Procurement Reform Amendment Act of 2026

MURIEL BOWSER
MAYOR
March 2, 2026
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
D
ear Chairman Mendelson:
E
nclosed for consideration and enactment by the Council of the District of Columbia is a bill, the
“Procurement Reform Amendment Act of 2026.” This Act further modernizes
the District’s already strong procurement laws so the city can adapt to evolving markets and
industry practices while maintaining oversight. The bill will help the District deliver services
faster, protect taxpayers, and open doors for local businesses.
F
rom streamlining approvals for contract option periods to creating stronger taxpayer safeguards
to raising the threshold for smaller procurements, this Act provides a comprehensive approach to
reducing administrative burden while ensuring important guardrails for public spending remain
intact.
M
y administration is available to discuss any questions you may have regarding the proposed
legislation. In order to facilitate a response to any questions you may have, please have your staff
contact Nancy Hapeman, Chief Procurement Officer, Office of Contracting and Procurement, at
(202) 724-8759.
I u
rge the Council to take prompt and favorable action on the enclosed legislation.
S
incerely,
Mu
riel Bowser
E
nclosure

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at the request of the Mayor
A BILL
10 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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14 To amend the Procurement Practices Reform Act of 2010 to add and amend certain definitions,
15 to explicitly authorize the delegation of ce1iain authority by the Chief Procurement
16 Officer, to permit the submission of contracts and contract modifications during Council
1 7 recess, to clarify the manner in which option periods and other contract actions are
18 approved by the Council, to specify the manner in which District of Columbia Supply
19 Schedule contracts, locally-funded construction and transportation contracts, and
20 capitally funded vehicle purchases are reviewed and approved by the Council, to clarify
21 who may provide legal sufficiency certifications to the Council, to authorize the Chief
22 Procurement Officer to use any source selection method to acquire goods and services
23 that is not prohibited by law, to eliminate the requirement that a determination and
24 findings be issued prior to conducting a procurement by competitive sealed proposal, to
25 authorize contracting officers to appoint technical evaluation panels and delineate the
26 manner in which they are utilized by contracting officers in evaluating proposals, to
27 enhance the protection of proprietary infonnation submitted to the District by offerors, to
28 increase the limit for non-competitive procurements to $25,000, to clarify use of federal
29 schedules, to exempt from competition procurements for motorcycles for a presidential
30 inauguration, to authorize the Chief Procurement Officer to set aside certain contracts for
31 architectural and engineering services to qualified certified business enterprises and
32 certified joint ventures, to authorize contracting officers to establish a retainage rate for
33 construction contracts that utilize progress payments, to clarify the review process of
34 suspension and debarment decisions, to establish a time period within which a claim may
35 be made by a contractor arising under or relating to a government contract, to prohibit the
36 inclusion of certain improper terms in District contracts, to clarify the time period by
3 7 which a denied claim may be appealed to the Contract Appeals Board, to eliminate the
38 Contract Appeals Board's review of the designation of urgent and compelling
39 circumstances; to amend the First Source Employment Agreement Act of 1984 to align
40 review of First Source plans with procurement evaluation criteria, to conform the
41 debam1ent process under the First Source Employment Agreement Act of 1984 with the
42 debam1ent process under the Procurement Practices Reform Act of 201 0; to repeal An
43 Act Regulating the retent on contracts with the District of Columbia; and to amend the
44 Small and Certified Business Enterprise Development and Assistance Act of 2005 to
45 authorize contracting officers to designate when subcontracting plans are due and pennit
46 contracting officers to negotiate the terms of subcontracting plans with vendors.
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47
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may 48
be cited as the “Procurement Reform Amendment Act of 2026”. 49
Sec. 2. The Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. 50
Law 18-371; D.C. Official Code § 2-351.01 et seq.), is amended as follows: 51
(a) Section 104 (D.C. Official Code § 2-351.04) is amended as follows: 52
(1) New paragraphs (8A) and (8B) are added to read as follows: 53
“(8A) “Certified business enterprise” shall have the same meaning as provided in 54
section 2302(1D) of the Small and Certified Business Enterprise Development and Assistance 55
Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C, Official Code § 2-218.02(1D)). 56
“(8B) “Certified joint venture” shall have the same meaning as provided in 57
section 2302(1E) of the Small and Certified Business Enterprise Development and Assistance 58
Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.02(1E)).”. 59
(2) Paragraph (50) is amended to read as follows: 60
“(50) “Public notice” means the distribution or dissemination of information to 61
interested parties using methods that are reasonably available. Methods may include publication 62
in newspapers, electronic or paper mailing lists, trade publications, and websites designated by 63
the District.”. 64
(b) Section 201(a) (D.C. Official Code § 2-352.01(a)) is amended by adding a new 65
paragraph (4A) to read as follows: 66
“(4A) The CPO may delegate any other authority of the CPO under this act or 67
other law to subordinates under the CPO’s jurisdiction.”. 68
(c) Section 202 (D.C. Official Code § 2-352.02) is amended as follows: 69
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(1) Subsection (a)(2) is repealed. 70
(2) Subsection (b) is amended as follows: 71
(A) Paragraph (3) is repealed. 72
(B) New paragraphs (4), (5), and (6) are added to read as follows: 73
“(4) A contract or contract modification submitted to the Council for its review 74
and approval pursuant to section 451 of the District of Columbia Home Rule Act, approved 75
December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51) (“section 451 of the HRA”), or 76
this section may be transmitted to the Council during a period of recess. The time periods set 77
forth in section 451 of the HRA and this section, and the starting day of such time periods, shall 78
include days of recess of the Council. 79
“(5)(A) Paragraph (2) of this subsection and the other procedures of this section 80
applicable to proposed contracts in excess of $1 million during a 12-month period shall apply to 81
a proposed contract modification that will increase the dollar value of the underlying contract 82
from an amount less than or equal to $1 million to an amount in excess of $1 million during a 12-83
month period. 84
“(B) Council approval of a contract described in subparagraph (A) of this 85
paragraph shall not be considered retroactive for the purposes of this act or any other act. 86
“(6) Council approval of a contract that contains one or more option periods each 87
of a duration of 12 months or less shall constitute the Council review and approval required by 88
section 451(b) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 89
Stat. 803; D.C. Official Code § 1-204.51(b)) of each option period of the contract if the option 90
period is exercised pursuant to the terms of the contract approved by the Council and there has 91
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been no material change to the terms of the contract subsequent to the Council’s approval of the 92
contract.”. 93
(3) New subsections (i), (j), (k) and (l) are added to read as follows: 94
“(i) Review and approval by the Council of an annual program of locally funded highway 95
and construction projects included in the capital improvement plan shall constitute the Council 96
review and approval required by section 451 of the District of Columbia Home Rule Act, 97
approved December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51) of the individual 98
contracts that make up the annual program. 99
“(j) Review and approval by the Council of an annual program of District of Columbia 100
Supply Schedule contracts under section 412 shall constitute Council review and approval 101
required by section 451 of the District of Columbia Home Rule Act, approved December 24, 102
1973 (87 Stat. 803; D.C. Official Code § 1-204.51), of the individual contracts that make up the 103
annual program. 104
“(k) Review and approval by the Council of an annual program of purchases of motor 105
vehicles, including cars, trucks, ambulances, firetrucks, and fire apparatus, included in the capital 106
improvement plan shall constitute the Council review and approval required by section 451 of 107
the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 803; D.C. 108
Official Code § 1-204.51),of the individual contracts that make up the annual program. 109
“(l) Certifications for legal sufficiency of proposed contracts submitted pursuant to this 110
section may be issued by the Office of the Attorney General or the Office of General Counsel of 111
an Agency having procurement authority.”. 112
(d) Section 401 (D.C. Official Code § 2-354.01) is amended by adding a new subsection 113
(a-1) to read as follows: 114
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“(a-1) Notwithstanding subsection (a) of this section, a District government contract may 115
be awarded through a selection method not listed in subsection (a) of this section if the CPO 116
determines in writing that use of the selection method is in the best interest of the District.”. 117
(e) Section 402(a) (D.C. Official Code § 2-354.02(a)) is amended to read as follows: 118
“(a) Contracts exceeding $100,000 may be awarded by competitive sealed bidding.”. 119
(f) Section 403 (D.C. Official Code § 2-354.03) is amended as follows: 120
(1) A new subsection (g-1) is added to read as follows: 121
“(g-1) A contracting officer may appoint a technical evaluation panel to evaluate and 122
rank the technical aspects of responses to an RFQ or RFP. The contracting officer may adopt all, 123
part, or none of the technical evaluation panel’s evaluation and ranking as the evaluation and 124
ranking of the contracting officer.”. 125
(2) A new subsection (i) is added to read as follows: 126
“(i)(1) Except as provided in paragraph (2) of this subsection, a covered proposal in the 127
possession or control of the District shall not be made available to any person under the District 128
of Columbia Freedom of Information Act, effective June 3, 1977 (D.C. Law 1-96; D.C. Official 129
Code § 2-531 et seq.). 130
“(2) Paragraph (1) of this subsection shall not apply to any proposal that is set 131
forth or incorporated in a contract entered into between the District and the contractor that 132
submitted the proposal. 133
“(3) For the purposes of this subsection, the term “covered proposal” means any 134
proposal, including a technical or cost proposal, submitted by an offeror in response to the 135
requirements of a solicitation, including requests for proposals, requests for qualifications, and 136
requests for expressions of interest, but excluding responses to invitations for bids.”. 137
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(g) Section 407(a)(2) (D.C. Official Code § 2-354.07(a)(2)) is amended by striking the 138
phrase “not to exceed $10,000” and inserting the phrase “not to exceed $25,000” in its place. 139
(h) Section 410 (D.C. Official Code § 2-354.10) is amended by adding new subsections 140
(c) and (d) to read as follows: 141
“(c) The period of performance for each order awarded under a federal schedule contract 142
shall be specified in the order when it is initially awarded. Orders must be solicited and awarded 143
prior to the expiration of the federal schedule contract. 144
“(d) If the federal schedule contract provides, an order under the federal schedule contract 145
may contain option periods. Those option periods may be exercised after the federal schedule 146
contract has expired, provided that the options are clearly stated in the order and the contracting 147
officer finds the prices to be fair and reasonable.”. 148
(i) Section 413 (D.C. Official Code § 2-354.13) is amended by adding new paragraphs 149
(17) and (18) to read as follows: 150
“(17) Professional development training which supports principal, teacher, and student 151
achievement, health, and safety; and 152
(18) Police motorcycles to be used for presidential inaugurations.”. 153
(j) Section 604 (D.C. Official Code § 2-356.04) is amended by adding a new subsection 154
(f) as follows: 155
“(f) Procurements for architectural and engineering services made under this section may 156
be set aside for qualified certified business enterprises and qualified certified joint ventures.”. 157
(k) A new section 607 is added to read as follows: 158
“Sec. 607 Retainage. 159
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“(a) With respect to construction contracts, if the contracting officer finds that 160
satisfactory progress was achieved during any period for which a progress payment is to be 161
made, the contracting officer may authorize payment to be made in full. If satisfactory progress 162
has not been made, the contracting officer may retain a maximum of 10% of the amount of the 163
progress payment until satisfactory progress is achieved. 164
“(b) When the work constructed under a construction contract is substantially complete, 165
the contracting officer may retain from previously withheld funds and future progress payments 166
the amount the contracting officer considers adequate for protection of the District government 167
and shall release to the contractor all the remaining withheld funds. 168
“(c) On completion and acceptance of each separate building, public work, or other 169
division of a construction contract, for which the price is stated separately in the contract, 170
payment may be made for the separate building, public work, or other division without retention 171
of a percentage.”. 172
(l) Section 907(f) (D.C. Official Code § 2-359.07(f)) is amended to read as follows: 173
“(f) A debarred or suspended person may, within 60 days after receiving the CPO’s final 174
decision, file an appeal with the Contract Appeals Board. The Contract Appeals Board’s review 175
shall be limited to the administrative record upon which the CPO’s final decision was based. The 176
Board shall not set aside the CPO’s decision or reduce the term of a debarment unless the Board 177
finds that the CPO’s decision was arbitrary, capricious, an abuse of discretion, or otherwise 178
contrary to law.”. 179
(m) Section 908(a) (D.C. Official Code § 2-359.08(a)) is amended by adding a new 180
sentence at the end to read as follows: 181
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“No claim may be brought after the expiration of 3 years from the time the right to 182
maintain the claim accrued.”. 183
(n) A new section 911 is added to read as follows: 184
“Sec. 911. Prohibited contract terms. 185
“(a) A contract entered into pursuant to this act shall not contain a term that: 186
“(1) Requires the District government to: 187
“(A) Defend, indemnify, or hold harmless a contractor or other person; 188
“(B) Be bound by any term or condition that is unknown at the time of 189
signing such contract, or which may be unilaterally changed by the contractor or other person; or 190
“(C) Pay attorneys’ fees, court costs, or other litigation expenses in the 191
event of a dispute; or 192
“(2) Provides for: 193
“(A) Venue for any claim, action, or dispute other than the Contract 194
Appeals Board or the courts of the District; 195
“(B) The contract to be governed or construed by any laws other than 196
those of the District; 197
“(C) Binding arbitration; or 198
“(D) An automatic renewal of the contract such that District funds are or 199
would be obligated in subsequent fiscal years. 200
“(b) If a contract entered into pursuant to this part contains a term prohibited under 201
subsection (a) of this section, such term shall be void, and the contract shall be otherwise 202
enforceable as if it did not contain such term.”. 203
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(o) Section 1004(a) (D.C. Official Code § 2-360.04(a)) is amended by striking the phrase 204
“after the date of receipt of a decision of the contracting officer” and inserting the phrase “after 205
either the date of receipt of a decision of the contracting officer, or the date when a claim has 206
been deemed denied” in its place. 207
(p) Section 1008(c)(2) (D.C. Official Code § 2-360.08(c)(2) is amended to read as 208
follows: 209
“(2) Performance under a protested procurement may proceed, or award may be 210
made, while a protest is pending only if the CPO makes a written determination that urgent and 211
compelling circumstances that significantly affect interests of the District will not permit waiting 212
for the decision of the Board concerning the protest. A copy of the determination to proceed shall 213
be provided within one business day of issuance to both the Board and the protester. A 214
determination to proceed shall not be subject to review by the Board.”. 215
Sec. 3. Section 4 of the First Source Employment Agreement Act of 1984, effective June 216
29, 1984 (D.C. Law 5-93; D.C. Code § 2-219.03) is amended as follows: 217
(a) Subsection (c) is amended to read as follows: 218
“(c) The Mayor shall transmit each winning bidder’s or offeror’s employment agreement 219
to the Department of Employment Services and no work associated with the relevant government 220
assistance can begin on a project or contract until the employment agreement has been accepted 221
by the Department of Employment Services.”. 222
(b) Subsection (e) is amended as follows: 223
(1) Paragraph (1A)(F) is amended as follows: 224
(A) Sub-subparagraph (i) is amended by striking the phrase “These plans 225
shall be evaluated and scored by the Mayor based on the criteria listed in sub-sub-subparagraphs 226
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(I), (II), and (III) of this sub-subparagraph. The evaluation shall be worth 10% of the overall 227
score of the bid or proposal.”. 228
(B) The lead-in text of sub-subparagraph (ii) is amended to read as 229
follows: 230
“(ii) The winning bidder or offeror shall submit a revised 231
employment plan to the Mayor for approval prior to signing the contract or beginning work 232
associated with the relevant government project or contract. The employment plan shall 233
include:”. 234
(2) Paragraph (1C)(B) is amended as follows: 235
(A) Sub-subparagraph (i) is amended by striking the phrase “These plans 236
shall be evaluated and scored by the Mayor based on the criteria listed in sub-sub-subparagraphs 237
(I), (II), and (III) of this sub-subparagraph. The evaluation shall be worth 10% of the overall 238
score of the bid or proposal.”. 239
(B) The lead-in text of sub-subparagraph (ii) is amended to read as 240
follows: 241
“(ii) The winning bidder or offeror shall submit a revised 242
employment plan to the Mayor for approval, prior to signing the contract or before beginning 243
work associated with the project or contract. The revised employment plan shall include:”. 244
(3) Paragraph (4) is amended as follows: 245
(A) Subparagraph (C) is amended by striking the phrase “for a period of 246
not more than 5 years” and inserting the phrase “in accordance with section 907 of the 247
Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. 248
Official Code § 2-359.07)” in its place. 249
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(B) Subparagraph (D) is amended by striking the phrase “for a period of 250
not more than 5 years” and inserting the phrase “in accordance with section 907 of the 251
Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. 252
Official Code § 2-359.07)” in its place. 253
Sec. 4. An Act Regulating the retent on contracts with the District of Columbia, approved 254
March 31, 1906 (34 Stat. 94; D.C. Official Code § 2-203.01), is repealed. 255
Sec. 5. Section 2346 of the Small and Certified Business Enterprise Development and 256
Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-257
218.46) is amended as follows: 258
(a) Subsection (d) is amended as follows: 259
(1) Paragraph (1) is amended by striking the phrase “shall be deemed 260
nonresponsive and shall be rejected” and inserting the phrase “shall be deemed unacceptable” in 261
its place. 262
(2) Paragraph (3) is amended to read as follows: 263
“(3) A subcontracting plan required by this subsection shall be submitted at such 264
time as is set forth in the solicitation, or at such other time as may be specified by the contracting 265
officer. If a subcontracting plan is required for a contract under this act, the contract shall not be 266
awarded to a beneficiary unless the beneficiary has submitted an acceptable subcontracting plan, 267
compliant with District law, before the award. Nothing in this section shall preclude a 268
contracting officer from negotiating the terms of a subcontracting plan submitted by a 269
beneficiary before the award of the contract.”. 270
(b) Subsection (e) is amended to read as follows: 271
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“(e) No beneficiary shall be allowed to amend the final subcontracting plan submitted as 272
part of its bid or proposal except with the consent of the Director. Any decrease in the dollar 273
volume of the subcontracted portion resulting from such amendment to the subcontracting plan 274
shall inure to the benefit of the District.”. 275
Sec. 6. Fiscal impact statement. 276
The Council adopts the fiscal impact statement in the committee report as the fiscal 277
impact statement required by required by section 4a of the General Legislative Procedures Act of 278
1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 279
Sec. 7. Effective date. 280
This act shall take effect following approval by the Mayor (or in the event of veto by the 281
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 282
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 283
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 284
Columbia Register. 285
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: July 1, 2025

SUBJECT: Fiscal Impact Statement – Procurement Reform Amendment Act of
2025

REFERENCE: Draft Bill as provided to the Office of Revenue Analysis on June 13,
2025

Conclusion

Funds are sufficient in the proposed revised fiscal year 2025 budget and proposed fiscal year 2026
through fiscal year 202 9 budget and financial plan to implement the bill. The Office of Contracting
and Procurement (OCP) can implement the bill with current resources.

Background

The District of Columbia OCP, under the direction of the Chief Procurement Officer (CPO),1 was
established by D istrict law in 1997 2 and provides contracting services for selected agencies and
offices in the District. In 2007, the United States Government Accounting Office (GAO) published
GAO-07-1593, a report that examined the District ’s procurement system with a series of
recommendations that became the basis for the Procurement Practices Reform Act of 2010 (PPRA),

1 The title of the head of the Office of Contracting and Procurement was changed from Director to CPO
pursuant to the Procurement Reform Amendment Act of 1998, effective May 8, 1998 (D.C. Law 12-104: D.C.
Official Code § 1-1181.1 et seq.).
2 Procurement Reform Amendment Act of 1996, effective April 15, 1997 (D.C. Law 11-259: D.C. Official Code §
1-1181.1 et seq.).
3 U.S. Gov’t Accountability Off., GAO-07-159, ) District of Columbia: Procurement System Needs Major Reform
(2007), available at: https://www.gao.gov/products/gao-07-159 (last retrieved July 1, 2025).
The Honorable Phil Mendelson
FIS: “Procurement Reform Amendment Act of 2025”, Draft Bill as provided to the Office of Revenue Analysis
on June 13, 2025

Page 2 of 5

which was a comprehensive update to the existing law established in 1986.4 This bill amends the
PPRA as outlined below.

SUBCHAPTER I. GENERAL PROVISIONS

The legislation adds definitions of “certified business enterprise” and “certified joint venture” to align
with the Small and Certified Business Enterprise Development and Assistance Act of 2005 5 and
amends the definition of “public notice” to remove the requirement that advertisement for
competitive sealed bids and proposals for more than $250,000 must be in newspapers of general
circulation and in trade publications . “Public notice” would constitute delivery of information to
interested parties via reasonably available methods.6

SUBCHAPTER II. PROCUREMENT ORGANIZATION

The delegation of authority by the CPO to subordinates is explicitly permitted. The bill also sanctions
the usage of source selection methods not outlined in D.C. Official Code § 2-354.01 to acquire goods
and services if written justification by the CPO is provided.

The PPRA specifies that approval of the base period of a contract does not constitute Council approval
of option periods (D.C. Official Code § 2 -352.02(b)(3)). The bill modifies this language by removing
the requirement of submission of the modification to exercise the option period for contracts that are
exercising the option period. Further, it removes:
• the expiration of Council approval of contracts submitted in excess of $1 million during a 12-
month period after the 12-month period has passed;
• the stipulation that Council approval of a contract to extend or amend beyond 12 -months
does not constitute automatic approval of those options; and
• the stipulation that the Mayor resubmit, inclusive of specified criteria7, the option contract to
Council.
Instead, the bill permits the submission of contracts 8 and contract modifications during periods of
Council recess. The bill exempts from Council approval requirements contracts that are less than or
equal to $1 million, but via exercise of a contract modification, would total greater than $1 million—
specifying such contracts are not considered a “retroactive contract.” If the Council approves a
contract that contains an option period with a duration of one year or less, and there is no material
change to the original contract, then that is considered approval of exercise of the option period and

4 District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85: D.C.
Official Code § 1-1181.1 et seq.).
5 The Small and Certified Business Enterprise Development and Assistance Act of 2005, effective October 20,
2005 (D.C. Law 16-33; D.C, Official Code § 2-218.02(1D) et seq.).
6 Reasonably available methods may include newspapers, electronic or paper mailing lists, trade publications,
and websites designated by the District.
7 Specified criteria includes items like information on the proposed contractor, contract amount, method of
compensation, contract term and type, source selection method; if containing an option period, inclusive of
those details; any information on if the contract was awarded through an emergency procurement ; etc.
8 The contract must be approved pursuant to D.C. Official Code § 1-204.51, which covers special rules
regarding certain contracts.
The Honorable Phil Mendelson
FIS: “Procurement Reform Amendment Act of 2025”, Draft Bill as provided to the Office of Revenue Analysis
on June 13, 2025

Page 3 of 5

the contract by the Council. The bill also specifies that review and approval of District Supply
Schedule contracts, locally funded construction and transportation contracts, and capitally funded
vehicle purchases through an annual program are considered independently and individually
reviewed and approved by the Council.

SUBCHAPTER IV. SOURCE SELECTION AND CONTRACT FORMATION

The bill clarifies the period of performance for, and the use of option periods in contracts to, procure
goods or services by the CPO under federal schedule.9 It increases the limit for non -competitive
procurements from $10,000 to $25,000. Further, the CPO is authorized to set aside certain contracts
for architectural and engineering services to qualified certified business enterprises and certified
joint ventures.

The bill would no longer subject all contracts exceeding $100,000 to the competitive sealed bidding
process. It authorizes contracting officers to appoint technical evaluation panels and delineate the
manner in which they are utilized by contracting officers in evaluating proposals. Further, it exempts
covered proposals10, from the District of Columbia Freedom of Information Act (FOIA).

SUBCHAPTER VI. PROCUREMENT OF CONSTRUCTION PROJECTS AND RELATED SERVICES

This bill creates a new section that allows contracting officers to establish a retainage rate for
construction contracts that utilize progress payments. If the contracting officer finds that satisfactory
progress was achieved during any period for which a progress payment is to be made, payment may
be made in full. If satisfactory progress has not been made, the contracting officer may retain up to
10% of the progress payment until progress is achieved. When work is substantially complete, the
contracting officer may retain (from previously withheld funds and future progress payments ) the
amount the contracting officer considers adequate for District protection. Acceptance of finished
separately delineated items in a contract allows for payment of each distinct work upon completion.

The bill repeals existing law11 that outlines the retention requirements for contracts for construction
work and requires a retention of 10%, unless otherwise provided.

SUBCHAPTER IX. PROHIBITED ACTIONS AND REMEDIES

The bill amends the review process of suspension and debarment decisions. Under current law, a
written decision by the CPO is deemed final and conclusive, unless fraudulent, or unless the debarred
or suspended person appeals to the Contract Appeals Board (CAB) within 60 days of receipt of the
CPO’s decision. This legislation would clarify that review of the appeal—still within 60 days—by the
CAB is limited to the administrative record upon which the CPO’s final decision was based and cannot

9 General Services Administration schedule under 40 U.S.C. §§ 502(a)(3) and 602(c).
10 The bill defines a “covered proposal” as those documents “submitted by an offeror in response to the
requirements of a solicitation, including requests for proposals, requests for qualifications, and requests for
expressions of interest, but excluding responses to invitations for bids.”
11 An Act Regulating the retent on contracts with the District of Columbia, approved Mar. 31, 1906 (34 Stat.
94; D.C. Official Code § 2-203.01 et. seq.).
The Honorable Phil Mendelson
FIS: “Procurement Reform Amendment Act of 2025”, Draft Bill as provided to the Office of Revenue Analysis
on June 13, 2025

Page 4 of 5

set aside the CPO’s decision or reduce the term of a debarment unless the CAB finds that the CPO’s
decision was arbitrary, capricious, an abuse of discretion and the like.

The bill establishes a three -year time frame within which a claim arising under or relating to a
government contract may be made by a contractor. It also prohibits the District from entering into
contracts that include certain improper terms 12 and automatically voids any contract, from the
beginning, if any of these conditions are contained.

SUBCHAPTER X. CONTRACT APPEALS BOARD

The bill requires that appeals to the CAB by a contractor may be made after either the date of receipt
of a decision by the contracting officer, or the date when a claim has been deemed denied.

The bill amends procedures for p erformance under a protested procurement to remove a
requirement that the CPO’s written determination must be “supported by substantial evidence .”
However, the determination must still provide that urgent and compelling circumstances that
significantly affect the interests of the District will not permit waiting for the decision of the CAB
concerning the protest.

The bill also amend s the First Source Employment Agreement Act of 1984 (First Source Act) to
remove evaluation by the Mayor of proposals submitted on specified criteria 13 and conforms the
debarment process under the First Source Act with the debarment process under the PPRA ; and
amends the Small and Certified Business Enterprise Development and Assistance Act of 2005 5 to
authorize contracting officers to designate when subcontracting plans are due; to permit contracting
officers to negotiate the terms of subcontracting plans with vendors ; and to prevent a beneficiary
from reducing the subcontracting percentage set forth in its subcontracting plan after contract
award, except with the consent of the Director of the Department of Small and Local Business
Development.

12 That is, requires the District to defend, indemnify, or hold harmless a contractor or other person; be bound
by any term or condition that is unknown at the time of signing such contract, or which may be unilaterally
changed by the contractor; pay associated litigation expenses in the event of a dispute; provides a venue for
dispute other than the CAB or the District courts; is subject to laws other than those of the District; has
binding arbitration; and has an automatic renewal that would obligate funds in future years.
13 Specified criteria includes descriptions of the health and retirement benefits provided to employees any of
the offeror’s past 3 completed projects; a description of the offeror’s efforts to provide District residents with
ongoing employment and training opportunities; and disclosure of past compliance with the Workforce Act
and the Davis-Bacon Act of 1931, approved March 3, 1931 (46 Stat. 1494; 40 U.S.C. § 3141 et seq.) where
applicable, on projects or contracts completed within the last 2 years.
The Honorable Phil Mendelson
FIS: “Procurement Reform Amendment Act of 2025”, Draft Bill as provided to the Office of Revenue Analysis
on June 13, 2025

Page 5 of 5

Financial Plan Impact

Funds are sufficient in the proposed revised fiscal year 2025 budget and proposed fiscal year 2026
through fiscal year 2029 budget and financial plan to implement the bill. The OCP can implement the
bill with current resources. Several of the bill’s provisions may reduce costs at the OCP, but the
agency has not provided sufficient information to quantify those costs and no savings have been
incorporated into the budget and financial plan at this time.

1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004
Phone (202) 262-6402 Email: adele.el-khouri@dc.gov

4

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: June 9, 2025

SUBJECT: Legal Sufficiency Review of the “Procurement Reform Amendment Act of 2025”
(AE-25-275)
_____________________________________________________________________________________

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.

_________________________________
Adele El-Khouri