Finding Text
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. 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. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions 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 overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance 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 too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.