U. S. DEPARTMENT OF LABOR OFFICE OF THE SOLICITOR WASHINGTON 25 November 27, 1957 Mr. Charles A. Horsky Covington and Burling Union Trust Building Washington 5, D. C. Dear Mr. Horskys On June 8, 1956, we replied to your request on behalf of the National Sand and Gravel Association, for rulings and opine ions on the applicability of the Davie-Bacon and related Acts to employees of sand and gravel firms engaged in furnishing materials for use in work done under Federal construction con- tracts. Our views were predicated on hypothetical factual situ- ations with the understanding that, should the need for clarifi. cation develop, additional interpretations would be issued. We are now in receipt of your letter of November 15, 1957, advising that since our prior correspondence, one situation has arisen on which you request that we supplement or clarity our letter of June 8, 1956. The situation presented in your letter is as follows: “Smith, a contractor, is engaged in performing a paying contract for a Federal agency at an Air Force Base. In addition to being a paving con- tractor, Smith owns and operates an asphalt plant and a rock quarry located in a nearby city. As- phalt from Smith's plant and rock from Smith's quarry are sold for private construction and are also sold to city, county, state and federal governments and to individuals performing con- struction work for city, county, state and federal governments. Asphalt for the Air Force Base pav- ing project is obtained from the same plant. The question is whether truck drivers who are employees of Smith and who deliver materials to Smith's job at the Air Force Base are covered by the Davis-Bacon Act and related laws prescribing labor standards for construction work. Similarly, what is the Mr. Charles A. Horsky Page 2 situation with respect to Smith's employees at the rock quarry and the asphalt plant sites? "to state the problem more generally, where a firm owns a business and supplies materia1a to the general public, does the fact that it also contracts for the construction of a federal project alter its status as a materialman with respect to the construction materials it produces and delivers for use to con- structing the project?" On review of the factual situation presented above, it is our conclusion that employees of ,Smith at the rock quarry and as- phalt plant engaged in delivering materials to the Federal construc- tion project should not be considered subject to the Davis-Bacon Act even though the project to which the material is delivered As being constructed by the same individual who owns and operates the asphalt plant and rock quarry. The basis for this ruling to as follows: Where a firm one and operates a business that supplies materials to the public, the fact that it also contracts for the construction of a Federal project does not operate to alter its status as a materialman insofar as the delivery of the supplies or materials is concerned. The delivery of the material by em ployees at the asphalt plant and rock quarry is considered func- tionally integrated with and incidental to the sale of the mate- rial and therefore not subject to the Davis-Bacon and related Acts. In other words, the drivers making the delivery are em- ployees of a materialman and, therefore, not covered; provided they perform no additional substantial operation at the project site. The same reasoning would apply to employees other than truck drivers, engaged at the quarry or plant site, their coverage being dependent on whether the operation was that of a true mate- rialman open to the public, or whether the operation was set up exclusively to perform part of the work called for by the con- struction contract. Very truly yours /s/ Stuart Rothnan Solicitor of Labor U. S. DEPARTMENT OF LABOR Office of the Solicitor Washington 25, D. C. April 16, 1958 MEMORANDUM To: AGENCIES ADMINISTERING STATUTES REFERRED TO IN 29 CFR, SUBTITLE A, PART 5, From: Stuart Rothman Solicitor of Labor Subject: Opinion on application of the Davis-Bacon and related Acts. On July 5, 1956 and December 6, 1957, copies of opinions on the above subject were furnished you for informa- tion and guidance in your enforcement programs under the Davis-Bacon and related Acts. Enclosed is a copy of an opinion of December 26, 1957, on this same general problem which we are sure will be of further assistance to you. Enclosure