B-207951-OM, DEC 6, 1982

B-207951-OM: Dec 6, 1982

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PRECIS-UNAVAILABLE 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. TO DISBURSE THE $8.52 WHICH WE HAVE ON DEPOSIT TO THE ONE AGGRIEVED WORKER. 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 CONSIDERATION AND INSTRUCTIONS. THE SUM OF $8.52 WAS FORWARDED TO YOUR OFFICE FOR DISBURSEMENT TO THE ONE EMPLOYEE. WE CONCUR WITH THE DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED.

B-207951-OM, DEC 6, 1982

PRECIS-UNAVAILABLE

THE COMPTROLLER GENERAL:

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, BY JAMES W. SCOUTON-PLASTERING, SUBCONTRACTOR TO FLETCHER & SONS, INCORPORATED, WHICH PERFORMED WORK UNDER DEPARTMENT OF THE ARMY, CORPS OF ENGINEERS CONTRACT NO. DACA31-80 C-0023 AT TOBYHANNA ARMY DEPOT, PENNSYLVANIA.

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 $8.52 WHICH WE HAVE ON DEPOSIT TO THE ONE AGGRIEVED WORKER, 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 CONSIDERATION AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT MR. LAWRENCE M. BOBIER ON EXTENSION 58145.

INDORSEMENT

ASSOCIATE DIRECTOR-AFMD, CLAIMS GROUP

RETURNED. TWO LABOR STANDARDS INVESTIGATIONS, CONDUCTED BY THE UNITED STATES ARMY CORPS OF ENGINEERS, DISCLOSED THAT THE SUBCONTRACTOR, JAMES W. SCOUTON-PLASTERING, UNDERPAID 12 OF ITS EMPLOYEES A TOTAL OF $4,900.29. THE SUBCONTRACTOR MADE RESTITUTION TO ALL OF THE EMPLOYEES EXCEPT FOR ONE WHO COULD NOT BE LOCATED. THE SUM OF $8.52 WAS FORWARDED TO YOUR OFFICE FOR DISBURSEMENT TO THE ONE EMPLOYEE.

ON THE BASIS OF THE RECORD, WE CONCUR WITH THE DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT IS NOT WARRANTED. MOST OF THE VIOLATIONS RESULTED FROM THE SUBCONTRACTOR'S FAILURE TO PAY FRINGE BENEFITS. THE STATEMENTS OF COMPLIANCE, DD FORM 879, WHICH ACCOMPANIED THE SUBCONTRACTOR'S CERTIFIED PAYROLLS, INDICATED, FOR THE MOST PART, THAT THE EMPLOYEES WOULD RECEIVE A CASH EQUIVALENT FOR FRINGE BENEFITS, IN WHICH EVENT THE CASH PAYMENTS SHOULD HAVE BEEN REFLECTED IN GROSS EARNINGS SHOWN ON THE PAYROLLS. HOWEVER, IN SPITE OF THE FACT THAT THE EVIDENCE OF RECORD INDICATES THAT SEVERAL EMPLOYEES STATED THEY WERE PAID BENEFITS, NONE OF THE PAYROLLS REFLECT THE INCLUSION OF A CASH EQUIVALENT FOR FRINGE BENEFITS, SHOWING ONLY THE BASIC HOURLY RATE OF PAY FOR EACH EMPLOYEE. IN THIS REGARD, THE RECORD DISCLOSES THAT FOR SEVERAL PAYROLL PERIODS IT WAS INDICATED THAT NOT ONLY WOULD THE EMPLOYEES RECEIVE A CASH EQUIVALENT FOR FRINGE BENEFITS, BUT THE REQUIRED AMOUNT FOR FRINGE BENEFITS WOULD BE PAID INTO AN APPROVED FRINGE BENEFIT FUND. THERE DOES NOT APPEAR TO HAVE BEEN ANY ATTEMPT TO FALSIFY THE PAYROLLS TO CONCEAL THE FAILURE TO PAY FRINGE BENEFITS. THUS, IT WOULD APPEAR THAT THE FAILURE TO PAY THE FRINGE BENEFITS WAS THE RESULT OF CARELESS RECORDKEEPING RATHER THAN A WILLFUL INTENT TO UNDERPAY THE WORKERS. SEE B-178561-O.M., FEBRUARY 14, 1974. ALSO, THE RECORD INDICATES THAT SOME OF THE UNDERPAYMENTS WERE THE RESULT OF A MISTAKEN BELIEF, BY THE SUBCONTRACTOR, THAT THE WORK PERFORMED BY SOME OF ITS EMPLOYEES WAS COVERED BY A LOWER PAYING CLASSIFICATION. SEE B-191999-O.M., JULY 7, 1978, AND B-198964-O.M., MARCH 15, 1982.

THE $8.82 ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED TO THE ONE AGGRIEVED EMPLOYEE IN ACCORDANCE WITH ESTABLISHED PROCEDURES.