Finding Text
Criteria: APPENDIX II TO PART 200—CONTRACT PROVISIONS FOR NON-FEDERAL ENTITY CONTRACTS UNDER FEDERAL AWARDS (D) Davis-Bacon Act, as amended (40 U.S.C. 3141–3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141–3144, and 3146–3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ‘‘Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction’’). 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. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland ‘‘AntiKickback’’ Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ‘‘Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States’’). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision
for compliance with the Davis-Bacon Act (40 U.S.C. 3141–3144, and 3146–3148) as supplemented by
Department of Labor regulations (29 CFR Part 5, ‘‘Labor Standards Provisions Applicable to Contracts
Covering Federally Financed and Assisted Construction’’). 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. The decision to award a contract or subcontract must
be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all
suspected or reported violations to the Federal awarding agency. The contracts must also include a provision
for compliance with the Copeland ‘‘AntiKickback’’ Act (40 U.S.C. 3145), as supplemented by Department
of Labor regulations (29 CFR Part 3, ‘‘Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United States’’). The Act provides that each
contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the
construction, completion, or repair of public work, to give up any part of the compensation to which he or she
is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal
awarding agency. Condition: During our review of the requirements of Special Tests provisions of the Compliance Supplement and the District’s implementation of controls related to compliance with these provisions for the Education Stabilization Fund, we identified the following issues:
The District did not include the required language relating to the Davis-Bacon Act or the Copeland
“AntiKickback” Act and prevailing wage guidance in its proposal.
The District did not ensure the vendor was paying prevailing wages. In reviewing the vendor’s weekly
wage certification reports we noted some employees were being paid only $11.50/hour while the
prevailing wage for an unskilled laborer is $18.75 for a base rate and $7.52 fringe rate. Questioned Costs: Unknown
Cause: District personnel were unaware of requirement to include language in contracts regarding the Davis-
Bacon Act or the Copeland “AntiKickback” Act with companies providing construction or maintenance work
for the District when Federal funds are being used to pay for those services. State personnel told the District
incorrectly Davis-Bacon did not apply unless the value of the contract was greater than $60,000 per project or
on Native American lands even though the grant guidance puts the level at $2,000. Effect: The District is not in compliance with Federal requirements when using grant funds to pay for
construction or maintenance projects in excess of $2,000. Noncompliance with these provisions could cause
reimbursement of these funds to be questioned or require the District to reimburse the granting agency for any
costs incurred under these projects. Additionally, companies providing these services may not know they are
subject to particular wage rate determinations for the project which may cause them to bid or quote amounts
which do not provide for payment of required wages to the employees participating on those projects.
Auditor’s Recommendation: We recommend that the District establish a practice of including the required
language for the Davis-Bacon Act and the Copeland “AntiKickback” Act in contracts with all companies which
provide construction or maintenance projects to the District. When companies are selected that have
Cooperative Educational Services agreements, the District should require an additional contract be signed by
the company which includes these provisions. Additionally, we recommend that District personnel be trained
in identifying which funds fall under Federal regulations versus State regulations so that when purchase orders
are created and contracts are entered into that these individuals know they are including the proper requirements. Responsible Official’s Plan:
Specific corrective action plan for finding:
District personnel will obtain additional training in procurement requirements regarding the Federal
Davis Bacon Act.
Timeline for completion of corrective action plan:
December 2023
Employee position(s) responsible for meeting the timeline:
Business Manager