Active and Engaged Implementation, Enforcement, and Monitoring
The following are critical elements, we believe necessary to assure effective implementation and compliance with both the letter and spirit of the NEW First Source Legislative effort. The new law (amended) goes a log ways toward redressing the old grievances, but ... and the word is BUT ... without the provisions and regulations we outline here, it will become too easy for those who would do so (70% of DC foreign companies do not now comply even with the palid provisions of the esiting legislation) ot circumvent and nullify this well intentioned legislative effort.
a. We expect contractors and construction firms and all those covered by First Source to engage in a pro-active regimen of compliance with both the letter and spirit of the law. This means …
i. Establish a First Source Compliance Officer position within the organization.
ii. Draft and submit for approval a First Source compliance plan (FSCP)
1. This plan must include both business processes and procedures along with an audit and reporting schedule.
2. In addition, a file containing copies of W4’s and Drivers Licenses for all workers on the site. File is to be immediately available to auditors on demand
iii. Develop and maintain as part of the FSCP, a First Source Remediation Plan that explains in some detail how the organization will remediate non-compliance issues.
2. Engaged Enforcement
a The Deputy Mayor for Ecomomic Development now has jurisdiction over the First Source Agreement. Will he have sufficient budget and resources to accomplish these provisions, given the current fiscal crisis? We shall see ...Active enforcement needs to be a priority here.
i. Posting adjacent to the organizations logo and sign a placard of similar size to be easily visible from passing traffic. This sign shall display the fact that a First Source requirement exists for this company.
ii. A separate but equally visible sign shall also display the number of workers on the site, as of last audit, with confirmed DC residential status and of equal size and position, the number of out of city workers presently employed on the site.
b. Prohibitive Penalties
i. In addition to claw back provisions and invoice payment suspension suggested elsewhere , it is essential that penalties are meaningful and have sufficient economic consequences to be taken seriously.
1. For each percentage point under compliance the company shall be prohibited from biding on city contracts for “n” months.
2. For every pay period a Payroll report shall automatically be generated using original source documents. The reports shall be directly generated by the organizations payroll system
3. Any failure to comply such as a workers whose city documentation proves invalid, will generate a $10,000 fine for the first infraction and it doubles for all subsequent violations on each project.
4. Penalties for failure to respond promptly also need to be substantive.
5. Finally, three penalties for a single contractor on any one project will result in a one-year suspension from qualified bidding on city projects.