A group of D.C. Council members introduced a bill Tuesday designed to improve compliance with a District law that requires companies with large public contracts to subcontract some work to small local businesses.
The subcontracting law — meant to create new jobs, expand the tax base and grow the local economy — has been revised in prior years as lawmakers attempted to stop contractors from abusing it. The latest effort comes after a Washington Post investigation showed that the District’s lottery and sports gambling contractor, the Greek company Intralot, subcontracted work to its own subsidiary.
The bill — which, according to its text, is aimed at “closing loopholes to prevent program abuse and manipulation” — would prohibit contractors from subcontracting work to companies in which they have an ownership stake to fulfill the law’s requirements.
It would also require businesses applying to be considered local to certify “under penalty of perjury” that the information they provide is correct. The bill would require more evidence from businesses that they are local, create a tip line for reporting violations, and increase the frequency of site inspections.
