U. S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 25
SEP 22 1961
MEMORANDUM # 25
TO: AGENCIES ADMINISTERING STATUTES REFERRED TO IN 29
CFR, SUBTITLE A, PART 5.
FROM: James M. Miller 
Assistant Solicitor
SUBJECT: Opinions on application of the Davis-Bacon and related
Acts.
Enclosed with previous covering memoranda, copies of
opinions on the application of the Davis-Bacon and related Acts
were furnished you for information and guidance in your enforce-
ment programs under those Acts.
We are now enclosing a copy of a recent opinion on
this same general subject, which we are sure will be of further
interest and assistance to you.
Enclosure





































U. S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 25
August 2, 1961
Mr. Fred R. Wolford
Special Assistant to the Commissioner
Labor Relations
Public Housing Administration
Housing and Home Finance Agency
Washington 25, D. c.
Re: Mexico Lumber Company
Central Missouri Component
Parts Company .
Project M0-10-1
Mexico, Missouri
E-61-1307 thru 1309
E-62-87
Dear Mr. Wolford:
This is in reply to your letter and enclosures
of June 30, 1961 regarding coverage under the labor stand-
ards provisions of the Housing Act of 1949, as amended,
of the operations of the Central Missouri Component Parts
Company, and of the Mexico Lumber Company, both of whom
are performing prefabrication work in connection with
Housing Project No. MO-10-1, Mexico, Missouri.
As you know, a fine line frequently distinguishes
the operations of a materialman and a subcontractor for .
the purpose of coverage under the Davis-Bacon and related
Acts. However, we have reviewed the investigation reports
and exhibits submitted by your Fort Worth Regional Office
and, in our opinion, the operations of the subject firms on
the instant project are clearly distinguishable.
The work being performed by the Central Missouri
Component Parts Company is the prefabrication of component
roof panels. The specifications for this project called for
this type of roof panel, and this information was available
to all bidders. This type of roof panel is also prefabri-
cated by other companies in the area. Because of the



















Mr. Fred R. Wolford        Page.2
requirement of controlled temperature conditions in the
plant, and the impracticality of moving plant equipment
from job to job, such work cannot normally be done at the
site. The firm is located in a permanent building, with
ample storage space and equipment, under a three year
lease. It also operated a similar plant in Columbia,
Missouri which will be closed in November 1961 when its
lease expires, and all of its operations will be consoli-
dated in Mexico, Missouri. The time has applied for a
license with The Plywood Fabricator Service, Inc., and it
1s bidding in the open market for additional work.
It is our opinion that the operations of this
firm quality as those of a materialman, and that they are
not subject to coverage of the labor standards requirements
on this project.
The work being performed by the Mexico Lumber
Company in connection with the project is the prefabri-
cation of wall sections. Apparently, the prefabricated
wall sections were not specified for the project as were
the roof panels. The wall sections consist of 2" x 4"
studs cut to size and nailed together. The sections
allow openings for windows and-doorways. The prefabrica-
tion consists of sawing and nailing and could readily be.
performed on the job site.
The subject plant was owned and operated by a
Mr. Whipple who closed it on January 15, 1961 due to a
lack of business. The Mexico Lumber Company held a
mortgage on the plant and took it over as of that date.
The project contract was awarded on January 31, 1961 and
the contract between the successful prime contractor and
the Mexico Lumber Company was entered into on approximately
February 15, 1961. Mr. Whipple was employed by the com-
pany as general foreman to process the prefabrication of
wall sections for the subject, project. The bidders could
have had no knowledge of any unit prices for this work
from the Mexico Lumber Company since the bids were opened




















Mr. Fred R. Wolford       Page 3
on January 5, 1961, ten days before the company took
over the plant.
The Mexico Lumber Company did no prefabrication
work prior to that being performed for the instant project.
It states that it has not advertised for or otherwise
solicited additional prefabrication work, since the full
plant capacity is being utilized on this project. The
plant has not been altered to provide for additional space
or machinery, and it is presently stocked with lumber for
the instant project only.
Based on the above described circumstances,
The Mexico Lumber Company does not appear to qualify is
a materialman on the above project. The prefabrication
operations constitute, in our opinion, those of a sub-
contractor, and the employees engaged therein would be
deemed laborers and mechanics employed in the development
of the project here involved - and, hence entitled to the
contract wage rates for their classification of work. The
Executive Director of the Housing Authority for the City
of Mexico should be so advised by your Office so that
steps may be taken to secure compliance with the contract
labor standards
We would appreciate a final report in this
matter when appropriate corrective action has been ac-
complished.
Very truly yours,
Charles Donahue
Solicitor of Labor
By James M. Miller
Assistant Solicitor