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PLRD-82-23 1 (1981-12-16)

handle is hein.gao/gaobabcsm0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 - . wamnc AM - IVWJ11llilll Ii 117073 B-205391 The Honorable John J. Duncan DECEMSER IS, 19 1 House of Representatives Dear Mr. Duncan: Subject: Contractors' Use of Foreign Labor on Federal Contracts (PLRD-82-23) This report is in response to your October 15, 1981, letter, concerning the Navy's use of small business contractors who allegedly employ foreign labor io the performance of Government contracts outside the United States. For many years, the Congress by statute and the executive branch by regulation have prescribed various labor standards in Federal procurement. After reviewing pertinent laws, we concluded that none of the activities mentioned by your constituent violate these statutes. Our review and analysis of the statutes, as they apply to the concerns expressed by your constituent, follow. Only the principal statutes are mentioned here. THE WALSH-HEALEY PUBLIC CONTRACTS ACT (41 U.S.C. 35) This act requires by contract clause that contractors for supplies in excess of $10,000 (1) be manufacturers of or regular dealers in those supplies, (2) pay the prevailing minimum wages, (3) not work employees in excess of the maximum daily or weekly hours, (4) observe certain minimum ages for employment, and (5) not permit performance of the contract under unsanitary, hazardous, or dangerous working conditions. The act provides for liquidated damages, contract termination, and a 3-year debarment from Government contracts for violations. Analysis This act is limited to supply contracts and does not apply to contracts described by your constituent. Moreover, it would not prevent a contractor from hiring foreign labor. DAVIS-BACON ACT (40 U.S.C. 276a) Enacted in 1931, this statute provides for payment of no less than prevailing minimum wages, as determined by the Secretary of Labor, to laborers under construction contracts in excess of OWW1 e'7~ (942113) (942113)

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