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Dept of Labor Seeks to Debar Janitorial Company from Government Contracts

2011-04-10

The Department of Labor (DOL) is seeking debarment of Teltara LLC, Teltara Ndee Tribal Enterprises LLC; Teltara LLC president and owner Ralph Wahlberg; and Teltara LLC vice president and director of contracting Tom Barnes.  The suit would bar the company and its officers, from receiving federal contracts for three years.  DOL claims that the company has had a long history of noncompliance with federal contracting laws, including the McNamara-O'Hara Service Contract Act. 

Investigations by the Wage and Hour Division's Phoenix District Office determined that the company and its officers failed to pay or timely pay $159,871 in required health and welfare benefits, affecting 102 employees and their families.  Some employees were left without health care coverage when the payments were not made.  The unpaid and delinquent funds all have been restored to the workers' benefits plans. 

The affected employees provided janitorial and housekeeping services at military bases in Arizona, California, Pennsylvania, Connecticut, North Carolina and Florida, as well as a Los Angeles federal building.

The McNamara-O'Hara Service Contract Act requires contractors and subcontractors performing on federal service contracts in excess of $2,500 to pay service employees no less than the  wage rates and fringe benefits found prevailing in the locality for the classification of work that they perform.