B-201279, APR 28, 1981

B-201279: Apr 28, 1981

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TO WHICH THE UNITED STATES *** IS A PARTY. SECTION 3(A) OF THE ACT PROVIDES THAT - "*** THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. OR ASSOCIATION IN WHICH SUCH PERSONS OR FIRMS HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST CONTAINING THE NAMES OF SUCH PERSONS OR FIRMS.". WERE AWARDED TO THE M. IT WAS DETERMINED THAT 14 EMPLOYEES WERE UNDERPAID A TOTAL OF $12. IT IS CLEAR. THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND THE CONTRACTUAL PROVISIONS.

B-201279, APR 28, 1981

PRECIS-UNAVAILABLE

FINDING

IN THE MATTER OF M. R. BRACEY CONSTRUCTION CO., AND ITS OWNER, MR. MILTON R. BRACEY, JR., ONTARIO, CALIFORNIA.

SECTION 1(A) OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. SEC. 276A (1976), PROVIDES IN PART AS FOLLOWS:

"THE ADVERTISED SPECIFICATIONS FOR EVERY CONTRACT IN EXCESS OF $2,000, TO WHICH THE UNITED STATES *** IS A PARTY, FOR CONSTRUCTION, ALTERATION, AND/OR REPAIR, INCLUDING PAINTING AND DECORATING, OF PUBLIC BUILDINGS OR PUBLIC WORKS OF THE UNITED STATES *** AND WHICH REQUIRES OR INVOLVES THE EMPLOYMENT OF MECHANICS AND/OR LABORERS SHALL CONTAIN A PROVISION STATING THE MINIMUM WAGES TO BE PAID VARIOUS CLASSES OF LABORERS AND MECHANICS *** AND EVERY CONTRACT BASED UPON THESE SPECIFICATIONS SHALL CONTAIN A STIPULATION THAT THE CONTRACTOR OR HIS SUBCONTRACTOR SHALL PAY ALL MECHANICS AND LABORERS EMPLOYED DIRECTLY UPON THE SITE OF THE WORK, UNCONDITIONALLY AND NOT LESS OFTEN THAN ONCE A WEEK AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT, THE FULL AMOUNTS ACCRUED AT TIME OF PAYMENT, COMPUTED AT WAGE RATES NOT LESS THAN THOSE STATED IN THE ADVERTISED SPECIFICATIONS, REGARDLESS OF ANY CONTRACTUAL RELATIONSHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN THE CONTRACTOR OR SUBCONTRACTOR AND SUCH LABORERS AND MECHANICS ***."

SECTION 3(A) OF THE ACT PROVIDES THAT -

"*** THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. NO CONTRACT SHALL BE AWARDED TO THE PERSONS OR FIRMS APPEARING ON THIS LIST OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH SUCH PERSONS OR FIRMS HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST CONTAINING THE NAMES OF SUCH PERSONS OR FIRMS."

CONTRACTS NOS. F04605-77-90075, F04607-77-90176, F04607-77-90200 AND F04607-77-90235, ALL IN EXCESS OF $2,000, FOR CONSTRUCTION WORK AT NORTON AND MARCH AIR FORCE BASES LOCATED IN CALIFORNIA, WERE AWARDED TO THE M. R. BRACEY CONSTRUCTION CO. ALL OF THE CONTRACTS CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT.

AN INVESTIGATION CONDUCTED BY THE DEPARTMENT OF LABOR DISCLOSED THAT THE CONTRACTOR, M. R. BRACEY CONSTRUCTION CO., 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 BY IT ON SUBJECT PROJECTS. AS A RESULT OF THIS INVESTIGATION, IT WAS DETERMINED THAT 14 EMPLOYEES WERE UNDERPAID A TOTAL OF $12,681.05 IN VIOLATION OF THE DAVIS-BACON ACT. THE RECORD ALSO REVEALED THAT THE CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH THE APPLICABLE LABOR STANDARDS REQUIREMENTS.

BY CERTIFIED LETTER DATED JUNE 10, 1980, THE DEPUTY ADMINISTRATOR, WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR, NOTIFIED THE ABOVE-NAMED CONTRACTOR IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS CHARGED AGAINST THE FIRM, BUT THE FIRM DECLINED TO SUBMIT FACTS IN REBUTTAL OR ARGUMENT AGAINST DEBARMENT IN RESPONSE TO THIS LETTER.

IT IS CLEAR, PARTICULARLY IN LIGHT OF THE FALSIFIED PAYROLLS, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND THE CONTRACTUAL PROVISIONS. THE DEPARTMENT OF LABOR HAS RECOMMENDED IMPOSITION OF DEBARMENT.

WE, THEREFORE, FIND THAT M. R. BRACEY CONSTRUCTION CO., AND MR. MILTON R. BRACEY, JR., INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE NAMES WILL BE INCLUDED ON A LIST FOR DISTRIBUTION TO ALL AGENCIES OF THE GOVERNMENT PURSUANT TO STATUTORY REQUIREMENTS AND NO CONTRACT SHALL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, JOINT VENTURE OR ASSOCIATION, IN WHICH THEY OR EITHER OF THEM HAS AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.

DIGEST

CONTRACTOR WHO HAD FULL KNOWLEDGE OF STATUTORY AND CONTRACTUAL RESPONSIBILITIES UNDER DAVIS-BACON ACT AND NEVERTHELESS DISREGARDED THOSE OBLIGATIONS BY DELIBERATE PAYMENT OF SUBMINIMUM WAGE RATES TO EMPLOYEES ON PROJECTS AND BY FALSIFICATION OF CERTIFIED PAYROLLS HAS NOT SHOWN GOOD FAITH IN COMPLYING WITH ACT AND CONTRACTUAL PROVISIONS. THEREFORE, NAMES OF CONTRACTOR AND ITS OWNER ARE FOR INCLUSION ON DEBARRED BIDDERS LIST.

INDORSEMENT

ASSOCIATE DIRECTOR-AFMD, CLAIMS GROUP:

RETURNED. M. R. BRACEY CONSTRUCTION CO., AND ITS OWNER, MR. MILTON R. BRACEY, JR., INDIVIDUALLY, ARE BEING NOTIFIED OF DEBARMENT FOR VIOLATION OF THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276A (1976), IN ACCORDANCE WITH THE ATTACHED LETTER AND FINDING (COPIES), AND THESE NAMES SHOULD BE INCLUDED ON THE NEXT PUBLISHED LIST OF INELIGIBLES.