B-200447.OM, OCT 17, 1980

B-200447.OM: Oct 17, 1980

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THERE IS SUFFICIENT EVIDENCE OF RECORD TO ESTABLISH THAT THE SUBCONTRACTOR. AN EMPLOYER MAY DISCHARGE HIS FRINGE BENEFIT OBLIGATIONS BY EITHER PAYING INTO A FRINGE BENEFIT FUND OR MAKING CASH PAYMENTS DIRECTLY TO THE EMPLOYEE AND WE HAVE HELD THAT UNDER THE ACT NOT ONLY IS THE COMPTROLLER GENERAL AUTHORIZED TO PAY DIRECTLY TO THE EMPLOYEES BUT HE IS ALSO AUTHORIZED TO PAY DIRECTLY INTO THE FRINGE BENEFIT FUNDS. SINCE THERE HAVE BEEN NO CLAIMS BY TRUSTEES OF THE FUNDS IN QUESTION. WE ARE OF THE VIEW THAT IT WOULD BE PROPER TO DISBURSE THE FUNDS DIRECTLY TO THE EMPLOYEES. WE DO NOT BELIEVE THAT DEBARMENT IS WARRANTED SINCE IT HAS BEEN IN EXCESS OF 4 YEARS SINCE THE VIOLATIONS OCCURRED AND INSTITUTION OF DEBARMENT PROCEEDINGS AT THIS LATE DATE WOULD UNDULY DELAY REIMBURSEMENT OF THE WORKERS.

B-200447.OM, OCT 17, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP:

INDORSEMENT RETURNED. THERE IS SUFFICIENT EVIDENCE OF RECORD TO ESTABLISH THAT THE SUBCONTRACTOR, AMERICAN CONSTRUCTION COMPANY, DID NOT PAY FRINGE BENEFITS FOR THE EMPLOYEES IN QUESTION. UNDER SECTION 1(B) OF THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276A (1976), AS AMENDED BY THE ACT OF JULY 2, 1964, PUB. L. 88-349, 78 STAT. 238, AN EMPLOYER MAY DISCHARGE HIS FRINGE BENEFIT OBLIGATIONS BY EITHER PAYING INTO A FRINGE BENEFIT FUND OR MAKING CASH PAYMENTS DIRECTLY TO THE EMPLOYEE AND WE HAVE HELD THAT UNDER THE ACT NOT ONLY IS THE COMPTROLLER GENERAL AUTHORIZED TO PAY DIRECTLY TO THE EMPLOYEES BUT HE IS ALSO AUTHORIZED TO PAY DIRECTLY INTO THE FRINGE BENEFIT FUNDS. SEE B-193615-O.M., MAY 7, 1979. IN THE PRESENT CASE, SINCE THERE HAVE BEEN NO CLAIMS BY TRUSTEES OF THE FUNDS IN QUESTION, WE ARE OF THE VIEW THAT IT WOULD BE PROPER TO DISBURSE THE FUNDS DIRECTLY TO THE EMPLOYEES. SEE B-196684-O.M., MARCH 17, 1980. THEREFORE, THE FUNDS ON DEPOSIT WITH YOUR OFFICE MAY BE DISBURSED TO THE AGGRIEVED EMPLOYEES IN ACCORDANCE WITH ESTABLISHED PROCEDURES.

WE DO NOT BELIEVE THAT DEBARMENT IS WARRANTED SINCE IT HAS BEEN IN EXCESS OF 4 YEARS SINCE THE VIOLATIONS OCCURRED AND INSTITUTION OF DEBARMENT PROCEEDINGS AT THIS LATE DATE WOULD UNDULY DELAY REIMBURSEMENT OF THE WORKERS. THE DEPARTMENT OF LABOR HAS NOT RECOMMENDED IMPOSITION OF DEBARMENT SANCTIONS.