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 THE VIOLATIONS WERE OF SUCH A WILLFUL NATURE AS TO WARRANT DEBARMENT. MOST OF THE UNDERPAYMENTS WERE THE RESULT OF AN UNAUTHORIZED DEDUCTION OF $0.20 PER HOUR MADE BY THE CONTRACTOR FOR EDUCATION AND/OR APPRENTICESHIP TRAINING. APPARENTLY, THE CONTRACTOR WAS UNDER THE MISTAKEN IMPRESSION THAT THIS DEDUCTION WAS AUTHORIZED BY THE WAGE DETERMINATION FOR SUPPORT OF APPRENTICESHIP PROGRAMS, WHEN IN FACT THE $0.20 PER HOUR MENTIONED IN THE WAGE DETERMINATION IS A FRINGE BENEFIT TO BE ADDED TO THE WORKERS' BASE PAY. HOWEVER, THE RECORD INDICATES THAT THE CONTRACTOR, WHO WAS AUTHORIZED TO HAVE AN APPRENTICE PROGRAM, DID MAKE THE DEDUCTIONS IN GOOD FAITH AS EVIDENCED BY THE FACT THAT THE DEDUCTIONS WERE DEPOSITED IN A SPECIAL BANK ACCOUNT. THE BALANCE OF THE UNDERPAYMENTS WAS SO MINOR IN NATURE AS NOT TO WARRANT DEBARMENT.

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

COMPTROLLER GENERAL

WE ARE FORWARDING THE FILES PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, AND THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, 40 U.S.C. 327 ET SEQ., BY EMPIRE PAINTING COMPANY WHICH PERFORMED WORK UNDER DEPARTMENT OF THE AIR FORCE, CONTRACT NOS. F655017790258, F655017790169, F655017690194 AND F655017490030 AT ELMENDORF AFB, ALASKA.

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 $289.40 ON DEPOSIT HERE TO THE 32 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 MS. MARCIA BROWN ON EXTENSION 53218.