Debarment Survival 101 – Service Contract Act and Davis-Bacon Act+ Moderator: Joseph LaVoie, P.E., F.SAME, Black & Veatch Speakers: Vanessa Shaw-Jennings, Chief Labor Advisor, U.S. Army Corps of • Engineers, HQs • Moises Nava, Enforcement Coordinator, U.S. Department of Labor, Wage and Hour Division, SW Region
Overview of Instruction: The Law • Key Executive Orders • Enforcing the Law • • Common Violations • DoL, Agency Interaction CPARS • Debarment • Complaints • • Q&A
McNamara- O’Hara Work Security: Service Law of the Contract Contract Act Davis- Contract Bacon Act Work Hours & Safety Standards Act Federal Contractor Fair Labor s Walsh- Standards Act Healey Public Contract s Act Copeland “Anti - Vietnam Era Kickback” Veterans’ Act Readjustment Assistance Act
The Law: • Davis-Bacon Act: • Fair Labor Standards Act: Construction, Alteration, Repair -Minimum Wage $2,000 -Executive, Professional, Related Acts Administrative Increase Wage Rates and Benefits $35,568 per year Certified Payrolls – SF1444 – $684 per week 52.222-6 Highly Compensated Employee • Service Contract Act: Service Increase $2,500 – $107,432 Principal Purpose Wage and Benefits SF1444 52.222-41
The Law cont: Contract Work Hours and Safety Standards Act Miller Act -Overtime -Bonds -$150,000 -$100,000 -Self-Executing -52.228-1 - No “site of work” limitation -52.222-4 Equal Employment Opportunity -$10,000 Anti-Kickback Act -52.222-10 -52.222-26 Walsh Healey Public Contracts Act Vietnam Era Veteran’s Readjustment Act -Supply -$150,000 -$15,000 -52.222-35 -52.2222-20
Executive Orders: E.O. 13495 Nondisplacement of Qualified Workers E.O. 13502 E.O. 13665 Use of PLAs Non-Retaliation on Federal or Disclosure of Contracts Compensation Information Executive Orders E.O. 13658 E.O. 11246 Establishing Equal A Minimum Employment Wage for Opportunity Contractors E.O. 13706 Establishing Paid Sick Leave for Contractors
Executive Orders: • E.O. 13658 – Establishing A Minimum Wage for Contractors – $10.80 – 52.222.55 • E.O. 13706 – Establishing Paid Sick Leave for Contractors 1 Hour for ever 30 hours worked – Up to 56 Hours Per Year – 52.222.62 – • E.O. 13665 – Non-Retaliation For Disclosure of Compensation Information – $10,000 – 52.222-26(c)(5)
Enforcing the Law : Reorganization Plan of 1950 LABOR STANDARDS ENFORCEMENT “In order to assure coordination of administration and consistency of enforcement of the labor standards provisions of each of the following Acts by the Federal agencies responsible for the administration thereof, the Secretary of Labor shall prescribe appropriate standards, regulations, and procedures, which shall be observed by these agencies, and cause to be made by the Department of Labor such investigations, with respect to compliance with and enforcement of such labor standards, as he deems desirable.” Harry S. Truman The White House, 1950
Enforcing The Law cont: – 22.406 CONTRACTING Agency (a) General. Contracting agencies are responsible for ensuring the full and impartial enforcement of labor standards in the administration of construction contracts. Contracting agencies shall maintain an effective program that shall include -- (0) Maintain sound relations with industry and labor (1) Ensuring that contractors and subcontractors are informed, before commencement of work, of their obligations under the labor standards clauses of the contract; (2) Adequate payroll reviews, on-site inspections, and employee interviews to determine compliance by the contractor and subcontractors, and prompt initiation of corrective action when required; (3) Prompt investigation and disposition of complaints; and (4) Prompt submission of all reports required by this subpart. (b) Preconstruction letters and conferences . Before construction begins, the contracting officer shall inform the contractor of the labor standards clauses and wage determination requirements of the contract and of the contractor’s and any subcontractor’s responsibilities under the contract. • Unless it is clear that the contractor is fully aware of the requirements, the contracting officer shall issue an explanatory letter and/or arrange a conference with the contractor promptly after award of the contract.
Common Labor Violations: Misclassification • • Payment of health and welfare Improper payment of wages • • Conformance request • Failure to pay overtime Apprentice misclassification • • Failure to pay fringe benefits Independent contractor misclassification • • Separation of wages and benefits under Wage poster notifications • the SCA
DoL, Agency Interaction: • Onsite Visits • Contract Documents • Certified Payrolls • Withholding
CPARS.gov: Contractor Performance Assessment Reporting System -The official source for past performance information - What’s in CPARS: Performance evaluations contain both government and contractor comments to provide a balanced view of performance, allowing source selection officials to look beyond contractor references. Integrity records contain: federal contractor criminal, civil, and administrative proceedings in connection with federal awards; suspensions and debarments; administrative agreements issued in lieu of suspension or debarment; non- responsibility determinations; terminations for cause or default; defective pricing determinations; termination for material failure to comply; subcontractor payment issues; information on trafficking in persons; and recipient not qualified determinations.
Debarment Davis-Bacon Act Occurs when a contractor is declared ineligible for future contracts due to: -Violations of the DBA in disregard of its obligations to employees or subcontractors. -Aggravated or willful violations under the labor standards provisions of related Acts. -Period of ineligibility is 3 years for DBA and up to 3 years for DBRA. -The debarment process is given at 29 CFR 5.12(b)
Debarment Service Contract Act -Any person or business entity found to have violated the SCA may be ineligible to receive further contracts for three years unless there is a finding of “unusual circumstances.” -GSA's System for Award Management (SAM) reflects debarred firms by name/address.
Complaints: • If you have questions or concerns, you can contact the U.S. Department of Labor’s Wage and Hour Division (WHD) at 1-866-487-9243 or visit www.dol.gov/whd. You will be directed to the nearest WHD office for assistance. There are over 200 WHD offices throughout the country with trained professionals to assist you. • Beta.Sam.Gov, Agency Labor Advisors – https://beta.sam.gov/help/wage-determinations
Disclaimer: This presentation is intended as general information only and does not carry the force of legal opinion. The Department of Labor is providing this information as a public service. This information and related materials are presented to give the public access to information on Department of Labor programs. You should be aware that, while we try to keep the information timely and accurate, there will often be a delay between official publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees. The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Labor. We will make every effort to keep this information current and to correct errors brought to our attention.
CREDITS & PRESENTATIONS Earn 1 PDH Credit for Attending this Session Where are the PDH forms for Education Sessions? Where are the Presentations? www.samesbc.org
Q&A AND FEEDBACK
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