Davis-Bacon Act

Process Changes Could Address Vulnerability to Use of Inaccurate Data in Setting Prevailing Wage Rates Gao ID: T-HEHS-96-166 June 20, 1996

The Congressional Budget Office estimates that in fiscal year 1996,the federal government will spend $42 billion on construction contracts. Given the magnitude of these expenditures, inaccurate wage determinations could lead to excessive government construction costs or to large numbers of workers being paid wages and fringe benefits that are lower than required by law. GAO testified that vulnerabilities exist in the Labor Department's current wage determination process that could result in wage determinations being based on fraudulent or otherwise inaccurate data. GAO urges Labor to improve immediately its process to verify wage data submitted by employers.

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