Finding Text
PROCUREMENT, SUSPENSION & DEBARMENT
Federal Agency: Department of Health and Human Services
Federal Program or Cluster: Grants for Capital Development in Health Centers
Assistance Listing Number: 93.526
Federal Award Numbers and Years Award Period: 9/15/21-8/31/25 - 4 C8ECS44755-01-07
Questioned Costs $0
Condition: The Organization did not comply with the Davis-Bacon prevailing wage requirement.
Criteria: CFR 45 requires all prime construction contracts in excess of $2,000 awarded by non-Federal entities to include a provision for compliance with the Davis- Bacon Act as supplemented by Department of Labor regulations. In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. Contractors must also submit certified payroll records to demonstrate compliance.
Cause: The Organization did not follow its internal policy for procurement and suspension and debarment.
Effect: The Organization could have paid wages at rates other than those required by law.
Recommendation: We recommend that grant staff and management review award contracts and related grant guidance and follow documented internal procedures to ensure applicable compliance requirements are identified and implemented.
Identification of repeat findings: This is not a repeat finding.View of Responsible
Officials and Planned Corrective Actions: Management agrees with the finding. The Director of Finance will prepare a summary document regarding the federal guidelines on procurement, including the requirement that future contractors include contract language complying with the Davis-Bacon Act.