B-199956 L/M, OCT 1, 1980

B-199956 L/M, OCT 1, 1980

PRECIS-UNAVAILABLE

SEQUOIA CONSTRUCTION COMPANY;

ATTENTION: MR. WADE PEEBLES, PARTNER:

ENCLOSED IS A COPY OF OUR FINDING OF TODAY THAT SEQUOIA CONSTRUCTION COMPANY AND WADE PEEBLES AND HENRY PEEBLES, PARTNERS IN THE FIRM, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT, 40 U.S.C. SEC. 276A (1976), IN THE PERFORMANCE AS A SUBCONTRACTOR ON CONTRACT NO. N68248-76-C-6011 FOR THE CONSTRUCTION OF HOUSING UNITS AT NAVAL SUBMARINE BASE, BANGOR, WASHINGTON.

PURSUANT TO THE PROVISIONS OF SECTION 3(A) OF THE ACT, THE NAMES OF THE ABOVE FIRM AND INDIVIDUALS SHALL BE INCLUDED ON OUR NEXT PUBLISHED LIST OF INELIGIBLES AND NO GOVERNMENT CONTRACT WILL 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 THAT DATE.

FINDING

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. N68248-76-C-6011, IN EXCESS OF $2,000 FOR THE CONSTRUCTION OF 400 FAMILY HOUSING UNITS AT THE NAVAL SUBMARINE BASE, BANGOR, WASHINGTON, WAS AWARDED BY THE DEPARTMENT OF THE NAVY TO MORRISON-KNUDSEN COMPANY, INC., BOISE, IDAHO. THE CONTRACT CONTAINED THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE DAVIS BACON ACT. SUBCONTRACT WAS AWARDED TO SEQUOIA CONSTRUCTION COMPANY FOR THE FURNISHING OF CERTAIN CARPENTRY WORK.

AN INVESTIGATION CONDUCTED BY THE UNITED STATES NAVY AS THE RESULT OF A COMPLAINT BY ONE OF THE SUBCONTRACTOR'S EMPLOYEES DISCLOSED THAT THE SUBCONTRACTOR SEQUOIA CONSTRUCTION COMPANY, HAVING FULL KNOWLEDGE OF ITS STATUTORY AND CONTRACTUAL RESPONSIBILITES, 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, 32 EMPLOYEES WERE FOUND TO HAVE BEEN UNDERPAID A TOTAL OF $9,276.03 IN VIOLATION OF THE TERMS OF THE DAVIS BACON ACT. THE PRIME CONTRACTOR MADE FULL RESTITUTION TO THOSE EMPLOYEES IT WAS ABLE TO LOCATE AND SUBMITTED A CHECK IN THE AMOUNT OF $971.39 FOR 9 EMPLOYEES IT COULD NOT LOCATE. THE RECORD ALSO INDICATES THAT CERTIFIED PAYROLLS SUBMITTED TO THE CONTRACTING AGENCY CONTAINED INCORRECT INFORMATION DESIGNED TO SIMULATE COMPLIANCE WITH APPLICABLE LABOR STANDARDS REQUIREMENTS.

BY LETTER OF JANUARY 7, 1980, THE DEPUTY ADMINISTRATOR, WAGE AND HOUR DIVISION, UNITED STATES DEPARTMENT OF LABOR, ADVISED THE SUBCONTRACTOR OF THE NATURE AND EXTENT OF THE VIOLATIONS AND AFFORDED IT AN OPPORTUNITY TO REBUT THE ALLEGATIONS. THE LETTER WAS RETURNED BY THE UNITED STATES POSTAL SERVICE WITH THE NOTATION "REFUSED."

IT IS CLEAR, PARTICULARLY IN LIGHT OF THE FALSIFICATION OF THE 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 IMPOSITION OF DEBARMENT SANCTIONS.

WE THEREFORE FIND THAT SEQUOIA CONSTRUCTION COMPANY AND WADE PEEBLES AND HENRY PEEBLES, INDIVIDUALLY AND AS PARTNERS, 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 HAVE AN INTEREST UNTIL 3 YEARS HAVE ELAPSED FROM THE DATE OF THE PUBLICATION OF SUCH LIST.