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B-190834 1 (1978-02-22)

handle is hein.gao/gaobadftc0001 and id is 1 raw text is: DECISION I B-190834 DATE: February 22, 1978 MATTER OF: Mark Construction Company DIGEST: Overtime required by Department of Labor memorandum, which was subsequently with- drawn, to be paid to officers or owners of subcontractor firm who performed ser- vices as laborers or mechanics vbich could not be e.tdt'-ted from subcontractoz's contract payments, may be reimbursed to contractor since payment was an unanticipated expense incurred in good faith. fy letter of November 3, 1977, the Chief, Account- ing and Finance Branch, Altus n Force Base, Oklahoma, requested, pursuant to 31 U.S.C. S 74 (1970), an advance decision concerning the paynent of a claim by Mark Construction Company (hereafter referred to as the contractor). The contractor was the prime contractor on a construction contract (contract F34612-76-90046) at the above-mentioned Air Force Base. On July 21, 1976, the contractor was notified by the contract- ing officer that it must comply with Department of Labor (DOL) m'emorr ndum No. 123. This memorandum stated that according to the r'ouirements of the Davis-Bacon Act, 40 U.S.C. 5 2?6a (1970), if any officers or the owner of a subcontractor firm work as laborers or mechanics, the prime contractor must pay them an amount at least ea6al to the applicable prevailitg wage for the specific clas- sification of work which they perform, and that the prime contractor must lit them on his certified payrolls. The memorar.dual did, however, provide - 1 - I ip - Phillips TH COMPTROLL.. GENERAL Iz J. OF TH UNITUO STATES WAS HINrTON. 0.C. 2054 4> FILE: PL 1 3 - I 4 -----ac.

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