Press Release: Councilmember McDuffie Closes Loophole in the District’s CBE Program

News Release — Ward 5 DC Council member Kenyan McDuffie

Councilmember Kenyan R. McDuffie Introduced Emergency Legislation to close a loophole that allows large out of state firms to certify as local business enterprise

The emergency requires any business seeking certification as a local business enterprises within our CBE program to be independently owned, operated, and controlled.

For Immediate Release: September 22, 2020

Contact: Jonathan McNair

Washington, D.C. — Today, Councilmember Kenyan R. McDuffie, Chair of the Committee on Business and Economic Development introduced the Local Business Enterprise Clarification Emergency Amendment Act of 2020.

The emergency legislation requires any business seeking certification as a local business enterprises within our CBE program to be independently owned, operated, and controlled; and would require currently certified local business enterprises that are not independently owned, operated, and controlled to submit a new certification application by a time specified or face having their certification status revoked. Ensuring that truly local businesses are benefiting from our CBE Program and receiving a fair shot in the District’s contracting and procurement process.

With introduction, Councilmember McDuffie said:

“This legislation ends the practice that allows out of state firms to set up wholly owned subsidiaries and take advantage of our CBE program at the expense of actual local businesses. The emergency legislation upholds my previous commitment to close the loophole on our CBE program that allowed a subsidiary of an out-of-state firm to present itself as a local CBE to gain a significant advantage in its bid for one of the largest District government contracts.

The strength of our CBE program relies heavily on our ability to provide procurement opportunities to local businesses. For years, out-of-state firms that are not independently owned by DC residents have benefited from District procurements at the expense of actual local businesses. This emergency measure is a critical step towards ensuring the CBE program functions as intended and truly supports our local businesses.”

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