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down will be covered in the section dealing with payments.
If the contractor fails to comply with this provision the Government has two options. If it is to the Government's advantage to modify
the requirement, the contracting officer may approve a reduction of the percentage. If, however, it is necessary or desirable to enforce this requirement, the Government may apply the sanctions
available under Clause 31, "Non-Compliance with Contract Requirements",
of the GSA 1139. (EXHIBIT 41)
Utilization of Minority Business Enterprises (EXHIBIT 42 Modifications
of General Conditions, GSA Form 1139)
It is the policy of the Government that minority business enterprises
shall have the maximum practicable opportunity to participate in Government contracts. For this reason, you are encouraged to use
your best efforts to award subcontracts to minority business
enterprises to the fullest extent consistent with the efficient
performance of your contract work. Clause 40 of the modifications
of GSA Form 1139 requires you to establish and conduct a program
which will enable minority business enterprises to be considered fairly as subcontractors and suppliers. You are urged to read and
become familiar with this clause.
In addition, you must include
the provisions of Clause 40 in all your subcontracts which exceed
STANDARD FORM 19-A, LABOR STANDARDS PROVISIONS (Applicable to contracts in excess of $2,000) (EXHIBIT 43)
The Davis-Bacon Act (Act of March 3, 1931, as amended) applies to Federal contracts (over $2,000) for construction, alteration and repair (including painting and decorating) of public buildings or
public works in the U. S.
It requires that laborers and mechanics
employed on the site of the work be paid not less than the minimum
wages and fringe benefits as determined by the Secretary of Labor
to be prevailing in the area of the project. The wage determina
tion is included in the specifications as Section 0020.
of the wage determination is required to be posted on the construc
The Contract Work hours and Safety Standards Act requires the payment
of one and one-half times the basic rate of pay for all work in
excess of 8 hours per day or 40 hours per workweek. Safety standards
were added to this Act in 1969 to provide that no laborer or mechanic
shall be required to work under conditions that are dangerous to
health and safety. The Department of Labor has issued specific
safety regulations for construction in 29 CFR, Part 1926.
The Apprentices and Trainees clause provides for the employment of
apprentices and trainees when they are properly registered in an
The clause contains information on determining
an acceptable ratio of apprentices and/or trainees to journeymen.
Payrolls and Basic Records.
The contractor is required to submit
copies of his weekly payrolls and copies of his subcontractors'
payrolls to the contracting officer, showing the classifications,
rates of pay, overtime, and withholding together with a statement
that the payrolls are correct.
Compliance with Copeland Regulations (commonly known as the AntiKickback Act). This Act provides that it is illegal to induce, by
force or otherwise, any person employed in performance of the
contract to give up any part of the compensation to which he is
Withholding of Funds. The contracting officer may withhold from the
contractor's payments funds considered necessary to pay laborers
and mechanics any wages due because of underpayments by the contractor or subcontractors, and to cover liquidated damages due
the Government for failure to pay the proper rates for overtime.
Liquidated damages are computed at the rate of $10 for each
Subcontracts. Prime contractors are responsible for inserting the
labor standards provisions in all subcontracts and for obtaining
Contract Termination - Debarment.
Breach of the labor standards
provisions may be cause for termination and/or debarment.
Disputes Concerning Labor Standards.
Most disputes arising out of
labor provisions are subject to the Disputes Clause. However,
questions on proper classifications or wage rates contained in
the Wage Determination are referred to the Secretary of Labor.
Investigations may be made by representatives of the Department
of Labor and the contracting agency to determine whether contractors
are complying with the labor standards provisions.
The date of substantial completion may differ from the date of
It should be clear that substantial completion
is not considered in terms of percentage of work in place. The
Government defines substantial completion as:
"the last day
during which work was performed to bring the project to that degree
of completion so that it is usable for the purpose intended."
is important for contractors to reach substantial completion because
it cuts off the Government's right to assess liquidated damages.
FINAL CLOSE-OUT OF A CONTRACT
Before final close-out of a contract, steps you will be required
to take include:
1. Complete any defects and omissions.
2. Turn over all instruction manuals, spare parts, and give
any training instructions in the operation of equipment as required in the mechanical and electrical sections of the specifications.
3. Turn over all warranties including addresses of manufacturers. 4. Furnish as-built drawings showing outside utility lines and
a location plan of the facility, where applicable.
8. Contractors may be required to keep their records available
for examination by the Comptroller General for a period of three
(3) years after final payment. Read paragraph 25 of the Modification
of General Provisions (EXHIBIT 40).
VALUE ENGINEERING INCENTIVE CLAUSE (EXHIBIT 44)
GSA desires to benefit from the experience and knowledge of
contractors in the areas of cost, new materials, new techniques
and industry standards.
Therefore the purpose of the Value
Engineering Incentive Clause is to invite contractors to challenge