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

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
rjones@foxrothschild.com
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.  

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© 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
rjones@foxrothschild.com
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

After 20 Years of Service, A Wider Circle Remains Committed to Ending Poverty

This content is presented by
Amy Javaid is the Interim President & CEO for A Wider Circle

Several years ago, when he needed help finding work, Joe* enrolled in A Wider Circle’s Workforce Development Boot Camp. After graduating from the Boot Camp, the organization provided him with professional clothing, assigned him a volunteer Job Coach, and he set out into the job market. Joe had faced many struggles in his life but was confident in the path ahead.

As time passed, Joe would periodically call, email, or stop by A Wider Circle. Whenever he shared his successes or challenges, Joe noted how when he needed a boost, support, or connection, he would reach out. Today, Joe has his own apartment and steady employment, and recently came back for another step in his journey: to receive the furniture needed to set up his home.

For Joe and others like him, A Wider Circle’s work is not about a particular program, service, or product. It is about human connection and a community that is supportive for as long as it is requested. We are always here for Joe and thousands like him for each step of their journey. We seek for Joe what we seek for our own family — a chance, a path, and an opportunity.

Joe’s Workforce Development Boot Camp graduation

Everyone is welcome at A Wider Circle. Compassion, dignity, and an emphasis on building human connection are at the core of how we serve. We meet each of our clients where they are — identifying challenges, providing comprehensive support, and pursuing solutions together.

“I stayed in the whole day, just walking around happy.”
Ray, a formerly homeless veteran, after moving into his new apartment, furnished by A Wider Circle

While the past year has been one of both challenge and opportunity, through it all, the hallmark of our programming has remained our holistic approach. This method allows us to serve as a trusted resource for our clients, many of whom were disproportionately impacted by the COVID-19 pandemic. During this time, our ability to respond quickly and effectively to emerging needs enabled us to offer impactful services that supported the social safety net of the entire region.

A Wider Circle’s Neighborhood Partnerships Program provides comprehensive services and programming to under-resourced neighborhoods. During the pandemic, this has included delivery of groceries, fresh meals, and facemasks to families living in Southeast DC.

Now in our 20th year of service, we hold fast to our unyielding commitment to service and pathways out of poverty for those we serve. We will continue to stand with neighbors like Joe, day after day, year after year, until everyone in our region can live free from barriers to self-sufficiency.

*Name has been changed

Hear Amy Javaid on WTOP

About A Wider Circle

At A Wider Circle, our mission is to end poverty.

Through our holistic approach we:

  • Create stable homes, providing families with furniture, beds, and essentials
  • Work with job seekers so they can attain stable, substantive employment
  • Bring much-needed services and programs directly to under-resourced neighborhoods

Since 2001, we have provided vital services to more than 270,000 children and adults in the Greater Washington region. Now in our 20th year, as those we serve continue to face added challenges due to the COVID-19 crisis, A Wider Circle remains steadfast in our commitment to helping those with the greatest need.

But we cannot do this work alone. Get involved today and help us end poverty. Learn more at awidercircle.org.


Five Ways Corporate Leaders Can Improve Racial and Social Equity

Between February and June 2021, the Board of Trade worked with its members and friends in the DMV to produce a series of webinars exploring the causes of the region’s troubling racial and social inequities and solutions that employers and corporate leaders can implement. The series included guest speakers from the private sector, academia, local government, healthcare, and the nonprofit world. Their diverse perspectives created a rich discussion with many nuggets of wisdom and practical tips.

Below are five of the most salient lessons to emerge from the series.

Put Structure, Resources, and Accountability Around DEI

Many corporate leaders are feeling a more urgent need to build out their company’s diversity, equity, and inclusion (DEI) initiative. Several speakers throughout the series emphasized the need to treat the DEI function like any other business-critical function. It should collect and track data, have accountability metrics and strong governance, and be embedded in the company’s operations rather than sidelined into a separate corporate social responsibility (CSR) function.

Ken Jenkins of NFP advised that the most the most critical step is to define the relationship between the DEI advisory board and the executive leadership team. The company should decide if the DEI advisory board is a recommending body or a decision-making body, and how changes will be reviewed and implemented. Establishing a strong structure ahead of time ensures that DEI efforts are fully supported by the organization. Here’s Ken’s explanation:

Learn more about how companies are bolstering their DEI efforts by watching our webinar, Understanding the Opportunity Divide and its Impact on Corporate America.

Rethink Your Talent Pipeline

One of the most powerful ways that organizations can drive racial and social equity in their communities is through employment. If your workforce does not look like the community in which you operate, that may be a red flag that your hiring practices are excluding certain demographics—and potentially overlooking valuable talent.

Grads of Life, a national expert in helping companies develop inclusive talent management strategies, educated webinar participants on the “Opportunity Divide,” which impacts individuals and employers. On one side of the divide are individuals with valuable skills and the desire to work, but who do not have traditional career pathways. These individuals are called “Opportunity Talent” and include young people not in higher education, people with disabilities, or the formerly incarcerated. On the other side of the divide are employers who have roles, typically “middle-skill” roles, that they struggle to fill.

Hiring Opportunity Talent means being more open-minded about how a person’s life experiences give them strengths and skills that can benefit your company. This video produced by Grads of Life illustrates what it means to engage Opportunity Talent.

Zuzana Steen, Academic and Community Relations Senior Manager at Micron Technology, and Camille John, D&I Enterprise Head of Underrepresented Ethnic Talent Strategy and Bank of America, share how they partner with community organizations like Year Up to source and develop Opportunity Talent:

Watch our webinar Opportunity Talent and the Value of Investment for a deep dive on this practice, including an overview of the six Opportunity Employment principles.

Leverage Employee Benefit Programs

The COVID-19 pandemic made it clear that employees’ health is of material importance to business. What many business leaders may not realize is that there are longstanding differences in how our society and healthcare system impact people’s health depending on their race, gender, English fluency, and other variables. These “social determinants of health” are the reason why we observed much higher rates of COVID-19 hospitalization and fatality among communities of color.

Just like employing a diverse workforce can be a powerful tool for building racial and social equity, providing robust healthcare benefits can be a powerful tool for building health equity. Anita Jenkins, Chief Executive Officer of Howard University Hospital, and Dr. Yele Aluko, Chief Medical Officer for EY Americas, offered several tips for employers to maximize a positive outcome for employees of color.

First, make sure it is easy for employees to navigate their healthcare benefits and to take advantage of employee wellness programs. Incentivize the usage of those programs and treat it as part of the core operations of the business. Second, take a step back. There has been a lot of reactivity to COVID-19 but smart employers will develop more comprehensive strategies that enhance awareness, health literacy, and workforce resilience in an equitable manner. Third, do not forget behavioral health. People are still dealing with a lot of anxiety and fear related to the pandemic and its consequences. Make sure employees have mental healthcare resources and know how and why to use them. Lastly, be honest about the presence of racism and proactively work to dismantle its drivers, without defensiveness.

Watch Dr. Christina Stasiuk, Senior Medical Director for Cigna, ask Anita Jenkins and Dr. Yele Aluko about how employers should respond to health equities below, taken from our webinar Achieving Health Equity.

Help Close the Digital Divide

The “digital divide” describes how some members of our community have access to digital technology and internet connectivity, and others do not. Since access to the internet helps us learn, work, socialize, and shop, unequal access is both a social equity issue and an anchor on our economic growth.

The consequences of the digital divide were made more severe by the COVID-19 pandemic, when life hinged on internet connectivity. But even after the pandemic subsides, the consequences will continue to worsen, since companies are increasingly turning to digital platforms and away from brick-and-mortar stores. Workers and consumers who are not digitally literate or do not have digital access will be left behind.

Watch Kevin Brown, Principal of the Digital Transformation and Intelligent Automation Practice at EY, describe this shift here:

Many companies in the telecommunications space, such as Comcast, have programs designed to help low-income individuals access the internet. Local governments also have special initiatives for this purpose; for example, the District of Columbia provided every public-school child with a computer and an internet hotspot during the pandemic. The federal government has also launched a program to subsidize internet access for low-income families.

Companies should support these efforts and look for ways to bring them to the next level. Closing the digital divide is a “rising tide that lifts all boats” and is key to our region’s economic competitiveness.

Watch the full webinar, The Digital Divide and Our Economic Competitiveness, for more insights.

Form Long-term, Productive Relationships with Philanthropic Beneficiaries

Many companies seek to improve racial and social equity in their communities by philanthropically supporting nonprofit organizations and community development projects. While this is important, the company’s effort should not stop when the check is cashed. The biggest impact is achieved when companies pair their donations with pro-bono business services and stay engaged for multiple years at a time. This long-term, productive relationship helps nonprofit organizations to achieve deeper and more lasting mission outcomes while building their organizational capacity.

Watch Christine Hoisington, Head of Community Impact + Philanthropy and Executive Director of the Booz Allen Foundation and Shelley Sylva, SVP and Head of Social Impact at TD Bank, explain how they approach capacity building with their nonprofit beneficiaries:

For more insights, watch the full webinar Your Organization and Your Community.


Sponsors

The Racal and Social Equity Series was made possible by the generous support of the following Board of Trade member companies:

Presenting Sponsor and Knowledge Partner

Executive Sponsor

Supporting Sponsor

Program Partner

Your Organization and Your Community

In communities struggling with racial, social, and economic division, there are likely active community-level organizations working hard to build bridges and opportunity. Can you identify those groups in your surrounding community and do you know how to support them? Is your corporate giving strategy aligned with your organization’s diversity and inclusion commitments? How else can you use your capabilities to support social justice movements at critical junctures? Watch this session to explore these questions and more, and to learn how you can leverage the influence of your organization to serve your community on its journey towards greater equity.

Moderator: Jack McDougle, President and CEO, Greater Washington Board of Trade

Speakers:

  • Christine Hoisington, Head of Community Impact + Philanthropy and Executive Director, Booz Allen Foundation
  • Shelley Sylva, SVP and Head of Social Impact, TD Bank

Webinar Recording

Summary

  • Corporate social responsibility (CSR) is changing for many companies, particularly as it relates to racial equity issues. Shelly Sylva at TD Bank pointed out that companies are now more likely to go beyond expressing empathy for Black and Brown communities and take tangible action to benefit those communities. There is an increased willingness to focus on the needs of Black communities and to have uncomfortable conversations that many people have traditionally avoided. Christine Hoisington from Booz Allen Foundation added that diversity, equity, and inclusion (DEI) initiatives and CSR have become more integrated into how businesses operate, rather than being sidelined into an independent department.
  • Shelley Sylva explained that TD Bank has organized its CSR efforts around the “three C’s”: colleagues, community, and customers. Leaders and employees are asked to examine how the bank’s capabilities can benefit people in these three categories. This integrates the bank’s core business function into its CSR efforts.
  • One important lesson learned during the COVID-19 pandemic is that speed is critical in a crisis. Shelley Sylva explained that TD Bank’s existing CSR framework and partnerships allowed it to deliver help quickly.
  • Partner nonprofit organizations need philanthropic support, but the best partnerships go beyond giving and include capacity-building activities and pro-bono work as well. Booz Allen has a large employee pro-bono program to provide business assistance to nonprofit partners and keep their employees engaged in their CSR efforts. Shelley Sylva from TD Bank added that multi-year support is also important; nonprofits need long-term stability to make real change and build their own capacity.

About the Racial & Social Equity Webinar Series

The Greater Washington Board of Trade’s Racial and Social Equity Webinar Series will provide business leaders across the region the knowledge and tools they need to build more diverse, inclusive, and equitable organizations. It will help leaders identify drivers of inequity and injustice and take concrete steps towards being agents of positive change.

Presenting Sponsor and Knowledge Partner

Executive Sponsor

Supporting Sponsor

Program Partner

Washington Gas Shares a Roadmap to DC’s Low Carbon Future

This content is presented by Washington Gas
Blue Jenkins, President of Washington Gas

Washington Gas has grown together with the District of Columbia for more than 170 years as an essential energy provider. We are entering a new chapter in our hometown’s ambitious journey toward a clean energy future.   

In December 2017, Mayor Bowser announced the District’s Commitment to reduce carbon emissions 50 percent by 2032 and achieve carbon neutrality by 2050. 

Last year, Washington Gas filed an innovative, comprehensive Climate Business Plan to do our part to reduce carbon equivalent emissions associated with natural gas use in line with DC’s targets. The Environmental Defense Fund praised the plan, stating in a regulatory filing, “this broad, system-wide thinking is critical to maximize emissions reductions.” 

Today, we’re focusing on modernizing our infrastructure, increasing energy efficiency in our customer’s homes and offices, and including carbon neutral fuels like renewable natural gas (RNG) and hydrogen in our energy mix.

Hear Blue Jenkins on WTOP

Washington Gas continues to invest in our infrastructure and expand our capability to meet the needs of our region. Through accelerated pipeline replacement programs, we maintain a safe, reliable and modern energy delivery system while also delivering environmental benefits. So far approximately 400,000 metric tons of greenhouse (GHG) gas emissions have been reduced with this work. And we have more to do. Investment in critical pipeline infrastructure enables us to reduce emissions today and prepare the system to deliver tomorrow’s lower/no carbon gaseous fuels like hydrogen.   

The natural gas infrastructure has unmatched reliability – it is less vulnerable to interruptions, especially during the winter when heating can be a matter of health and safety. In addition, it comes with “built-in” energy storage. Unlike electricity, which cannot be easily stored without big, expensive batteries, the natural gas system stores energy for days, weeks, months, and years with on-demand delivery. 

We’re also building on our already successful energy efficiency programs and continuing to empower customers to save energy, as well as deploying new technologies like super-efficient and ‘smart’ appliances. It’s important to empower our customers to make smart energy choices that meet their needs and their budgets.   

Finally, our plans include harnessing new and emerging fuels. Our system is remarkably versatile. Our existing infrastructure can deliver low-to-no carbon fuels such as clean-certified gas, renewable natural gas (RNG) and green hydrogen, to further reduce greenhouse gas emissions.

We can meet DC’s climate goals and still save money. For the Climate Business Plan, the widely respected consulting firm ICF determined our plan saves an estimated $2.7 billion compared to approaches to decarbonization that rely solely on electrification, saving District ratepayers thousands of dollars per household.

As part of our commitment to our plan, twice a year we hold community meetings to provide updates, report on our progress, listen to the community and present new ideas with the help of industry experts. We encourage the public to join us and learn about the latest developments on our plan as we all work together to achieve a cleaner energy future. Our next virtual meeting will be on July 14 and will explore RNG.   

To learn more about our plan and to participate in our community meetings, visit  www.WashingtonGasCBP.com.


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.

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