Opinion ID: 6641633
Heading Depth: 2
Heading Rank: 1

Heading: The Contracts Between CPC and HPD

Text: From 1986 to 1989, CPC was party to a series of three contracts with HPD for the construction, repair, and rehabilitation of certain housing owned by the City (collectively the “Contracts”)- The Contracts were funded in whole or in part by federal grants under the HCDA. Section 5310 of that Act provides generally that laborers employed on construction work financed in whole or in part by HCDA grants “shall be paid wages at rates not less than those prevailing on similar construction in the locality” as determined by the Secretary of Labor (hereinafter “federally recognized prevailing rates”) in accordance with the Davis-Bacon Act, 40 U.S.C. §§ 276a to 276a-5 (1988) (“Davis-Bacon”). See 42 U.S.C. § 5310. The Contracts between CPC and HPD contained certain terms and conditions required by the HCDA. One such provision, entitled “Federal Supplemental Terms and Conditions,” stated that [t]he Contractor acknowledges that this Agreement is funded under a program providing direct financial assistance from the Federal government to the City and HPD and is subject to, and the Contractor shall comply with, the requirements of all applicable Federal Statutes, rules and regulations, including, but not limited to, those set forth in Exhibit F attached to this Agreement. (1986-87 Contract, Article 18, ¶ 18.1.) Exhibit F specified that the Contracts were subject to the conditions of, inter alia, the HCDA and Davis-Bacon: The Davis-Bacon Act: In construction contracts involving an excess of $2000, unless exclusively in connection with the rehabilitation of a structure designed for residential use by less than 8 families, all laborers and mechanics must be payed at a rate not less than those determined by the Secretary of Labor to be prevailing for the locality, which rates are annexed hereto as Exhibit A. These wage rates are a federally mandated minimum.... (1986-87 Contract, Exhibit F, Article 3(b)(i) (emphasis in original).) Each Contract was awarded following the submission of bids in response to HPD’s Requests for Proposals (“RFPs”). The RFPs, which were incorporated in the Contracts, contained express provisions with respect to the wages to be paid workers on projects covered by the Contracts. For example, the RFP for the 1986-87 Contract stated: A Person-Day Rate, which shall be all inclusive of costs within each Proposal, will be the proper method of establishing the overall budget. For example, if $75.00 is the Person-Day Rate, - all costs to run the program, .pay the staff and trainees and provide training equipment and administrative services would be covered by said rate multiplied by the number of trainees multiplied by the number of days worked. (1986-87 RFP General Guidelines ¶ 1 (emphasis omitted).) This RFP also provided that “[tjhere shall be 246 work days in the term of the Contract” (id. ¶ 6 (emphasis omitted)), and that “[a] maximum Person-Day Rate is being set at $90.00” (id. ¶2). The Contract prohibited CPC from receiving any additional funding for “Program Work performed pursuant to this Agreement.” (1986-87 Contract, Article 15, ¶ 15.2.) CPC bid for and won the 1986-87 Contract with a budget that called for 30 trainees working 246 days at the $90 Person-Day Rate. The total contract price was thus $664,200. The 1988 and 1989 Contracts awarded to CPC were similar, though the RFPs permitted, and the Contracts called for, Person-Day Rates of $95.