Restricting our analysis to only those fiscal year 1994 inspections in which the company was assessed a significant proposed penalty of $15,000 or more, we found 261 federal contractors had violated the Occupational Safety and Health Act.Because some of the 261 federal contractors owned more than one worksite, we identified a total of 345 inspections, representing 16 percent of all inspections closed in fiscal year 1994 in which a significant proposed penalty was assessed for OSHA violations (see fig. $38 Billion Awarded Primarily From Defense Department

These federal contractors received $38 billion in contracts in fiscal year 1994. Nearly 5 percent received more than $500 million each in federal contracts in fiscal year 1994. However, it is possible, particularly given the size of some federal contractors, that at least some violations occurred at worksites other than those with contract activity. 5). 6.) 7). 8). Also, contractors might be more attentive to their safety and health practices if OSHA were to give inspection priority to those high-hazard workplaces operated by federal contractors. Objectives, Scope, and Methodology

We were asked to (1) determine how many companies receiving federal contracts have also been assessed penalties for violations of occupational safety and health regulations, (2) describe the characteristics of these contractors and their contracts, (3) describe the kinds of violations for which these contractors were cited, and (4) identify ways to improve contractor compliance with workplace safety and health requirements. Using FPDS, we examined total contract dollars awarded by each federal agency.
Why GAO Did This Study

Pursuant to a congressional request, GAO examined federal contractors' compliance with federal occupational safety and health regulations.

What GAO Found

GAO found that: (1) federal contracts are awarded to employers violating the Occupational Safety and Health Act (OSHA); (2) in fiscal year (FY) 1994, 261 federal contractors received penalties of at least $15,000 for violating OSHA regulations; (3) 5 percent of these contractors received more than $500 million in federal contracts; (4) contract violations typically occurred at worksites with fewer than 500 employees and at manufacturing plants; (5) federal contractors received $38 billion in contract dollars for FY 1994; (6) most of the contract violations involved companies' failure to protect their workers from electrical hazard or injury; (7) the actual penalties assessed during contractor worksite inspections totalled $10.9 million; (8) in 8 percent of those inspections, the contractor received a penalty of at least $100,000; (9) some of the federal contractors participated in the OSHA Voluntary Compliance Program; (10) OSHA contracting and debarring officials use safety and health compliance information to make their award decisions; and (11) federal contractors would be more attentive to their safety and health practices if OSHA gave greater priority to those high-hazard workplaces operated by federal contractors.