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<classification authority="sudocs">GA 1.13:T-HEHS-96-166</classification>
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 <subject>Wage surveys</subject>
 <subject>Minimum wage rates</subject>
 <subject>Data collection operations</subject>
 <subject>Construction contracts</subject>
 <subject>Labor law</subject>
 <subject>Data integrity</subject>
 <subject>Appellate procedure</subject>
 <subject>Construction costs</subject>
 <subject>Fringe benefits</subject>
 <subject>Labor statistics</subject>
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<titleInfo>
 <title>Davis-Bacon Act: Process Changes Could Address Vulnerability to Use of Inaccurate Data in Setting Prevailing Wage Rates</title>
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<abstract>GAO discussed the vulnerabilities in the Department of Labor&apos;s
prevailing wage determination process under the Davis-Bacon Act. GAO
noted that: (1) Labor sets prevailing wage rates for numerous job
classifications in about 3,000 geographic areas; (2) Labor&apos;s wage
determination process depends on employers&apos; and third parties&apos; voluntary
participation in a survey that reports wage and fringe benefits paid for
similar jobs on comparable construction projects in a given area; (3)
due to limited resources, Labor concentrates on those geographical areas
most in need of wage rate revisions; (4) Labor wage determinations can
be appealed by any interested party; (5) process weaknesses include
limited data verification, limited computer capabilities to detect
erroneous data, and the lack of awareness of the appeals process; (6)
erroneous data could result in setting the wage rate too low so that
construction workers are underpaid or setting the wage rate too high so
that the government incurs excessive construction costs; (7) Labor
initiatives to improve its rate-setting process include having employers
verify certain third-party data, informing survey respondents of the
serious consequences of willfully falsifying wage data, and proposing a
long-term strategy to review the entire wage determination process; and
(8) Labor should immediately improve its verification of employer wage
data and make the appeals process more effective.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-96-166</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Wage surveys</topic>
 <topic>Minimum wage rates</topic>
 <topic>Data collection operations</topic>
 <topic>Construction contracts</topic>
 <topic>Labor law</topic>
 <topic>Data integrity</topic>
 <topic>Appellate procedure</topic>
 <topic>Construction costs</topic>
 <topic>Fringe benefits</topic>
 <topic>Labor statistics</topic>
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