B-215945, JAN 25, 1985

B-215945: Jan 25, 1985

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BIDDERS - DEBARMENT - LABOR STIPULATION VIOLATIONS - DAVIS-BACON ACT WAGE UNDERPAYMENTS - DEBARMENT REQUIRED DIGEST: FIRM WHICH DISREGARDED OBLIGATIONS TO EMPLOYEES BY WAGE UNDERPAYMENTS WHICH WERE HIDDEN BY FALSIFIED CERTIFIED PAYROLLS HAS FAILED TO EXERCISE GOOD FAITH COMPLIANCE WITH THE REQUIREMENTS OF THE DAVIS-BACON ACT. LEROY PLOWDEN PRESIDENT ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT METROPOLITAN HOME IMPROVEMENT ROOFING CO. HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT. OR ASSOCIATION IN WHICH THEY OR ANY OF THEM MAY HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THAT DATE. IS A PARTY. 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.

B-215945, JAN 25, 1985

BIDDERS - DEBARMENT - LABOR STIPULATION VIOLATIONS - DAVIS-BACON ACT WAGE UNDERPAYMENTS - DEBARMENT REQUIRED DIGEST: FIRM WHICH DISREGARDED OBLIGATIONS TO EMPLOYEES BY WAGE UNDERPAYMENTS WHICH WERE HIDDEN BY FALSIFIED CERTIFIED PAYROLLS HAS FAILED TO EXERCISE GOOD FAITH COMPLIANCE WITH THE REQUIREMENTS OF THE DAVIS-BACON ACT. THEREFORE, THE NAMES OF THE FIRM AND ITS PRINCIPAL OFFICERS SHOULD BE INCLUDED ON THE NEXT LISTING OF THE DEBARRED BIDDERS LIST.

METROPOLITAN HOME IMPROVEMENT: ROOFING CO., INC. 1605 KENILWORTH AVENUE, N.E. WASHINGTON, D.C. 20019 ATTENTION: MR. LEROY PLOWDEN PRESIDENT

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT METROPOLITAN HOME IMPROVEMENT ROOFING CO., INC., LEROY PLOWDEN, PRESIDENT, AND HELEN PLOWDEN, VICE-PRESIDENT, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276A (1982), IN THE PERFORMANCE OF CONTRACT NO. DACA31-82-D-0003 FOR WORK AT FORT MCNAIR, WASHINGTON, D.C., AND FORT MYER, ARLINGTON, VIRGINIA.

PURSUANT TO THE PROVISIONS OF SECTION 3(A) OF THE ACT, THE NAMES OF THE ABOVE INDIVIDUALS AND FIRM SHALL BE INCLUDED ON OUR NEXT PUBLISHED DEBARRED BIDDERS LIST, AND NO GOVERNMENT CONTRACT SHALL BE AWARDED TO ANY OF THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY OR ANY OF THEM MAY HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THAT DATE.

FINDING

IN THE MATTER OF METROPOLITAN HOME IMPROVEMENT ROOFING CO., INC. (METROPOLITAN), LEROY PLOWDEN, PRESIDENT AND HELEN PLOWDEN, VICE PRESIDENT.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. SEC. 276A (1982), 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 OF FIRMS APPEARING ON 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. DACA31-82-D-0003, IN EXCESS OF $2,000 FOR THE REPAIR OR REPLACEMENT OF SHEETMETAL GUTTERS AND DOWNSPOUTS AT FORT MCNAIR, WASHINGTON, D.C., AND FORT MYER, ARLINGTON, VIRGINIA, WAS AWARDED BY THE DEPARTMENT OF THE ARMY TO METROPOLITAN. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT.

AN INVESTIGATION BY THE DEPARTMENT OF THE ARMY DISCLOSED THAT METROPOLITAN, HAVING FULL KNOWLEDGE OF ITS STATUTORY AND CONTRACTUAL RESPONSIBILITIES, DID NEVERTHELESS DISREGARD THESE OBLIGATIONS AS EVIDENCED BY THE DELIBERATE PAYMENT OF SUBMINIMUM WAGE RATES TO PERSONS EMPLOYED BY IT ON THE SUBJECT PROJECT. EIGHTEEN EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $10,001.73 IN VIOLATION OF THE TERMS OF THE DAVIS-BACON ACT. THE CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH THE APPLICABLE LABOR STANDARDS REQUIREMENTS.

BY CERTIFIED LETTER DATED MAY 8, 1984, THE DEPARTMENT OF LABOR NOTIFIED METROPOLITAN'S RESPONSIBLE OFFICERS IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS CHARGED AGAINST THE FIRM AND OFFERED THEM AN OPPORTUNITY TO REBUT THE ALLEGATIONS AT A HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE. ACCORDING TO THE DEPARTMENT OF LABOR, THE LETTER TO LEROY AND HELEN PLOWDEN WAS RECEIVED, BUT NO HEARING WAS REQUESTED.

IT IS CLEAR, PARTICULARLY IN LIGHT OF THE FALSIFIED PAYROLLS, THAT THERE WAS A FAILURE TO EXERCISE GOOD FAITH. BOTH THE DEPARTMENT OF THE ARMY AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED DEBARMENT.

WE, THEREFORE, FIND THAT METROPOLITAN AND ITS RESPONSIBLE OFFICERS, LEROY PLOWDEN AND HELEN PLOWDEN, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING 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 DIRECTION, NO CONTRACT SHALL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP OR ASSOCIATION IN WHICH THEY OR ANY OF THEM HAS AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.