B-196699 L/M, FEB 21, 1980

B-196699 L/M, FEB 21, 1980

PRECIS-UNAVAILABLE

MR. AL HESS, PRESIDENT, CROWN ROOFING, INC.:

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT CROWN ROOFING, INC., AND ITS PRESIDENT, AL HESS, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. SEC. 276A (1976), IN ITS PERFORMANCE AS A SUBCONTRACTOR UNDER CONTRACT NO. N62472-73-C 0302 AT THE NEW LONDON NAVAL SUBMARINE BASE, CONNECTICUT.

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

FINDING

IN THE MATTER OF CROWN ROOFING, INC., AND AL HESS, PRESIDENT OF SAID CORPORATION, 398 MONTGOMERY STREET, JERSEY CITY, NEW JERSEY 07302.

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 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. N62472-73-C-0302, IN EXCESS OF $2,000, FOR CONSTRUCTION WORK AT THE NEW LONDON NAVAL SUBMARINE BASE, CONNECTICUT WAS AWARDED TO ROCKY MARCIANO CONSTRUCTION COMPANY, INC., BY THE DEPARTMENT OF THE NAVY. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS-BACON ACT. A SUBCONTRACT IN EXCESS OF $2,000 WAS AWARDED TO CROWN ROOFING, INC., TO PERFORM A PORTION OF THE ABOVE MENTIONED CONTRACT. THE SUBCONTRACT ALSO CONTAINED THE STIPULATION AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT.

AN INVESTIGATION CONDUCTED BY THE WAGE AND HOUR DIVISION, U. S. DEPARTMENT OF LABOR, DISCLOSED THAT THE SUBCONTRACTOR, CROWN ROOFING, INC., 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 SUBJECT PROJECT. AS A RESULT OF THIS INVESTIGATION 13 EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $13,241.47 IN VIOLATION OF THE TERMS OF THE DAVIS-BACON ACT. THE RECORD ALSO REVEALED THAT CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY WERE INCOMPLETE AND CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH APPLICABLE LABOR STANDARDS REQUIREMENTS.

BY REGISTERED LETTER DATED NOVEMBER 14, 1978, THE ACTING DEPUTY ADMINISTRATOR, WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR, NOTIFIED THE SUBCONTRACTOR IN DETAIL OF THE NATURE AND EXTENT OF THE LABOR STANDARDS VIOLATIONS AND AFFORDED IT AN OPPORTUNITY TO REBUT THE CHARGES. THE SUBCONTRACTOR DID NOT RESPOND TO THE CHARGES.

IT IS CLEAR, PARTICULARLY IN LIGHT OF THE FALSIFIED PAYROLLS, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE DAVIS-BACON ACT. BOTH THE DEPARTMENT OF THE NAVY AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED THE IMPOSITION OF DEBARMENT SANCTIONS.

WE, THEREFORE, FIND THAT CROWN ROOFING, INC., AND AL HESS, INDIVIDUALLY, 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 PURSUANT TO THE STATUTORY REQUIREMENTS AND NO CONTRACT SHALL BE AWARDED TO THEM OR TO ANY FIRM, CORPORATION, PARTNERSHIP, JOINT VENTURE OR ASSOCIATION, IN WHICH THEY OR EITHER OF THEM HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.