B-148978, NOV. 26, 1962
Highlights
TO WHICH THE UNITED STATES * * * IS A PARTY. - "* * * 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 WHOM HE HAS FOUND TO HAVE DISREGARDED THEIR OBLIGATIONS TO EMPLOYEES AND SUBCONTRACTORS. 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.'. WERE ENTERED INTO JUNE 22. PORTIONS OF THE WORK UNDER CONTRACT DA-46-022-ENG-2697 WERE SUBCONTRACTED TO CARL'S PLUMBING AND HEATING. HE WAS NOT PAID AT THE RATE OR IN THE AMOUNTS REPORTED DURING A MAJORITY OF THE PERIODS WORK WAS PERFORMED.
B-148978, NOV. 26, 1962
TO CARL GIANERO:
FINDING
IN THE MATTER OF CARL GIANERO, DOING BUSINESS AS CARL'S PLUMBING AND HEATING, MARION, OHIO.
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 WHOM 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.'
CONTRACTS DA-33-062-ENG-356 AND DA-46-022-ENG-2697, IN EXCESS OF $2,000, FOR CONSTRUCTION WORK AT THE MARION ENGINEER DEPOT, MARION, OHIO, AND THE ARMY RESERVE CENTER, DELAWARE, OHIO, RESPECTIVELY, WERE ENTERED INTO JUNE 22, 1959, AND MARCH 1, 1960, BY THE UNITED STATES (CORPS OF ENGINEERS) WITH CARL'S PLUMBING AND HEATING AND MORRIS SKILKEN CONSTRUCTION COMPANY, RESPECTIVELY. PORTIONS OF THE WORK UNDER CONTRACT DA-46-022-ENG-2697 WERE SUBCONTRACTED TO CARL'S PLUMBING AND HEATING. THE APPLICABILITY OF THE STIPULATIONS AND REPRESENTATIONS REQUIRED BY SECTION 1 OF THE ACT HAS BEEN ACKNOWLEDGED.
INVESTIGATION BY THE CORPS OF ENGINEERS OF COMPLIANCE WITH LABOR STANDARDS, INCLUDING PAYMENT BY THE FIRM BOTH AS CONTRACTOR AND AS SUBCONTRACTOR TO EMPLOYEES OF PRESCRIBED MINIMUM WAGES, DISCLOSED EVIDENCE INDICATING THAT SIX (6) EMPLOYEES HAD BEEN UNDERPAID $1,084.29, SUBSTANTIALLY AS DETAILED BY THE SOLICITOR OF LABOR IN A LETTER TO THE CONTRACTOR DATED NOVEMBER 29, 1961. NONETHELESS, PAYROLL REPORTS FURNISHED TO THE GOVERNMENT FALSELY SHOWED PAYMENT OF REQUIRED WAGE RATES AND FULL PAYMENT OF REQUIRED WAGES. ALTHOUGH A DISAGREEMENT EXISTED CONCERNING APPROPRIATE CLASSIFICATION IN THE INSTANCE OF EMPLOYEE GERALD CLARK, HE WAS NOT PAID AT THE RATE OR IN THE AMOUNTS REPORTED DURING A MAJORITY OF THE PERIODS WORK WAS PERFORMED.
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 DEPARTMENT OF THE ARMY AND THE DEPARTMENT OF LABOR HAVE RECOMMENDED IMPOSITION OF DEBARMENT.
WE THEREFORE FIND THAT CARL GIANERO, DOING BUSINESS AS CARL'S PLUMBING AND HEATING, HAS DISREGARDED "OBLIGATIONS TO EMPLOYEES" WITHIN THE MEANING OF THE DAVIS-BACON ACT. ACCORDINGLY, THESE 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.