D.C. Mun. Regs. tit. 10-A, § 704

ED-1.2 Sustaining the Federal Presence

Effective Aug 21, 2021Authority: Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)). Source: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR 1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996, effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996, effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58 DCR 908 (February 4, 2011)); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).District of Columbia, Office of the Secretary

704 ED-1.2 SUSTAINING THE FEDERAL PRESENCE

704.1 Although the number of federal jobs declined between 1990 and 1998 and continued to decline as a percentage of all jobs through 2017, retaining federal employment is an important part of the District's economic development strategy. Not only does the federal government buffer the District's economy from cyclical boom-and-bust cycles, it generates significant private employment.

704.2 Washington, DC's status as the nation's capital and seat of the United States government is intrinsic to the local economy. In 2016, the federal government employed 199,300 workers in the District, and federal activities accounted for almost 34 percent of the District's economic output. It accounts for one in every four jobs in Washington, DC. The continued presence of the federal government and related uses is a key source of the District's preeminence in the region. Supporting this presence is important to maintaining the District's central position in the metropolitan economy.

704.3 Decentralization of federal jobs from Washington, DC has been a concern since the 1950s. The combination of interstate highways, suburbanization of the workforce, lack of available land, and national security issues resulted in the relocation of many federal offices to Maryland and Virginia in the 1950s and 1960s. Historically, the National Capital Planning Commission's 60/40 policy encouraged centralization of the federal government's regional workforce within the District of Columbia.

704.3a Text Box: The 60/40 Policy

The 60/40 policy refers to a federal guideline on the distribution of federal jobs within the Washington, DC metropolitan area. The policy was first established in 1968 by NCPC as a symbolic commitment to retain the District of Columbia as the seat of the federal government during a period when many jobs and residents were leaving the District for the suburbs. A goal was set to retain at least 60 percent of the region's federal jobs within the District, and thus allow no more than 40 percent of the federal jobs to locate in the District suburbs.

704.3b The District's share of federal jobs in the region dropped below 60 percent in the 1970s and currently stands at about 49 percent. Pressure to relocate federal jobs to the suburbs continues to be strong due to factors such as security and a desire to be closer to the District's suburbs. In recent decades, the region's federal employment in the District has hovered in the 50 percent range, and now NCPC is expected to transition away from the longstanding 60/40 policy.

704.3c However, the District encourages the federal government to recommit to Washington, DC as the seat of the federal government. The District is uniquely positioned to serve this role because of its constitutional status, unparalleled

access to a specialized workforce, and its supportive infrastructure including the Metrorail system’s core.

704.4 In addition to regional decentralization of federal employment, recent federal policy has encouraged greater national distribution of federal employment. This policy increases the District’s competition for hosting federal jobs.

704.5 One of the factors driving both regional and national decentralization of the federal workforce is the relatively high cost of office space in the District. In response, the General Services Administration (GSA) has been working to decrease the space per employee in federal offices within the District in order to reduce the total amount of space the government owns and leases. Together, these trends have been contributing to an elevated level of office vacancy in Washington, DC through increasingly compact facilities and the ongoing decentralization of the federal government, which is by far the District’s largest industry and employer.

704.6 Looking forward, the District should continue to retain as much federal employment as it can. Federal jobs have historically provided tremendous job opportunities for District residents, ranging from entry level and clerical jobs to advanced managerial and highly skilled positions.

704.7 Even greater opportunities lie in federal procurement. Procurement in the metropolitan region surpassed direct federal spending on wages in the mid-1990s and has remained a leading category of federal spending ever since. A substantial amount of procurement spending—more than $20 billion in 2016—already occurs within the District, as shown in Figure 7.5. Additionally, the District has the potential to grow its economy by capturing a greater portion of federal procurement, which exceeded $72 billion regionally and $432 billion nationally in 2016.

704.8 Figure 7.5: Federal Procurement Spending in the District 2010-2016

Source: Stephen S. Fuller Institute 2017

704.9 More concerted and strategic efforts should be made to help companies capture contract services in the future, leveraging the District’s already strong presence in computer systems design; engineering; cybersecurity; and management, scientific, and technical consulting services.

704.10 Figure 7.6: Federal Procurement by Federal Agency in the Washington, DC Region ($ billions), 2008-2016

(Source: Stephen S. Fuller Institute 2017, Federal Procurement Spending in the Washington Region 2008-2016)

704.11 Policy ED-1.2.1: Sustaining the Federal Workforce

Advocate for the retention of the federal workforce within the District, consistent with the Federal Elements of the Comprehensive Plan.

704.12 Policy ED-1.2.2: Federal Workforce Growth

Support the growth of the federal workforce in Washington, DC, particularly in leased office space whose owners pay District property taxes. Consistent with the Federal Elements, ensure that federal expansion plans support the District's neighborhood revitalization and job creation programs.704.13 Policy ED-1.2.3: Procurement and Outsourcing Opportunities

Improve the District's competitive position for capturing federal procurement and outsourcing dollars. The District should help local businesses take advantage of procurement opportunities and should employ strategies to increase the number of local minority businesses that qualify, while working to attract new firms that can also take advantage of these opportunities. The District should work closely with local and regional economic development agencies to formulate attraction and retention strategies for such businesses, including tax and financial incentives.704.14 Policy ED-1.2.4: Retaining Federal Employment

Work with NCPC, Maryland and Virginia to retain federal employment in the national capital region including a strong majority of federal jobs in the District.704.15 Action ED-1.2.A: Retention and Recruitment Programs

Work with private sector economic development organizations and through the Office of Federal and Regional Affairs (OFRA) to discourage federal jobs and agencies from leaving Washington, DC, and to enhance the District's ability to capitalize on federal procurement opportunities.704.16 Action ED-1.2.B: Technical Assistance

Through the Department of Small and Local Business Development (DSLBD), provide local firms with technical assistance in bidding on District and federal procurement contracts so that the District's companies and workers may capture a larger share of this economic activity. Periodically evaluate the success of local technical assistance programs, and make adjustments as needed to achieve higher rates of success. When practical, collect data and publish informational resources detailing opportunities to participate in District and federal government contracting.704.17 Action ED-1.2.C: Study Federal Employment

Conduct a study in coordination with NCPC to identify updated approaches to retain and attract federal jobs as well as related federal activities in Washington, DC. This study should respond to the changing needs of the federal workplace, identify federal uses best aligned with the District's workforce and economic development priorities, building types and locations compatible with those federal

activities.

SOURCE: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR 1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996 effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996 effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58 DCR 908 (February 4, 2011)); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).