B-202700.OM, JUL 7, 1981

B-202700.OM, JUL 7, 1981

PRECIS-UNAVAILABLE

THE COMPTROLLER GENERAL:

WE ARE FORWARDING THE FILE PERTAINING TO THE APPARENT VIOLATIONS OF THE DAVIS-BACON ACT, 40 U.S.C. 276A, BY MASTERS SHEET METAL, INC., FORT BENNING, GEORGIA, WHICH PERFORMED WORK UNDER ARMY CORPS OF ENGINEERS CONTRACT NOS. DACA-21-76-C-0148 AND DACA-21-76-C-0159 AT FORT BENNING, GEORGIA.

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

WE NOTE THAT WHEN THE AGENCY CONTRACTING OFFICER COMPUTED THE UNDERPAYMENT DUE STEVE PHILLIPS FOR CONTRACT 0148, HE APPARENTLY COUNTED THE HOURS WORKED DURING A 2-WEEK PERIOD TWO DIFFERENT TIMES. (SEE TAB B-29). ELIMINATION OF THE EXTRANEOUS HOURS REDUCES THE UNDERPAYMENT DUE MR. PHILLIPS AND SUGGESTS THE NEED FOR A PARTIAL REFUND OF AMOUNTS WITHHELD FROM THE CONTRACTOR.

WE PROPOSE, WITH YOUR APPROVAL, TO DISBURSE THE $412.52 ON DEPOSIT HERE TO THE ONE AGGRIEVED WORKER 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 MYRON COLBREUNER ON EXTENSION 53218.

INDORSEMENT

ASSOCIATE DIRECTOR, AFMD-CLAIMS GROUP

RETURNED. MASTERS SHEET METAL, INC. (MASTERS), A SECOND-TIER SUBCONTRACTOR, FOLLOWED A PRACTICE OF PAYING EMPLOYEES AS LABORERS WHEN PERFORMING SOME DUTIES OF SHEET METAL WORKERS USING THE TOOLS OF THE TRADE. ACCORDING TO THE CONTRACTING OFFICER, THIS WAS THE CUSTOMARY PRACTICE ON NON-GOVERNMENT WORK IN THE AREA WHERE THE CONTRACTS WERE PERFORMED. HOWEVER, THIS PRACTICE WAS CONTRARY TO THE DAVIS-BACON ACT PROCEDURE REQUIRING EMPLOYEES TO BE PAID THE WAGE RATE FOR THE CLASSIFICATION PERFORMED UNLESS REGISTERED IN AN APPROVED APPRENTICESHIP PROGRAM, WHICH WAS NOT THE CASE WHEN THE WORK WAS PERFORMED. AFTER THE MATTER WAS BROUGHT TO MASTERS' ATTENTION, IT BEGAN AN APPROVED APPRENTICESHIP PROGRAM.

IN THE CIRCUMSTANCES, HAVING REGARD FOR THE FACT THAT THE EVIDENCE DOES NOT CONVINCINGLY ESTABLISH THAT MASTERS DELIBERATELY INTENDED TO VIOLATE THE DAVIS-BACON PROCEDURE AND THAT MASTERS MADE RESTITUTION TO ALL OF THE WORKERS, EXCEPT ONE WHO COULD NOT BE LOCATED AND FOR WHOM FUNDS WERE FORWARDED TO YOUR OFFICE, THE RECOMMENDATION OF THE DEPARTMENT OF THE ARMY AND THE DEPARTMENT OF LABOR THAT MASTERS NOT BE DEBARRED IS APPROVED.

SINCE ONE 2-WEEK PERIOD WAS FIGURED TWICE IN COMPUTING THE UNDERPAYMENT TO THE EMPLOYEE REMAINING UNDERPAID, WE AGREE WITH YOUR OFFICE THAT HIS COMPENSATION SHOULD BE REDUCED SO THAT HE IS PAID ONLY ONCE FOR THE 2-WEEK PERIOD AND THAT THE REDUCTION SHOULD BE REFUNDED TO THE PRIME CONTRACTOR.