[Recommendation for Debarment for Davis-Bacon Act Violations]

The Department of Labor (DOL) recommended that a firm, its president and vice president, individually, be placed on the ineligible bidders list for violations of the Davis-Bacon Act. GAO noted that: (1) the firm entered into contracts which were subject to Davis-Bacon Act requirements that certain minimum wages be paid; (2) the contractor was to submit payroll records certified as to the correctness and completeness of rates of pay, hours worked, and wages paid for each employee; and (3) employees who worked for the firm under these contracts were not paid the minimum wages required. GAO found that: (1) rates of pay, hours worked, and wages paid were falsified on certified payroll records; (2) the firm was notified of the nature and extent of the violations with which it was charged and was given an opportunity for a hearing before an administrative law judge; and (3) an agreement was reached between DOL, the firm, and its president providing for the payment of withheld funds and contractor debarment. GAO also found that: (1) where a contractor specifically stipulates to debarment, after being granted due process in a administrative hearing, DOL findings will be accepted as evidence of contract violations; (2) falsification of payroll records is a basis for debarment; and (3) the firm, its president, and vice president disregarded their obligations to employees under the Davis-Bacon Act. Accordingly, the firm, its president, and vice president will be included on the debarred bidders list.