B-142882, MAY 26, 1960

B-142882, MAY 26, 1960

TO MR. OSCAR V. WRIGHT:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT OSCAR V. WRIGHT, DOING BUSINESS AS O. V. WRIGHT, HAS DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT GS-R3-B-5906 FOR CERTAIN CONSTRUCTION WORK AT THE U.S. POST OFFICE, LEWISBURG, WEST VIRGINIA.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION JUNE 1, 1960, AND NO GOVERNMENT CONTRACT WILL BE AWARDED TO 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 OSCAR V. WRIGHT, DOING BUSINESS AS O. V. WRIGHT, LEWISBURG, WEST VIRGINIA.

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 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 GS-RE-B-5906, IN EXCESS OF $2,000, FOR CERTAIN CONSTRUCTION AT THE U.S. POST OFFICE, LEWISBURG, WEST VIRGINIA, WAS ENTERED INTO AUGUST 22, 1958, BY THE UNITED STATES (GENERAL SERVICES ADMINISTRATION) WITH O. V. WRIGHT. THE CONTRACT CONTAINED PROVISIONS AND STIPULATIONS

AN INVESTIGATION BY THE GENERAL SERVICES ADMINISTRATION OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE ESTABLISHING THAT 16 WORKERS HAD BEEN UNDERPAID IN THE TOTAL SUM OF $1,381.20. NONETHELESS, SWORN PAYROLL REPORTS WERE SUBMITTED SHOWING FULL PAYMENT OF REQUIRED WAGES. THE CONTRACTOR HAS ADMITTED THE UNDERPAYMENTS AND FALSIFICATIONS, STATING THAT THE IRREGULARITIES WERE RESORTED TO IN AN EFFORT TO PROVIDE LOCAL EMPLOYMENT FOR WORKERS WHO WERE WELL SATISFIED WITH THE SUBMINIMUM WAGES PAID THEM. ON JANUARY 20, 1960, THE CONTRACTOR PLEADED GUILTY TO CHARGES OF VIOLATING THE CRIMINAL PROVISIONS OF 18 U.S.C. 1001, BASED UPON THE FALSIFIED PAYROLL REPORTS, AND WAS PLACED ON PROBATION FOR TWO YEARS BY THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA. CONTRACT FUNDS HAVE BEEN SET ASIDE AND TRANSMITTED TO THE GENERAL ACCOUNTING OFFICE FOR THE PURPOSE OF ADJUSTING THE WAGE DEFICIENCIES.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSIFICATION OF 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 GENERAL SERVICES ADMINISTRATION HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT OSCAR V. WRIGHT, DOING BUSINESS AS O. V. WRIGHT, HAS 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 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.