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MURIEL BOWSER MAYOR
May 22, 2025
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and enactment by the Council of the District of Columbia is the
Subcontracting Requirements Exemption for Contracts for Health Benefits for District Employees
Emergency Amendment Act of 2025, along with the accompanying emergency declaration
resolution, the Subcontracting Requirements Exemption for Contracts for Health Benefits for
District Employees Temporary Amendment Act of 2025, and the Subcontracting Requirements
Exemption for Contracts for Health Benefits for District Employees Amendment Act of 2025.
The legislation adds a new subsection (d)(4) to D.C. Official Code§ 2-218.46 to extend the time
in which compliant subcontracting plans for contracts for health benefits to District employees and
their families shall be provided.
I urge the Council to take prompt and favorable action at your earliest convenience.
Sincerely,
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A BILL
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~Phil Mendelson
at the request of the Mayor
12 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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17 To amend the Small and Certified Business Enterprise Development and Assistance Act of 2005
18 to extend the time in which compliant subcontracting plans for contracts for health
19 benefits for District employees and their families shall be provided.
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21 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
22 act may be cited as the "Subcontracting Requirements Exemption for Contracts for Health
23 Benefits to District Employees Amendment Act of 2025".
24 Sec. 2. Section 2346(d) of the Small and Certified Business Enterprise Development and
25 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code§ 2-
26 218.46(d)), is amended by adding a new paragraph (4) to read as follows:
27 "(4) Notwithstanding the foregoing paragraphs (1) and (3) of this subsection, the
28 subcontracting plan for contracts to provide health benefits to District government employees
29 and their families shall be provided prior to commencement of performance of the plan year, and
30 a bid or proposal that does not include a subcontracting plan may be deemed responsive if it is
31 submitted in response to a solicitation to provide health benefits to District government
32 employees and their families."
33 Sec. 3. Fiscal impact statement.
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The Council adopts the fiscal impact statement of the Chief Financial Officer as the 33
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 34
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 35
Sec. 4. Effective date. 36
This act shall take effect following approval by the Mayor (or in the event of veto by the 37
Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 38
90 days, as provided for emergency acts of the Council of the District of Columbia in section 39
412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 40
D.C. Official Code § 1-204.12(a)). 41
Government of the District of Columbia
Office of the Chief Financial Officer
Glen Lee
Chief Financial Officer
1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727 -2476
www.cfo.dc.gov
MEMORANDUM
TO: The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
FROM: Glen Lee
Chief Financial Officer
DATE: April 17, 2025
SUBJECT: Fiscal Impact Statement – Subcontracting Requirements Exemption for
Contracts for Health Benefits for District Employees Emergency
Amendment Act of 2025
REFERENCE: Draft Bill as provided to the Office of Revenue Analysis on April 10,
2025
Conclusion
Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to
implement the bill.
Background
The District government requires any vendor bidding on a District contract valued at over $250,000
to include a subcontracting plan for how it will allocate 35 percent of the contract’s dollar volume to
small business enterprises or certified business enterprises. 1 The vendor must submit the
subcontracting plan when it submits its bid; otherwise, the bid is deemed nonresponsive.
The bill authorizes a vendor bidding on contracts to provide health benefits to District government
employees to submit their subcontracting plan prior to beginning the plan year, as opposed to at the
time of bid submission.
1 Small, Local, and Disadvantaged Businesses Enhancement Amendment Act of 2006, effective March 2, 2007
(D.C. Law 16-192; D.C. Official Code § 2-218.46).
The Honorable Phil Mendelson
FIS: “Subcontracting Requirements Exemption for Contracts for Health Benefits for District Government
Employees Emergency Amendment Act of 2025,” Draft Bill as provided to the Office of Revenue Analysis on
April 10, 2025
Page 2 of 2
Financial Plan Impact
Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to
implement the bill. Employee health benefit contract values are not set at the time they are awarded
because the value of the contract is dependent upon enrollment projections for each contractor.
These projections are unknown until the District’s open enrollment period at the end of each calendar
year. The bill allows vendors to submit their subcontracting plans after enrollment project ions are
set and before the plan year starts and still have their initial bids considered. There are no costs
associated with providing this exemption for District government employee health contract vendors.
1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004
Phone (202) 262-6402 Email: adele.el-khouri@dc.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
BRIAN L. SCHWALB PRIVILEGED AND CONFIDENTIAL
ATTORNEY GENERAL ATTORNEY-CLIENT COMMUNICATION
LEGAL COUNSEL DIVISION
MEMORANDUM
TO: Tomás Talamante
Director
Office of Policy and Legislative Affairs
FROM: Adele El-Khouri
Deputy Attorney General
Legal Counsel Division
DATE: April 14, 2025
SUBJECT: Legal Sufficiency Review of the “Subcontracting Requirements Exemption for
Contracts for Health Benefits for District Employees Amendment Act of 2025” with
Accompanying Emergency Declaration, Emergency and Temporary Versions
(AE-25-098)
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This is to Certify that the Office of the Attorney General has reviewed the
above-referenced legislation and found it to be legally sufficient. If you have any questions in this
regard, please do not hesitate to call me at (202) 262-6402.
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Adele El-Khouri