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B 26-0257

Subcontracting Requirements Exemption for Contracts for Health Benefits to District Employees Amendment Act of 2025

26th Council Period (2025-2026) Introduced by Phil Mendelson

Exempts DC employee health-benefits contracts from subcontracting rules, removing required allocations to subcontractors and potentially affecting MWBE goals and bids.

Public Hearing on B26-0257 View Public Hearing Record
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Bill Summary · B 26-0257

Summary of Bill B 26-0257: Subcontracting Requirements Exemption for Contracts for Health Benefits to District Employees Amendment Act of 2025

Overview

Bill B 26-0257 would amend the District of Columbia’s subcontracting requirements by exempting contracts that provide health benefits to District employees from those subcontracting obligations. The measure is titled the Subcontracting Requirements Exemption for Contracts for Health Benefits to District Employees Amendment Act of 2025. The bill aims to adjust how health-benefits-related contracts are procured and managed within DC government operations.

What the bill would do (key provisions)

  • Create an exemption from the District’s existing subcontracting requirements for contracts that provide health benefits to District employees.
  • Integrate the exemption into the framework governing prime contracts and subcontracting, effectively removing the requirement to award or allocate a portion of such health-benefits contracts to designated subcontractors under the subcontracting rules.
  • Define the scope to cover contracts whose primary purpose is to provide health benefits to District employees (as opposed to other types of District government contracts).

Note: The exact statutory language, definitions, and any limited or transitional provisions are not provided in the summary materials available. The above reflects the title-based interpretation of the bill’s intended change.

Who would be affected

  • District government agencies that issue contracts for employee health benefits.
  • Health benefits providers, insurers, third-party administrators, and other vendors that currently participate or potential bidders under the District’s subcontracting requirements for such health-benefits contracts.
  • Prime contractors on health-benefits contracts, who may no longer be subject to certain subcontracting obligations under the DC subcontracting rules.
  • District employees, indirectly, through the administration and continuity of health benefits.

Procedural and timeline aspects

  • Introduction: May 22, 2025, introduced by Chairman Phil Mendelson at the Office of the Secretary.
  • Notice of Intent to Act: Published May 30, 2025 in the District of Columbia Register.
  • Referral: June 3, 2025, referred to the Committee on Executive Administration and Labor.
  • Current status: Referred to Committee; awaiting committee action (markup, hearings, or recommendation) before potential floor consideration.

Potential impacts and considerations

  • Procurement/competition: Exemption may reduce or alter MWBE or local subcontracting opportunities for health-benefits contracts, potentially affecting contractor outreach and diversity goals.
  • Administrative efficiency: Could streamline procurement and administration of health-benefits contracts by limiting subcontracting constraints.
  • Fiscal implications: Depending on the scope, may impact contract pricing, administration costs, and oversight requirements for health-benefits programs.

Next steps

  • The Committee on Executive Administration and Labor will review the measure, hold hearings as needed, and may amend or advance the bill.
  • If advanced, the bill would proceed to floor consideration, possible vote, and, if passed, enactment (and potential implementation timelines) as determined by DC Council action and Mayoral approval.

If you’d like, I can add a section comparing this proposal to current DC subcontracting rules or provide a brief hypothetical example of how the exemption could affect a representative health-benefits contract.

Compiled from official sources — confirm details with the bill’s official record.

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