B-207238.OM., SEP 21, 1982

B-207238.OM., SEP 21, 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 STAUFFER CONSTRUCTION COMPANY, INCORPORATED, WHICH PERFORMED WORK UNDER DEPARTMENT OF THE ARMY, CORPS OF ENGINEERS CONTRACT NO. DACA31-79-C-0007 AT FORT GEORGE G. MEADE, MARYLAND.

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 $1,453.31 WHICH WE HAVE ON DEPOSIT HERE TO THE 47 AGGRIEVED EMPLOYEES, 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 53218.

INDORSEMENT

ASSOCIATE DIRECTOR, AFMD-CLAIMS GROUP

RETURNED. WHILE PERFORMING DEPARTMENT OF THE ARMY CONTRACT NO. DACA31-79- C-0007 AT FORT GEORGE G. MEADE, MARYLAND, STAUFFER CONSTRUCTION CO., INC. (STAUFFER), FAILED TO (1) FULLY COMPENSATE THREE EMPLOYEES FOR ALL HOURS WORKED OUT OF THEIR LABORER CLASSIFICATION PERFORMING THE DUTIES OF CARPENTERS, PAINTERS AND TRUCK DRIVERS AND (2) PAY 44 OTHER EMPLOYEES 2 CENTS PER HOUR IN FRINGE BENEFITS.

WHILE THE EVIDENCE OF RECORD IS, IN THE ABSENCE OF REBUTTAL EVIDENCE BY THE CONTRACTOR, SUFFICIENT TO ESTABLISH THAT THE EMPLOYEES IN QUESTION WERE UNDERPAID, WE DO NOT BELIEVE THAT DEBARMENT SANCTIONS ARE WARRANTED. THE RECORD INDICATES THAT THE THREE EMPLOYEES MENTIONED ABOVE HAD SPLIT OR DUAL CLASSIFICATIONS. THEY WERE CLASSIFIED AS "LABORERS/PAINTERS," WHICH MEANS THAT PART OF THE TIME THEY WERE PAID AS LABORERS AND THE BALANCE OF THE TIME AS PAINTERS. THE LABOR STANDARDS INVESTIGATION REVEALED THAT THE CONTRACTOR'S FAILURE TO PAY THE THREE LABORERS/PAINTERS FOR ALL OF THE HOURS WORKED AS PAINTERS, CARPENTERS AND TRUCK DRIVERS WAS, IN LARGE PART, THE RESULT OF THE CONTRACTOR'S MISUNDERSTANDING CONCERNING HOW SPLIT OR DUAL CLASSIFICATIONS WORK. FOR EXAMPLE, THE CONTRACTOR DID NOT REALIZE THAT THE PAY RATE FOR CERTAIN INCIDENTAL DUTIES, SUCH AS HAULING PAINT TO THE WORKSITE, CLEANING UP THE PAINT AREA AND CLEANING UP OR PREPARING ITEMS TO BE PAINTED, IS THE PAINTER'S PAY RATE WHEN THE INCIDENTAL WORK IS DONE BY THE INDIVIDUAL WHO DOES THE PAINTING. THE SAME CRITERIA ARE APPLICABLE TO INDIVIDUALS WORKING AS CARPENTERS. HOWEVER, IF THESE INCIDENTAL DUTIES ARE PERFORMED BY A WORKER OTHER THAN THE INDIVIDUAL DOING THE PAINTING OR CARPENTRY WORK, SUCH EMPLOYEE IS CONSIDERED A LABORER AND IS PAID AS SUCH. APPARENTLY, WHEN THE THREE EMPLOYEES IN QUESTION PAINTED OR DID CARPENTRY WORK, THEY WERE PAID AS LABORERS FOR THE INCIDENTAL DUTIES. IN REGARD TO THE FAILURE TO PAY THE 2 CENTS PER HOUR IN FRINGE BENEFITS, THE CONTRACTOR PAID ALL THE FRINGE BENEFIT CATEGORIES REQUIRED AND THE UNDERPAYMENT APPEARS TO BE NOTHING MORE THAN A MINOR INADVERTENCE WITH RESPECT TO ONE CATEGORY.

SINCE IT DOES NOT APPEAR THAT THE VIOLATIONS WERE OF SUCH A WILLFUL NATURE AS TO WARRANT DEBARMENT, WE CONCUR WITH THE VIEWS OF THE DEPARTMENTS OF THE ARMY AND LABOR THAT DEBARMENT SANCTIONS SHOULD NOT BE IMPOSED.

THE FUNDS ON DEPOSIT WITH YOUR OFFICE MAY BE DISBURSED TO THE AGGRIEVED WORKERS IN ACCORDANCE WITH ESTABLISHED PROCEDURES.