B-143770, AUG. 25, 1960

B-143770, AUG. 25, 1960

TO MR. CHARLES J. FAREWELL:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT FAREWELL AND HOLT AND CHARLES J. FAREWELL AND EUGENE J. HOLT, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF WORK AS A SUBCONTRACTOR UNDER CONTRACTS NBY-22220, NBY-23948 AND NBY-23949 FOR CERTAIN CONSTRUCTION WORK AT VARIOUS NAVAL INSTALLATIONS IN PHILADELPHIA, PENNSYLVANIA.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION SEPTEMBER 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 FAREWELL AND HOLT AND CHARLES J. FAREWELL AND EUGENE J. HOLT, INDIVIDUALLY, PHILADELPHIA, PENNSYLVANIA.

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.'

CONTRACTS NBY-22220, NBY-23948 AND NBY-23949 WERE ENTERED INTO BY THE UNITED STATES (BUREAU OF YARDS AND DOCKS) WITH JOHN H. BISHOP, A. F. RHOADES, AND A. F. RHOADES, RESPECTIVELY, FOR CERTAIN CONSTRUCTION WORK AT PHILADELPHIA NAVAL INSTALLATIONS. EACH WAS IN EXCESS OF $2,000 AND CONTAINED PROVISIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE ACT. FAREWELL AND HOLT, AS A SECOND TIER SUBCONTRACTOR UNDER THE FIRST MENTIONED CONTRACT, AND AS A SUBCONTRACTOR UNDER THE REMAINING TWO CONTRACTS, PERFORMED A PORTION OF THE WORK.

INVESTIGATIONS BY THE FOURTH NAVAL DISTRICT OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE ESTABLISHING THAT FIVE (5) WORKERS HAD BEEN UNDERPAID IN THE AGGREGATE SUM OF $792.60, AS DETAILED BY THE ACTING SOLICITOR OF LABOR IN A LETTER TO THE SUBCONTRACTOR DATED JUNE 27, 1960. NONETHELESS, CERTIFIED PAYROLL REPORTS WERE SUBMITTED TO THE GOVERNMENT SHOWING FULL PAYMENT OF REQUIRED WAGES.

THE SUBCONTRACTOR CORRECTED THE UNDERPAYMENTS AT THE DIRECTION OF THE CONTRACTING AGENCY. HOWEVER, IT IS CLEAR IN THE LIGHT OF THE FALSE INFORMATION GIVEN ON PAYROLL REPORTS 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 CERTIFIED 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 NAVY HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT FAREWELL AND HOLT AND CHARLES J. FAREWELL AND EUGENE J. HOLT, INDIVIDUALLY, 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 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.