Madam Chair, Chairman Brown, members of the Committee on Workforce Development and Government Operations, and on Economic  Development, colleagues; I am David P. Gragan, acting Director of the Office of Contracting and Procurement (OCP). Thank you for the opportunity to address this Committee. Today, I would like to discuss the potential impact the First Source Employment Agreement and Small, Local and Disadvantaged Business Enterprise Enhancement Amendment Act of 2007 would have on OCP and its ability to carry out its mission in a timely and productive manner.

First Source Employment Agreement
Bill 17-62, would require all First Source Employment beneficiaries to submit a report to the Department of Employment Services (DOES) regardless of what agency awarded the contract.  DOES would then submit the compliance report for each project to OCP.

I believe there would be more practical value in the report from DOES to OCP if the report only contained those contractors not in compliance with the First Source requirements. Upon receipt of that report, OCP would then take appropriate remedial action. I also recommend that reports to the Council on First Source compliance be submitted directly by DOES, with a copy to OCP for the purpose of contract administration.

The Small, Local and Disadvantaged Business Enterprise
The second section of the bill requires OCP to enforce a monetary fee of $15,000 or 5% of the total amount of work that a contractor was to subcontract. I would like to propose that the Department of Small and Local Business Development (DSLBD), in compliance with Bill 17-62, only issue a report to OCP as a matter of information, and that DSLBD be the agency that enforces the fee portion of this legislation. I would like to suggest that money collected remain with DSLBD to administer the compliance portion of the program. 
 
Section 7 of Title III authorizes the Chief Procurement Officer to forbid a non-compliant contractor from bidding on a contract within a year timeframe.  A more appropriate term would be suspend or debar. Additionally, OCP recommends that the law list compliance failures as a cause for suspension or debarment.  Before any contractor is suspended or debarred, it must receive due process as described in 27 DCMR, Chapter 22. 

Chairmen Schwartz and Brown and members of the Committee, thank you for the opportunity to testify before you today. I look forward to working with you and other members of the Council on this and other matters as we strive to better serve the residents and visitors of the District of Columbia. I will be happy to address your questions. Thank you.