Finding Text
Statement of Condition: None of the current year ESSER construction contracts included the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors, nor was weekly certified payroll received from contractors and their subcontractors. Criteria: 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 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. 1) Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). 2) These provisions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing process were unaware of this requirement. Effect of condition: All construction contract financed by the ESSER program originated during 2022 did not include the Wage Rate Requirements provision. Context: All four applicable contract were reviewed. This finding was present in all four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assistance funds include the required Wage Rate Requirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for all such contracts written in order to ensure that they comply with all the requirements within the Compliance Supplement.