Boeing Moving Corporate Headquarters to Arlington, Va. from Chicago

Boeing Moving Corporate Headquarters to Arlington, Va. from Chicago

Original story from NBC4 Washington.

Aerospace giant Boeing is moving its global headquarters to Arlington, Virginia, from Chicago and is creating a research and technology hub in the D.C. region, the company announced Thursday.

Boeing President and CEO Dave Calhoun said the move will put corporate workers in close proximity to key government and military stakeholders. It’ll also better position the company — which is the U.S.’s largest exporter employing 140,000 people — to attract “world-class engineering and technical talent,” Calhoun said in a statement.

Gov. Glenn Youngkin, a Republican, and Democratic Sen. Mark Warner have been working on the deal for some time. Warner said he started conversations last year and Youngkin has a personal relationship with Calhoun, a Virginia state official said. A large incentive package was not involved in the relocation discussions, this official said.

Boeing, a corporation with a market capitalization of $89 billion, makes commercial airliners like the 787 Dreamliner and 737 as well as military cargo planes, fighter jets, satellites and rockets.

In recent years, the company has been rocked by production woes, regulatory issues and the worldwide grounding of 737 Max jets after two deadly crashes overseas that claimed 346 lives. The 737 Max has since returned to service without issue. Production delays and cost overruns forced Boeing to post a $1.2 billion net loss in the first quarter of 2022. Calhoun also said the airplane maker lost $1.1 billion on a 2018 deal between his predecessor and the Trump Administration to produce new, specially-modified 747 jets to be used as Air Force One.

Boeing already has a large presence in Arlington’s Crystal City section with its Defense, Space and Security unit centered there. That division moved from St. Louis in 2017 to be closer to government and military decision-makers.

The company’s commercial aviation division is headquartered in Seattle, Washington, and its services division is focused in Plano, Texas. Calhoun said Boeing will continue to operate an office in Chicago but with a reduced physical footprint.

As part of the announcement, Boeing said it will build a research and technology hub in Northern Virginia. The new hub will focus on cybersecurity, autonomous operations, quantum sciences and software and systems engineering.

Last year, the company announced it would donate $50 million to Virginia Tech’s new $1 billion innovation campus in nearby Alexandria. Calhoun is a Virginia Tech graduate.

“As the former Governor of Virginia, I was proud to secure Virginia’s standing as the best state for business and the best-managed state, among other honors, and I’ve been proud to work in my role as Senator to help continue to cultivate the kind of pro-business environment that world-class companies like Boeing need to grow and thrive,” Warner said in a statement.

“I look forward to working with Boeing to attract even more talent to Virginia especially given its reputation for engineering excellence. From day one, our goal has been to make Virginia the best place to live, work, and raise a family,” Youngkin added in his own written statement.

Arlington is already home to several aerospace and defense contractors like Boeing. Amazon is building its satellite headquarters complex — nicknamed Amazon HQ2 — in Crystal City as well.

While Virginia lawmakers applauded Boeing’s move, not all legislators are happy. House of Representatives Transportation Committee Chair Peter DeFazio (D-Ore.) blasted the decision.

“Moving their headquarters to Chicago and away from their roots in the Pacific Northwest was a tragic mistake,” DeFazio said. “Moving their headquarters again, this time to be closer to the federal regulators and policymakers in Washington, D.C. is another step in the wrong direction. Boeing’s problem isn’t a lack of access to government, but rather its ongoing production problems and the failures of management and the board that led to the fatal crashes of the 737 Max.”

Dulles International Airport Proposes New 14-Gate Concourse

This content is presented by:

Facility would replace current outdoor boarding areas, expand passenger amenities, support new jobs

APRIL 7, 2022 – The Metropolitan Washington Airports Authority is proposing a new concourse at Washington Dulles International Airport to replace outdoor boarding areas currently used by regional flights, upgrade aircraft service facilities and bring new conveniences and amenities to passengers.

The proposed “Tier-2 Concourse (East)” would be a modern 14-gate facility with convenient access to the airport’s underground Aerotrain system and would include new shops, restaurants and other customer services as well as the latest aircraft-servicing technologies to accommodate future needs. It would replace gates built in the 1990s at the eastern end of Concourse A, where many regional-flight passengers currently go outdoors to access their planes via covered walkways.

“This new concourse would represent a major improvement in the passenger experience at the regional gates,” said Airports Authority President and CEO Jack Potter, calling the project “the first step in a long-term strategy to expand and enhance the facilities and services at Dulles International Airport as we look toward the future.”

To attain partial funding for the project, the Airports Authority has applied for a Federal Aviation Administration grant under the recently enacted Bipartisan Infrastructure Law, which includes a competitive grant program to help airports upgrade or replace aging facilities. The application seeks $230 million to begin development of the 400,000-square-foot facility, which is expected to ultimately cost between $500 million and $800 million. The Airports Authority is working with United Airlines, the largest carrier serving Dulles, and other airlines in planning the design, funding and construction of the new concourse.

“United recognizes the critical importance this new concourse will serve both as an economic driver and job creator in the region,” said Nathan Lopp, vice president, Corporate Real Estate. “This state of the art facility will also help deliver a best in class customer experience for our passengers at Dulles, and provide them with more flights to more destinations—the same goals we have for our United Next strategy. As the leading airline at Washington Dulles, we strongly encourage the Federal Aviation Administration to approve MWAA’s grant application.”

Potter said that once the Tier-2 Concourse (East) proposal receives all the necessary approvals for construction and funding, the project would provide hundreds of construction and service jobs, and he also noted that the Airports Authority has completed all the necessary studies for the project under the National Environmental Policy Act, making the project “shovel ready” under guidelines of the FAA grant program. The proposed concourse also meets additional criteria of the FAA program, including:

  • Improved convenience and connectivity for travelers navigating the airport;
  • More space (400,000 square feet versus 110,000 square feet in the current facility) for larger seating areas, more concessions, airline lounges, ADA-compliant restrooms, and other amenities;
  • Larger operational areas for servicing aircraft, handling baggage and other airport and airline support functions; and
  • Enhanced sustainability features, including electric vehicles to service aircraft and carry passengers, increased usage of the electric Aerotrain to move passengers to and from the new gates; energy-efficient construction featuring LED lighting, high R-value insulation and high-efficiency climate control systems that will follow LEED Silver building standards.

In 2021, the Airports Authority opened a new 14-gate concourse for regional flights at Reagan National Airport, which replaced outdoor boarding areas with spacious new seating areas, concessions and other amenities. The construction program at Reagan National, called Project Journey, also added two large security screening buildings to provide new services and improve the passenger experience.

View source version on mwaa.com:

https://www.mwaa.com/news/dulles-international-airport-proposes-new-14-gate-concourse


This article was contributed by a member organization of the Greater Washington Board of Trade and does not necessarily represent the official position of the Board of Trade or its members.

Bank of America Invests Nearly $43 Million to Help Drive Economic Mobility in Washington, D.C.

This content is presented by:

Investment Will Spur Economic Development and Support Physical and Mental Health Initiatives in Historic Anacostia and throughout DC

APRIL 5, 2022 – Bank of America announced an investment of nearly $43 million directly impacting economic and social opportunity in Southeast and Southwest Washington, D.C. as part of its commitment to local communities. Through affordable housing projects and partnerships with local nonprofits, including Building Bridges Across the River (BBAR), the Washington Area Community Investment Fund (Wacif), and Bread for the City, the funding and grant package will address housing, workforce development, healthcare and small business efforts in the region.

“These are the types of investments that give more DC residents a fair shot,” said Mayor Muriel Bowser. “Bank of America and the organizations it’s partnering with know DC, they know what our residents and neighborhoods need to thrive, and I’m confident in their ability to help us realize our shared goal of building a more equitable and connected DC.”

Aligned with Bank of America’s $1.25 billion, five-year commitment to help advance racial equality and economic opportunity in local communities, the funding is aimed at improving the area’s long-term economic growth and stability. 

As part of its commitment to safe, affordable housing, Bank of America has invested $39 million in the mixed-use affordable housing development, MDL Flats Apartments, in the Buzzard Point neighborhood of Southwest D.C. The bank’s funding will help provide 76 units for individuals and families in need of affordable housing in the community.

Building Bridges Across the River (BBAR), a nonprofit dedicated to providing residents east of the Anacostia River with a thriving, equitable community, is receiving a total of $1.25 million to build the 11th Street Bridge spanning the Anacostia River, D.C.’s first elevated public park. To help fund construction of the bridge and further environmental education efforts, BBAR will receive a $1 million grant. BBAR will also receive $250,000 to support workforce development efforts to train Ward 8 residents in construction skills necessary for employment opportunities to help build the park.

“We are thrilled about Bank of America’s investment in the 11th Street Bridge Park and our workforce training strategies,” said Rahsaan Bernard, President, Building Bridges Across the River.” This naming gift for the environmental education plaza moves us one step closer to realizing this community driven civic space that will literally and figuratively bridge D.C.”

The bank is providing $1 million in support to the Washington Area Community Investment Fund (Wacif)  to help to fund the acquisition and redevelopment of the Anacostia Arts Center to promote small business development in the region. Wacif, which helps promote equity and economic opportunity in underserved D.C. area communities, will create a new hub for inclusive, diverse entrepreneurship in the heart of Historic Anacostia and hopes to support more than 1,000 underserved entrepreneurs over five years.

“As a long-term, strategic partner in our mission and growth, we are delighted to deepen our work with Bank of America by reimagining the Anacostia Arts Center as a new regional hub for inclusive entrepreneurship,” said Wacif CEO Harold B. Pettigrew, Jr. “This critical gift accelerates Wacif’s efforts to scale investments that help small businesses recover and be resilient, and drives our commitment to deploy greater capital to under resourced entrepreneurs and create thousands of local jobs in the years ahead.”

To support mental and preventive healthcare in the region, Bread For the City, a nonprofit providing D.C. residents living with lower income with resources and services to reduce the burden of poverty, is receiving $1 million. The grant will help Bread For the City provide critical care, such as health screenings, nutrition consultation and mental wellness treatments, in its Anacostia clinic.

“The partnership with Bank of America, the Ward 8 Community Economic Development Initiative and Bread for the City is helping us provide much needed behavioral health support and care to young ward 8 residents and their families as they struggle with the trauma caused by the intersection of pandemic, and the persistent socioeconomic disparities that are so prevalent in the community,”  said George Jones, CEO of Bread for the City.

This announcement is the latest in a series of investments that Bank of America has made in the Greater Washington, D.C. community. In 2021, Bank of America invested $350 million in local grants and additional capital investments to help finance small businesses, affordable housing, and other economic revitalization projects benefiting communities throughout the Washington region.

“Through our business offerings, our partnerships with non-profit and community leaders, and the trust of our neighbors, we are driving meaningful growth and helping create opportunity and prosperity in Anacostia, and throughout the DMV,” said Larry Di Rita, President of Bank of America Greater Washington, D.C.

Bank of America

At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters May Contact:

Andrew Aldridge, Bank of America; 1.980.387.0514; [email protected]


This article was contributed by a member organization of the Greater Washington Board of Trade and does not necessarily represent the official position of the Board of Trade or its members.

Five Reasons Why Bringing Your Team to Volunteer at Food & Friends is a Smart Investment

This content is presented by Carrie Stoltzfus, MPH, Executive Director at Food & Friends.
Carrie Stoltzfus, MPH, Executive Director at Food & Friends

As the Executive Director of Food & Friends, one of my most important jobs is making sure that my staff feels engaged, appreciated, and motivated. As an organization delivering medically tailored meals and nutrition services to adults and children with serious illnesses, thousands of our neighbors depend on our team doing great work every day.

All our clients are living with a serious illness like cancer, HIV/AIDS, heart disease, or diabetes, and most are in households with an income of less than $1500 a month.  We are centered on compassion for those we serve, and our work has emotional and physical demands, which can sometimes lead to fatigue. So, we offer our staff programs like stress-reduction workshops and enrichment days that foster a powerful sense of belonging.

With so much competition for talent, creating meaningful opportunities for employee engagement is a must-do for any leader. It is easy to see the difference in staff engagement even small efforts can make.

Therefore, I want to encourage you to make Food & Friends a part of your own employee engagement strategy. The five reasons below share why volunteering with us is a smart investment. Volunteering will lead to better team performance, improved workplace wellness, and will help your team achieve their goals. At the same time, it will make a positive difference in the lives of our neighbors battling serious and chronic illnesses.  

  1. A change of setting and a new in-person challenge will boost morale and teamwork. You may have ended your office lease to save money, or you might not even remember the last time you have seen your colleagues in person. Zoom fatigue is real – so you need to break your team out of the norm. Volunteering at Food & Friends will help your team collaborate more effectively. Football players sometimes do ballet to stretch their agility. Similarly, taking on a new challenge together will help your team be nimble when it matters most.   
  2. Millennials and Gen Z teammates want meaningful opportunities to serve. Your younger teammates want volunteer opportunities that are interesting, enjoyable, and valuable. A well-published study from Porter Novelli shows that 88% of millennials say their jobs are more fulfilling when they are provided opportunities to make a positive impact on social and environmental issues. Engaging in purpose-driven service will keep your top-performing younger teammates engaged and help them expand their insights about our community.  
  3. There are health and wellbeing benefits to volunteering. Gallup research suggests that there are five elements of well-being—career, social, financial, physical, and community—that allow people to thrive in the workplace. We offer physically active volunteer opportunities for people of all abilities. Those who volunteer also have chances to socialize with other caring volunteers, while making a direct positive impact on the lives of seriously ill community members. Doing volunteer work releases healthy endorphins, and your employees will leave feeling better — and smiling about what they accomplished together as a team.
  4. Your employees will learn more about community health in our region. Food & Friends is known for our freshly prepared home-delivered, medically tailored meals and groceries, but not as many people realize that we match every seriously ill person we serve with a registered dietitian who provides personalized nutrition counseling. While volunteering, your team will have opportunities to learn more about how medical food and nutrition interventions are delivered for seriously and chronically ill people in their communities.   
  5. Having a corporate volunteering program is a positive investment in your brand. Customers and stakeholders in 2021 are more attuned to brands that demonstrate societal impact. If your company values align with your customers, they are more likely to buy your product or enlist your service. We celebrate volunteer teams on our website, in our newsletter, on social media, and wherever else possible, including a special Volunteer Appreciation event in April. Volunteering is also a great way to build brand loyalty and reach new audiences who will recognize your service.

Are you ready to sign up? If you are still on the fence, please read this front-page story in the Washington Post about our volunteer impact on Thanksgiving Day. We have opportunities year-round and are especially hoping to attract more groups this winter. Food & Friends was voted by the Washington City Paper Readers Poll as the #1 Best Place to Volunteer in 2021, 2020 and 2019, and we know your team will want to find out why. We hope to see you soon! 

If you are interested in more ways corporate groups can engage, please contact Lisa Huffman, Director of Development, Philanthropic Partnerships at [email protected].

Hear Carrie on WTOP

Effective Contract Management: FAR Remedy Granting Clauses, Certified Claims, and Disputes

This content is presented by Fox Rothschild LLP
Reggie Jones, DC Office Managing Partner, Fox Rothschild LLP

Submitting a certified claim to a government agency or appealing a contracting officer’s final decision (COFD) can be a risky business decision for federal contractors.

On one hand, there is the risk of straining the relationship with its valued client and potentially risking the contractor’s ability to get future work. 

On the other hand, claims sometimes are inevitable because you are entitled to compensation, but have not been able to come to agreement. 

A Contractor’s first line of defense is to protect itself by following the requirements in the remedy-granting Federal Acquisition Regulation (FAR) clauses contained in the contract.  If that is unsuccessful, the contractor must then decide whether to submit a certified claim. If the claim is denied, you then reach a decision point on options to appeal the COFD. 

Whether to head to a board of contract appeals or the Court of Federal Claims and then whether to engage in Alternative Dispute Resolution are tough questions.   

Remedy-Granting FAR Contract Clauses

As an initial matter, federal contractors must understand that the FAR remedy-granting clauses do not provide automatic relief without action on their part. The contractor must take affirmative and diligent steps to protect its rights to additional time and costs.

Contractors may look to the FAR’s Changes clause (52.243-1) to recover excess performance costs caused by changes made by the agency (under either a directed or constructive theory).  Contractors must assert claims for extra time and costs within thirty (30) days of the change.  It is therefore imperative to stay on top of project correspondence, communicate with the government, and provide prompt notice as required.  Communication and documentation are key.

The FAR’s Excusable Delay clause (52.249-14) appears in many types of federal contracts, including cost-reimbursement, time-and-material, and labor-hour contracts.  Contractors that provide supplies, services (including construction services), and research & development to the government should check their contracts to see if this clause is incorporated.  FAR 52.249-14 provides that – for causes outside the contractor’s control, the government will not hold the contractor “in default because of any failure to perform.”  This clause covers excusable delays (i.e., time, but not money associated with a delay beyond the control of the contractor).  The remedy amounts to extending contract completion deadlines and is a helpful tool to avoid default termination.

The Stop Work Orders clause (FAR 52.242-15) and Suspensions of Work clause (FAR 52.242-14) permit the Contracting Officer to temporarily stop or suspend performance in the best interests of the government.  Once a contractor receives a stop/suspend work order, it must take prompt and reasonable steps to mitigate any additional costs incurred on the project.  When a contractor incurs extra performance costs (despite these efforts), it is prudent to submit the costs to the government through a request for equitable adjustment or claim.

Appealing a Contracting Officer’s Final Decision

Contractors have 90 days from receipt of a COFD to appeal to one of the various agency boards of contract appeals.  The boards include the Armed Services Board of Contract Appeals (ASBCA) for appeals from Department of Defense agencies such as the U.S. Army Corps of Engineers (USACE), the Civilian Board of Contract Appeals (CBCA) for appeals involving the General Services Administration (GSA), the Department of Veterans Affairs (VA), the Department of Energy (DOE), Housing and Urban Development (HUD), and the Department of Transportation (DOT), and others, the Postal Service Board of Contract Appeals, or the GAO’s Contract Appeals Board for legislative branch agencies such as the Architect of the Capitol, the Congressional Budget Office, and others). 

Alternatively, contractors have one year from receipt of the COFD to appeal to the Court of Federal Claims.

Many contractors are not aware that the various boards of contract appeals and the Court of Federal Claims also offer alternative dispute resolution (ADR).

For example, the CBCA website lists facilitative mediation, evaluative mediation, mini-trial, non-binding advisory opinion, and summary binding decision.  Addendum II to the Rules of the ASBCA Rules is  a bit more generic and only identifies binding and non-binding.  Appendix H to Court of Federal Claims Rules similarly lists private third-party neutrals, mediation, early neutral evaluation, mini-trials, outcome prediction assistance, and non-binding arbitration.  Each of these options requires both parties to agree and specifically make the request. 

While mediation is likely the most widely used employed method of ADR (where a judge acting as the mediator shuttles between the two parties to help them facilitate a resolution), outcome prediction, if even on only specific legal or factual issues, can be helpful. 

Also, most contractors are not aware that the boards offer pre-Dispute mediation – meaning that the boards will mediate at the parties’ express request before a contractor has submitted a certified claim or received a contracting officer’s final decision.

While no contractor wants to have a dispute, there are multiple paths to take to create the greatest likelihood of achieving a quick and cost-effective resolution.  Fox Rothschild’s Washington, DC-based Federal Government Contracts Practice can help your company navigate that process.

Hear Reggie Jones on WTOP

For more information, contact:

Reggie Jones
DC Office Managing Partner

Fox Rothschild LLP
2020 K Street, N.W.
Suite 500
Washington, DC 20006
(202) 461-3111 – direct
(770) 331-3594 – cell
[email protected]
www.foxrothschild.com


DC Department of Employment Services Provides Fair Shot at Success for District Employers

This content is presented by Dr. Unique Morris-Hughes, Director, DC Department of Employment Services
Dr. Unique Morris-Hughes, Director, DC Department of Employment Services

As Washington, D.C. continues its economic recovery from the pandemic, the Department of Employment Services (DOES) remains committed to partnering with District employers to meet workforce needs. DOES has programs to assist at every step of the hiring and training process.

District employers looking to hire qualified, motivated staff can use DCNetworks, the District’s virtual job board. DCNetworks also provides valuable workforce data including employment and wage data, labor market information, and the number of current openings for specific jobs. This data can make your hiring process easier by ensuring your wages and benefits are competitive. DCNetworks also allows you to post jobs and screen applicants through an easy-to-use platform.

The Office of Talent and Client Services (TCS), housed within DOES, also hosts virtual job fairs, including Fast Track Fridays and Talent Tuesdays. The goal of these events is to connect employers with highly qualified, motivated candidates. TCS helps make the interview and onboarding process easy for all involved.

Training new hires can be time consuming and expensive for some employers. That’s why DOES has implemented programs to make the process easier. Becoming a registered apprenticeship sponsor allows employers to create a skilled talent pipeline for traditional careers including building and trades, as well as non-traditional apprenticeships in information technologies (IT), hospitality, and public safety.

The District’s On-The-Job Training (OJT) program reimburses certain employers between 50-75% of an eligible new hire’s wages while training. This provides motivated candidates with the opportunity to learn career essential skills and helps employers offset costs associated with training.

DOES offers these and many other services to ensure DC businesses have a fair shot at success. For the District’s economic recovery to continue, we must make it easy for employers to find the motived, talented workforce they need. To learn more about how DOES can help business move forward in the District, visit does.dc.gov.

Hear Dr. Morris-Hughes on WTOP

Five Ways Companies Can Win the War for Talent Coming out of the Pandemic

This content is presented by Ashish Khosla, Senior Vice President and Market Executive of Commercial Banking for Bank of America in Greater Washington, D.C. & Baltimore Metro
Ashish Khosla, Senior Vice President and Market Executive of Commercial Banking for Bank of America in Greater Washington, D.C. & Baltimore Metro

As U.S. economic growth continues, transportation, dining, housing and manufacturing are adapting quickly to scale their operations back to pre-pandemic levels. But labor shortages driven by the pandemic are a fast-growing challenge for companies looking to meet rising customer demand. Today, there are approximately 4.6 million workers missing from the labor force due to employer shutdowns or cutbacks driven by COVID-19, according to the Bureau of Labor Statistics.

The good news is that businesses can expect an increase in available workers in the coming months, as those sidelined by COVID-19 begin to re-emerge. In our region, workforce recovery efforts through the Virginia Ready Initiative and Northern Virginia Community College, including reskilling and upskilling programs, are helping workers return to the workforce by targeting specific hiring needs and creating clearly defined career pathways to future employment.

Nevertheless, labor shortages are expected to be a persistent challenge. Now is the time to plan for this new world of work, which includes hybrid schedules, wage growth, training, and other critical priorities like workplace safety and Diversity, Equity & Inclusion (DE&I).

Following are five steps companies can take to rebuild their workforces and maximize success:

  1. Listen to The Needs of Your Talent. The pandemic has permanently shifted how we prefer to work and which benefits we find most important. According to a Morning Consult survey, 39% of workers, and half (49%) of Millennial and Gen Z employees, would consider quitting if their employers weren’t flexible about remote work. Likewise, workers are demanding more from their employers and the facilities they work in with respect to worker safety, health and well-being.

Employers should engage employees at all levels in return-to-work policies and decisions – so approaches are rooted in their preferences. Key areas to consider include more flexible working policies, enhanced benefits for working parents and caregivers, extended paid leave and safeguards to ensure work-life balance. Hold ongoing listening sessions, including through surveys and 1:1 conversations, to keep a pulse on employee concerns. Proactively and transparently communicate all decisions, and be prepared to adjust policies as needs and circumstances change. 

  1. Prioritize Skills Assessments and Trainings. BofA Global Research estimates that approximately 700,000 workers left the labor force due to a skills mismatch. Combined with record disruption driven by the pandemic, reskilling and upskilling the workforce is paramount.

To start, employers should assess how an employee’s job may have changed during the pandemic. Then, invest in ongoing training for employees to boost learning and address expertise gaps. Perhaps it’s a new training in AI or robotics for workers seeing fast disruption in their field, like manufacturing, or a rotational program that enables corporate employees to learn about other areas of the firm. Companies today have a critical opportunity to use the best of corporate America’s resources to equip workers with the skills, technologies and mindsets to succeed.

  1. Keep Pace with Wage Growth. A smaller pool of workers combined with strong labor demand is fueling wage growth, and the greatest wage lifts are being seen in roles that experienced the highest demand during the pandemic. Average annual salaries stood at $50,150 in April 2021, up from a low of $47,400 last year, according to Revelio Labs. 

In today’s war for talent, employers must ensure their wages are competitive and in line with a growing economy. Important steps include conducting regular industry benchmarking, reviewing benefits and salary growth plans, and performing company-wide audits to uncover and address pay inequities.

  1. Support Financial (and Overall) Wellness. According to Bank of America’s latest Workplace Benefits Report, 56% of employers feel “extreme responsibility” for employees’ financial wellness, up from 13% in 2013. Still, only 51% of employees say they feel financially well today, down from 61% three years ago. This comes as COVID-19 continues to produce significant financial challenges for Americans to weather. 

In a post-pandemic environment, employers must reimagine approaches to financial wellness. To start, ensure any program addresses common employee challenges that go beyond retirement, such as rebuilding savings, emergency funds and healthcare costs. Acknowledge that needs may differ based on gender and age, and think about wellness more holistically, recognizing the interconnected nature of financial, physical and mental wellness.

  1. Champion Diversity, Equity & Inclusion (DE&I) – The pandemic and racial injustice movements have brought DE&I awareness to an all-time high. Employers agree that offering meaningful DE&I programs is critical to attract and retain talent. Studies have also shown that a more diverse workforce leads to better financial performance.

To attract a new generation of socially minded employees, employers need to “walk the talk” on DE&I with new and expanded initiatives, measurable goals and clear action. Key steps include empowering employees to be part of DE&I workplace programs and discussions; setting near and long-term goals and proactively communicating a roadmap to achieve them; and implementing DE&I into your company’s broader corporate strategy.

As workplaces continue to think about reopening plans, and as the fight for talent continues, putting these proactive practices in place will go far in helping companies ensure they have a talented, diverse and productive workforce that can launch them to success.  

###

© 2021 Bank of America Corporation


Navigating the Business Risks Associated with the Federal Contractor Vaccine Mandate

This content is presented by Fox Rothschild LLP
Reggie Jones, DC Office Managing Partner, Fox Rothschild LLP

President Biden recently issued Executive Order No. 14042 requiring covered federal contractors ensure that their employees are fully vaccinated against COVID‑19 unless an employee otherwise requests, and receives an accommodation for sincerely held religious beliefs or a medical condition that justify them not being vaccinated. 

Substantive guidance has been issued by the federal government to implement the provisions of the Executive Order.  Specifically, on September 24, 2021, the federal Safer Federal Workforce Task Force issued guidance to implement the Executive Order and continues to update its guidance regularly on these processes.  On September 30, 2021, the FAR Council issued a memorandum allowing federal agencies to issue class deviations to implement the Executive Order and the pending FAR 52.223-99, Ensuring Adequate COVID-19 Safety Protocols for Federal Contractors, to memorialize the vaccine mandate.  Further on September 30 and October 1, 2021, the General Services Administration (GSA) and the Department of Defense (DoD) issued class deviations formally implementing the vaccine mandate.    

In general, there are two primary business risks associated with the new federal vaccine mandate:  (1) the increased cost or extended performance time associated with complying with the mandate; and (2) potential future civil False Claims Act liability in the event that contractors and subcontractors have not made good faith efforts to comply.  The first risk is currently affecting contractor implementation of the mandate as we speak, and the second risk under the False Claims Act will surely follow in the future.

Reserving Contractor Rights to Additional Cost and/or Time to Implement the Mandate

The stated objective of the federal vaccine mandate is to “promote economy and efficiency in federal contracting” through decreased worker absences and hence reduced labor costs, among Federal contractors and subcontractors.  However, the mandate will surely cause additional cost and time impacts on many federal contracts as the mandate will adversely affect the ability of contractors to perform as planned before the mandate was implemented due contractor (or subcontractor) employees failing to comply with the mandate, employees quitting as a result of the mandate, employees seeking accommodations that make them less effective at performing their duties, and/or contractors and subcontractors being unable to hire employees in an ever tighter job market.  All of these outcomes will increase administrative and overhead costs for contractors as it is yet one more federal requirement for contractors and subcontractors to have to deal with to ensure compliance with applicable regulations.  In sum, the mere existence of the mandate will increase costs and the likelihood of performance delay for contractors, subcontractors, and suppliers on federal projects across the board.        

The class deviations issued by GSA and DoD require that the respective agencies issue bilateral modifications (requiring the consent of both the prime contractor and the agency) to incorporate the vaccine mandate (through the incorporation of FAR 52.223-99 or DFARS 252.223-7999 into the prime contract).  Therefore, contractors must be wary of signing any modification issued by the government that does not address the contractor’s ability to recover additional costs or time as a result of the implementation of the mandate.  Contractors that do sign modifications run the risk of waiving their potential rights to increased costs or time, if any, and must either price the modification as a change to the contract or reserve their right to submit for increased costs and time in the future before signing any modification.

Future False Claims Act Liability for Failing to Comply with the Mandate

While neither the Executive Order nor the Taskforce Guidance contain any direct penalty for failing to comply with the federal vaccine mandate, experience has taught us that federal contractors are required to certify compliance with all contract requirements, including the vaccine mandate, every time they submit an application for payment.  Therefore, it is simply a matter of time before qui tam (False Claims Act) whistleblowers, the various Offices of Inspector General, or the U.S. Department of Justice begin alleging that contractors have violated the False Claims Act by submitting and certifying to payment applications when they clearly knew they were not compliant with the vaccine mandate and failed to make good faith efforts to comply.  While the Taskforce’s response to Frequently Asked Questions makes clear that prime contractors may reasonably assume that their subcontractors are in compliance, prime contractors are obligated to exercise due diligence with their subcontractors to ensure compliance and cannot do so if they have credible evidence to the contrary.  “Credible evidence” is a term pulled straight out of the FAR’s ethics and compliance contract clause, FAR 52.203-13 Contractor Code of Business Ethics and Conduct and requires a contractor to make a mandatory disclosure of a violation of, among other things, the civil False Claims Act. 

Therefore, federal contractors subject to the federal vaccine mandate must take the mandate seriously, exercise good faith efforts to comply, and think carefully before signing any modification related to the mandate to avoid giving away their rights to additional cost and time resulting from the implementation of the mandate.    

Hear Reggie Jones on WTOP

For more information, contact:

Reggie Jones
DC Office Managing Partner

Fox Rothschild LLP
2020 K Street, N.W.
Suite 500
Washington, DC 20006
(202) 461-3111 – direct
(770) 331-3594 – cell
[email protected]
www.foxrothschild.com


The Future of Digital Infrastructure and Connectivity

What do 5G and other advanced communications technologies mean for the future of a dispersed workforce? What do they mean for social equity? Join this webinar to learn how telecommunications leaders and experts are thinking about our society’s evolving needs for digital access. We will discuss how innovations in digital connectivity can transform lives for those on the other side of the digital divide. Participants will also receive an update on how the region is adopting new technologies and advancing digital access. 

 Moderator

  • Danielle Hinton, Associate Partner, McKinsey & Company  

Panelists

  • Jeff Hannah, Business Development Manager, Crown Castle 
  • Evan Regan-Levine, Executive Vice President, JBG Smith  
  • Wanda M. Gibson, Chief Technology Officer, Prince George’s County  

Watch the Recording

Read the Summary

Importance of Digital Infrastructure for Attracting Tech Companies

Strong digital infrastructure and connectivity is essential for attracting technology companies to the area. Evan Regan-Levine, Executive Vice President at JBG Smith, said that the three biggest growth industries in our region are cybersecurity, cloud computing, and AI/IOT. When JBG Smith researched what leaders in those industries want, they found they need talent first, strong connectivity second.

But “connectivity” means a lot more than just a good WiFi connection in the office. They need edge data centers, which are smaller data centers located near a work site, giving tech companies access to the cloud with more speed and lower latency. They also need very strong connectivity, like 5G, to allow for high device density.

There are also use cases where connectivity throughout an area can give companies new options for how they keep employees connected. One use case is that when someone is hired, they gain access to internet connectivity in the office and the entire neighborhood where the company is located, including their own home if they live nearby.

Community Impact

Jeff Hannah, Business Development Manager at Crown Castle, pointed out that there are many neighborhoods around the region that are innovating with digital infrastructure and connectivity. For example, the District partnered with Crown Castle to deliver free WiFi in areas of DC north of Massachusetts Avenue. National Harbor in Maryland is also piloting new programs, like autonomous vehicles.

Jeff Hannah said that wireless connectivity is the key to closing the digital divide. There is growing emphasis on small cells in urban areas, since WiFi has more limitations than 5G and LTE. Wanda M. Gibson, Chief Technology Officer for Prince George’s County, stressed that to build social equity, we must treat connectivity as a basic utility, like water and electricity.

Expanded 5G opens the door to new use cases that have exciting societal benefits. For example, fire and police departments may be able to track first responders through a building in a fire or active shooter situation.

It’s worth noting that this use case, and many others, are only possible if buildings are built or retrofitted in ways that allow 5G to penetrate building walls. Otherwise, people will have 5G access outside on streets and parks, but not in the spaces where they are really needed.

Regional Collaboration

Wanda Gibson explained that all municipalities in the Greater Washington region have worked together over the years to lay out a regional fiber network and to share ideas about how best to build up our regional digital infrastructure.

Evan Regan-Levine added that he believes that big digital infrastructure projects are always more successful structured as a public-private partnership. He said that Arlington County has been a great partner on the National Landing project, and that neither Arlington County nor JBG Smith/Amazon could run that project alone.

About the Future of Work Briefing Series

Find all series information here.

In this extended briefing series, we will explore the COVID-19 pandemic’s predicted ripple effect on how we work, live, study, travel, shop, and play—not just this year, but into the future.

The series will combine world-class research and analysis with storytelling from top business and government leaders as they adapt to a changing world. Participants will gain a deeper and broader understanding of trends that will have a material impact on their business and personal lives. This series is produced by the Greater Washington Board of Trade and most sessions will be available to the entire Greater Washington business community in support of our region’s ongoing growth and development.

Presenting Sponsor

Knowledge Partners

TD Bank Morning Star: Lessons in Resilience

The COVID-19 pandemic challenged small businesses across the country to be resourceful and innovative. In this webinar, a panel of small business owners describe how they successfully led their companies through the turbulence. The discussion is sure to inspire new ideas for how you can make your company more resilient and creative.

MODERATOR
• Dion Haynes, Editor, The Washington Post

PANELISTS
• Andrew Fetterolf, CEO, Jenkins Restorations
• Mitch Weintraub, Managing Partner, Cordia Partners
• Derek Wood, Managing Principal, Fox Architects

Watch the Recording

Read the Summary

Early Challenges

Each of the panelists faced unique challenges.

Jenkins Restorations has to go into people’s homes to perform restoration construction. At the beginning of the pandemic, customers began voicing concerns about having workers in their homes. Some of his workers were also uncomfortable with the situation and resigned over the course of the pandemic. For example, one of his workers had an elderly grandmother living with him and could not continue to put himself at risk of being a vector for the disease.

Most of the workers at Fox Architects could do much of their design and architecture work at home but working creatively and collaboratively from home can be a challenge. They also have frequent meetings on construction sites. They had to rethink how they held those meetings to minimize transmission risk. Derek Wood, Managing Principal of Fox Architects, said that he started observing employees question their career ambitions around the fall, and some decided to pivot.

Cordia Partners, an accounting firm, was fortunately able to have most employees work from home but faced typical challenges around keeping workers engaged and continuing to provide top-notch customer service.

Opportunities to Innovate

Though the pandemic has dramatically accelerated the remote work trend, it has created new opportunities for Fox Architects to develop innovative designs for the workplace of tomorrow.

Cordia Partners saw more customers asking them for help developing cloud-based bill pay systems in the pandemic.

Jenkins Restorations began offering decontamination services. Their first customer was a Costco which had an outbreak, and from there they began serving other stores like Wawa. This service hinged on quick deployment—getting staff out to a site in two hours or less.

Ongoing Challenges

Constant remote work has led to what several panelists described as “fray” in employee collaboration and engagement, as well as isolation and mental health challenges. Derek Wood said that Fox Architects has been bringing vaccinated employees together for meetings to give them a chance to connect and rebuild lost energy. The business leaders on the panel also described the importance of senior leaders making an effort to check in with employees directly to identify ways to better meet their needs.

Sponsored By

Featured Members