B-206037.OM, APR 20, 1982

B-206037.OM: Apr 20, 1982

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DIGEST: PAYMENT OF WAGES ON BASIS OF AGREEMENT BETWEEN CORPS OF ENGINEERS AND CONTRACTOR CONCERNING AMOUNT OWED EMPLOYEES OF CONTRACTOR AND ITS SUBCONTRACTORS IS APPROVED. SINCE THERE IS NOTHING IN RECORD WHICH PROVIDES BASIS FOR OBJECTION. GAO CONCURS WITH DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED SINCE IT HAS BEEN IN EXCESS OF 6 YEARS SINCE VIOLATIONS OCCURRED. IF DEBARMENT PROCEEDINGS WERE INITIATED. DUE PROCESS WOULD HAVE TO BE ACCORDED PARTIES INVOLVED WHICH WOULD ENTAIL NOTICE AND HEARING. 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.

B-206037.OM, APR 20, 1982

DIGEST: PAYMENT OF WAGES ON BASIS OF AGREEMENT BETWEEN CORPS OF ENGINEERS AND CONTRACTOR CONCERNING AMOUNT OWED EMPLOYEES OF CONTRACTOR AND ITS SUBCONTRACTORS IS APPROVED, SINCE THERE IS NOTHING IN RECORD WHICH PROVIDES BASIS FOR OBJECTION. GAO CONCURS WITH DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED SINCE IT HAS BEEN IN EXCESS OF 6 YEARS SINCE VIOLATIONS OCCURRED. IF DEBARMENT PROCEEDINGS WERE INITIATED, DUE PROCESS WOULD HAVE TO BE ACCORDED PARTIES INVOLVED WHICH WOULD ENTAIL NOTICE AND HEARING. THIS WOULD FURTHER DELAY PAYMENT OF EMPLOYEES.

THE COMPTROLLER GENERAL:

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, BY PILARAS PAINTING COMPANY, G. DABINETT AND ASSOCIATES, PHOTON POWER COMPANY, FRENCH ELECTRIC ASSOCIATES, EMG COMPANY, INC., N & M CONSTRUCTION CORPORATION, ALSO D.B.A. BRUNETTI CONSTRUCTION CORPORATION, AGIA MASON CONTRACTORS, NOLL BROTHERS, AND CENTURY ELECTRIC ASSOCIATED, WHICH PERFORMED WORK UNDER ARMY CORPS OF ENGINEERS CONTRACT NOS. DACA51-75-C-0135 AND DACA51-75-C 0190 AT FORT MONMOUTH, NEW JERSEY.

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 $106,446.38 ON DEPOSIT HERE TO THE 32 AGGRIEVED WORKERS IN ACCORDANCE WITH ESTABLISHED PROCEDURES. OUR PROPOSAL AND THE MATTER OF WHETHER THE CONTRACTORS' NAMES 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 MYRON COLBREUNER ON EXTENSION 53218.

INDORSEMENT

ASSOCIATE DIRECTOR, AFMD-CLAIMS GROUP

RETURNED. WE FIND NOTHING IN THE RECORD WHICH WOULD LEAD US TO OBJECT TO THE SETTLEMENT AGREEMENT BETWEEN THE CORPS OF ENGINEERS AND THE PRIME CONTRACTOR, PILARAS PAINTING COMPANY, FOR THE PAYMENT OF THE 32 UNDERPAID EMPLOYEES. ACCORDINGLY, THE $106,446.38 ON DEPOSIT WITH YOUR OFFICE MAY BE DISBURSED TO THE 32 AGGRIEVED EMPLOYEES IN ACCORDANCE WITH THE SETTLEMENT AGREEMENT. SEE B-201218-O.M., JANUARY 19, 1981, AND THE CASES CITED THEREIN.

WHILE THE SETTLEMENT AGREEMENT SPECIFICALLY RESERVED TO THE DEPARTMENT OF LABOR (DOL) THE RIGHT TO INITIATE DEBARMENT PROCEEDINGS, DOL CHOSE NOT TO DO SO ON THE BASIS OF THE LENGTH OF TIME THAT HAS ELAPSED SINCE THE VIOLATIONS OCCURRED, IN EXCESS OF 6 YEARS. WE CONCUR WIH DOL'S VIEW THAT DEBARMENT IS NOT WARRANTED SINCE IF WE WERE TO INITIATE DEBARMENT PROCEEDINGS, DUE PROCESS WOULD HAVE TO BE ACCORDED THE PARTIES INVOLVED. DUE PROCESS IN THIS CASE WOULD ENTAIL, AT THE MINIMUM, NOTICE AND SOME SORT OF HEARING WHICH WOULD FURTHER DELAY PAYMENT OF THE EMPLOYEES. SEE B-185237-O.M., AUGUST 24, 1977.