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District of Columbia Official Code 2001 Edition. |
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Division I. Government of District. |
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Title 2. Government Administration. |
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Chapter 2. Contracts. |
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Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance. |
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Part D. Programs for Certified Business Enterprises. |
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Subpart 2. Requirements of Programs.
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(a) Each agency, including an agency that contracts or procures in whole or in part through the Office of Contracting and Procurement, shall exercise its contracting and procurement authority so as to meet, on an annual basis, the goal of procuring and contracting 50% of the dollar volume of its goods and services, including construction goods and services, to small business enterprises.
(b) The dollar volume referenced in subsection (a) of this section shall be based on the expendable budget of the agency.
(Oct. 20, 2005, D.C. Law 16-33, § 2341, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2341 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
To achieve the goals set forth in this subchapter, the Department shall establish by rules issued pursuant to § 2-218.72, programs for certified business enterprises. The Department shall include among these programs:
(1) A bid preference mechanism for certified business enterprises with principal offices located in an enterprise zone;
(2) A set-aside program for small business enterprises; and
(3) A set-aside program for certified business enterprises for the District of Columbia Supply Schedule.
(Oct. 20, 2005, D.C. Law 16-33, § 2342, 52 DCR 7503; July 18, 2008, D.C. Law 17-207, § 2(g), 55 DCR 6107; Mar. 25, 2009, D.C. Law 17-353, § 243, 56 DCR 1117; Sept. 26, 2012, D.C. Law 19-171, § 12(b), 59 DCR 6190.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-207, in the introductory language, substituted "certified business enterprises" for "local and disadvantaged business enterprises, resident-owned businesses, resident businesses, and local business enterprises with principal offices located in an enterprise zone"; and, in par. (3), substituted "certified" for "local, small, and disadvantaged".
D.C. Law 17-353 validated previously made technical corrections in the introductory language and par. (3).
D.C. Law 19-171, in par. (1), substituted "certified" for "local and disadvantaged business enterprises, resident-owned businesses, resident businesses, and local".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(g) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2342 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(g) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(g) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 17-207, see notes following § 2-218.02.
Law 17-353, the "Technical Amendments Act of 2008", was introduced in Council and assigned Bill No. 17-994 which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 2, 2008, and December 16, 2008, respectively. Signed by the Mayor on January 15, 2009, it was assigned Act No. 17-687 and transmitted to both Houses of Congress for its review. D.C. Law 17-353 became effective on March 25, 2009.
For history of Law 19-171, see notes under § 2-218.13.
(a) In evaluating bids or proposals, agencies shall award preferences as follows:
(1) In the case of proposals, points shall be granted as follows:
(A) Three points for a small business enterprise;
(B) Five points for a resident-owned business;
(C) Five points for a longtime resident business;
(D) Two points for a local business enterprise;
(E) Two points for a local business enterprise with its principal office located in an enterprise zone;
(F) Two points for a disadvantaged business enterprise;
(G) Two points for a veteran-owned business enterprise; and
(H) Two points for a local manufacturing business enterprise.
(2) In the case of bids, a percentage reduction in price shall be granted as follows:
(A) Three percent for a small business enterprise;
(B) Five percent for a resident-owned business;
(C) Ten percent for a longtime resident business;
(D) Two percent for a local business enterprise;
(E) Two percent for a local business enterprise with its principal office located in an enterprise zone; and
(F) Two percent for a disadvantaged business enterprise.
(b) A certified business enterprise shall be entitled to any or all of the preferences provided in this section, but in no case shall a certified business enterprise be entitled to a preference of more than 12 points or a reduction in price of more than 12 percent.
(Oct. 20, 2005, D.C. Law 16-33, § 2343, 52 DCR 7503; Mar. 14, 2007, D.C. Law 16-266, § 2(b), 54 DCR 829; July 18, 2008, D.C. Law 17-207, § 2(h), 55 DCR 6107; Apr. 20, 2010, D.C. Law 18-141, § 2(h), 57 DCR 1485; Sept. 26, 2012, D.C. Law 19-171, § 13(b), 59 DCR 6190.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-266, in subsec. (a)(1)(B), substituted "Five points" for "Three points"; and, in (a)(2)(B), substituted "Five percent" for "Three percent".
D.C. Law 17-207, in pars. (1)(B) and (2)(B), inserted "a" preceding "resident-owned".
D.C. Law 18-141, in subsec. (a)(1), substituted "Five points" for "Ten points" in subpar. (C), deleted "and" from the end of subpar. (E); substituted "; and" for a period at the end of subpar. (F), and added subpars. (G) and (H).
D.C. Law 19-171 repealed subsection (h)(3) of D.C. Law 18-141 that substituted "; and" for a period at the end of subpar. (a)(1)(F).
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(h) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2343 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(h) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(h) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-266, see notes following § 2-218.02.
For Law 17-207, see notes following § 2-218.02.
For Law 18-141, see notes following § 2-218.02.
For history of Law 19-171, see notes under § 2-218.13.
(a) Except as provided in § 2-218.45, each agency shall set aside every contract or procurement of $100,000 or less for small business enterprises; provided, that the agency shall not be required to set aside a contract or procurement if the agency determines in writing that there are not at least 2 responsible certified small business enterprises that can provide the services or goods which are the subject of the contract.
(b) An agency may refuse to award a contract or procurement set aside under this section, and may thereafter issue the contract or procurement in the open market if the agency determines in writing that the bids for the contract or procurement set aside for a small business enterprise are believed to be 12% or more above the likely price on the open market.
(Oct. 20, 2005, D.C. Law 16-33, § 2344, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2344 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
Each agency shall set aside every contract of $100,000 or less for the District of Columbia Supply Schedule for small business enterprises; provided, that the agency shall not be required to set aside a contract if the agency determines in writing that there are not at least 2 responsible certified small business enterprises on the DCSS that can provide the services or goods which are the subject of the contract.
(Oct. 20, 2005, D.C. Law 16-33, § 2345, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2345 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
(a)(1) All construction contracts in excess of $250,000 shall include the following requirements:
(A) At least 35% of the dollar volume shall be subcontracted to small business enterprises; provided, that the costs of materials, goods, and supplies shall not be counted towards the 35% subcontracting requirement unless such materials, goods, and supplies are purchased from small business enterprises; or
(B) If there are insufficient qualified small business enterprises to completely fulfill the requirement of subparagraph (A) of this paragraph, then the subcontracting requirement may be satisfied by subcontracting 35% of the dollar volume to any certified business enterprises; provided, that all reasonable efforts shall be made to ensure that qualified small business enterprises are significant participants in the overall subcontracting work.
(2) All non-construction contracts in excess of $250,000, unless a waiver has been approved by the Office of Contracting and Procurement, shall include the following requirements:
(A) At least 35% of the dollar volume shall be subcontracted to small business enterprises; provided, that the costs of materials, goods, and supplies shall not be counted towards the 35% subcontracting requirement unless such materials, goods, and supplies are purchased from small business enterprises; or
(B) If there are insufficient qualified small business enterprises to completely fulfill the requirement of subparagraph (A) of this paragraph, then the subcontracting requirement may be satisfied by subcontracting 35% of the dollar volume to any certified business enterprises; provided, that all reasonable efforts shall be made to ensure that qualified small business enterprises are significant participants in the overall subcontracting work.
(3) For the purposes of this section, a business enterprise certified as a small business enterprise, local business enterprise, or disadvantaged business enterprise shall not have to comply with the requirements set forth in paragraphs (1) or (2) of this subsection.
(b)(1)(A) Each construction contract for which a certified business enterprise is selected as a prime contractor and is granted points or a price reduction pursuant to § 2-218.43 or is selected through a set-aside program under this subpart shall include a requirement that the business enterprise perform at least 35% of the contracting effort, excluding the cost of materials, goods, and supplies, with its own organization and resources and, if it subcontracts, 35% of the subcontracted effort, excluding the cost of materials, goods, and supplies, shall be with certified business enterprises.
(B) If the total of the contracting effort, excluding the cost of materials, good, and supplies, proposed to be performed by certified business enterprises is less than the amount required by subparagraph (A) of this paragraph, then the business enterprise shall not be eligible to receive preference points or price reductions for a period of not less than 2 years.
(2)(A) Each construction contract for which a joint venture is selected as a prime contractor and is granted points or a price reduction pursuant to § 2- 218.43 or is selected through a set-aside program under this subpart shall include a requirement that the certified business enterprise perform at least 50% of the contracting effort, excluding the cost of materials, goods, and supplies, with its own organization and resources and, if the joint venture subcontracts, 35% of the subcontracted effort, excluding the cost of materials, goods, and supplies, shall be with certified business enterprises.
(B) If the total of the contracting effort, excluding the cost of materials, good, and supplies, proposed to be performed by certified business enterprises is less than the amount required by subparagraph (A) of this paragraph, then the business enterprise shall not be eligible to receive preference points or price reductions for a period of not less than 2 years.
(c) Each construction contract of $1 million or less for which a certified business enterprise is selected as a prime contractor and is granted points or a price reduction pursuant to § 2-218.43 or is selected through a set-aside program under this subpart shall include a requirement that the business enterprise perform at least 50% of the on-site work with its own work force.
(d) Bids or proposals responding to a solicitation, including an open market solicitation, shall be deemed nonresponsive and shall be rejected if the law requires subcontracting and the prime contractor fails to submit a subcontracting plan as part of its bid or proposal. A certified business enterprise subcontracting plan shall specify the following:
(1) The name and address of the subcontractor;
(2) Whether the subcontractor is currently certified as a certified business enterprise;
(3) The scope of work to be performed by the subcontractor; and
(4) The price to be paid by the contractor to the subcontractor.
(e) No prime contractor shall be allowed to amend the subcontracting plan filed as part of its bid or proposal except with the consent of the contracting officer and the Director. Any reduction in the dollar volume of the subcontracted portion resulting from such amendment of the plan shall insure to the benefit of the District.
(f) No multiyear contracts or extended contracts in which the options or extensions exceed $1 million in value, which are not in compliance with this subchapter at the time of the contemplated exercise of the option or extension, shall be renewed or extended, and any such option or extension shall be void.
(g) The subcontracting requirements of this section may be waived pursuant to § 2-218.51.
(h) A prime contractor shall submit to the contracting officer and the Director copies of the executed contracts with the subcontracts identified in the subcontracting plan. Failure to submit copies of the executed contracts shall render the underlying contract voidable by the District.
(i) Beginning on April 20, 2010, each contractor or beneficiary shall provide a copy of the contract, which includes the subcontracting plan for utilization of certified business enterprises, within 10 business days of its execution to the Office of District of Columbia Auditor. A quarterly report shall be provided to the Department and the Office of District of Columbia Auditor by the contractor or beneficiary, which shall include a list of each subcontractor identified in the subcontracting plan for utilization of certified business enterprises, and for each subcontract:
(1) The price to be paid by the contractor to the subcontractor;
(2) A description of the goods procured or the services contracted for; and
(3) The amount paid by the contractor to the subcontractor.
(Oct. 20, 2005, D.C. Law 16-33, § 2346, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2132(e), 53 DCR 6899; July 18, 2008, D.C. Law 17-207, § 2(i), 55 DCR 6107; Apr. 20, 2010, D.C. Law 18-141, § 2(i), 57 DCR 1485; May 27, 2010, D.C. Law 18-159, § 2(b), 57 DCR 3006; Sept. 26, 2012, D.C. Law 19- 171, § 12(c), 59 DCR 6190.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192, in the section heading, inserted "and non-construction" following "construction"; added subsec. (a)(3); in subsec. (e), substituted "dollar volume" for ''dollar value"; and added subsec. (h).
D.C. Law 17-207 rewrote subsec. (a); and, in subsecs. (b), (c), and (d), substituted "certified" for "small, local, or disadvantaged". Prior to amendment, subsec. (a) read as follows:
"(a)(1) All construction contracts shall include a requirement that at least 35% of the dollar value, excluding the cost of materials, goods, and supplies, be subcontracted to small business enterprises, except that if there are insufficient qualified small business enterprises to fulfill this requirement, then 35% of the dollar value, excluding the cost of materials, goods, and supplies, shall be subcontracted to local, small, or disadvantaged business enterprises.
"(2) Reserved.
"(3) All non-construction contracts in which a portion will be subcontracted shall include a requirement that at least 35% of the dollar volume, excluding the cost of materials, goods, and supplies, be subcontracted to local small business enterprises, except that if there are insufficient qualified local small business enterprises to fulfill this requirement, then 35% of the dollar volume, excluding the cost of materials, goods, and supplies, shall be subcontracted to local, small, or disadvantaged business enterprises."
D.C. Law 18-141, in subsec. (a)(2), substituted "excess of $250, 000, unless a waiver has been approved by the Office of Contracting and Procurement," for "which a portion of the work is subcontracted"; added subsec. (a)(3); in subsec. (d), substituted "the law requires subcontracting" for "the solicitation requires submission of a certified business enterprise subcontracting plan"; and added subsec. (i).
D.C. Law 18-159, in subsec. (i), substituted "each contractor or beneficiary shall provide a copy of the contract," for "each developer or beneficiary shall provide a copy of the certified business agreement,".
D.C. Law 19-171, in subsec. (i), substituted "contractor" for "developer".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(a) of Department of Small and Local Business Development Clarification Temporary Amendment Act of 2005 (D.C. Law 16-49, February. 9, 2006, law notification 53 DCR 1457).
For temporary (225 day) amendment of section, see § 2(d) of the Department of Small and Local Business Development Subcontracting Clarification Temporary Amendment Act of 2006 (D.C. Law 16-214, March 6, 2007, law notification 54 DCR 2761).
For temporary (225 day) amendment of section, see § 2(i) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2346 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(a) of Department of Small and Local Business Development Clarification Emergency Act of 2005 (D.C. Act 16-191, October 28, 2005, 52 DCR 10026).
For temporary (90 day) amendment of section, see § 2(a) of Department of Small and Local Business Development Clarification Congressional Review Emergency Act of 2006 (D.C. Act 16-301, February 27, 2006, 53 DCR 1883).
For temporary (90 day) amendment of section, see § 2132(e) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(e) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2(d) of Department of Small and Local Business Development Subcontracting Clarification Emergency Amendment Act of 2006 (D.C. Act 16-513, October 25, 2006, 53 DCR 9091).
For temporary (90 day) amendment of section, see § 2(d) of Department of Small and Local Business Development Subcontracting Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-575, December 19, 2006, 54 DCR 24).
For temporary (90 day) amendment of section, see § 2132(e) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 2(i) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(i) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-192, see notes following § 2-218.31.
For Law 17-207, see notes following § 2-218.02.
For Law 18-141, see notes following § 2-218.02.
Law 18-159, the "Small Business Stabilization and Job Creation Strategy Amendment Act of 2010", was introduced in Council and assigned Bill No. 18-457, which was referred to the Committee on Economic Development. The bill was adopted on first and second readings on February 2, 2010, and March 2, 2010, respectively. Signed by the Mayor on March 25, 2010, it was assigned Act No. 18-350 and transmitted to both Houses of Congress for its review. D.C. Law 18- 159 became effective on May 27, 2010.
For history of Law 19-171, see notes under § 2-218.13.
The Mayor shall establish procedures to ensure that solicitations are subdivided and unbundled and that smaller contracts are created to the extent feasible and fiscally prudent.
(Oct. 20, 2005, D.C. Law 16-33, § 2347, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2347 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
(a) There shall be a rebuttable presumption that a contractor willfully breached a subcontracting plan for utilization of certified business enterprises in the performance of a contract if the contractor:
(1) Fails to submit any required subcontracting plan monitoring or compliance report;
(2) Submits a monitoring or compliance report containing a false statement; or
(3) Fails to disclose required information.
(b) The presumption that a contractor willfully breached a subcontracting plan for utilization of certified business enterprises may be rebutted with a showing, by clear and convincing evidence, of full compliance with the requirements set forth in the subcontracting plan for utilization of certified business enterprises.
(c) A contractor that is found to have willfully breached a subcontracting plan for utilization of certified business enterprises shall be subject to the imposition of penalties, including monetary fines of $ 15,000 or 5% of the total amount of the work that the contractor was to subcontract to certified business enterprises, whichever is greater, for each breach.
(Oct. 20, 2005, D.C. Law 16-33, § 2348, 52 DCR 7503; July 18, 2008, D.C. Law 17-207, § 2(j), 55 DCR 6107; Apr. 20, 2010, D.C. Law 18-141, § 2(j), 57 DCR 1485; May 27, 2010, D.C. Law 18-159, § 2(c), 57 DCR 3006.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-207 substituted "certified business enterprises" for "local, small, or disadvantaged businesses" in two places.
D.C. Law 18-141 rewrote the section, which had read as follows:
"The willful breach by a contractor of a subcontracting plan for utilization of certified business enterprises in the performance of a contract, the failure to submit any required subcontracting plan monitoring or compliance report, or the deliberate submission of falsified data may be enforced by the Department through the imposition of penalties, including monetary fines of $15,000 or 5% of the total amount of the work that the contractor was to subcontract to certified business enterprises, whichever is greater, for each such breach, failure, or falsified submission."
D.C. Law 18-159, in subsec. (a), deleted "or" from the end of par. (1), rewrote par. (2), and added par. (3). Prior to amendment, subsec. (a)(2) read as follows:
"(2) Submits a monitoring or compliance report with the intent to defraud, by means of a false statement, failure to disclose information, or other fraudulent scheme or device."
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(j) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2348 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(j) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(j) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 17-207, see notes following § 2-218.02.
For Law 18-141, see notes following § 2-218.02.
For Law 18-159, see notes following § 2-218.46.
(a) The Mayor shall establish policies and procedures to maximize the participation of certified business enterprises in the contracting and procurement processes, including:
(1) A procedure whereby an agency may waive bid security requirements on contracts in excess of $100,000, where the waiver is appropriate to achieve the purposes of this subchapter; and
(2) A policy whereby an agency shall make advance payments to a certified contractor, where the payments are necessary to achieve the purposes of this subchapter.
(b) The Mayor may establish a pilot set-aside program for small business enterprises with gross revenues of $5 million or less.
(Oct. 20, 2005, D.C. Law 16-33, § 2349, 52 DCR 7503; July 18, 2008, D.C. Law 17-207, § 2(k), 55 DCR 6107.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-207, in subsec. (a), substituted "certified" for "small, local, and disadvantaged".
Emergency Act Amendments
For temporary (90 day) addition, see § 2349 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 17-207, see notes following § 2-218.02.
(a) Local business enterprises, small business enterprises, or disadvantaged business enterprises shall receive 20% in equity participation and 20% in development participation in all development projects supported by District funds and in all development projects that take place on District-owned property.
(a-1)(1) No more than 25% of the total 20% equity participation requirement ("equal to 5%") set forth in subsection (a) of this section may be met by a certified business enterprise providing development services in lieu of a cash equity investment that will be compensated by the developer in the future at a date certain ("sweat equity contribution").
(2) The developer and the certified business enterprise shall sign a service agreement describing the following:
(A) A detailed description of the scope of work that the certified business enterprise will perform;
(B) The dollar amount that the certified business enterprise will be compensated for its services and the amount the certified business enterprise is forgoing as an investment in a project;
(C) The date or time period when the certified business enterprise will receive compensation;
(D) The return, if any, the certified business enterprise will receive on its sweat equity contribution; and
(E) An explanation of when the certified business enterprise will receive its return as compared to other team members or investors.
(3) If a developer is unable to meet the 20% equity participation requirement, including sweat equity contribution and cash equity investment, the developer shall pay to the District the outstanding cash equity amount as a fee in lieu of the unmet equity participation requirement. Any fee collected in accordance with this provision shall be deposited into the Small Business Micro Loan Fund established by § 2-218.75(b).
(4) Any administrative costs associated with subsection (a)(3) of this section shall be reimbursed through fees collected by the District as a result of unmet equity and development participation requirements. The collected fees shall be used as follows:
(A) Fifty percent shall be used to support vocational training programs benefitting District residents.
(B) The remainder shall be used to provide:
(i) Low-interest loans for small businesses located in a Main Street, Great Street, or underserved area in the District; and
(ii) Grants to small businesses negatively impacted by District subsidized construction or street-scaping projects.
(C) The prescribed uses of the Small Business Micro Loan Fund established by this paragraph shall be in addition to the uses of the Small Business Micro Loan Fund established by § 2-218.75(b).
(5) The Department of Small and Local Business Development shall:
(A) Issue a solicitation for the grant and loan applications described in paragraph (4)(B) of this subsection;
(B) Manage, receive, and review the grant and loan applications; and
(C) Determine which vocational training programs and small businesses shall receive assistance pursuant to paragraph (4)(A) and (B) of this subsection.
(b) The participation requirement shall include all development projects undertaken by government corporations and all development projects resulting from contractual relationships where District owned real property is transferred to a third party.
(c) The Mayor shall promulgate proposed rules to implement the provisions of this section within 90 days of March 2, 2007. The Mayor shall submit the proposed rules to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within the 45-day review period, the proposed rules shall be deemed approved.
(d) This section shall not apply if the entity that controls the development project is an entity tax-exempt under section 501(c) of the Internal Revenue Code of 1986, approved August 16, 1954 (68A Stat. 163; 26 U.S.C. § 501(c)), or other not-for-profit entity.
(e) This section shall not apply to any development project for which a contract for purchase of one or more parcels of real property has been executed prior to March 2, 2007.
(Oct. 20, 2005, D.C. Law 16-33, § 2349a, as added Mar. 2, 2007, D.C. Law 16-192, § 2132(f), 53 DCR 6899; Apr. 20, 2010, D.C. Law 18-141, § 2(k), 57 DCR 1485; Apr. 8, 2011, D.C. Law 18-357, § 2(a), 58 DCR 763.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 18-141 rewrote subsec. (a); and added subsec. (a-1). Prior to amendment, subsec. (a) read as follows:
"(a) Local, small, and disadvantaged business enterprises shall receive 20% in equity and development participation in all development projects supported by District funds and in all development projects that take place on District owned property."
D.C. Law 18-357, in subsec. (a-1)(3), substituted "in lieu of the unmet equity participation requirement. Any fee collected in accordance with this provision shall be deposited into the Small Business Micro Loan Fund established by § 2- 218.75(b)." for "in lieu of the unmet equity participation requirement."; added subsec. (a-1)(4)(C); and, in subsec. (a-1)(5), substituted "Department of Small and Local Business Development" for "Office of the Deputy Mayor for Planning and Economic Development".
Emergency Act Amendments
For temporary (90 day) addition of section, see § 2132(f) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) addition of section, see § 2132(f) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) addition of section, see § 2132(f) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 2(a) of Alternative Equity Payment Allocation Emergency Amendment Act of 2010 (D.C. Act 18-589, October 20, 2010, 57 DCR 10143).
For temporary (90 day) amendment of section, see § 2(a) of Alternative Equity Payment Allocation Congressional Review Emergency Amendment Act of 2011 (D.C. Act 19-1, February 2, 2011, 58 DCR 1236).
Legislative History of Laws
For Law 16-192, see notes following § 2-218.31.
For Law 18-141, see notes following § 2-218.02.
Law 18-357, the "Alternative Equity Payment Allocation Amendment Act of 2010", was introduced in Council and assigned Bill No. 18-1047, which was referred to the Committee on Economic Development. The Bill was adopted on first and second readings on December 7, 2010, and December 21, 2010, respectively. Signed by the Mayor on January 19, 2011, it was assigned Act No. 18-357 and transmitted to both Houses of Congress for its review. D.C. Law 18-357 became effective on April 8, 2011.
(a) A government corporation shall comply with all provisions of this subchapter.
(b)(1)(A) A government corporation shall take all measures as shall be reasonably necessary to assure that all contracts entered into by the government corporation, or any agency or subsidiary of the government corporation, with respect to each major phase of the development and construction of a project undertaken by the government corporation, including contracts for professional services, architectural, engineering, and other construction-related services and construction trade work, shall provide that at least 35% of the work on the project shall be awarded to small business enterprises; provided, that the costs of materials, goods, and supplies shall not be counted towards the 35% subcontracting requirement unless such materials, goods, and supplies are purchased from small business enterprises.
(B) If there are insufficient qualified small business enterprises to fulfill the small business enterprise contracting requirement, then the subcontracting requirement may be satisfied by subcontracting 35% of the dollar volume of the project to any certified business enterprises; provided, that all reasonable efforts shall be made to ensure that qualified small business enterprises are significant participants in the overall subcontracting work.
(2) Of the work required to be awarded pursuant to paragraph (1) of this subsection, at least 10% of those business enterprises shall be located in the ward in which the work is being performed.
(3) If 35% of the work required to be awarded pursuant to paragraph (1) of this subsection, is unattainable, the government corporation shall report this fact to the Council for reconsideration of this requirement.
(c) The subcontracting requirement of subsection (b) of this section may be waived pursuant to § 2-218.51.
(d)(1) A government corporation shall take all measures as shall be reasonably necessary to assure that all contracts entered into by the government corporation, or any agency or subsidiary of the government corporation, with respect to the development and construction of a project undertaken by the government corporation, comply with the First Source Employment requirements of subchapter X of Chapter 2 of Title 2.
(2) Of the jobs required to be filed pursuant to paragraph (1) of this subsection, at least 20% of those jobs shall be designated for residents in the ward in which the work is being performed.
(e)(1) A government corporation shall take all measures as shall be reasonably necessary to assure that all contracts entered into by the government corporation or any agency or subsidiary of the government corporation with respect to the development and construction of a project undertaken by the government corporation shall comply with the requirements of subchapter I of Chapter 14 of Title 32.
(2)(A) Fifty percent of all apprenticeship hours performed pursuant to any apprenticeship programs related to the construction and operation of a project undertaken by the government corporation shall be performed by District of Columbia residents.
(B) Any prime contractor or subcontractor that fails to make a good faith effort to comply with the requirements of this paragraph shall be subject to a monetary fine in the amount of 5% of the direct or indirect labor costs of the contract. Fines shall be imposed by the Department of Employment Services to be applied to job training programs, subject to appropriations by Congress.
(f) Beginning with the first full quarter after April 20, 2010, each government corporation shall provide a quarterly report for every quarter, except for the 4th quarter, to the Department and to the District of Columbia Auditor within 30 days after the end of each quarter. The 4th quarter and annual report shall be submitted together. A quarterly report shall include the following information:
(1) The dollar volume and percentage of awards to local, small, and disadvantaged business enterprises in construction and development projects;
(2) The dollar volume and percentage of awards to local, small, and disadvantaged business enterprises in development projects as equity partners;
(3) The dollar volume and percentage of awards to certified business enterprises for contracting and procurement of goods and services;
(4) The dollar amount actually expended with local, small, and disadvantaged business enterprises in construction and development projects;
(5) The dollar amount actually expended with certified business enterprises in development projects as equity partners; and
(6) The dollar amount actually expended with certified business enterprises for contracting and procurement of goods and services.
(g) Beginning with fiscal year 2006, each government corporation shall provide an annual report to the Department and to the District of Columbia Auditor within 45 days after the end of each fiscal year. The annual report shall include the information required to be included in the quarterly reports (with the dollar percentages and volumes calculated on an annual basis, including 4th quarter reports).
(h) The District of Columbia Auditor shall monitor government corporation compliance with the reporting requirements of this section.
(i) The Department shall review the annual report of a government corporation to determine whether the planned activities of the government corporation for the succeeding fiscal year are likely to enable the government corporation to achieve the goals set forth in this section. The Department shall make recommendations concerning activities in which the government corporation should engage in to meet or exceed the requirements set forth in this section. The Department's recommendations shall be submitted to the government corporation, the Commission, the Council, the Mayor, and the District of Columbia Auditor within 30 days of the government corporation's annual report submission.
(j) The Department may review the annual report of a government corporation to determine whether the planned activities of the government corporation for the succeeding fiscal year are likely to enable the government corporation to achieve the goals set forth in this section. The Department may make recommendations concerning activities in which the government corporation should engage in to meet or exceed the requirements set forth in this section. The Department's recommendations, if any, shall be submitted to the government corporation and the District of Columbia Auditor.
(Oct. 20, 2005, D.C. Law 16-33, § 2350, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 2132(g), 53 DCR 6899; July 18, 2008, D.C. Law 17-207, § 2(l), 55 DCR 6107; Mar. 3, 2010, D.C. Law 18-111, § 2222(a), 57 DCR 181; Apr. 20, 2010, D.C. Law 18-141, § 2(l), 57 DCR 1485; Sept. 26, 2012, D.C. Law 19-171, § 14, 59 DCR 6190.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192, in subsec. (b)(1)(B), substituted "dollar volume" for "dollar value".
D.C. Law 17-207 rewrote subsec. (b)(1); and, in subsecs. (f)(3) and (g)(2)(A), substituted "certified" for "local, small, and disadvantaged". Prior to amendment, subsec. (b)(1) read as follows:
"(b)(1)(A) A government corporation shall take all measures as shall be reasonably necessary to assure that all contracts entered into by the government corporation, or any agency or subsidiary of the government corporation, with respect to each major phase of the development and construction of a project undertaken by the government corporation, including contracts for architectural, engineering, and construction services, shall provide that at least 35% of the work in the aggregate under such contracts shall be awarded to small business enterprises.
"(B) In the event that there are insufficient qualified small business enterprises to fulfill this requirement, 35% of the dollar volume, excluding the cost of materials, goods, and supplies, shall be subcontracted to local, small, or disadvantaged business enterprises."
D.C. Law 18-111, in subsec. (f), substituted "March 3, 2010" for "October 20, 2005" in the lead-in text, deleted "and" from the end of par. (2), substituted a semicolon for a period at the end of par. (3), and added pars. (4 to (6); in subsec. (g), substituted ", volumes, and amounts" for "and volumes"; rewrote subsec. (i); and, in subsec. (j), substituted "Department" for "Commission" twice, and rewrote the last sentence, which had read as follows: "The Commission's recommendations shall be submitted to the government corporation, the Council, and the Department.". Prior to amendment, subsec. (i) read as follows:
"(i) The Department shall review the annual report of each government corporation to determine whether the planned activities of the government corporation for the succeeding fiscal year are likely to enable the agency to achieve the requirements set forth in this section. The Department shall make recommendations on activities the government corporation should engage in to meet or exceed the requirements set forth in this section. The Department's recommendations shall be submitted to the government corporation, the Council, and the Commission."
D.C. Law 18-141 rewrote subsecs. (f), (g), (h), and (i), which had read as follows:
"(f) Beginning with the first full quarter after March 3, 2010, each government corporation shall provide a quarterly report to the Department within 30 days after the end of each quarter. The quarterly report shall include the following information:
"(1) The dollar volume and percentage of awards to local, small, and disadvantaged business enterprises in construction and development projects;
"(2) The dollar volume and percentage of awards to local, small, and disadvantaged business enterprises in development projects as equity partners;
"(3) The dollar volume and percentage of awards to certified business enterprises for contracting and procurement of goods and services;
"(4) The dollar amount actually expended with local, small, and disadvantaged business enterprises in construction and development projects;
"(5) The dollar amount actually expended with certified business enterprises in development projects as equity partners; and
"(6) The dollar amount actually expended with certified business enterprises for contracting and procurement of goods and services.
"(g) Beginning with fiscal year 2006, each government corporation shall provide an annual report to the Department within 45 days after the end of each fiscal year. The annual report shall include:
"(1) The information required to be included in the quarterly reports (with the dollar percentages and volumes calculated on an annual basis);
"(2) The dollar volume and percentage of the contracts and procurements awarded during the fiscal year which were actually paid (including payments through subcontracting) to:
"(A) Certified business enterprises;
"(B) Local businesses enterprises;
"(C) Small business enterprises; and
"(D) Disadvantaged business enterprises;
"(3) A description of the activities the government corporation engaged in, including the programs required by this part, in order to achieve the requirements set forth in this section; and
"(4) A description of any changes the government corporation intends to make during the succeeding fiscal year to the activities it engages in to achieve the requirements set forth in this section.
"(h) The Department shall monitor government corporation compliance with the reporting requirements of this section.
"(i) The District of Columbia Auditor shall review the annual report of each government corporation to determine whether the planned activities of the government corporation for the succeeding fiscal year are likely to enable the agency to achieve the requirements set forth in this section. The District of Columbia Auditor shall make recommendations on activities the government corporation should engage in to meet or exceed the requirements set forth in this section. The District of Columbia Auditor's recommendations shall be submitted to the government corporation, the Council, the Mayor, and the Department."
D.C. Law 19-171, in subsec. (f), validated a previously made technical correction.
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(e) of the Department of Small and Local Business Development Subcontracting Clarification Temporary Amendment Act of 2006 (D.C. Law 16-214, March 6, 2007, law notification 54 DCR 2761).
For temporary (225 day) amendment of section, see § 2(k) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2350 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2132(g) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(g) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2(e) of Department of Small and Local Business Development Subcontracting Clarification Emergency Amendment Act of 2006 (D.C. Act 16-513, October 25, 2006, 53 DCR 9091).
For temporary (90 day) amendment of section, see § 2(e) of Department of Small and Local Business Development Subcontracting Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-575, December 19, 2006, 54 DCR 24).
For temporary (90 day) amendment of section, see § 2132(g) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 2(k) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(k) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
For temporary (90 day) amendment of section, see § 2222(a) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2222(a) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-192, see notes following § 2-218.31.
For Law 17-207, see notes following § 2-218.02.
Law 18-111, the "Fiscal Year 2010 Budget Support Act of 2009", was introduced in Council and assigned Bill No. 18-203, which was referred to the Committee on the Whole. The bill was adopted on first and second readings on May 12, 2009, and September 22, 2009, respectively. Signed by the Mayor on December 18, 2009, it was assigned Act No. 18-255 and transmitted to both Houses of Congress for its review. D.C. Law 18-111 became effective on March 3, 2010.
For Law 18-141, see notes following § 2-218.02.
For history of Law 19-171, see notes under § 2-218.13.
(a) The Director may waive the subcontracting requirements of §§ 2-218.46 and 2-218.50 pursuant to this section.
(b) A contracting officer may request that the Director waive the subcontracting requirements for a particular contract by submitting to the Director with the request for waiver a statement of the reasons that justify a waiver.
(c) Repealed.
(d)(1) The Director shall approve a waiver of the subcontracting requirements of §§ 2-218.46 and 2-218.50 requested by a contracting officer if the Director finds that no qualified business enterprises are available to satisfy the subcontracting requirements.
(2) The Director shall waive the subcontracting requirements of §§ 2-218.46 and 2-218.50 if the Director finds that a waiver is necessary to achieve the purposes of this subchapter.
(e) In addition to a waiver granted pursuant to subsection (d) of this section, the Director may grant a waiver or modification of a subcontracting plan requested by the contracting officer if the Director finds that the applicant has made a good faith effort to meet the requirements of §§ 2-218.46 and 2-218.50. In making a good faith determination, the Director shall consider the following factors:
(1) Whether the applicant conducted any pre-solicitation or pre-bid conferences to inform certified business enterprises of contracting and subcontracting opportunities;
(2) Whether the applicant advertised in general circulation, trade association, and ethnic-focus media concerning the contracting and subcontracting opportunities;
(3) Whether the applicant provided written notice to a reasonable number of specific certified business enterprises, in sufficient time to allow certified business enterprises to participate effectively, that their interest in the contract was being solicited;
(4) Whether the applicant followed up initial solicitations of interest by conducting negotiations with certified business enterprises;
(5) Whether rejections by the applicant of certified business enterprises as being unqualified were based on sound reasoning and thorough investigation of their capabilities;
(6) Whether the applicant made efforts to assist interested certified business enterprises in obtaining bonding, lines of credit, or insurance required by the applicant;
(7) Whether the applicant effectively used the services of the Commission in recruiting qualified and responsible certified business enterprises;
(8) Whether bids submitted by certified business enterprises were excessive or noncompetitive based upon a review of prevailing market conditions; and
(9) Any other factors which may be relevant in a particular case.
(f)(1) The contracting officer shall provide written notice of the waiver of the subcontracting requirements of §§ 2-218.46 and 2-218.50 to the applicant prior to the acceptance of bids or proposals and upon approval of the waiver by the Director.
(Oct. 20, 2005, D.C. Law 16-33, § 2351, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 5(o)(2), 53 DCR 6794; Sept. 18, 2007, D.C. Law 17-20, § 2062(f), 54 DCR 7052; July 18, 2008, D.C. Law 17-207, § 2(m), 55 DCR 6107.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-191 validated a previously made technical correction.
D.C. Law 17-20 repealed subsec. (c); and, in subsec. (d)(2), substituted "Director" for "Commission". Prior to repeal, subsec. (c) read as follows:
"(c) The Commission may find that a waiver of the subcontracting requirements of §§ 2-218.46 and 2-218.50 for a particular contract are justified in order to achieve the purposes of this subchapter."
D.C. Law 17-207, in subsec. (e), substituted "certified" for "small, local, or disadvantaged".
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(l) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2351 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2062(f) of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).
For temporary (90 day) amendment of section, see § 2(l) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(l) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 16-191, see notes following § 2-218.02.
For Law 17-20, see notes following § 2-215.24.
For Law 17-207, see notes following § 2-218.02.
If an agency fails to meet any of the goals set forth in § 2-218.41, the Department may require that a portion of the agency's contracts and procurements be made part of a set-aside program for small business enterprises.
(Oct. 20, 2005, D.C. Law 16-33, § 2352, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2352 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
(a) Each agency shall submit a quarterly report to the Department and to the District of Columbia Auditor within 30 days after the end of each quarter, except for the 4th quarter report. The 4th quarter and annual report shall be submitted together. When submitting a quarterly report, each agency shall list each expenditure as it appears in the general ledger from the expendable budget of the agency during the quarter, which shall include:
(1) The name of the vendor from which the goods or services were purchased;
(2) The vendor identification number as it appears in the general ledger;
(3) A description of the goods or services;
(4) Whether the vendor was a certified small business enterprise;
(5) The funding source for the expenditure (local, federal, capital, or other);
(6) The date of the expenditure;
(7) The dollar amount of the expenditure; and
(8) If the vendor is a certified business enterprise, the percentage the amount from paragraph (7) of this subsection is of the agency's total expenditure on all certified business enterprises.
(b) Each agency shall submit to the Department and the District of Columbia Auditor, within 30 days of the issuance of the Comprehensive Annual Financial Report, an annual report listing each expenditure as it appears in the general ledger from the expendable budget of the agency during the fiscal year which shall include:
(1) The information required to be included in the quarterly reports (with calculations for the fiscal year);
(2) A description of the activities the agency engaged in, including the programs required by this part, to achieve the goals set forth in § 2- 218.41; and
(3) A description of any changes the agency intends to make during the succeeding fiscal year to the activities it engages in to achieve the goals set forth in § 2-218.41.
(c) The Department shall monitor agency compliance with the reporting requirements of this section.
(d) The District of Columbia Auditor shall review the annual report of each agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in § 2-218.41. The District of Columbia Auditor shall make recommendations on activities the agency should engage in to meet or exceed the goals set forth in § 2-218.41. The District of Columbia Auditor's recommendations shall be submitted to the agency, the Council, and the Department.
(e) The Department shall review the annual report of an agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in § 2-218.41. The Department shall make recommendations on activities the agency should engage in to meet or exceed the goals set forth in § 2-218.41. The Department's recommendations shall be submitted to the agency, the Office of District of Columbia Auditor, and the Council within 30 days of the agency's annual report submission.
(Oct. 20, 2005, D.C. Law 16-33, § 2353, 52 DCR 7503; July 18, 2008, D.C. Law 17-207, § 2(n), 55 DCR 6107; Mar. 3, 2010, D.C. Law 18-111, § 2222(b), 57 DCR 181; Apr. 20, 2010, D.C. Law 18-141, § 2(m), 57 DCR 1485; May 27, 2010, D.C. Law 18-159, § 2(d), 57 DCR 3006.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-207, in subsec. (a)(1)(D), substituted "certified" for "local, small, or disadvantaged"; and, in subsecs. (a)(2)(A), (3)(A), (b)(2)(A), substituted "Certified" for "Local, small, or disadvantaged".
D.C. Law 18-111 rewrote the section, which had read as follows:
"(a) Each agency shall submit to the Department, within 30 days after the end of the quarter, a quarterly report listing each expenditure as it appears in the general ledger from the expendable budget of the agency during the quarter, which shall include:
"(1) The name of the vendor from which the goods or services were purchased;
"(2) The vendor identification number as it appears in the general ledger;
"(3) A description of the goods or services;
"(4) Whether the vendor was a certified Small Business Enterprise;
"(5) The funding source for the expenditure (local, federal, other, or capital);
"(6) The date of the expenditure;
"(7) The dollar amount of the expenditure; and
"(8) The total expenditure on Small Business Enterprises and the percentage that the total expenditure on Small Business Enterprises is when compared to the total expenditure.
"(b) Each agency shall submit to the Department, within 30 days of the issuance of the Comprehensive Annual Financial Report, an annual report listing each expenditure as it appears in the general ledger from the expendable budget of the agency during the fiscal year which shall include:
"(1) The information required to be included in the quarterly reports (with calculations for the fiscal year);
"(2) A description of the activities the agency engaged in, including the programs required by this part, to achieve the goals set forth in § 2-218.41; and
"(3) A description of any changes the agency intends to make during the succeeding fiscal year to the activities it engages in to achieve the goals set forth in § 2-218.41.
"(c) The Department shall monitor agency compliance with the reporting requirements of this section.
"(d) The District of Columbia Auditor shall review the annual report of each agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in § 2-218.41. The District of Columbia Auditor shall make recommendations on activities the agency should engage in to meet or exceed the goals set forth in § 2-218.41. The District of Columbia Auditor's recommendations shall be submitted to the agency, the Council, and the Department.
"(e) The Department may review the annual report of an agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in § 2-218.41. The Department may make recommendations on activities the agency should engage in to meet or exceed the goals set forth in § 2-218.41. The Department's recommendations, if any, shall be submitted to the agency and the Council."
D.C. Law 18-141 rewrote subsecs. (a) and (e); and, in subsec. (b), substituted "the Department and the District of Columbia Auditor" for "the Department". Prior to amendment, subsecs. (a) and (e) read as follows:
"(a) Each agency shall submit to the Department, within 30 days after the end of the quarter, a quarterly report listing each expenditure as it appears in the general ledger from the expendable budget of the agency during the quarter, which shall include:
"(1) The name of the vendor from which the goods or services were purchased;
"(2) The vendor identification number as it appears in the general ledger;
"(3) A description of the goods or services;
"(4) Whether the vendor was a certified Small Business Enterprise;
"(5) The funding source for the expenditure (local, federal, other, or capital);
"(6) The date of the expenditure;
"(7) The dollar amount of the expenditure; and
"(8) The total expenditure on Small Business Enterprises and the percentage that the total expenditure on Small Business Enterprises is when compared to the total expenditure."
"(e) The Department may review the annual report of an agency to determine whether the planned activities of the agency for the succeeding fiscal year are likely to enable the agency to achieve the goals set forth in § 2-218.41. The Department may make recommendations on activities the agency should engage in to meet or exceed the goals set forth in § 2-218.41. The Department's recommendations, if any, shall be submitted to the agency and the Council."
D.C. Law 18-159, in the lead-in language of subsec. (a), inserted "The 4th quarter and annual report shall be submitted together."; and rewrote subsec. (a)(8), which had read as follows:
"(8) The total expenditure on certified small business enterprises and the percentage the total expenditure on certified small business enterprises is of the total expenditure."
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(m) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2353 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(m) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(m) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
For temporary (90 day) amendment of section, see § 2222(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2222(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
For Law 17-207, see notes following § 2-218.02.
For Law 18-111, see notes following § 2-218.50.
For Law 18-141, see notes following § 2-218.02.
For Law 18-159, see notes following § 2-218.46.
(a) Within 45 days of its receipt of the annual reports required by § 2- 218.53(b), the Department shall submit to the District of Columbia Auditor, through the Compliance Unit established part K of subchapter I of Chapter 3 of Title 1, the following documents and information:
(1) A copy of the annual reports required by § 2-218.53; and
(2) A chart listing the following information with respect to each agency for the current fiscal year:
(A) The total budget of each agency;
(B) The expendable budget of each agency;
(C) A description of each funding source, object class, object, or item that was excluded from the total budget of the agency in the Department's calculation of the expendable budget of the agency;
(D) Each goal of the agency under § 2-218.41 in percentage and dollar terms; and
(E) The actual dollar amount expended with each certified business enterprise.
(b) Within 45 days of its receipt of the annual reports required by § 2- 218.50(g), the Department shall submit to the District of Columbia Auditor, through the Compliance Unit established by part K of subchapter I of Chapter 3 of Title 1 a report containing the following information with respect to each government corporation for the current and prior fiscal years:
(1) The expendable budget of the government corporation.
(2) A list of all agencies and government corporations that have not submitted a report for that quarter with a detailed explanation of what actions were taken by the Department to effectuate compliance with the reporting requirement.
(Oct. 20, 2005, D.C. Law 16-33, § 2354, 52 DCR 7503; Apr. 7, 2006, D.C. Law 16-91, § 129, 52 DCR 10637; Mar. 2, 2007, D.C. Law 16-191, § 5(o)(3), 53 DCR 6794; Mar. 2, 2007, D.C. Law 16-192, § 2132(h), 53 DCR 6899; July 18, 2008, D.C. Law 17-207, § 2(o), 55 DCR 6107; Mar. 3, 2010, D.C. Law 18-111, § 2222(c), 57 DCR 181.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-91, in the introductory language, validated a previously made technical correction.
D.C. Law 16-191, in the introductory language, validated a previously made technical correction.
D.C. Law 16-192 designated the existing language as subsec. (a); in subsec. (a)(2), deleted "; and" from the end of subpar. (C), substituted "; and" for a period at the end of subpar. (D), and added subpar. (E); and added subsecs. (b) and (c).
D.C. Law 17-207, rewrote subsec. (a)(2)(E), which had read as follows: "(E) The actual dollar amount expended with each business enterprise."; and, in subsec. (b)(3)(D), deleted "local, small, or disadvantaged" following "was a".
D.C. Law 18-111 rewrote the section, which had read as follows:
"(a) Within 45 days of its receipt of the annual reports required by § 2- 218.53(b), the Department shall submit to the Council and the Commission a report containing the following documents and information:
"(1) A chart containing the following information with respect to each agency for the prior fiscal year:
"(A) The expendable budget of the agency;
"(B) Each goal of the agency under § 2-218.41 in dollar and percentage terms;
"(C) The agency's achievement with respect to each goal established by § 2- 218.41, which shall include the following information:
"(i) The percentage of the expendable budget, the percentage of the total budget, and the dollar volume that was contracted or procured with the following:
"(I) Local business enterprises;
"(II) Small business enterprises; and
"(III) Disadvantaged business enterprises; and
"(ii) The dollar volume and percentage of the contracts and procurements awarded during the quarter which were actually paid (including payments through subcontracting) to:
"(I) Local business enterprises;
"(II) Small business enterprises; and
"(III) Disadvantaged business enterprises; and
"(D) A list of each contract or procurement of the agency, including:
"(i) A description of the contract or procurement;
"(ii) The dollar amount of the contract or procurement;
"(iii) The name of the business enterprise from which the goods or services were contracted or procured;
"(iv) Whether the business enterprise was a certified local, small, or disadvantaged business enterprise, and, if it was:
"(I) The category or categories under which the business enterprise is certified; and
"(II) The identification number of the business enterprise assigned by the Department; and
"(v) The source of funding for the contract (local, federal, other, or capital); and
"(2) A chart listing the following information with respect to each agency for the current fiscal year:
"(A) The total budget of each agency;
"(B) The expendable budget of each agency;
"(C) A description of each funding source, object class, object, or item that was excluded from the total budget of the agency in the Department's calculation of the expendable budget of the agency;
"(D) Each goal of the agency under § 2-218.41 in percentage and dollar terms; and
"(E) The actual dollar amount expended with each certified business enterprise.
"(b) Within 45 days of its receipt of the annual reports required by § 2- 218.50(g), the Department shall submit to the Council and the Commission a report containing the following information with respect to each government corporation for the current and prior fiscal years:
"(1) The expendable budget of the government corporation;
"(2) The government corporation's achievement with respect to the requirements of § 2-218.50.
"(3) A list of each contract or procurement of the government corporation, which shall include the following information:
"(A) A description of the contract or procurement;
"(B) The dollar amount of the contract or procurement;
"(C) The name of the business enterprise from which the goods or services were contracted or procured;
"(D) Whether the business enterprise was a business enterprise, and, if so:
"(i) The category or categories under which the business enterprise is certified; and
"(ii) The identification number of the business enterprise assigned by the Department;
"(E) The source of funding for the contract (local, federal, other, or capital); and
"(F) The actual dollar amount expended with each business enterprise.
"(c)(1) Beginning with the first full quarter after March 2, 2007, the Department shall submit to the Council, within 60 days of the end of each quarter, the quarterly reports of each agency required by § 2-218.53 and the quarterly reports of each government corporation required by § 2-218.50(f).
"(2) Beginning with the first full quarter after March 2, 2007, the Department shall submit to the Council the following:
"(A) A summary of the information that each agency is required to submit pursuant to § 2-218.53 and the information that each government corporation is required to submit pursuant to § 2-218.50(f), in a format that shows the cumulative progress of each agency's or government corporation's annual LSDBE contracting and procurement goals to date, and the actual dollar amount expended with each business enterprise for the current fiscal year; and
"(B) A list of all agencies and government corporations that have not submitted a report for that quarter with a detailed explanation of what actions were taken by the Department to effectuate compliance with the reporting requirement."
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(b) of Department of Small and Local Business Development Clarification Temporary Amendment Act of 2005 (D.C. Law 16-49, February 9, 2006, law notification 53 DCR 1457).
For temporary (225 day) amendment of section, see § 2(f) of the Department of Small and Local Business Development Subcontracting Clarification Temporary Amendment Act of 2006 (D.C. Law 16-214, March 6, 2007, law notification 54 DCR 2761).
For temporary (225 day) amendment of section, see § 2(n) of the Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Temporary Amendment Act of 2007 (D.C. Law 17-96, January 29, 2008, law notification 55 DCR 3403).
Emergency Act Amendments
For temporary (90 day) addition, see § 2354 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) amendment of section, see § 2(b) of Department of Small and Local Business Development Clarification Emergency Act of 2005 (D.C. Act 16-191, October 28, 2005, 52 DCR 10026).
For temporary (90 day) amendment of section, see § 2(b) of Department of Small and Local Business Development Clarification Congressional Review Emergency Act of 2006 (D.C. Act 16-301, February 27, 2006, 53 DCR 1883).
For temporary (90 day) amendment of section, see § 2132(h) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2132(h) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2(f) of Department of Small and Local Business Development Subcontracting Clarification Emergency Amendment Act of 2006 (D.C. Act 16-513, October 25, 2006, 53 DCR 9091).
For temporary (90 day) amendment of section, see § 2(f) of Department of Small and Local Business Development Subcontracting Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-575, December 19, 2006, 54 DCR 24).
For temporary (90 day) amendment of section, see § 2132(h) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 2(n) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Emergency Amendment Act of 2007 (D.C. Act 17-156, October 18, 2007, 54 DCR 10919).
For temporary (90 day) amendment of section, see § 2(n) of Department of Small and Local Business Development Subcontracting Clarification, Benefit Expansion, and Grant-making Authority Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-251, January 23, 2008, 55 DCR 1259).
For temporary (90 day) amendment of section, see § 2222(c) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2222(c) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
Law 16-91, the "Technical Amendments Act of 2005", was introduced in Council and assigned Bill No. 16-477 which was referred to the Committee on the Whole. The Bill was adopted on first and second readings on November 1, 2005, and November 15, 2005, respectively. Signed by the Mayor on November 30, 2005, it was assigned Act No. 16-212 and transmitted to both Houses of Congress for its review. D.C. Law 16-91 became effective on April 7, 2006.
For Law 16-191, see notes following § 2-218.02.
For Law 16-192, see notes following § 2-218.31.
For Law 17-207, see notes following § 2-218.02.
For Law 18-111, see notes following § 2-218.50.
(a) Except as provided in subsection (b) of this section, a regional governmental entity shall be exempt from the requirements of this subchapter to the extent that the requirements of this subchapter impact on the regional governmental entity's operations within the territory of a member government other than the District.
(b) The District of Columbia Water and Sewer Authority shall be exempt from the requirements of this subchapter to the extent that the requirements of this subchapter are contrary to procurement regulations promulgated pursuant to statutes establishing the District of Columbia Water and Sewer Authority.
(Oct. 20, 2005, D.C. Law 16-33, § 2355, 52 DCR 7503.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 2355 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
Legislative History of Laws
For Law 16-33, see notes following § 2-218.01.
