1110.1 In order to qualify as a District-based business, a business enterprise, including a sole proprietorship, shall be required to satisfy all of the following criteria:

1. (a) The business, if required to be licensed in the District under the general business and professional license law, D.C. Code §47-2801 et seq. (1981), or other District law or regulations, has the required license in force;
2. (b) The business is subject to the District of Columbia Income and Franchise Taxes Act of 1947, D.C. Code §47-1807 et seq. (1981), and at least sixty percent (60%) of the net income of the business is taxable income, as defined in D.C. Code §§47-1806.1, 47-1807.1, or 47-1808.2 (1981), whichever is applicable;
3. (c) At least sixty percent (60%) of the amount deducted as wages of employees of the business for District income tax purposes is paid to residents of the District; and
4. (d) The principal office of the business is located in the District.

1110.2 When using the competitive sealed proposal method of procurement, the contracting officer may increase the offeror's evaluation point score by not more than five percent (5%) of the total possible number of evaluation points for a proposal submitted by a District-based business. The number of preference points shall be stated in the solicitation.

1110.3 When a solicitation is in the sheltered market, the contracting officer may accord a preference to a minority business enterprise having a principal office located in the District according to §605 of this title.

SOURCE: Final Rulemaking published at 35 DCR 1400 (February 26, 1988).