Davis-Bacon Act: Labor Now Verifies Wage Data, but Verification Process Needs Improvement
HEHS-99-21
Published: Jan 11, 1999. Publicly Released: Jan 11, 1999.
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Highlights
Pursuant to a legislative requirement, GAO reviewed the: (1) Department of Labor's response to the House Appropriations Committee's directive that it verify a random sample of employers' wage data submissions and select a sample of submissions for on-site data verification; and (2) likely effect of these efforts on the accuracy and timeliness of Davis-Bacon Act wage determinations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | To reduce the cost of verification and increase the benefits, the Secretary of Labor should direct the Administrator, Wage and Hour Division (WHD), to revise verification procedures to maximize the expected value to be gained from verification. Specifically, Labor should increase the use of telephone verification--while decreasing on-site verification audits--and increase efforts to obtain payroll documentation from all selected submitters. |
Closed – Implemented
WHD completed efforts to implement this recommendation. It adopted new procedures that increased the number of data collection forms randomly selected for contractor telephone verification from 2 percent to 5 percent beginning with surveys completed after May 30, 1999. In addition, the procedures require Labor staff to request payroll documentation in all telephone and on-site verification and for all contractors judged as having the biggest impact on wage data.
|
| Department of Labor | To reduce the cost of verification and increase the benefits, the Secretary of Labor should direct the Administrator, WHD, to revise verification procedures to maximize the expected value to be gained from verification. Specifically, Labor should change the procedures used to select wage data for verification, using a judgmental sample of wage data forms based on the potential impact of the data on prevailing wage rate determinations rather than using a random sample. |
Closed – Implemented
WHD completed action to respond to this recommendation. In 1999, it adopted new verification procedures that detail the steps staff should follow in selecting a judgmental sample. These procedures detail how WHD make a judgmental sample to identify contractors with the greatest impact on the wage data.
|
| Department of Labor | To reduce the cost of verification and increase the benefits, the Secretary of Labor should direct the Administrator, WHD, to revise verification procedures to maximize the expected value to be gained from verification. Specifically, Labor should revise verification procedures to take more appropriate action when documentation cannot readily be obtained from a contractor, such as not using data when supporting documentation is requested but not provided, requiring documentation where possible, and giving third parties an opportunity to provide supporting documentation for data they submitted. |
Closed – Implemented
WHD has completed action on this recommendation. Under a new policy adopted in May 1999, revised verification procedures require that if a contractor declines to provide data three times, WHD staff will input these contractors' names into a nationwide list and their submitted data will not be used. The revised policy also requires staff to ask third parties to submit supporting payroll documentation.
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