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092848 1 (1970-10-13)

handle is hein.gao/gaobacwsn0001 and id is 1 raw text is: 





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Mr. William Bolger, Regional Director
Boston Postal Region
Post Office Departmcnt
Post Office and Court House LEuildiro
Boston, Massachusetts  2L(   (DZILi


October 13, 1970



         LM092848


Dear Mr. Bolger:

     During a  review of the Deparc2.on: of Labor's (Labor) wn    C
determination procedures  and ;.ethods under the Service Co:tract
Act of  1965, relating to Star Route contracts, we discussed t..
following  three matters with a      r of your staff, thf Man,
Highway Transportation 3ranch,  and ye brought the same inform-
tion  to your attention for your conI deration at our exit confer-
ence.

      1. Our review of  the cost statement submitted by a Star
Route contractor and other 'Lost Office Departnent (POD) doau:cn
relating to Star Route number 04011, indicated that  the contrnctor
was paying a wage rate  less than tnat called for by Labor's ea-z
determination and that the bond cost had been overstated b,  tie
contractor.  A Postal official on your Staff said that  these
matters should have been notCd by his staff in their revie.. tie
official telephoned the contractor's office to ascertain whic>
wage rate the contractor was payin  and he was told that  the con-
tractor was not paying the Labor wage dctermination rate.

.    The contractor stated that he  )rovided a truck with the cc. e-
city called for by the PCD's advertisement but its tonnage rating
was 3 tons, instead of the applicabla Labor wage deterr.ination for
trucks of over 4 tons,  Since there was no wage determinaaion
for 3-ton trucks, the contractor believed that the wage detex.:n  -
tion did not apply in his case.      East Office Department,-
Vehicle Requirements, under the  .dvcrtisement for Mail Serv:.,
POD Form 5435, specified only the cubic footage and not the :on-
nage of the type truck  ,o be provided for such short-haul sevice,

     Ue accordingly pointed out to te  official that the Labc:
wage determination for short-haul routes are divided into c7assi-.
fications by tons.  On the other hand, POD advertisements for
service are divided into classifications by cubic foot capacin'.

                                             ST  DOCUME T AVAILABLE


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UNITED STATES GENERAL  ACCOUNTING OFFICE
            REGIONAL  OFFicE
     ROOM 1903 JOHN F. KaNN` o ue DRAL E:UILDINGt
             GOVERNME-NT CENTER 0
       BosTON, MASSACHUSETTS 02203 6A

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