B-200454.OM, OCT 23, 1980

B-200454.OM: Oct 23, 1980

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THE CLASSIFICATIONS APPARENTLY WERE BASED UPON A BONA FIDE BELIEF THAT THEY WERE PROPER. AFTER THE SUBCONTRACTOR WAS REQUESTED TO MAKE WAGE ADJUSTMENTS. THE SUBCONTRACTOR SUBMITTED AMENDED CERTIFIED PAYROLLS INDICATING THAT THE SIX EMPLOYEES HAD BEEN PAID THE ADDITIONAL AMOUNTS DUE AT A TIME WHEN THIS WAS NOT TRUE. THIS WAS ONLY A TECHNICAL VIOLATION. SINCE THERE IS EVIDENCE INDICATING IT WAS DONE IN ANTICIPATION THAT THE ADJUSTMENTS WERE GOING TO BE MADE AT A HIGHER TIER BECAUSE OF AN AGREEMENT THE SUBCONTRACTOR HAD WITH A HIGHER TIER SUBCONTRACTOR AND THE ADJUSTMENTS WERE IN FACT MADE SUBSEQUENTLY BY THE PRIME CONTRACTOR WITH ALL THE EMPLOYEES EXCEPT ONE WHO COULD NOT BE LOCATED. WE CONCUR WITH THE DEPARTMENT OF LABOR THAT DEBARMENT OF THE SUBCONTRACTOR IS NOT APPROPRIATE.

B-200454.OM, OCT 23, 1980

PRECIS-UNAVAILABLE

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP:

RETURNED. HALLMARK ELECTRICAL CONTRACTORS, INC., A LOWER TIER SUBCONTRACTOR, MISCLASSIFIED SIX EMPLOYEES. THE CERTIFIED PAYROLLS SHOWED THE CLASSIFICATIONS USED. THE CLASSIFICATIONS APPARENTLY WERE BASED UPON A BONA FIDE BELIEF THAT THEY WERE PROPER.

AFTER THE SUBCONTRACTOR WAS REQUESTED TO MAKE WAGE ADJUSTMENTS, THE SUBCONTRACTOR SUBMITTED AMENDED CERTIFIED PAYROLLS INDICATING THAT THE SIX EMPLOYEES HAD BEEN PAID THE ADDITIONAL AMOUNTS DUE AT A TIME WHEN THIS WAS NOT TRUE. HOWEVER, THIS WAS ONLY A TECHNICAL VIOLATION, SINCE THERE IS EVIDENCE INDICATING IT WAS DONE IN ANTICIPATION THAT THE ADJUSTMENTS WERE GOING TO BE MADE AT A HIGHER TIER BECAUSE OF AN AGREEMENT THE SUBCONTRACTOR HAD WITH A HIGHER TIER SUBCONTRACTOR AND THE ADJUSTMENTS WERE IN FACT MADE SUBSEQUENTLY BY THE PRIME CONTRACTOR WITH ALL THE EMPLOYEES EXCEPT ONE WHO COULD NOT BE LOCATED. THEREFORE, WE CONCUR WITH THE DEPARTMENT OF LABOR THAT DEBARMENT OF THE SUBCONTRACTOR IS NOT APPROPRIATE.

THE $17.16 ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED TO THE AGGRIEVED WORKER IN ACCORDANCE WITH ESTABLISHED PROCEDURES.

DIGEST

ALTHOUGH SUBCONTRACTOR SUBMITTED AMENDED CERTIFIED PAYROLLS INDICATING ADJUSTMENTS HAD BEEN MADE TO CORRECT UNDERPAYMENTS FOR MISCLASSIFICATIONS WHEN ADJUSTMENTS HAD NOT BEEN MADE, THIS APPARENTLY WAS DONE IN ANTICIPATION THAT ADJUSTMENTS WOULD BE MADE AT HIGHER TIER BECAUSE OF AGREEMENT AND ADJUSTMENTS WERE IN FACT SUBSEQUENTLY MADE BY PRIME CONTRACTOR; THEREFORE, DEBARMENT IS NOT APPROPRIATE.

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, BY HALLMARK ELECTRICAL CONTRACTORS, INC. WHICH PERFORMED WORK UNDER DEPARTMENT OF THE ARMY, CONTRACT NO. DACA63-77- C-0074 AT RANDOLPH AFB, TEXAS.

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 $17.16 ON DEPOSIT HERE TO THE AGGRIEVED WORKER 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.