U.S. Department
of Labor Office of Inspector General
Audit Report
REVIEW OF DAVIS-BACON MODERNIZATION FUNDING
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Report Title: Review of Davis-Bacon Modernization Funding
Report Number: 04-98-003-04-420
Issue Date: February 19, 1998
Congress appropriated $3.75 million in Fiscal Year 1997 to the Employment
Standards Administration, Wage and Hour Division, for the purpose of developing
and implementing improvements to the wage survey and wage determination
systems. At the request of the House Appropriations Committee, the OIG
prepared a compilation of funds used for Davis-Bacon improvements.
We found that the $3.75 million was spent on the following activities:
-
Data Verification. Wage and Hour obligated $512,389 for a public accounting
firm to verify the accuracy of information on WD-10 forms by onsite review
of contractors' payroll records.
-
Bureau of Labor Statistic's (BLS) Surveys. Wage and Hour obligated $313,950
in startup costs for BLS to conduct four fringe benefit surveys in Fiscal
Years 1998 and 1999.
-
Computer Systems Reengineering. Wage and Hour obligated $620,595 for a
computer consulting contractor to perform a Reengineering requirements
analysis and to begin design of a new computer system.
-
Automatic Data Processing (ADP) Hardware/Software. Wage and Hour obligated
$2,187,591 for ADP hardware, software, and telecommunications equipment
for a new computer system.
-
Local Area Network (LAN) Managers. Wage and Hour obligated $117,513 for
its pro rata share of one computer system manager and nine LAN managers
in the Wage and Hour Division's regional and district offices.
The Wage and Hour Division also received $3.75 million in Fiscal Year 1998
to continue Davis-Bacon improvements. Wage and Hour is spending $1,628,700
on two Bureau of Labor Statistic's (BLS) fringe benefit surveys and one
union status survey currently under way. Wage and Hour plans to spend about
$2 million on computer systems contractors who are designing and developing
the new computer system. The remainder will be spent on data verification
and ADP hardware/software.
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