B-205834.OM, MAR 19, 1982

B-205834.OM: Mar 19, 1982

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IS SUFFICIENT TO SUPPORT CONCLUSION THAT EMPLOYEES WERE UNDERPAID. DEBARMENT IS NOT WARRANTED SINCE (1) IT HAS BEEN IN EXCESS OF 3 YEARS SINCE VIOLATIONS OCCURRED AND EXTENDED PERIOD OF TIME WOULD BE REQUIRED TO ACCORD CONTRACTOR DUE PROCESS IF WE WERE TO IMPOSE DEBARMENT. (2) EVIDENCE OF RECORD INDICATES CONTRACTOR IS NO LONGER IN BUSINESS. THE 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 CONSIDERATIONS AND INSTRUCTIONS.

B-205834.OM, MAR 19, 1982

DIGEST: ACQUIESCENCE OF CONTRACTOR IN DISBURSAL OF WITHHELD FUNDS TO UNDERPAID WORKERS, COUPLED WITH EVIDENCE OF RECORD, IS SUFFICIENT TO SUPPORT CONCLUSION THAT EMPLOYEES WERE UNDERPAID; HOWEVER, DEBARMENT IS NOT WARRANTED SINCE (1) IT HAS BEEN IN EXCESS OF 3 YEARS SINCE VIOLATIONS OCCURRED AND EXTENDED PERIOD OF TIME WOULD BE REQUIRED TO ACCORD CONTRACTOR DUE PROCESS IF WE WERE TO IMPOSE DEBARMENT, WHICH WOULD FURTHER DELAY PAYMENT OF WORKERS, AND (2) EVIDENCE OF RECORD INDICATES CONTRACTOR IS NO LONGER IN BUSINESS.

THE COMPTROLLER GENERAL:

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, AND THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, 40 U.S.C. 327 ET SEQ., BY R&G CONSTRUCTION COMPANY OF GRETNA, INC., GRETNA, LOUISIANA, WHICH PERFORMED WORK UNDER DEPARTMENT OF THE NAVY CONTRACT NO. N62467-77-C-0040 AT THE NAVAL SUPPORT ACTIVITY, NEW ORLEANS, LOUISIANA.

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 $6,271.70 ON DEPOSIT HERE TO THE SEVENTEEN AGGRIEVED WORKERS ON A PRO RATA BASIS, 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 CONSIDERATIONS AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT KEN SCHUTT ON EXTENSION 53218. CONGRESSMAN ROBERT L. LIVINGSTON IS INTERESTED IN THIS MATTER.

INDORSEMENT

ASSOCIATE DIRECTOR, AFMD-CLAIMS GROUP

RETURNED. THE CONTRACTOR'S ACQUIESCENCE IN THE DISBURSAL TO THE UNDERPAID WORKERS OF FUNDS WITHHELD FROM MONIES OWED THE CONTRACTOR UNDER THE CONTRACT, COUPLED WITH THE EVIDENCE OF RECORD, IS SUFFICIENT TO SUPPORT THE CONCLUSION THAT THE EMPLOYEES IN QUESTION WERE, IN FACT, UNDERPAID.

WHILE PERHAPS THE WEIGHT OF THE EVIDENCE WOULD SUPPORT DEBARMENT, WE CONCUR WITH THE DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED SINCE (1) IT HAS BEEN IN EXCESS OF 3 YEARS SINCE THE VIOLATIONS OCCURRED AND AN EXTENDED PERIOD OF TIME WOULD BE REQUIRED TO ACCORD THE CONTRACTOR DUE PROCESS BEFORE WE COULD IMPOSE DEBARMENT, WHICH WOULD FURTHER DELAY PAYMENT OF THE UNDERPAID EMPLOYEES, AND (2) DEBARMENT AT THIS TIME WOULD APPEAR TO BE A NEEDLESS ADMINISTRATIVE EXERCISE SINCE THERE IS EVIDENCE OF RECORD INDICATING THAT THE CONTRACTOR IS NO LONGER IN BUSINESS. SEE B-197903-O.M., APRIL 25, 1980; B-202852-O.M., AUGUST 3, 1981.

THE FUNDS ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED TO THE AGGRIEVED WORKERS ON A PRO RATA BASIS IN ACCORDANCE WITH ESTABLISHED PROCEDURES.