B-207643.OM., OCT 20, 1982

B-207643.OM., OCT 20, 1982

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, AND THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, 40 U.S.C. 327 ET SEQ., BY CAREY INSULATION CO., INC., WHICH PERFORMED WORK UNDER THE DEPARTMENT OF THE ARMY CONTRACT NO. DACA65-78-C- 0033 AT FORT DEVENS, MASSACHUSETTS.

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 $13,095.35 ON DEPOSIT HERE TO THE 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 CONSIDERATIONS AND INSTRUCTIONS.

FOR FURTHER INFORMATION, PLEASE CONTACT LILLIE M. JORDAN ON EXTENSION 53218.

INDORSEMENT

ASSOCIATE DIRECTOR-AFMD, CLAIMS GROUP

RETURNED. DENWALT, INC., WAS AWARDED CONTRACT NO. DACA65-78-C-0033 FOR FAMILY HOUSING IMPROVEMENTS AT FORT DEVENS, AYERS, MASSACHUSETTS. SUBCONTRACT FOR THE APPLICATION OF INSULATION MATERIAL WAS AWARDED TO CAREY INSULATION CO., INC. (CAREY). BECAUSE CAREY HAD BEEN AUTHORIZED BY THE DEPARTMENT OF LABOR (DOL) TO USE AN "INSULATION MECHANIC" CLASSIFICATION AT $4.75 PER HOUR FOR INSULATION WORK PERFORMED ON A PRIOR CONTRACT IN A RURAL AREA OF NEW JERSEY, CAREY BELIEVED THAT IT WAS ENTITLED TO USE, AND DID USE, THE SAME CLASSIFICATION AND WAGE RATE FOR THE WORK BEING PERFORMED AT FORT DEVENS. SINCE THE CLASSIFICATION WAS NOT IN THE WAGE DETERMINATION FOR THE FORT DEVENS WORK, THE CONTRACTOR APPLIED TO DOL FOR AUTHORIZATION TO USE THE CLASSIFICATION AND THE WAGE RATE. DOL DENIED THE REQUEST SINCE IN THE FORT DEVENS AREA THE WORK IN QUESTION IS PERFORMED BY CARPENTERS AND ASBESTOS WORKERS AT A HIGHER WAGE RATE AND THESE TWO CLASSIFICATIONS WERE IN THE WAGE DETERMINATION FOR THE FORT DEVENS WORK. ULTIMATELY, THE CONTRACTOR AND SUBCONTRACTOR ACCEPTED THE DETERMINATION AND THE CONTRACTOR AGREED THAT THE RESTITUTION SHOULD BE MADE FROM THE WITHHOLDING UNDER THE CONTRACT.

ACCORDINGLY, THE FUNDS ON DEPOSIT WITH YOUR OFFICE SHOULD BE DISBURSED TO THE AGGRIEVED WORKERS IN ACCORDANCE WITH THE CONTRACTOR'S AGREEMENT.

WHILE THE WORKERS WERE UNDERPAID, NEITHER DOL NOR THE CONTRACTING AGENCY RECOMMENDS DEBARMENT. FURTHER, THE RECORD INDICATES THAT THERE WAS A BONA FIDE DISAGREEMENT OR DISPUTE CONCERNING CLASSIFICATION OF THE EMPLOYEES IN QUESTION AND THE UNDERPAYMENTS WERE NOT OF SUCH A WILLFUL NATURE AS TO WARRANT DEBARMENT OF EITHER THE CONTRACTOR OR SUBCONTRACTOR. B-198964- O.M., MARCH 15, 1982.