B-209980, MAY 25, 1983

B-209980: May 25, 1983

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TO WHICH THE UNITED STATES *** IS A PARTY. SECTION 3(A) OF THE ACT PROVIDES THAT - "*** THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. OR ASSOCIATION IN WHICH SUCH PERSONS OR FIRMS HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST CONTAINING THE NAMES OF SUCH PERSONS OR FIRMS.". WAS AWARDED BY THE NATIONAL CENTER FOR TOXICOLOGICAL RESEARCH. WAS APPLICABLE TO THE CONTRACT. IT WAS DETERMINED THAT 15 EMPLOYEES WERE NOT PAID ANY WAGES FOR A 2-WEEK PERIOD.

B-209980, MAY 25, 1983

PRECIS-UNAVAILABLE

FINDING

IN THE MATTER OF A-1 BUILDING CONTRACTORS, INC., AND M.L.UPTON, PRESIDENT OF SAID CORPORATION, LITTLE ROCK, ARKANSAS.

SECTION 1(A) OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. SEC. 276A (1976), PROVIDES IN PART THAT -

"THE ADVERTISED SPECIFICATIONS FOR EVERY CONTRACT IN EXCESS OF $2,000, TO WHICH THE UNITED STATES *** IS A PARTY, FOR CONSTRUCTION, ALTERATION, AND/OR REPAIR, INCLUDING PAINTING AND DECORATING, OF PUBLIC BUILDINGS OR PUBLIC WORKS OF THE UNITED STATES *** AND WHICH REQUIRES OR INVOLVES THE EMPLOYMENT OF MECHANICS AND/OR LABORERS SHALL CONTAIN A PROVISION STATING THE MINIMUM WAGES TO BE PAID VARIOUS CLASSES OF LABORERS AND MECHANICS *** AND EVERY CONTRACT BASED UPON THESE SPECIFICATIONS SHALL CONTAIN A STIPULATION THAT THE CONTRACTOR OR HIS SUBCONTRACTOR SHALL PAY ALL MECHANICS AND LABORERS EMPLOYED DIRECTLY UPON THE SITE OF THE WORK, UNCONDITIONALLY AND NOT LESS OFTEN THAN ONCE A WEEK, AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT, THE FULL AMOUNTS ACCRUED AT TIME OF PAYMENT, COMPUTED AT WAGE RATES NOT LESS THAN THOSE STATED IN THE ADVERTISED SPECIFICATIONS, REGARDLESS OF ANY CONTRACTUAL RELATIONSHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN THE CONTRACTOR OR SUBCONTRACTOR AND SUCH LABORERS AND MECHANICS ***."

SECTION 3(A) OF THE ACT PROVIDES THAT -

"*** THE COMPTROLLER GENERAL OF THE UNITED STATES IS FURTHER AUTHORIZED AND IS DIRECTED TO DISTRIBUTE A LIST TO ALL DEPARTMENTS OF THE GOVERNMENT GIVING THE NAMES OF PERSONS OR FIRMS WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. NO CONTRACT SHALL BE AWARDED TO THE PERSONS OR FIRMS APPEARING IN THIS LIST OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH SUCH PERSONS OR FIRMS HAVE AN INTEREST UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF THE LIST CONTAINING THE NAMES OF SUCH PERSONS OR FIRMS."

CONTRACT NO. M2014-81, IN EXCESS OF $2,000, FOR THE DISMANTLING AND REMOVAL OF A WATER-COOLING TOWER, WAS AWARDED BY THE NATIONAL CENTER FOR TOXICOLOGICAL RESEARCH, DEPARTMENT OF HEALTH AND HUMAN SERVICES, TO A-1 BUILDING CONTRACTORS, INC. THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276(A) (1976), WAS APPLICABLE TO THE CONTRACT.

AN INVESTIGATION CONDUCTED BY THE DEPARTMENT OF LABOR DISCLOSED THAT THE CONTRACTOR, HAVING FULL KNOWLEDGE OF ITS STATUTORY AND CONTRACTUAL RESPONSIBILITIES, DID NEVERTHELESS DISREGARD THESE OBLIGATIONS AS EVIDENCED BY ITS FAILURE TO PAY PERSONS EMPLOYED BY IT ON THE SUBJECT PROJECT. AS A RESULT OF THIS INVESTIGATION, IT WAS DETERMINED THAT 15 EMPLOYEES WERE NOT PAID ANY WAGES FOR A 2-WEEK PERIOD. THE TOTAL AMOUNT OF THE BACK WAGES DUE THESE EMPLOYEES IS $2,798.08; HOWEVER, ONLY $1,200 WAS WITHHELD FROM AMOUNTS DUE UNDER THE CONTRACT TO COVER THE BACK WAGES. THE RECORD ALSO REVEALS THAT THE CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY BY THE CONTRACTOR DID NOT CONTAIN THE NAMES OF THESE EMPLOYEES.

BY REGISTERED LETTER DATED FEBRUARY 25, 1983, OUR OFFICE ADVISED THE CONTRACTOR OF THE NATURE AND THE EXTENT OF THE LABOR STANDARDS VIOLATIONS AND AFFORDED IT AN OPPORTUNITY TO REBUT THE ALLEGATIONS, BUT NO FACTS IN REBUTTAL OR ARGUMENT AGAINST DEBARMENT WERE SUBMITTED BY THE CONTRACTOR IN RESPONSE TO THIS LETTER.

ON THE BASIS OF THE EXISTING RECORD, WE CONCLUDE THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND THE CONTRACTUAL PROVISIONS.

WE FIND THAT A-1 BUILDING CONTRACTORS, INC., AND M.L.UPTON HAVE DISREGARDED THEIR "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF SECTION 3(A) OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE NAMES WILL BE INCLUDED ON A LIST FOR DISTRIBUTION TO ALL AGENCIES OF THE GOVERNMENT AND, PURSUANT TO STATUTORY REQUIREMENTS, NO CONTRACT SHALL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY OR EITHER OF THEM HAS AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.