(Washington, DC) – Today, Mayor Muriel Bowser announced two pieces of legislation designed to cut red tape for local businesses working with DC government. The Supporting Local Business Enterprises Amendment Act of 2026 aims to increase access to government opportunities for the District’s Certified Business Enterprise (CBEs), building on a decade of steady progress to ensure that investments in the District create meaningful economic opportunities for local businesses across all eight wards. The Procurement Reform Amendment Act of 2026 updates and streamlines the District’s already strong procurement laws so the city can deliver services faster, better protect taxpayers, and open even more doors for local businesses.
“When we make it easier to do business in DC, we make it easier to create jobs, we make it easier for Washingtonians to realize their dreams of starting a business, we make it easier for entrepreneurs to bring new ideas and opportunities to our neighborhoods,” said Mayor Bowser. “We have been very focused on how we shift our economy, how we keep jobs and opportunity in DC, and how we have efficient and predictable processes. These two pieces of legislation keep that momentum going — they expand opportunity for local businesses while cutting through red tape that gets in the way of growth.”
Supporting Local Business Enterprises Amendment Act of 2026
This legislation updates the Small and Certified Business Development and Assistance Act of 2005 to strengthen and modernize the District’s CBE practices. It clarifies eligibility standards for specific certification categories, strengthens enforcement mechanisms, and provides clearer guidance on contracting and subcontracting requirements to ensure greater accountability on government-assisted projects. The bill also establishes enhanced invoicing standards and corresponding penalties under the District’s Quick Payment Act to promote timely payment practices. In addition, the legislation incorporates legal updates to ensure the District’s civil penalty provisions remain aligned with recent Supreme Court precedent and are implemented in a manner consistent with constitutional requirements.
“For ten years, we have strengthened and refined the Certified Business Enterprise program to ensure it works for the businesses it was designed to support,” said DSLBD Director Rosemary Suggs-Evans. “This legislation is about protecting opportunity, strengthening compliance, and making sure the system operates with clarity and fairness.”
The Supporting Local Business Enterprises Amendment Act of 2026 includes the following reforms and provisions:
- Stronger Enforcement of the 35% CBE Requirement to Ensure the CBE Community Is Made Whole
Beneficiaries that fail to meet subcontracting requirements may be required to pay the difference between the required amount and the actual amount subcontracted to CBEs.
- Prohibition on Self-Subcontracting to Expand Access to Opportunities for Businesses
Beneficiaries may not count subcontracting toward CBE goals if they have an ownership interest in the subcontractor, ensuring fair opportunity for independent CBEs.
- Improved Payment Protections for Small Businesses
Beneficiaries must invoice the District at least every 30 days and pay subcontractors promptly after receiving payment, helping ensure CBEs are paid on time.
- Expanded Coverage to Nonprofit Entities to Increase Contracting Opportunities for Local Businesses
Nonprofit organizations acting as prime contractors or developers will be subject to the same CBE subcontracting requirements.
- Right-Sizing Joint Venture Participation Requirements to Give a Fair Shot to CBE Participants
Certified joint ventures must perform work proportional to their ownership interest, promoting equitable participation.
- Limiting Program Eligibility to Bona Fide Local Businesses
Local Business Enterprise applicants must be independently owned, operated, and controlled to qualify.
View the Supporting Local Business Enterprises Amendment Act of 2026.
Since 2015, the Bowser Administration has implemented reforms to increase transparency in contracting, improve certification timelines, expand outreach and technical assistance, and strengthen enforcement of subcontracting requirements. These improvements have supported steady growth in certified firms and greater participation in District-funded projects. To learn more about how to become a Certified Business Enterprise, District residents and businesses can explore eligibility requirements and access application guidance and technical assistance resources at dslbd.dc.gov.
Procurement Reform Amendment Act of 2026
The Procurement Reform Amendment Act of 2026 will streamline District government procurement processes to maximize efficiency and expand opportunities to invest in local businesses. The legislation will allow the city to adapt to evolving markets and industry practices while still maintaining critical oversight over procurement.
“When government buys better, our whole city benefits,” said Nancy Hapeman, Chief Procurement Officer of the District of Columbia. “We’ve worked to open doors for local businesses and make it easier to do business with DC. These reforms build on that progress by creating a clearer, more predictable path for vendors while keeping accountability front and center.”
What residents and businesses can expect:
- Faster Approvals, Fewer Delays
Problem: Current DC law prevents the DC Council from reviewing contracts while in recess, routinely creating pauses that slow down services residents rely on.
Solution: The legislation would modify DC law to ensure the Council can review contracts while in recess and to allow quicker approvals for contract option periods when those options were included in a Council‑approved contract.
- Quicker Delivery of Key Projects
Problem: Right now, staggered, one‑by‑one approvals for annual programs and critical purchases delay project starts and push essential work into later fiscal periods.
Solution: The legislation authorizes group approvals for: annual programs for locally funded highway and construction work; District Supply Schedule purchases; and capital vehicle acquisitions (e.g., ambulances and fire apparatus)—so essential projects can start sooner.
- Stronger Taxpayer Safeguards
Problem: Risky contract terms—like indemnifying private contractors, automatic renewals that obligate future funds, binding arbitration requirements, or moving disputes outside DC courts—expose the District to legal and financial harm.
Solution: The legislation prohibits these terms in District contracts and makes any such prohibited term void, strengthening fiscal and legal protections for taxpayers.
- More Opportunities for Local Businesses
Problem: Because architectural and engineering services cannot be set aside for small businesses and District law requires subcontracting plans to be submitted at the time of solicitation responses, CBEs and certified joint ventures have limited avenues to compete and participate fully in these procurements.
Solution: The legislation enables set‑asides for CBEs and certified joint ventures on certain architectural and engineering services and clarifies how subcontracting plans are submitted and negotiated, creating a more predictable path for local firms.
- Simpler Small Purchases
Problem: Low‑dollar purchases are currently slowed down by disproportionate red tape, tying up staff time without a meaningful oversight benefit.
Solution: The legislation raises the threshold for noncompetitive small procurements to $25,000, reducing administrative burden while keeping oversight focused on larger awards.
- Modern, Flexible Purchasing Tools
Problem: Outdated source‑selection and construction retainage rules limit the District’s ability to match procurement approaches to market conditions and delay timely payment.
Solution: The legislation authorizes sensible source‑selection methods when in the District’s best interest, clarifies use of federal schedules (including option periods on orders), and updates construction retainage to balance timely payment with the protection of public funds.
View the Procurement Reform Amendment Act of 2026.
These two pieces of legislation build on key business initiatives Mayor Bowser has launched and expanded during her tenure, including the annual Green Book: Small Business Enterprise Opportunity Guide, which provides transparency and early visibility into planned contracting opportunities; strategic infrastructure investments like the DC Infrastructure Academy; and the Mentor-Protégé Program, a partnership between the Department of Small and Local Business Development (DSLBD) and the Department of General Services (DGS) that helps strengthen emerging businesses’ capacity to compete for larger contracts.
Since 2015, the Bowser Administration has consistently transformed the way the District works with local businesses, expanding the District’s annual spending goals with local outfits from $317 million in FY16 to $1.4 billion in FY25. Just last month, Mayor Bowser announced a record-breaking $1.5 billion spending goal with Small Business Enterprises as part of the FY26 Green Book launch, which marks the sixth year in a row that the District has set an annual spending goal in excess of $1 billion.
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