purchasing

District of Columbia Resident Bidder Preference

Revised August 14, 2024

District of Columbia Code

Division 1. Government of District

Title 2. Government Administration

Chapter 2. Contracts

Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance.

Part A. Short Title and Definitions

§ 2-218.02. Definitions.

For the purposes of this subchapter, the term:

(1C) “Business enterprise” means a business entity organized for profit.

(1D) “Certified business enterprise” means a local business enterprise certified pursuant to part D of this subchapter.

(12) “Local business enterprise” means a business enterprise as described in § 2-218.31.

(12A) “Local manufacturing business enterprise” means a business enterprise as described in § 2-218.39.

(13) “Longtime resident business” means a business enterprise that has been continuously eligible for certification as a local business enterprise, as defined in § 2-218.31 , for 20 consecutive years, or a small business enterprise, as defined in § 2-218.32 , for 15 consecutive years.

(15) “Resident-owned business” means a local business enterprise owned by an individual who is, or a majority number of individuals who are, subject to personal income tax solely in the District of Columbia.

District of Columbia Code

Division 1. Government of District

Title 2. Government Administration

Chapter 2. Contracts

Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance.

Part D. Programs for Certified Business Enterprises

Subpart 1. Certified Business Enterprises.

§ 2-218.31 . Local Business Enterprises.

A business enterprise shall be eligible for certification as a local business enterprise if the business enterprise:

(1) Has its principal office located physically in the District of Columbia;

(2) Requires that its chief executive officer and the highest level managerial employees of the business enterprise perform their managerial functions in their principal office located in the District;

(2A) Can demonstrate one of the following:

(A) More than 50% of the employees of the business enterprise are residents of the District;

(B) The owners of more than 50% of the business enterprise are residents of the District;

(C) More than 50% of the assets of the business enterprise, excluding bank accounts, are located in the District; or

(D) More than 50% of the business enterprise's gross receipts are District gross receipts; and

(3) Can demonstrate one of the following:

(A) The business enterprise is licensed pursuant to Chapter 28 of Title 47;

(B) The business enterprise is subject to the tax levied under Chapter 18 of Title 47; or

(C) The business enterprise is a business enterprise identified in § 47-1808.01(1) through (5) and more than 50% of the business is owned by residents of the District.

§ 2-218.35 . Resident-owned business.

A business enterprise shall be eligible for certification as a resident-owned business if it meets the definition of resident-owned business pursuant to § 2-218.02(15) .

§ 2-218.36 . Longtime resident businesses.

A business enterprise shall be eligible for certification as a longtime resident business if it meets the definition of longtime resident business pursuant to § 2-218.02(13) .

§ 2-218.39 . Local manufacturing business enterprises.

A business enterprise shall be eligible for certification as a local manufacturing business enterprise if the business enterprise:

(1) Is a local business enterprise;

(2) Makes a product through a process involving raw materials, components, or assemblies, usually on a large scale, with different operations divided among different workers; and

(3) Repealed.

(4) Manufactures only in the District of Columbia.

District of Columbia Code

Division 1. Government of District

Title 2. Government Administration

Chapter 2. Contracts

Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance.

Part D. Programs for Certified Business Enterprises

Subpart 2. Requirements of Programs.

§ 2-218.43 . Bid and proposal preferences.

(a) In evaluating bids or proposals, agencies shall award preferences as follows:

(1) In the case of proposals, points shall be granted as follows:

(A) Three points for a small business enterprise;

(B) Five points for a resident-owned business;

(C) Five points for a longtime resident business;

(D) Two points for a local business enterprise;

(E) Two points for a local business enterprise with its principal office located in an enterprise zone;

(F) Two points for a disadvantaged business enterprise;

(G) Two points for a veteran-owned business enterprise;

(H) Two points for a local manufacturing business enterprise; and

(I) Five points for an equity impact enterprise.

(2) In the case of bids, a percentage reduction in price shall be granted as follows:

(A) Three percent for a small business enterprise;

(B) Five percent for a resident-owned business;

(C) Ten percent for a longtime resident business;

(D) Two percent for a local business enterprise;

(E) Two percent for a local business enterprise with its principal office located in an enterprise zone;

(F) Two percent for a disadvantaged business enterprise;

(G) Two percent for a veteran-owned business enterprise;

(H) Two percent for a local manufacturing business enterprise; and

(I) Ten percent for an equity impact enterprise.

(b) A certified business enterprise shall be entitled to any or all of the preferences provided in this section, but in no case shall a certified business enterprise be entitled to a preference of more than 12 points or a reduction in price of more than 12 percent.

District of Columbia Code

Division 1. Government of District

Title 2. Government Administration

Chapter 2. Contracts

Subchapter IX-A. Small, Local, and Disadvantaged Business Enterprise Development and Assistance.

Part D. Programs for Certified Business Enterprises

Subpart 3. Certification.

§ 2-218.61 . Certificate of registration.

(a) No business enterprise shall be permitted to participate in a program established under this part unless the business has demonstrated its capability to perform and has been issued a certificate of registration under the provisions of this subchapter.

(b)(1) A business enterprise seeking to be certified in a category under this subpart shall file with the Department a written application on such form as may be prescribed by the Department.

(c) The Department shall issue the applicant a certificate of registration if:

(1) The information provided in the application or additional filings is satisfactory to the Department;

(2) The business enterprise meets the standards of this subchapter; and

(3) The applicant fulfills other requirements as may be established by the Department.

(d) A certificate of registration shall expire 3 years from the date of approval of the application. A business enterprise that is registered with the Department may voluntarily relinquish its registration as a certified business enterprise at any time prior to the expiration of the 3-year term.