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A RESOLUTION
26-135
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
June 3, 2025
To declare the existence of an emergency with respect to the need to amend the Small and
Certified Business Enterprise Development and Assistance Act of 2005 to extend the
time in which compliant subcontracting plans for health benefits contracts for District
employees and their families may be provided.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the “Subcontracting Requirements Exemption for Contracts for Health
Benefits for District Employees Emergency Declaration Resolution of 2025”.
Sec. 2. (a) There exists an immediate need to amend 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 § 2-218.01 et seq.) (“CBE Act”), to extend the deadline for offerors to
provide a subcontracting plan for health benefits contracts for District employees and their
families pursuant to section 2346(d) of the CBE Act (D.C. Official Code § 2-218.46).
(b) Section 2346 of the CBE Act requires that, for all District contracts in excess of
$250,000, a bid or proposal responding to a solicitation include a subcontracting plan detailing
how the prime contracting will subcontract at least 35% of the dollar value of the contract to
small or certified business enterprises unless the Director of the Department of Small and Local
Business Development grants a waiver of those requirements.
(c) The District of Columbia Contract Appeal Board (“CAB”)’s decision in Conduent
State Healthcare, LLC, CAB No. P-1120 (Aug. 20, 2020) (“Conduent”), held that contract
proposals shall be considered non-responsive and must be rejected if the vendor fails to submit a
compliant subcontracting plan. The CAB’s approach was codified by the Council at section
2346(d)(1) of the CBE Act (D.C. Official Code § 2-218.46(d)(1)).
(d) The Department of Human Resources (“DCHR”) administers the Employees Health
Benefits Program (“EHBP”), which provides District employees and their families with a
comprehensive selection of healthcare options.
(e) EHBP procurements are unlike other District procurements. The solicitation’s price
schedule is based on enrollment estimates for all District employees for each plan type. After
proposals are submitted, DCHR adjusts the estimates downward to reflect DCHR’s estimates of
enrollment for each proposed contractor, but these are only estimates. Each contractor’s actual
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enrollment numbers will not be known until after open enrollment closes in December of each
year. Proposed premium rates may also change during discussions with the offerors before final
award. This process makes it impossible for offerors to submit, with their initial proposal,
compliant subcontracting plans based on an amount that accurately reflects the eventual award
amount, making each of their proposals subject to rejection under the CBE Act, as interpreted by
the CAB in Conduent.
(f) Efforts to comply with existing mandatory subcontracting requirements have delayed
procurements for new contracts for these vital services.
(g) Emergency legislation is necessary to amend the CBE Act to extend the deadline for
bidders to submit subcontracting plans for health benefits contracts for District employees and
their families to more accurately reflect the contracting process for these contract types while
retaining the requirement for these contractors to subcontract out work under these contracts
pursuant to the CBE Act.
Sec. 3. The Council of the District of Columbia determines that the circumstances
enumerated in section 2 constitute emergency circumstances making it necessary that the
Subcontracting Requirements Exemption for Contracts for Health Benefits for District
Employees Emergency Amendment Act of 2025 be adopted after a single reading.
Sec. 4. This resolution shall take effect immediately.