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B-197900.OM, JUL 30, 1981

B-197900.OM Jul 30, 1981
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REPORT IS REQUESTED FROM AFMD EXPLAINING CIRCUMSTANCES AND EVENTS LEADING TO OR CAUSING OVERPAYMENTS. THE COMPTROLLER GENERAL: WE ARE RETURNING THE FILE PERTAINING TO THE VIOLATIONS OF THE DAVIS BACON ACT. WAS THE SUBJECT OF YOUR DECISION B-197900- O.M. 992.38 WERE DISBURSED TO THE UNDERPAID EMPLOYEES AND THE BALANCE OF $5. 816.38 WAS RETURNED TO THE CONTRACTOR. 738.36 AND THOSE FUNDS HAVE NOW BEEN FULLY DISBURSED. WE LATER REALIZED THAT WE HAD DISBURSED $717.28 MORE THAN WAS DUE THE UNDERPAID EMPLOYEES. THE CONTRACTOR IS NOW CLAIMING ADDITIONAL REFUND. THEREFORE THE MATTER IS SUBMITTED FOR YOUR CONSIDERATION AND INSTRUCTIONS. THE EMPLOYEES WERE INADVERTENTLY OVERPAID $717.28 WITH THE RESULT THAT THE REFUND TO THE CONTRACTOR WAS $717.28 LESS THAN IT SHOULD HAVE BEEN.

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B-197900.OM, JUL 30, 1981

DIGEST: MEASURES SHOULD BE TAKEN BY AFMD TO RECOUP OVERPAYMENTS MADE TO CONTRACTOR'S EMPLOYEES IN SETTLEMENT OF EMPLOYEES' WAGE CLAIMS. MEANTIME, IN ORDER TO DETERMINE AVAILABILITY OF FUNDS FOR REIMBURSEMENT OF CONTRACTOR, SHOULD RECOUPMENT EFFORTS FAIL, REPORT IS REQUESTED FROM AFMD EXPLAINING CIRCUMSTANCES AND EVENTS LEADING TO OR CAUSING OVERPAYMENTS.

THE COMPTROLLER GENERAL:

WE ARE RETURNING THE FILE PERTAINING TO THE VIOLATIONS OF THE DAVIS BACON ACT, 40 U.S.C. 276A AND THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, 40 U.S.C. 327 ET SEQ., BY CUSTOM EXTERIORS, INC., FOR FURTHER CONSIDERATION. THE VIOLATIONS OCCURRED DURING WORK PERFORMED UNDER DEPARTMENT OF THE AIR FORCE CONTRACT NO. F04699-75-C-0016 AT MCCLELLAN AIR FORCE BASE, CALIFORNIA, AND WAS THE SUBJECT OF YOUR DECISION B-197900- O.M., DATED APRIL 21, 1980.

THE MEMORANDUM AUTHORIZED DISBURSEMENT OF BACK WAGES IN THE AMOUNT OF $5,205.10 TO FOUR EMPLOYEES AND REFUND OF THE BALANCE TO THE CONTRACTOR. INADVERTENTLY BACK WAGES IN THE AMOUNT OF $5,992.38 WERE DISBURSED TO THE UNDERPAID EMPLOYEES AND THE BALANCE OF $5,816.38 WAS RETURNED TO THE CONTRACTOR. WE RECEIVED FROM THE AIR FORCE THE SUM OF $11,738.36 AND THOSE FUNDS HAVE NOW BEEN FULLY DISBURSED.

WE LATER REALIZED THAT WE HAD DISBURSED $717.28 MORE THAN WAS DUE THE UNDERPAID EMPLOYEES. THE CONTRACTOR IS NOW CLAIMING ADDITIONAL REFUND. THEREFORE THE MATTER IS SUBMITTED FOR YOUR CONSIDERATION AND INSTRUCTIONS.

INDORSEMENT

RETURNED. YOUR DIVISION INDICATED THAT, IN SETTLING THE CLAIM OF THE CONTRACTOR AND THE UNDERPAID EMPLOYEES, THE EMPLOYEES WERE INADVERTENTLY OVERPAID $717.28 WITH THE RESULT THAT THE REFUND TO THE CONTRACTOR WAS $717.28 LESS THAN IT SHOULD HAVE BEEN. THE CONTRACTOR HAS QUESTIONED YOUR DIVISION AS TO THE UNDERPAYMENT.

STEPS SHOULD BE TAKEN TO RECOUP THE OVERPAYMENTS. IN THE MEANTIME, IN ORDER TO DETERMINE THE AVAILABILITY OF FUNDS TO REIMBURSE THE CONTRACTOR, SHOULD YOUR RECOUPMENT EFFORTS BE UNSUCCESSFUL, IT IS REQUESTED THAT YOUR OFFICE FURNISH US WITH A COMPLETE REPORT EXPLAINING THE CIRCUMSTANCES AND EVENTS LEADING TO OR CAUSING THE UNDERPAYMENTS. THE DISCREPANCY BETWEEN THE $877.28 WHICH THE CONTRACTOR CONTENDS IS DUE AND THE $717.28 SHOULD BE EXPLAINED TO THE CONTRACTOR.

THIS MATTER SHOULD BE RESUBMITTED WITH THE INFORMATION REQUESTED.

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