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(ii) Priority to withheld funds. The Department has priority to funds withheld or to be withheld in
<br /> accordance with paragraph (a)(2)(i) or (b)(3)(i) of this section, or both, over claims to those funds
<br /> by:
<br /> (A) A contractor's surety(ies), including without limitation performance bond sureties and
<br /> payment bond sureties;
<br /> (B) A contracting agency for its re-procurement costs;
<br /> (C)A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a
<br /> contractor, or a contractor's bankruptcy estate;
<br /> (D)A contractor's assignee(s);
<br /> (E) A contractor's successor(s); or
<br /> (F) A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907.
<br /> (4) Subcontracts.The contractor or subcontractor must insert in any subcontracts the clauses set forth
<br /> in paragraphs (b)(1) through (5) of this section and a clause requiring the subcontractors to include
<br /> these clauses in any lower tier subcontracts.The prime contractor is responsible for compliance by any
<br /> subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (b)(1)through (5). In
<br /> the event of any violations of these clauses,the prime contractor, and any subcontractor(s) responsible
<br /> will be liable for any unpaid wages and monetary relief, including interest from the date of the
<br /> underpayment or loss, due to any workers of lower-tier subcontractors, and associated liquidated
<br /> damages and may be subject to debarment, as appropriate.
<br /> (5) Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten,
<br /> restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any
<br /> person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any
<br /> other manner discriminate against, any worker or job applicant for:
<br /> (i) Notifying any contractor of any conduct which the worker reasonably believes constitutes a
<br /> violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing
<br /> regulations in this part;
<br /> (ii) Filing any complaint, initiating, or causing to be initiated any proceeding, or otherwise
<br /> asserting or seeking to assert on behalf of themselves or others any right or protection under
<br /> CWHSSA or this part;
<br /> (iii) Cooperating in any investigation or other compliance action, or testifying in any proceeding
<br /> under CWHSSA or this part; or
<br /> (iv) Informing any other person about their rights under CWHSSA or this part.
<br /> C. Further Compliance with the Contract Work Hours and Safety Standards Act
<br /> (1) The contractor or subcontractor shall maintain payrolls and basic payroll records during the
<br /> course of the work and shall preserve them for a period of three years from the completion of the
<br /> contract for all laborers and mechanics, including guards and watchmen, working on the contract.
<br /> Such records shall contain the name and address of each such employee, social security number,
<br /> correct classifications, hourly rates of wages paid, daily and weekly number of hours worked,
<br /> deductions made, and actual wages paid.
<br /> (2) Records to be maintained under this provision shall be made available by the contractor or
<br /> subcontractor for inspection, copying, or transcription by authorized representatives of the
<br /> Department of Homeland Security, the Federal Emergency Management Agency, and the
<br /> Department of Labor, and the contractor or subcontractor will permit such representatives to
<br /> interview employees during working hours on the job.
<br /> D. Clean Air Act and Federal Water Pollution Control Act:
<br /> (1) Clean Air Act.
<br /> (a) The contractor agrees to comply with all applicable standards, orders or regulations issued
<br /> pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.
<br /> (b) The contractor agrees to report each violation to the OWNER and understands and agrees that
<br /> the OWNER will, in turn, report each violation as required to assure notification to the Federal
<br /> Agreement-00520-11
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