B-206034.OM, JUN 1, 1982

B-206034.OM: Jun 1, 1982

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DIGEST: DEBARMENT IS NOT REQUIRED WHERE FAILURE TO PAY ANY WAGES TO EMPLOYEES MAY VERY WELL HAVE BEEN DUE TO EMPLOYER'S FINANCIAL DIFFICULTIES. 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. 320.82 WHICH WE HAVE ON DEPOSIT TO THE FOUR AGGRIEVED EMPLOYEES. 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. THAT A COURT JUDGMENT AGAINST THE CONTRACTOR FOR WAGES DUE ONE EMPLOYEE REMAINS UNSATISFIED AND THAT THE CONTRACTOR WAS TERMINATED SUBSEQUENTLY FOR DEFAULT IN THE PERFORMANCE OF TWO OTHER CONTRACTS SUGGESTS THE CONTRACTOR'S FAILURE TO THE EMPLOYEES MAY VERY WELL HAVE BEEN DUE TO FINANCIAL DIFFICULTIES RATHER THAN AN INTENTION TO DISREGARD OBLIGATIONS TO EMPLOYEES.

B-206034.OM, JUN 1, 1982

DIGEST: DEBARMENT IS NOT REQUIRED WHERE FAILURE TO PAY ANY WAGES TO EMPLOYEES MAY VERY WELL HAVE BEEN DUE TO EMPLOYER'S FINANCIAL DIFFICULTIES.

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 VISCO CONSTRUCTION COMPANY, WHICH PERFORMED WORK UNDER NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CONTRACT NO. NASA3-22298 AT LEWIS RESEARCH CENTER, CLEVELAND, OHIO.

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 $1,320.82 WHICH WE HAVE ON DEPOSIT TO THE FOUR AGGRIEVED EMPLOYEES, 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 LAWRENCE M. BOBIER ON EXTENSION 53218.

INDORSEMENT

ASSOCIATE DIRECTOR, AFMD-CLAIMS GROUP

RETURNED. THE FACT THAT THE COMPLAINT AGAINST THE CONTRACTOR ARISES FROM THE FAILURE TO PAY ANY WAGES TO THE EMPLOYEES PRINCIPALLY IN THE LAST FEW WEEKS OF THE CONTRACT, THAT A COURT JUDGMENT AGAINST THE CONTRACTOR FOR WAGES DUE ONE EMPLOYEE REMAINS UNSATISFIED AND THAT THE CONTRACTOR WAS TERMINATED SUBSEQUENTLY FOR DEFAULT IN THE PERFORMANCE OF TWO OTHER CONTRACTS SUGGESTS THE CONTRACTOR'S FAILURE TO THE EMPLOYEES MAY VERY WELL HAVE BEEN DUE TO FINANCIAL DIFFICULTIES RATHER THAN AN INTENTION TO DISREGARD OBLIGATIONS TO EMPLOYEES. THEREFORE, WE AGREE WITH THE DEPARTMENT OF LABOR THAT DEBARMENT SHOULD NOT BE IMPOSED AGAINST THE CONTRACTOR.

FUNDS ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED IN ACCORDANCE WITH ESTABLISHED PROCEDURES.