Finding Text
Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must 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). During fiscal year 2023, the Board funded several construction projects, totaling $561,431.47, with COVID-19 Education Stabilization Funds. Of the $561,431.47, the Davis-Bacon Act applied to $468,598.10 of the amounts paid. The Board was unable to produce any construction contracts or certified payrolls that documented their compliance with the Davis-Bacon Act. The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were complied with. As a result, the Board was not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements.
Recommendation
The Board should comply with Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”) when using COVID-19 Education Stabilization Funds to fund construction contracts in excess of $2,000.