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   <concept id="DFARS_PGI_PGI_222.406-8"
            outputclass="4"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">PGI 222.406-8</ph> Investigations.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a) Under Reorganization Plan
No. 14 of 1950, contracting agencies are tasked with the primary
responsibility for the conduct of labor standards compliance activities
for construction contracts subject to the Construction Wage Rate
Requirements statute. When such compliance assurance activities
disclose potential violations that are substantial in amount (wage underpayments
in excess of $1,000) or when requested by the Department of Labor,
the contracting officer or a designee should take the following
steps to ensure compliance with the investigative requirements of
the Department of Labor:</p>
         <p outputclass="List3" class="- topic/p ">(i) <i class="+ topic/ph hi-d/i ">Beginning of the investigation</i>.
The investigator shall—</p>
         <p outputclass="List4" class="- topic/p ">(A) Inform the contractor of the investigation
in advance;</p>
         <p outputclass="List4" class="- topic/p ">(B) Verify the exact legal name of the
contractor, its address, and the names and titles of its principal
officers;</p>
         <p outputclass="List4" class="- topic/p ">(C) Outline the general scope of the investigation,
including the examination of pertinent records and the interview of
employees;</p>
         <p outputclass="List4" class="- topic/p ">(D) Inform the contractor that the names
of the employees to be interviewed will not be divulged to the contractor; and</p>
         <p outputclass="List4" class="- topic/p ">(E) When requested, provide a letter from
the contracting officer verifying the investigator's authority.</p>
         <p outputclass="List3" class="- topic/p ">(ii) <i class="+ topic/ph hi-d/i ">Conduct of the investigation</i>.
Labor standards investigations are comprised of the following essential
components:</p>
         <p outputclass="List4" class="- topic/p ">(A) Review of the contract.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Verify that all required labor
standards and clauses and wage determinations are included in the
contract.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Review the following items in
the contract file, if applicable:</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">i</i>) List of subcontractors.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">ii</i>) Payroll statements for the
contractor and subcontractors.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iii</i>) Approvals of additional classifications.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iv</i>) Data regarding apprentices
and trainees as required by FAR
22.406-4.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">v</i>) Daily inspector's report or
other inspection reports.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">vi</i>) Employee interview statements.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">vii</i>) Standard Form (SF) 1413, Statement
and Acknowledgement.</p>
         <p outputclass="List4" class="- topic/p ">(B) Interview of the complainant. If the
investigation is based upon the receipt of a complaint, the investigator
should interview the complainant unless this is impractical. The
interview shall cover all aspects of the complaint to ensure that
all pertinent information is obtained. Whenever an investigation
does not include an interview of the complainant, explain such omission
in the investigator's report.</p>
         <p outputclass="List4" class="- topic/p ">(C) Interview of employees and former employees.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Interview a sufficient number
of employees or former employees, who represent all classifications,
to develop information regarding the method and amount of payments,
deductions, hours worked, and the type of work performed.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Interview employees at the job
site if the interviews can be conducted privately and in such a
manner so as to cause the least inconvenience to the employer and
employees.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Former employees may be interviewed
elsewhere.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">4</i>) Do not disclose to any employee
any information, finding, recommendation, or conclusion relating
to the investigation except to the extent necessary to obtain required
information.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">5</i>) Do not disclose any employee's
statement to anyone, except a Government representative working
on the case, without the employee's written permission.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">6</i>) Obtain information by mail when
personal interviews are impractical.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">7</i>) Use SF 1445, Labor Standards
Interview, for employee interviews.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">8</i>) Ask employees to sign their
statements and to initial any changes.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">9</i>) Provide an evaluation of each
employee's credibility.</p>
         <p outputclass="List4" class="- topic/p ">(D) Interview of foremen. Interview foremen
to obtain information concerning the contractor's compliance with
the labor standards provisions with respect to employees under the
foreman's supervision and the correctness of the foreman's classification
as a supervisory employee. All procedures established for the conduct
of employee interviews, and the recording and use of information
obtained, apply to foremen interviews.</p>
         <p outputclass="List4" class="- topic/p ">(E) Interview of the contractor.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Interview the contractor whenever
the investigation indicates the possibility of a violation.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Inform the contractor that—</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">i</i>) The interview does not mean
that a violation has been found or that a requirement for corrective
action exists; and</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">ii</i>) The purpose of the interview
is to obtain only such data as the contractor may desire to present
in connection with the investigation.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Do not disclose the identity
of any individual who filed a complaint or was interviewed.</p>
         <p outputclass="List4" class="- topic/p ">(F) Review of contractor and subcontractor
records.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Review contractor and subcontractor
records such as basic time cards, books, cancelled payroll checks, fringe
benefits, and payment records. Compare them with submitted payrolls.
When discrepancies are found, include pertinent excerpts or copies
of the records in the investigation report with a statement of the
discrepancy and any explanation the investigator obtains. When wages
include contributions or anticipated costs for fringe payments requiring
approval of the Secretary of Labor, examine the contractor records
to ensure such approval has been obtained and that any requirements
specified in the approval have been met. (See FAR 22.406-2(a)(3).)</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Review contractor's and subcontractor's
weekly payrolls and payroll statements for completeness and accuracy
regarding the following:</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">i</i>) Identification of employees,
payroll amount, the contract, contractor, subcontractor, and payroll
period.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">ii</i>) Inclusion of only job classifications
and wage rates specified in the contract specifications, or otherwise established
for the contract or subcontract.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iii</i>) Computation of daily and weekly
hours.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iv</i>) Computation of time-and-one
half for work in excess of 40 hours per week in accordance with FAR 22.406-2(c).</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">v</i>) Gross weekly wages.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">vi</i>) Deductions.</p>
         <p outputclass="List7" class="- topic/p ">(vii) Computation of net weekly wages paid
to each employee.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">viii</i>) Ratio of helpers, apprentices,
and trainees to laborers and mechanics.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">ix</i>) Apprenticeship and trainee
registration and ratios.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">x</i>) Computation of fringe benefits
payments.</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Transcribe the contractor's
records whenever they contain information at variance with payrolls
or other submitted documents.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">i</i>) Make the transcriptions in sufficient
detail to permit them to be used to check computations of restitution and
to determine amounts to be withheld from the contractor.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">ii</i>) Follow the form used by the
contractor.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iii</i>) Place comments or explanations
concerning the transcriptions on separate memoranda or in the narrative
report.</p>
         <p outputclass="List7" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">iv</i>) Determine whether the wage
determination, any modifications of the determination, and any additional classifications
are posted as required.</p>
         <p outputclass="List3" class="- topic/p ">(iii) <i class="+ topic/ph hi-d/i ">Submission of the report of investigation</i>.
The investigator shall submit a report of the investigation in accordance with
agency procedures. Each report shall include at least—</p>
         <p outputclass="List4" class="- topic/p ">(A) The basis for the investigation, including
the name of the complainant;</p>
         <p outputclass="List4" class="- topic/p ">(B) Names and addresses of prime contractors
and subcontractors involved, and names and titles of their principal officers;</p>
         <p outputclass="List4" class="- topic/p ">(C) Contract number, date, dollar value
of prime contract, and date and number of wage determination included
in the contract;</p>
         <p outputclass="List4" class="- topic/p ">(D) Description of the contract and subcontract
work involved;</p>
         <p outputclass="List4" class="- topic/p ">(E) Summary of the findings with respect
to each of the items listed in PGI 
               <xref href="#DFARS_PGI_PGI_222.406-8"
                  base="DFARS-PGI_PGI_222.406-8"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">222.406-8</xref>
            (a)(ii);</p>
         <p outputclass="List4" class="- topic/p ">(F) Concluding statement concerning—</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) The types of violations, including
the amount of kickbacks under the Copeland Act, underpayments of basic
hourly rates and fringe benefits under the Wage Rate Requirements
statute, or underpayments and liquidated damages under the Contract
Work Hours and Safety Standards statute;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Whether violations are considered
to be willful or due to the negligence of the contractor or its
agent;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) The amount of funds withheld
from the contractor; and</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">4</i>) Other violations found; and</p>
         <p outputclass="List4" class="- topic/p ">(G) Exhibits indexed and appropriately
tabbed, including copies of the following, when applicable—</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Complaint letter;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Contract wage determination;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Preconstruction letter and memorandum
of preconstruction conference;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">4</i>) Payrolls and statements indicating
violations;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">5</i>) Transcripts of pertinent records
of the contractor, and approvals of fringe benefit payments;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">6</i>) Employee interview statements;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">7</i>) Foreman interview statements;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">8</i>) Statements of others interviewed,
including Government personnel;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">9</i>) Detailed computations showing
kickbacks, underpayments, and liquidated damages;</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">10</i>) Summary of all payments due
to each employee or to a fund plan or program, and liquidated damages;
and</p>
         <p outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">11</i>) Receipts and cancelled checks.</p>
         <p outputclass="List1" class="- topic/p ">(d) <i class="+ topic/ph hi-d/i ">Contracting officer's report.</i> This
report shall include at least—</p>
         <p outputclass="List3" class="- topic/p ">(i) SF 1446, Labor Standards Investigation
Summary Sheet;</p>
         <p outputclass="List3" class="- topic/p ">(ii) Contracting officer's findings;</p>
         <p outputclass="List3" class="- topic/p ">(iii) Statement as to the disposition of
any contractor rebuttal to the findings;</p>
         <p outputclass="List3" class="- topic/p ">(iv) Statement as to whether the contractor
has accepted the findings and has paid any restitution or liquidated
damages;</p>
         <p outputclass="List3" class="- topic/p ">(v) Statement as to the disposition of
funds available;</p>
         <p outputclass="List3" class="- topic/p ">(vi) Recommendations as to disposition
or further handling of the case (when appropriate, include recommendations as
to the reduction, waiver, or assessment of liquidated damages, whether
the contractor should be debarred, and whether the file should be
referred for possible criminal prosecution); and</p>
         <p outputclass="List3" class="- topic/p ">(vii) When applicable, the following exhibits:</p>
         <p outputclass="List4" class="- topic/p ">(A) Investigator's report.</p>
         <p outputclass="List4" class="- topic/p ">(B) Copy of the contractor's written rebuttal
or a summary of the contractor's oral rebuttal of the contracting
officer's findings.</p>
         <p outputclass="List4" class="- topic/p ">(C) Copies of correspondence between the
contractor and contracting officer, including a statement of specific
violations found, corrective action requested, and the contractor's
letter of acceptance or rejection.</p>
         <p outputclass="List4" class="- topic/p ">(D) Evidence of the contractor's payment
of restitution or liquidated damages (copies of receipts, cancelled
checks, or supplemental payrolls).</p>
         <p outputclass="List4" class="- topic/p ">(E) Letter from the contractor requesting
relief from the liquidated damage provisions of the Contract Work
Hours and Safety Standards statute.</p>
         <p class="- topic/p "/>
      </conbody>
   </concept>
</dita>
