Violations of Davis-Bacon Act

B-202320: Jun 16, 1981

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An investigation was undertaken by GAO to determine whether a subcontractor and its general manager had violated the Davis- Bacon Act. The record showed that the firm was awarded a subcontract to install toilets at a hospital and that the subcontract contained the stipulations and representations required of the Davis-Bacon Act. However, an investigation conducted by the Department of Labor showed that six employees were underpaid in violation of the terms of the Davis-Bacon Act. The record also indicated that the subcontractor's certified payrolls contained incorrect information designed to simulate compliance with the applicable labor standard requirements. Consequently, the subcontractor was charged with labor standards violations and notified of the nature and extent of the violations charged against it. The subcontractor failed to submit a rebuttal of the charges or an argument against debarment. GAO held that, in light of the falsified payrolls, good faith was not shown in complying with the Act and the contractual provisions. Accordingly, the subcontractor and its general manager will be included on a debarment list for distribution to all agencies of the Government. Pursuant to statutory authority, no contract will 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 the publication of the list.