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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

Federal

Contractor

s

Contract

Work

Hours &

Safety

Standards

Act

Davis-

Bacon Act

McNamara-

O’Hara

Service

Contract

Act

Copeland

“Anti-

Kickback”

Act

Vietnam Era

Veterans’

Readjustment

Assistance

Act

Walsh-

Healey

Public

Contract

s Act

Work Security:

Law of the Contract

Fair Labor

Standards

Act

•Fair Labor Standards Act:

-Minimum Wage

-Executive, Professional,

Administrative Increase

– $35,568 per year

– $684 per week

Highly Compensated Employee

Increase

– $107,432

The Law:

• Davis-Bacon Act: Construction, Alteration, Repair $2,000Related ActsWage Rates and Benefits Certified PayrollsSF1444 52.222-6

• Service Contract Act: Service$2,500Principal Purpose Wage and Benefits SF144452.222-41

The Law cont:Contract Work Hours and Safety Standards Act

-Overtime

-$150,000

-Self-Executing

-No “site of work” limitation

-52.222-4

Anti-Kickback Act

-52.222-10

Walsh Healey Public Contracts Act

-Supply

-$15,000

-52.2222-20

Miller Act

-Bonds

-$100,000

-52.228-1

Equal Employment Opportunity

-$10,000

-52.222-26

Vietnam Era Veteran’s Readjustment Act

-$150,000

-52.222-35

Executive

Orders

E.O. 13502

Use of PLAs

on Federal

Contracts

E.O. 13665

Non-Retaliation

or Disclosure of

Compensation

Information

E.O. 13495

Nondisplacement

of Qualified

Workers

E.O. 11246

Equal

Employment

Opportunity

E.O. 13706

Establishing

Paid Sick Leave

for Contractors

E.O. 13658

Establishing

A Minimum

Wage 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)

Executive Orders:

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 : Reorganization Plan of 1950

(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.

Enforcing The Law cont: – 22.406

CONTRACTING Agency

Common Labor Violations:

• Misclassification

• Improper payment of wages

• Failure to pay overtime

• Failure to pay fringe benefits

• Wage poster notifications

• Payment of health and welfare

• Conformance request

• Apprentice misclassification

• Independent contractor misclassification

• Separation of wages and benefits under the SCA

•Onsite Visits

•Contract Documents

•Certified Payrolls

•Withholding

DoL, Agency Interaction:

-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.

CPARS.gov:Contractor Performance Assessment Reporting System

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

Davis-Bacon 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.

Debarment

Service Contract Act

•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

Complaints:

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.

Disclaimer:

CREDITS & PRESENTATIONSEarn 1 PDH Credit for Attending this Session

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Where are the Presentations?

www.samesbc.org

Q&A AND FEEDBACK