B-143980, SEP. 30, 1960

B-143980, SEP. 30, 1960

TO THE WEST PHILADELPHIA DECORATING COMPANY:

ATTACHED IS A COPY OF OUR FINDING OF TODAY THAT THE WEST PHILADELPHIA DECORATING COMPANY AND AARON AMARNICK, INDIVIDUALLY, HAVE DISREGARDED OBLIGATIONS TO EMPLOYEES WITHIN THE MEANING OF THE DAVIS BACON ACT, 40 U.S.C. 276A, IN THE PERFORMANCE OF CONTRACT NO. GS-R3-B 6061 FOR REPAIRS AT TEMPORARY BUILDINGS "M" AND "Q," IN WASHINGTON, D.C.

PURSUANT TO THE PROVISIONS OF SECTION 3 (A) OF THE ACT, THESE NAMES WILL BE INCLUDED ON A LIST FOR PUBLICATION OCTOBER 3, 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 THE WEST PHILADELPHIA DECORATING COMPANY AND AARON AMARNICK, INDIVIDUALLY, UPPER DARBY, 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 WHEN 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.'

CONTRACT GS-R3-B-6061, IN EXCESS OF $2,000, FOR REPAIRS AT TEMPORARY BUILDINGS "M" AND "Q," IN WASHINGTON, D.C., WAS ENTERED INTO MARCH 6, 1958, BY THE UNITED STATES (GENERAL SERVICES ADMINISTRATION) WITH THE WEST PHILADELPHIA DECORATING COMPANY (AARON AMARNICK, PRESIDENT).

INVESTIGATION BY THE GENERAL SERVICES ADMINISTRATION OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE INDICATING THAT FIFTEEN (15) WORKERS HAD BEEN UNDERPAID, IN THE TOTAL SUM OF $1,748.85, SUBSTANTIALLY AS DETAILED IN A LETTER TO THE CONTRACTOR DATED MAY 18, 1960, FROM THE ACTING SOLICITOR OF LABOR. THE PAYROLL REPORTS FURNISHED BY THE CONTRACTOR CERTIFIED THAT FULL WAGES HAD BEEN PAID, BUT MORE HOURS WERE WORKED THAN REPORTED AND ACTUAL WAGES WERE LESS THAN REQUIRED. THE CONTRACTOR NOW HAS COMPLETED APPROPRIATE WAGE ADJUSTMENTS, EXCEPT IN THE INSTANCE OF TWO EMPLOYEES FOR WHOSE ACCOUNT FUNDS HAVE BEEN COLLECTED AND DEPOSITED WITH THE GENERAL ACCOUNTING OFFICE.

IT IS CLEAR, PARTICULARLY IN THE LIGHT OF THE FALSE PAYROLLS, THAT GOOD FAITH WAS NOT SHOWN IN COMPLYING WITH THE ACT AND CONTRACTUAL PROVISIONS. ONLY THROUGH INVESTIGATION AND DETECTION OF THE MISLEADING INFORMATION FURNISHED IN PAYROLL REPORTS WAS IT POSSIBLE FOR THE GOVERNMENT TO ADOPT MEASURES PROTECTING THE EMPLOYEES INVOLVED AND ENSURING COMPLIANCE. THE GENERAL SERVICES ADMINISTRATION AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.

WE THEREFORE FIND THAT THE WEST PHILADELPHIA DECORATING COMPANY AND AARON AMARNICK, INDIVIDUALLY, HAVE DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THEIR 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.