Finding 1105577 (2024-001)

Special Tests and Provisions – Wage Rate Requirements Criteria – The Davis-Bacon Act as supplemented by U.S. Department of Labor regulations requires recipients that use federal funds for minor remodeling, renovation, or construction contracts that are over $2,000 to require the contractor to pay laborers and mechanics at a rate not less than the prevailing wages. In addition, contractors must be required to pay wages not less than once a week. Condition – The District has not received any required certified payrolls from the construction contractor so the District is unable to verify if the Davis-Bacon prevailing wage and pay requirements were met. In addition, the Davis-Bacon requirements were not included in the construction contract as required. Cause - The District and its construction architect did not ensure that the applicable Davis-Bacon requirements were included in the project bid documents and construction contract. As a result, the contractor was unaware of the requirements upon bidding and completing the project. Effect – The District is not in compliance with federal regulations pertaining to wage rate requirements as required by the Uniform Guidance and the Davis-Bacon Act. Recommendation – The District should ensure that all applicable Davis-Bacon requirements are included in all bid documents and construction contracts. The District should also require and monitor that construction contractors paid from federal funds timely remit the required payroll information to ensure compliance with the Uniform Guidance as related to the Davis-Bacon Act. Response and Corrective Action Planned – We will make sure any future construction projects paid from federal funds properly include all applicable Davis-Bacon requirements in the bid documents and construction contracts. We will require and monitor that any future construction contractors paid from federal funds timely remit the required payroll information to ensure compliance with the Uniform Guidance as related to the Davis-Bacon Act. Conclusion – Response accepted.