(a) Statutory provision. Under section 5(a) of the Act, no contract
of the United States (or the District of Columbia) shall be awarded to
the persons or firms appearing on the list distributed by the
Comptroller General giving the names of persons or firms who have been
found to have violated the Act until 3 years have elapsed from the date
of publication of the list. Section 5(a) further states that ``no
contract of the United States shall be awarded * * * to any firm,
corporation, partnership, or association in which such persons or firms
have a substantial interest * * * .'' A finding as to whether persons or
firms whose names appear on the debarred bidders list have a substantial
interest in any other firm, corporation, partnership, or association may
be made through investigation, hearing,
or otherwise pursuant to the Secretary's authority under section 4(a) of
the Act.
(b) Ineligibility. See Sec. 4.188 of this part for the Secretary's
rulings and interpretations with respect to substantial interest.
(c)(1) A request for a determination under this section may be made
by any interested party, including contractors or prospective
contractors, and associations of contractors, representatives of
employees, and interested Government agencies. Such a request shall be
submitted in writing to the Administrator, Wage and Hour Division,
Employment Standards Administration, U.S. Department of Labor,
Washington, DC 20210.
(2) The request shall include a statement setting forth in detail
why the petitioner believes that a person or firm whose name appears on
the debarred bidders list has a substantial interest in any firm,
corporation, partnership, or association which is seeking or has been
awarded a contract of the United States or the District of Columbia. No
particular form is prescribed for the submission of a request under this
section.
(d)(1) The Administrator, on his/her own motion or after receipt of
a request for a determination, may make a finding on the issue of
substantial interest.
(2) If the Administrator determines that there may be a substantial
interest, but finds that there is insufficient evidence to render a
final ruling thereon, the Administrator may refer the issue to the Chief
Administrative Law Judge in accordance with paragraph (e) of this
section.
(3) If the Administrator finds that no substantial interest exists,
or that there is not sufficient information to warrant the initiation of
an investigation, the requesting party, if any, will be so notified and
no further action taken.
(4)(i) If the Administrator finds that a substantial interest
exists, the person or firm affected will be notified of the
Administrator's finding, which shall include the reasons therefor, and
such person or firm shall be afforded an opportunity to request that a
hearing be held to render a decision on the issue of substantial
interest.
(ii) Such person or firm shall have 20 days from the date of the
Administrator's ruling to request a hearing. A detailed statement of the
reasons why the Administrator's ruling is in error, including facts
alleged to be in dispute, if any, shall be submitted with the request
for a hearing.
(iii) If no hearing is requested within the time mentioned in
paragraph (d)(4)(ii) of this section, the Administrator's finding shall
be final and the Administrator shall so notify the Comptroller General.
If a hearing is requested, the decision of the Administrator shall be
inoperative unless and until the Administrative Law Judge or the
Administrative Review Board issues an order that there is a substantial
interest.
(e) Referral to the Chief Administrative Law Judge. The
Administrator on his/her own motion, or upon a request for a hearing
where the Administrator determines that relevant facts are in dispute,
shall by order refer the issue to the Chief Administrative Law Judge,
for designation of an Administrative Law Judge who shall conduct such
hearings as may be necessary to render a decision solely on the issue of
substantial interest. As provided in section 4(a) of the Act, the
provisions of sections 4 and 5 of the Walsh-Healey Public Contracts Act
(41 U.S.C. 38, 39) shall be applicable to such proceedings, which shall
be conducted in accordance with the procedures set forth at 29 CFR part
6.
(f) Referral to the Administrative Review Board. When the person or
firm requests a hearing and the Administrator determines that relevant
facts are not in dispute, the Administrator will refer the issue and the
record compiled thereon to the Administrative Review Board to render a
decision solely on the issue of substantial interest. Such proceeding
shall be conducted in accordance with the procedures set forth at 29 CFR
part 8.
