B-142408, APR. 14, 1960

B-142408, APR. 14, 1960

TO MESSRS. BRADFORD T. NOLAN, MYLES F. KEARNEY AND ROBERT ALDERTON:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT BRAD NOLAN AND ASSOCIATES, INC., AND MESSRS. BRADFORD T. NOLAN, MYLES F. KEARNEY AND ROBERT ALDERTON, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT AF 20-602/57-4558 FOR THE REPLACEMENT AND REPAIR OF SIDEWALKS AT SELFRIDGE AIR FORCE BASE, MICHIGAN.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION APRIL 15, 1960, AND NO CONTRACT WILL BE AWARDED TO ANY OF THEM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST, UNTIL THREE YEARS SHALL HAVE ELAPSED FROM SUCH DATE.

FINDING

IN THE MATTER OF BRAD NOLAN AND ASSOCIATES, INC., AND MESSRS. BRADFORD T. NOLAN (PRESIDENT), MYLES F. KEARNEY (SECRETARY-TREASURER), AND ROBERT ALDERTON (VICE-PRESIDENT), DETROIT, MICHIGAN.

SECTION 1 OF THE DAVIS-BACON ACT OF AUGUST 30, 1935, 49 STAT. 1011, 40 U.S.C. 276A, 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, OR 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 OF 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 AF 20/602/57-4558, IN EXCESS OF $2,000, FOR THE REPLACEMENT AND REPAIR OF SIDEWALKS AT DELFRIDGE AIR FORCE BASE, MICHIGAN, WAS ENTERED INTO MAY 29, 1957, BY THE UNITED STATES (AIR FORCE) WITH BRAD NOLAN AND ASSOCIATES, INC. THE CONTRACT CONTAINED PROVISIONS AND STIPULATIONS REQUIRED BY SECTION 1 OF THE ACT.

AN INVESTIGATION BY THE AIR FORCE OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE ESTABLISHING THAT SEVENTEEN (17) WORKERS HAD BEEN UNDERPAID IN THE TOTAL AMOUNT OF $3,505.71, INCLUDING OVERTIME. NONETHELESS, SWORN PAYROLL REPORTS WERE SUBMITTED SHOWING FULL PAYMENT OF REQUIRED WAGES. THE CONTRACTOR ADMITTED THE UNDERPAYMENTS TO INVESTIGATORS AND, ALTHOUGH AFFORDED AN OPPORTUNITY TO SHOW ANY EXTENUATING CIRCUMSTANCES, NEITHER IT NOR ITS RESPONSIBLE OFFICERS HAVE DONE SO. THE UNDERPAYMENTS WERE ADJUSTED BY THE SURETY ON PERFORMANCE AND PAYMENT BONDS SUPPORTING THE CONTRACT AND THROUGH SETTING ASIDE A PORTION OF THE CONTRACT PRICE FOR THAT PURPOSE.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSE PAYROLLS, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND CONTRACTUAL PROVISIONS. ONLY THROUGH INVESTIGATION AND DETECTION OF THE MISLEADING INFORMATION SUBMITTED IN AFFIDAVIT FORM WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND INSURING COMPLIANCE. THE DEPARTMENT OF LABOR AND THE DEPARTMENT OF THE AIR FORCE HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT BRAD NOLAN AND ASSOCIATES, INC., AND MESSRS. BRADFORD T. NOLAN, MYLES F. KEARNEY AND ROBERT ALDERTON, INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THEIR NAMES WILL BE INCLUDED ON A LIST OF DEBARMENTS FOR DISTRIBUTION APRIL 15, 1960, TO ALL AGENCIES OF THE GOVERNMENT AND, PURSUANT TO THE STATUTORY DIRECTION, NO CONTRACT SHALL BE AWARDED TO THEM, OR TO ANY FIRM, CORPORATION, PARTNERSHIP, OR ASSOCIATION IN WHICH THEY HAVE AN INTEREST, UNTIL THREE YEARS HAVE ELAPSED FROM THE DATE OF PUBLICATION OF SUCH LIST.