Norton Releases Latest Jobs and Small Business Statistics at D.C. Federal Construction Projects and Announces Senate Funds for DHS Headquarters Consolidation

After May Roundtable on Federal Construction Projects in the District, Norton Expects to See Improved D.C. Hires and Small Business Numbers

WASHINGTON, D.C.—As the office of Congresswoman Eleanor Holmes Norton (D-DC) released the latest report on jobs and contracts obtained by District of Columbia residents and small businesses at federal construction projects in D.C., she also announced that the Senate Appropriations Committee-passed fiscal year 2017 Department of Homeland Security (DHS) appropriations bill contains $226 million for DHS consolidation at St. Elizabeths. This amount is even higher than the $199 million for DHS requested by the President for FY 2017, an indication that the Senate recognizes the critical importance of providing funding to complete the consolidation on time and to avoid keeping DHS agencies in costly, leased spaces. The President also requested $267 million for the U.S. General Services Administration (GSA) for the DHS consolidation project. If fully funded, the fiscal year 2017 amount would allow three additional DHS agencies to relocate to St. Elizabeths—the Federal Emergency Management Agency, U.S. Immigration and Customs Enforcement, and Customs and Border Control. To date, Norton has secured over $2.16 billion for DHS construction at St. Elizabeths.

Norton also released the latest available monthly statistics (April 2016) for D.C. residents employed at and D.C. small businesses contracted at the major federal construction sites in the District resulting from Norton’s legislative work. Norton said some of the differences in hiring statistics from month to month may be explained by the various stages at which the projects are operating. However, each month, Norton looks closely for improvements in hiring of D.C. residents at critical points of the projects and pays close attention to fluctuations and seeks explanations. Anyone, regardless of residency, can work on any federally financed project, and federal law prohibits specific quotas for the hiring of local residents. However, existing federal regulations allow the GSA to conduct aggressive employment outreach to local residents for 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 18.1% of employees were D.C. workers. 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 man hours 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 July and to open in September.

At the Harry S. Truman Building Modernization, Clark Construction reported that 6.7% of employees were D.C. workers. 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 DHS headquarters construction project at St. Elizabeths in Ward 8, Grunley reported 5.5% were D.C. workers, and General Dynamics reported 3.8% were D.C. workers. Norton said the 1.5% decrease in Grunley’s employment number may be due to the shift in work from securing the exterior historic walls to interior demolition. This interior demolition requires a smaller workforce because it involves careful, historic preservation work that also requires increased safety measures. D.C. small business numbers saw a small increase in April at St. Elizabeths with the addition of a D.C. small business (AVSmoot, LLC). There are now a total of three D.C. small businesses out of 16 subcontractors on site. General Dynamics is not currently engaged in subcontract work for small businesses. However, the list of 20 small businesses on which General Dynamics relies on includes only two D.C. small businesses. Norton says she understands the highly-skilled nature of the IT work that also requires substantial security clearances, but she nonetheless would like 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.

In May, Norton held a roundtable where she gave contractors at the federal sites suggestions for ways to reach out to D.C. residents who might qualify for these projects. GSA also expects to have additional projects in the pipeline later this year, 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