B-200449.OM, OCT 14, 1980

B-200449.OM: Oct 14, 1980

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PRECIS-UNAVAILABLE COMPTROLLER GENERAL: WE ARE FORWARDING 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. THE EVIDENCE OF RECORD IS SUFFICIENT TO SUPPORT THE CONCLUSION THAT THE WORKERS IN QUESTION WERE UNDERPAID. WERE THE RESULT OF FINANCIAL DIFFICULTIES RATHER THAN A WILLFUL INTENT TO UNDERPAY ITS WORKERS.

B-200449.OM, OCT 14, 1980

PRECIS-UNAVAILABLE

COMPTROLLER GENERAL:

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, BY REINFORCING ASSOCIATES WHICH PERFORMED WORK UNDER CORPS OF ENGINEERS, CONTRACT NO. DACA31-75-C-0143 AT NIGHT VISIONS SYSTEMS LABORATORY, FORT BELVOIR, 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 $708.64 ON DEPOSIT HERE TO THE 8 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.

INDORSEMENT

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP

RETURNED. THE EVIDENCE OF RECORD IS SUFFICIENT TO SUPPORT THE CONCLUSION THAT THE WORKERS IN QUESTION WERE UNDERPAID. THE RECORD INDICATES THAT THE UNDERPAYMENTS BY THE SUBCONTRACTOR, REINFORCING ASSOCIATES, WERE THE RESULT OF FINANCIAL DIFFICULTIES RATHER THAN A WILLFUL INTENT TO UNDERPAY ITS WORKERS. IT APPEARS THE SUBCONTRACTOR IS NO LONGER IN BUSINESS. THEREFORE, WE AGREE WITH THE DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED. SEE B-195749-O.M., AUGUST 29, 1979, AND CASES CITED THEREIN.

WE DO NOT BELIEVE DEBARMENT OF THE PRIME CONTRACTOR, JAWETT INCORPORATED, IS WARRANTED SINCE WHILE IT IS FINANCIALLY RESPONSIBLE FOR UNDERPAYMENTS TO EMPLOYEES OF ITS SUBCONTRACTORS, THERE IS NO EVIDENCE THAT THE PRIME CONTRACTOR PARTICIPATED IN OR CONTRIBUTED TO THE UNDERPAYMENTS SO AS TO WARRANT DEBARMENT UNDER THE DAVIS-BACON ACT. B-192683-O.M., OCTOBER 13, 1978.

IN REGARD TO THE $708.64 ON DEPOSIT WITH YOUR OFFICE, $693.24 SHOULD BE DISBURSED TO THE AGGRIEVED EMPLOYEES AND THE BALANCE SHOULD BE RETURNED TO THE CONTRACTOR.