Finding Text
Federal Program: Airport Improvement Program
Federal Award Identification Number and Year: All Airport Improvement Program awards, 2021,
2022, 2023, 2024
Assistance Listing Number (ALN): 20.106
Federal Awarding Agency: U.S. Department of Transportation
Pass-through Entity: None
Repeat Finding: No
Material Weakness and Noncompliance – Wage Rate Requirements
Criteria: All laborers and mechanics employed by contractors or subcontractors to work on
construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not
less than those established for the locality of the project (prevailing wage rates) by the Department of
Labor (DOL) (40 USC 3141–3144, 3146, and 3147.
Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements
(which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor
comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions
Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a
requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each
week in which any contract work is performed, a copy of the payroll and a statement of compliance
(certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB
Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2
CFR section 200.326).
Condition: The Airport was unable to provide documentation to support compliance with wage rate
requirements in relation to AIP project 8023.
Questioned Costs: None.
Identification of How Questioned Costs Were Computed: N/A
Cause and Effect: The Airport was not aware that the contracts for AIP project 8023 were applicable to
prevailing wage requirements; therefore, the Airport did not obtain certified payrolls for two
contracts relating to the project. Without proper controls over wage-rate requirements, there is an
increased risk that the Airport, its contractors, and subcontractors are not in compliance with applicable
federal regulations. Additionally, noncompliance could result in federal funding being reduced or
taken away, or other sanctions imposed by the federal grantor agency. Recommendation: The Airport should implement controls and processes to ensure that all necessary
information from contractors is obtained to document compliance with wage rate requirements.
Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.