Alief Montessori Community School

Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition: The Charter Holder did not include in the solicitations for proposals, or the construction contract the Wage Rate Requirement clauses. As a result, the general contractor did not submit to the Charter Holder the required certified payroll reports for each week in which work was performed under the contract. Cause: The request for proposals (RFP) and contract between the Charter Holder and the general contractor did not include the Wage Rate Requirements from the Davis-Bacon Act because the RFP was issued in November 2022 and the contract was awarded in March 2023. The Charter Holder requested for a grant budget amendment in February 2023 after learning that ESSER funds could be used for HVAC improvements with the prior approval from the Texas Education Agency (TEA). The amended grant budget was approved in March 2023 by TEA to use ESSER III funds for the HVAC project in the amount of $68,190, which was a component of a construction project which was already underway. The Charter Holder was unaware of the Wage Rate Requirements for construction projects that are federally funded. In addition, the Charter Holder did not have sufficient controls in place over the Wage Rate Requirements to ensure those charged with project/grant administration complied. Effect: Noncompliance with the requirements of 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction. Recommendation: The Charter Holder should contact the TEA to determine any remedial steps related to this finding. For futureconstruction projects that are funded with federal funds, the Charter Holder should ensure compliance with all Wage Rate Requirements. Views of Responsible Officials: See Corrective Action Plan.

The Charter Holder will contact TEA to clarify if there is non-compliance with ESSER III funding requirements, and if needed, to determine any remedial steps related to this finding. For future construction projects or components thereof, the Charter Holder will not use federal funds. Had the Charter Holder been notified either during ESSER III training or the approval process that this project component would require provisions from the Davis-Bacon Act, Wage Rate Requirements, ESSER III funding would not have been requested. Based on the Charter Holder's financial condition, we would have been more than able to fully fund the minor HV AC remodeling with our local fund. The general contractor is aware of the Davis-Bacon Act requirements for federally funded projects, however, during the planning stage of the project, the RFP was not designed to include provisions on Wage Rate Requirements because the Charter Holder originally planned to utilize its local funds to cover the total construction cost. Anticipated completion date: By December 01, 2023 - contact TEA to clarify non-compliance and if needed, determine remedial steps. Ongoing: Future construction projects will not use federal funds.