Davis-Bacon/Service Contracts Act

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fbhwt

Electrical Systems Inspector
Location
Spotsylvania,Virginia
Occupation
Electrical Systems Inspector
I posted to this forum well over a year ago about a situation I was in involving work I had done while employed with an electrical contractor. The company I worked for was contracted by Lockheed-Martin to do the work (on a government installation) which envolved the installation of a UPS system, panel relocation, new panel installation, transformer installation, running conduit, feeder and branch circuit installation. I had filed a complaint with the USDOL because I believed that this work would be covered by the DBRA. I just recently received a letter from the USDOL and this was there findings, I might also add that I had done other work on other government installations for this company and was part of the complaint.


Dear Mr. Thomas:


This letter is in response to information you provided to my office in October of 2009. you were concerned that you were not paid the proper wage rates while working on federally funded jobs as an employee of the above named firm. My office enforces the labor standards provisions of the Davis-Bacon and Related Acts which requires the payment of prevailing wages and fringe benefits on federally financed construction projects.

You stated that you preformed work as an electrician on several federally financed construction projects but you were paid less than the required wage rate.

Our investigation did not corroborate your allegations.

First of all, we did not review any federally financed project that had been closed prior to our investigation. The recovery of unpaid wages on federal construction contracts is ultimately dependent on the witholding of funds otherwise due the prime contractor on the contract on which the violation occurred.

We reviewed two federally financed projects that affected you. The first was X project which was financed by the U.S. Fish and wildlife Service. You were found to have been paid the proper wage and fringe benefit rates for this project, $22.72 and $7.83 per hour respectively. (Although I was eventually paid, I was not paid according to 29 CFR 5.5 (a) (1) this however was not addressed in this letter.)

The second federally financed project was for panel and conduit installation in Building 1524, Dahlgren, VA. This work was a subcontract between Lockheed Martin Integrated Systems and X Electric Company. Lockheed Martin's contract with the Naval Surface Warfare Center, of which X Electric Company was a small part, called for more than 80% of the work to be performed by exempt employees. Based on the investigation findings it was determined that neither the Davis-Bacon act (DBA) nor the Service Contract Act (SCA) was applicable to this contract. ( The work that myself and co-workers did was far more than "panel and conduit installation" as mentioned above. My co-workers and I spent almost four months on this job encluding overtime, we did 100% of the work, also the work was performed in Building 1520 not Buliding 1524 as stated in the letter).

DBA does not apply to construction work which is recurring , or the construction work is so merged with non-construction work or so fragmented in terms of the time spans of its performance that the construction work is not capable of being segregated as a separate contractual requirement.

Although X Electric Company was awarded a maintenance service contract for laying conduit and servicing electrical panels, it was determined that since the principal purpose of the contract was "to provide something other than services of the character contemplated by the Service Contracts Act, and any such services which may be performed are only incidental to the preformance of a contract for other purpose, the Act does not apply" (SCA Part 4.111)

Since less than 20% of the contract services were preformed by non-exempt employees the contract is exempt from all provisions of the SCA. We did not find that you were underpaid for your work on this project.

Consequently, we can take no further action on your behalf. End of letter

Somthing just does not seem right aside form where the work was actually done, any comments would be appreciated.
 

ceb58

Senior Member
Location
Raeford, NC
Sounds like there isn't much more you can do. If the jobs have closed out and have been paid for they have no leverage to hold up payment if they found violations. Unless you were talking real big money that you think you are owed then let it go. If you still work for electrical co. X or any other company and you are going to work these Federal jobs you have learned to find out if and what they call for as far as wages. Don't wait until the end of the job to start asking questions.
 

fbhwt

Electrical Systems Inspector
Location
Spotsylvania,Virginia
Occupation
Electrical Systems Inspector
Sounds like there isn't much more you can do. If the jobs have closed out and have been paid for they have no leverage to hold up payment if they found violations. Unless you were talking real big money that you think you are owed then let it go. If you still work for electrical co. X or any other company and you are going to work these Federal jobs you have learned to find out if and what they call for as far as wages. Don't wait until the end of the job to start asking questions.

Here is the thing, It was brought up before I stepped foot on two of the jobs that these were "scale", my employer, electrical company X said they were not, I took his word. I did not find out until later, after contacting the purchasing agent on the government facility that and I quote "All construction contracts are placed in accordance with Davis-Bacon Wages. Contracts placed with electrical company X in 2007 to present include the Davis-Bacon Wages" end quote.

Its not about the money anymore, personally its not that much, but collectively it would be a large chunk of change, I just don't want "electrical company X" to continue ripping off his employee's.
 

G._S._Ohm

Senior Member
Location
DC area
Ask for their findings in a sworn statement by an agency principal. That way they can, at least in principle, be charged with perjury if you somehow find out they lied.

Years after I left the USPTO I got a notice that they had violated the FLSA, for years.
I was then supposed to estimate all the unpaid hours I worked on weekends and they would reimburse me.
Funny thing, the accounting firm that sent me the letter later had a scandal of their own.

Lying works. That's why sociopaths, and others, do it.
 

ceb58

Senior Member
Location
Raeford, NC
Here is the thing, It was brought up before I stepped foot on two of the jobs that these were "scale", my employer, electrical company X said they were not, I took his word. I did not find out until later, after contacting the purchasing agent on the government facility that and I quote "All construction contracts are placed in accordance with Davis-Bacon Wages. Contracts placed with electrical company X in 2007 to present include the Davis-Bacon Wages" end quote.

Its not about the money anymore, personally its not that much, but collectively it would be a large chunk of change, I just don't want "electrical company X" to continue ripping off his employee's.

Then if you can get that statment or a copy of the contracts in writing then you need to look for a labor issue attorney. If the money you think is owed you is enough to cover the fees or the attorney thinks he can recoup his fee from a settlement then go for it. If it is a matter of principle and you can afford the cost then only you can make the decision to peruse it or not. But you will need more than he said/she said.
 

stevenj76

Senior Member
I really feel for you man, I've been through a similar ordeal. Your attorney will tell you it is too late, and there is no private recourse to recover attorney fees.

Sadly, you guys now know the truth, so the contractor will bring in a new round of naive guys to step on. The only way to defend yourself is to work one speed, steady and pace yourself. Don't swallow it when they push you to work super-speed cause it's Davis-Bacon, let them know that you work one speed only, no matter what job it is, and it's too bad if they don't like it.

Don't let it get you down, they will get theirs someday. That letter you got from the contracting agent only shows he's getting his palm's greased on the down-low.
 

fbhwt

Electrical Systems Inspector
Location
Spotsylvania,Virginia
Occupation
Electrical Systems Inspector
I really feel for you man, I've been through a similar ordeal. Your attorney will tell you it is too late, and there is no private recourse to recover attorney fees.

Sadly, you guys now know the truth, so the contractor will bring in a new round of naive guys to step on. The only way to defend yourself is to work one speed, steady and pace yourself. Don't swallow it when they push you to work super-speed cause it's Davis-Bacon, let them know that you work one speed only, no matter what job it is, and it's too bad if they don't like it.

Don't let it get you down, they will get theirs someday. That letter you got from the contracting agent only shows he's getting his palm's greased on the down-low.

I consider myself a honest and hard working individual, I trusted my employer, this has been a long ordeal, started in September of 2009, I'm tired of seeing the little gut getting stepped on. I had consulted an attorney in the beginning, he pretty much said what you said. Well chock another one up for the unscrupulous.
 

stevenj76

Senior Member
I consider myself a honest and hard working individual, I trusted my employer,

Learn to be more cautious and less optimistic next time. Maybe less hardworking too.

You will connect with the right people, it takes multiple tries. I'll bet money everybody in that town hates that project manager who knows him.
 

fbhwt

Electrical Systems Inspector
Location
Spotsylvania,Virginia
Occupation
Electrical Systems Inspector
Learn to be more cautious and less optimistic next time. Maybe less hardworking too.

You will connect with the right people, it takes multiple tries. I'll bet money everybody in that town hates that project manager who knows him.

After I quit that company back in 2009, I was on unemployment for a year, a year to the date I was offered a job with a company as a generator service technician, great company, nice people, I hated to leave, I recently accepted an offer with the federal government as an electrician at a local military installation.
 

growler

Senior Member
Location
Atlanta,GA
Well chock another one up for the unscrupulous.

It's not just the employees that get screwed on a deal like this. All the companies that bid on these jobs and would have played by the rules and paid their employees the correct wage rate also got screwed.

If you can find out which other companies bid these jobs and lost out they may be in a better financial position to do something than you are. If this company doesn't play by the rules it's possible they could end up banned from bidding this kind of work. There are companies that specialize in bidding this type work and they are normally honest with their employees to keep their record straight.
 

TxShocker

Member
Location
Texas
let them know that you work one speed only, no matter what job it is, and it's too bad if they don't like it.

I have had a few smart mouth comments from a couple of guys like this over the years. I tell them it is to bad they do not like the speed I require and they can go on down the road.
 

growler

Senior Member
Location
Atlanta,GA
Don't swallow it when they push you to work super-speed cause it's Davis-Bacon, let them know that you work one speed only, no matter what job it is, and it's too bad if they don't like it.

I have had a few smart mouth comments from a couple of guys like this over the years. I tell them it is to bad they do not like the speed I require and they can go on down the road.


I agree with stevenj76 on this one. You don't really need to say it the way he does but it's unrealistic to expect people to work twice as fast just because the pay rate is twice as much.

The number of man hours calculated for a job should be the same if the local pay rate is $20 an hour $40 an hour or $60 an hour.

Ever herd anyone say this job is not paying scale so you guys only need to work at half your normal speed. A good worker is already producing as much as should be expected. A good electrician is not letting grass grow under his feet to start with.
 

stevenj76

Senior Member
I have had a few smart mouth comments from a couple of guys like this over the years. I tell them it is to bad they do not like the speed I require and they can go on down the road.

Most people who have enough experience to say that "I work one speed only, to a jerk," run the work.

That's fine, less capability to run work for you and your company means less money for you, and more money for a better shop.
 
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