B-197514.OM, L/M, MAR 24, 1980

B-197514.OM, L/M, MAR 24, 1980

PRECIS-UNAVAILABLE

COMPTROLLER GENERAL:

HERE IS THE FILE PERTAINING TO THE APPARENT 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 THERMO CONTRACTING CORPORATION PERFORMING WORK UNDER DEPARTMENT OF AIR FORCE, CONTRACT NO. F65501779021 AT SHEMYA AFB, ALASKA.

DETAILS OF THE VIOLATIONS AND ADMINISTRATIVE RECOMMENDATIONS CONCERNING DEBARMENT ARE CONTAINED IN THE ATTACHED INVESTIGATIVE REPORT AND DEPARTMENT OF LABOR TRANSMITTAL LETTER.

WE PROPOSE, WITH YOUR APPROVAL, TO DISBURSE THE $8,123.65 ON DEPOSIT HERE TO THE 24 AGGRIEVED WORKERS IN ACCORDANCE WITH ESTABLISHED PROCEDURES. OUR PROPOSAL AND THE MATTER OF WHETHER THE CONTRACTOR'S NAME SHOULD BE PLACED ON THE DEBARRED BIDDERS LIST FOR VIOLATIONS UNDER THE DAVIS-BACON ACT ARE FORWARDED FOR YOUR CONSIDERATION AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT MS. MARCIA BROWN ON EXTENSION 53218.

INDORSEMENT

ASSOCIATE DIRECTOR, FGMS DIVISION-CLAIMS GROUP

RETURNED. THE EVIDENCE OF RECORD IS SUFFICIENT TO ESTABLISH THAT THE WORKERS IN QUESTION WERE UNDERPAID. HOWEVER, THE RECORD INDICATES THAT MOST, IF NOT ALL, OF THE VIOLATIONS WERE COMMITTED BY THE PROJECT SUPERINTENDENT, AN EMPLOYEE OF THE CONTRACTOR. THESE VIOLATIONS WERE THE MISCLASSIFICATION AND UNDERPAYMENT OF WORKERS AND FALSIFICATION OF PAYROLLS. THE SUPERINTENDENT ACCOMPLISHED THESE UNDERPAYMENTS BY PREPARING CHECKS IN THE CORRECT AMOUNT OF THE EMPLOYEE'S WAGES AND REQUIRING THE EMPLOYEE TO ENDORSE THE CHECK AND RETURN IT TO HIM (THE SUPERINTENDENT), WHILE THE EMPLOYEE WAS PAID AT A LOWER WAGE RATE BY CASH OR TRAVELERS CHECK. THIS WOULD APPEAR TO BE IN VIOLATION OF THE COPELAND ACT, 40 U.S.C. SEC. 276C (1976). HOWEVER, THERE IS NO EVIDENCE INDICATING THAT ANY RESPONSIBLE OFFICIAL OR OWNER OF THE CONTRACTOR KNEW OF, OR ACQUIESCED IN, THE ACTIONS OF THE SUPERINTENDENT. THIS, COUPLED WITH THE FACT THAT THE CONTRACTOR HAS NO PRIOR HISTORY OF SUCH VIOLATIONS AND READILY MADE RESTITUTION TO EMPLOYEES WHO COULD BE LOCATED AND AGREED TO THE WITHHOLDING OF MONIES SUFFICIENT TO COVER THE OTHER EMPLOYEES, LEADS US TO THE CONCLUSION THAT THE CONTRACTOR DID NOT WILLFULLY UNDERPAY ITS WORKERS. SEE B-163472-O.M., JUNE 12, 1968. THEREFORE, WE CONCUR IN THE DEPARTMENT OF LABOR'S VIEW THAT DEBARMENT SANCTIONS ARE NOT WARRANTED IN THE PRESENT CASE.

THE FUNDS ON DEPOSIT WITH YOUR OFFICE MAY BE DISBURSED TO THE AGGRIEVED EMPLOYEES IN ACCORDANCE WITH ESTABLISHED PROCEDURES.