Finding Text
2022-001 Davis-Bacon Act Compliance CFDA Number 84.041 Program Title Impact Aid Federal Agency U.S. Department of Education Compliance Requirement N. Special Tests and Provisions Finding Type Noncompliance, Significant Deficiency Questioned Costs N/A CONDITION The District did not retain documentation sufficient to determine the Davis-Bacon compliance clause was included in advertised specifications for two construction projects paid with federal Impact Aid funds. CRITERIA Davis-Bacon Act Department of Labor (DOL) 29 CFR part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction. Non-federal entities shall include in their federally funded construction contracts in excess of $2,000, that are subject to the Wage Rate Requirements of the Davis-Bacon Act, a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the U.S. Department of Labor weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). This reporting is often done using Optional Form WH-347, which includes the required statement of compliance. CAUSE The District did not have the adequate review procedures in place to ensure bid documents included notification that federal Impact Aid monies were to be used for payment of the construction projects and the contractors needed to be in compliance with the Davis-Bacon Act. EFFECT The District was not in compliance with the notification requirements of the Davis-Bacon Act. As a result, the contractor could be subject to penalties and fines, and possible debarment from federal contracting if prevailing wages were not paid. RECOMMENDATION We recommend that the District establish proper review procedures of bid documents to ensure that any federally funded construction projects in excess of $2,000 the contractors are notified the projects are being funded with federal Impact Aid funds and the contractors are required to be in compliance with the Davis Bacon Act.