U. S. DEPARTMENT OF LABOR OFFICE OF THE SOLICITOR WASHINGTON 85 NOV 28 1961 MEMORAND M # 29 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 DB-13 P. 132(c) U.S. DEPARTMENT OF LABOR 10b OFFICE OF THE SOLICITOR WASHINGTON 25 Nov 6 1961 Rear Admiral R. L. Moore, Jr. Acting Chief of Bureau Bureau of Ships Department of the Navy Wahington 25, D. C. Re: Your f11e 12720 Ser 720-1083 Philco Corporation Contract N08sr-80904 Federal Electric Corporation Contract NOBar-80908 San Diego, California Our files: E-61-595-613 & 614 Dear Admiral Moore This is with reference to your letter and enclosure of May 31, 1961 regarding the application of the Davis Bacon Act to work performed by the Philco Corporation, and by the Federal Electric Corporation, on the above identified con- tracts. These were awarded by the Resident Industrial Manager, USN Repair Facility, San Diego, California. You indicate that, in your opinion, the work in- volved in these contracts does not constitute construction, and, with the exception of three holes in a concrete wall for water pipe, electrical conduit, and sheet metal duct, merely involved the assembly and installation of equipment in build ings already constructed. You further indicate that, in your opinion, both contracts were properly determined not to be subject to the provisions of the Davis Bacon Act. From the description of work set forth in the attach- ments to your letter, it Appears that all major items of equip- ment were furnished by the Government. It further appears that Rear Admiral R. L. Moore, Jr. Page 2 the labor costs involved on each of the contracts exceeded $2,000. We understand that these contracts were competitively bid by several qualified contractors who normally bid and per form similar work in the San Diego Area. It is true that, unless a substantial amount of cons struction to involved, installation work, as such, to not normally considered to be within the coverage of the Davis- Bacon Act. Moreover, the $2,000 monetary requirement of the Davis-Bacon Act is not regarded be the only test of coverage in the case of supply and installation contracts. In the case at the instant contracts, however, the cost of the con- struction activity not only exceeded the monetary standard of the Davis-Bacon Act, but, in feet, constituted the major cost of the contract, as show by the breakdown of estimated labor And material cost which you submitted. Such contracts not tm considered to require substantial construction activity. The background data on Contract NOBsr-80904 contains the following description of works "The work involved in this contract covered the Installation at Government-furnished AN/SQS-23 sonar gear at the Anti-Submarine Warfare School, San Diego, California. The installation included approximately 35 units of equipments a grounding system, a water cool- ing system for 3 amplifiers, the running of primary power from a building distribution box through existing ducts to the units, the instal- lation of a 400-Cycle motor generator, including cover panel and wiring and the putting in place of approximately 235 different cables, spread over 4 rooms, and included the lugging and soldering of approximately 4000 leads. A subcontract covered the fabrication of three motor mounts and a metal cable cover.." Rear Admiral R. L. Moore, Jr. Page 3 Contract MODsr-80908 in described as follows: “The work involved in this contract covered the installation of two Government. furnished AN/FPN-36 Quadradars at the U. S. Naval Air Station, Miramar, San Diego, Cali- fornia. The installations included the run- ning of telephone-type and coaxial cables, ringing out and tagging all pairs at the multiconductors, installing a function bar and connections, installing Government- furnished line amplifiers with mounting brackets and ducting, installing Government- furnished ground rods, fabricating and in, stalling two dollies for indicators and making other related electrical and electronic con- nections." After examining the above descriptions of work and the monetary value of the contracts, it is our position that the work contained in both of the subject contracts is con- struction activity subject to the provisions of the Davis- Bacon Act. It is appreciated by the Office that retroactive corrective action on the instant contracts is not feasible at this time. However, since the Davis-Bacon Act provides that the advertised specifications of every contract to whitch the Act applies, as well as the contract itself, shall contain certain provisions set forth in that Act, I respectfully call this matter to your attention so that the provisions of the Davis-Bacon Act still be included in any there contracts for similar work which may be awarded by your agency. Yory truly yours, Charles Donahue Solicitor of Labor