[Recommendation for Debarment Under Davis-Bacon Act]

B-217705: Jul 24, 1985

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The Department of Labor recommended that a firm and its owner and secretary be placed on the ineligible list for violations of the Davis-Bacon Act. The firm performed work as a subcontractor under an Army contract which was subject to minimum wage rate requirements under the act. As a result of an investigation, Labor found that the firm had not paid its employees the minimum wages or proper overtime compensation pursuant to the act and had falsified payroll records. The firm was given an opportunity for a hearing; however, after reexamination, Labor found that the firm violated the act without any factors militating against debarment. The act provides that the Comptroller General can debar persons or firms that have disregarded obligations to their employees. GAO has held that violations which were intentional as demonstrated in bad faith or gross carelessness in observing obligations to employees are basis for debarment. Accordingly, the firm and its two officers will be included on the list of ineligible bidders.

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