The DC First Source Agreement: What You Need to Know
As a business owner or contractor based in Washington, D.C., it’s essential to have a clear understanding of the DC First Source Agreement. This regulation is designed to promote local job creation and training opportunities for District residents on construction projects that receive funding or assistance from the District government.
The DC First Source Agreement requires that employers who receive government assistance or contracts for construction projects valued at $300,000 or more employ a certain percentage of local residents to perform the work. The designated percentage varies depending on the nature of the project, with a target goal of 51% for most projects.
The goal of the DC First Source Agreement is to ensure that District residents have access to employment and training opportunities in the construction industry, which is essential for the overall economic growth of the region. By requiring that businesses and contractors hire locally, the Agreement helps to create jobs and stimulate the local economy.
To comply with the DC First Source Agreement, contractors must submit a First Source Employment Plan to the Department of Employment Services (DOES) before commencing work on a project. This plan outlines how the contractor will meet the hiring goals for District residents and provides a timeline and budget for the hiring process.
When hiring workers to fulfill the requirements of the First Source Employment Plan, contractors must prioritize hiring residents of the District who live in communities that have high unemployment rates or are economically distressed. This ensures that the benefits of the DC First Source Agreement are spread equitably across the District and that those who are most in need of employment opportunities receive priority consideration.
It’s important to note that failure to comply with the DC First Source Agreement can result in penalties, including the imposition of fines, suspension of contracting privileges, and termination of contracts.
In summary, the DC First Source Agreement is a critical regulation for businesses and contractors operating in Washington, D.C. By requiring the hiring of District residents for construction projects, this regulation promotes local job creation and supports economic growth in the region. As a business owner or contractor, it’s important to be familiar with the requirements of the DC First Source Agreement and to ensure that you’re in compliance with the regulation to avoid penalties and support the local community.