Finding Text
Criteria: Under the Uniform Guidance, 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: During our review of the federal program, we determined that the District did not have a contract in place with the contractor or subcontractor.
Cause: The District does not have sufficient detection and prevention procedures.
Effect: Without having a contract, the District cannot prevent or detect Davis-Bacon prevailing wage requirements noncompliance by the contractor or subcontractor.
Questioned Costs: $0
Recommendation: We recommend the District adhere to the Uniform Guidance and ensure the District obtains the proper contractual documentation for the Davis-Bacon prevailing wage requirement.
Management’s views: Management agrees with the finding. See corrective action plan on page 94.