Norton Monitoring Shows Increase in D.C. Workers Hired at Federal Construction Sites

As Work Matures at Sites, Small Business Momentum Expected

WASHINGTON, D.C.—The office of Congresswoman Eleanor Holmes Norton (D-DC) today released the newest set of available data (May 2016) on the number of District of Columbia residents hired to work at federal construction sites in the District and D.C. small businesses with subcontracts at the sites. All of the sites saw an increase in the percentage of D.C. workers, while small business representation remained unchanged. Norton will be making unannounced visits to these sites during the July and August congressional district work period. Norton keeps track of D.C. hires and small business contracts because anyone, regardless of residency, can work on any federally financed project, and federal law prohibits specific quotas for the hiring of local residents. Fortunately, existing federal regulations allow the U.S. General Services Administration (GSA) to conduct aggressive employment outreach for local residents to work on projects being constructed in their communities, including in the District. D.C. residents comprise roughly 10% of the region’s population, offering a reasonable minimum baseline.

At the Lafayette Building modernization, Grunley Construction reported that 20.2% of employees were D.C. workers, compared to 18.1% last month. This project has held steady at a reasonably high level of D.C. residents employed. There were no small businesses contracted at the Lafayette Building project because work will be winding down in the fall.

At the Old Post Office Building, Trump Construction reported 11% of total worker hours were completed by D.C. workers. Trump Construction has consistently reported at least 10% of contracts going to D.C. small businesses. The hotel is projected to be completed at the end of this month and to open in September.

At the Harry S. Truman Building Modernization, Clark Construction reported that 8.4% of employees were D.C. workers. This is an increase over the previous month when 6.7% of workers were D.C. residents. The employees are currently working in an occupied wing of the building, which limits the number of construction workers on site. However, later this summer, two wings will be entirely vacant and available for construction work, and Norton said that she will be looking to see an increase in D.C. workers hired.

At the U.S. Department of Homeland Security headquarters construction project at St. Elizabeths in Ward 8, Grunley reported 7.8% were D.C. workers, and General Dynamics reported 3.5% were D.C. workers. Grunley Construction added 8 D.C. residents to its workforce causing D.C. resident representation to jump from 5.5% the previous month to 7.8% in May. The current period of interior demolition requires a smaller workforce because it involves careful, historic preservation work that also requires increased safety measures. There are currently a total of three D.C. small businesses out of 16 subcontractors for Grunley Construction on site. D.C. small business numbers were the same as the previous month as no new subcontractors have been added. General Dynamics is not currently engaged in subcontract work for small businesses. However, the list of 20 small businesses on which General Dynamics relies includes only two D.C. small businesses. Norton says she understands the highly-skilled nature of General Dynamics’ IT work, which also requires substantial security clearances, but she nonetheless wants to see an increase in the number of D.C. employees and small businesses brought on by General Dynamics. Norton said she expects increased opportunities for small businesses at St. Elizabeths when the interior work in the Center Building is finalized.

Norton is collecting employment and small business totals at DHS headquarters consolidation project on the St. Elizabeths campus, Old Post Office Building redevelopment, Lafayette Building Modernization, and Harry S. Truman Building Modernization. Each month, Norton looks closely for improvements in hiring of D.C. residents at critical points of the projects, pays close attention to fluctuations and seeks explanations. GSA expects to have additional projects in the pipeline later this year, likely beginning in September, including additional buildings on the St. Elizabeths West Campus and infrastructure work to build a new I-295/Malcolm X Boulevard interchange that has already been funded by Congress.

Ward 8 Department of Homeland Security Headquarters Project on the St. Elizabeths Campus

* No percentage of employees reported

Old Post Office Building

Other Large D.C. Federal Projects