Labor collects wage and fringe benefit data through voluntary participation in a wage survey. 500) would repeal the Davis-Bacon Act. This information is collected through the voluntary submission of data from employers and third parties on construction projects surveyed for each wage determination. These weaknesses include limitations in the degree to which Labor verifies the accuracy of the survey wage and fringe benefit data it receives, limited computer capabilities and safeguards to review wage data before calculating prevailing wage rates, and an appeals process that may not be well publicized. For example, Labor offices do not have computer software that could detect grossly inaccurate data reported in Labor’s surveys. In response, in its fiscal year 1997 budget request, Labor asked for about $4 million to develop, evaluate, and implement alternative reliable methodologies or procedures that will yield accurate and timely wage determinations at reasonable cost. Because Labor’s appeals process can serve as an additional internal control to guard against the use of fraudulent or inaccurate data in the wage determination process, we recommend that the Secretary of Labor require the Assistant Secretary for Employment Standards to inform employers, unions, and other interested parties of their rights to request summary information on a wage determination and of the agency’s procedures for initiating an appeal of a wage determination. II.2, II.4, and II.5.) These determinations are final.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Labor's efforts to prevent the use of inaccurate wage data for Davis-Bacon Act wage rate determinations, focusing on: (1) the steps Labor follows in collecting and reporting wage data; and (2) weaknesses in Labor's wage determination process.

What GAO Found

GAO found that: (1) Labor's wage determinations are based on voluntary submissions of wage and benefit data from employers and third parties; (2) such internal control weaknesses as inaccurate wage and fringe benefit data, limited computer capability, and an inaccessible appeals process often lead to increased government construction costs or lower wages and fringe benefits for construction workers; (3) Labor began requiring its regional staff to verify third-party wage survey data in August 1995, but the verification does not address erroneous employer-reported data; (4) Labor does not have sufficient computer resources to automate data collection and verification; and (5) Labor requested $4 million in its fiscal year 1997 budget to develop, evaluate, and implement alternative reliable methodologies that will provide accurate and timely wage determinations at a reasonable cost.