The COVID-19 pandemic has profoundly affected our economy and society, accelerating major changes in business strategies, digital transformation, and productivity measures. Hospitality and retail (industries that heavily relied on personal interactions) were immediately impacted. These industries had to reimagine their business landscapes and quickly adopt e-commerce, digitalization, artificial intelligence, and automation to continue providing a personalized experience to customers in addition to face-to-face interaction.

On February 24^th, the Greater Washington Board of Trade and knowledge partner APCO Worldwide, hosted its fourth installment on the Future of Work Series with the Future of Retail & Hospitality. Licy Do Canto, Managing Director at APCO Worldwide moderated the discussion with panelists Christine Kettmer, Senior Director, Global Enterprise Insight & Strategy at Marriott International, Karen Strack, Senior Vice President of Marketing at Unibail-Rodamco-Westfield (URW), and Chad Horrell, Senior Manager, Government Affairs Eastern Region at Doordash as they shared their insights and experiences within the marketplace.

For many companies across these industries, navigating local municipality mandates, ordinances and health protocols was the primary challenge at first but once clear messaging was established, the focus returned to the customer. While safety always remains a top priority for both staff and guests, mobility played a key role in returning to normal-like business levels. Whether it was a mobile key sent to a smartphone when guests checked into a hotel property, contactless and secure delivery of food items from a dasher, and even order online and curbside pick-up from a shopping center, these all drove customer acquisition.

The great resignation tried to hinder economic recovery, but companies acted quickly to increase salary ranges, drive flexibility in workplace options, add to employee perks and benefits, and offer up retention bonuses. Restaurants quickly adopted QR code focused menus instead of endlessly printing menus, saving on costs and at the same time advancing environmental and sustainability goals.

Key takeaways:

• Marriott’s new Design Lab is a center for innovation, working in tandem with partners and startups to improve upon future guest experiences, mockups of future guest rooms, improvements to mechanical operations and more.
• DoorDash has a commanding market share of online delivery apps, and they see no slowing down. They saw an increase of 35% in sales in 2021 even with indoor dining returning to the fold so the market has room to grow.
• Unibail-Rodamco Westfield’s sales have returned to pre-pandemic levels. A strategy of mixed-use retail with tenants including medical, automotive, restaurant and even residential proved to be highly successful.

The economy is bouncing back, and in fact unleashing a pent-up demand for products, goods, and services. Data and automation are driving better customer experiences and retention. Companies need to remain nimble and flexible in order to keep both the customer and employees happy.

We would like to take this opportunity to acknowledge and thank our sponsors for making this series possible: Crown Castle, Bank of America, Verizon, APCO Worldwide, and McKinsey & Company.

If you missed the event, watch the full recording here.

Blog courtesy of Licy Do Canto, Managing Director of Washington, D.C. and APCO Mid-Atlantic, APCO Worldwide. Read Licy’s blog on APCO Forum.

Since the pandemic began, we have seen profound changes in the ways people connect and do business with each other. The world and its workforce have learned to be flexible in many capacities whether in-person or online.

As the leader of APCO Worldwide’s Washington, D.C., office and Mid-Atlantic region, I’ve been constantly proud and empowered by my colleagues both here and around the world, especially throughout these difficult times. Business travel has always been key part of our culture, allowing us to meet and connect with our colleagues around the globe. Travel and connection drive our success and we are excited to see them return—even if what that may look like is evolving.

The travel industry has had to adjust to not only changes in capacity, health and safety, but also how to communicate these measures to the public. To gain insight into the future of travel, we partnered with the Greater Washington Board of Trade to foster conversations between some of our regions greatest leaders in business travel: Jack Potter, president and CEO at Metro Washington Airport Authority (MWAA); Elliott Ferguson, president and CEO at Destination DC; Ricky Smith, executive director of Baltimore Washington International Airport (BWI) and Ian Rainey, senior vice president at Northeast Maglev.

As the pandemic continues to progress, so do the regulations to keep us safe and allow for a gradual return. The safety of my colleagues—who are also my friends—is my top priority. And as a leader, my role is to steer us through the challenges we face and communicate how we plan to address them.

And all the leaders we spoke with felt the same. According to Potter, “it is extremely important that people feel safe in the environment. That’s first and foremost.” For the travel industry, that looked like adopting all of the necessary standards and precautions—sanitizing stations, masking, social distancing barriers—and then realizing that the real challenge was communicating their dedication to these changes. For Smith and BWI, social media “went a long way in helping people understand that it was safe to come into the facility.”

And once safety measures were transparently communicated and understood by the public, we saw travel, especially business travel, pick up across the region. In Washington, business travel not only bolsters our economy, but fuels our pace of life, filling our restaurants, hotels and event centers.

Prior to the emergence of the omicron variant, when the state of the pandemic allowed us to breathe a little easier, I felt the resurgence of the travel industry throughout our business, allowing us to reconnect with clients and colleagues at in-person events, meetings and conferences. I’m hopeful that we can return to a world where this reconnection can happen even more because it was easy to see that business is better when we are meeting.

But, we have also seen the value of remote work over the last two years and it persists as a welcome and productive alternative as we go through the swings of the pandemic. I have found myself constantly impressed by the resilience and innovation of our company.

I am eager for more opportunities to increase engagement through in-person connection.  Our experts agree that despite the productivity that still exists in the virtual workplace, something is still missing. “Even though there’s a train of thought that hybrid is going to take over the need to meet face-to-face, the reality is that’s not going to happen,” said Ferguson. “There are probably going to be some things we’ve learned in terms of how we can utilize hybrid meetings and the technology moving forward with meetings. But people want to meet face-to-face and we’re all going to benefit from that. And that demand is there.”

Despite the challenges and uncertainty with the current state of business travel, there also exists opportunity. Our role as leaders is to elevate and lift up opportunities within our workplaces as well as in the marketplace. As the world continues to evolve, the most valuable assets in our arsenal, as they always have been, are our people and our connections to each other. The future of business travel is bright, largely, due to the innovative thinkers and doers moving because of it.

About Licy Do Canto

On December 13, 2021, we held our last major event of the year – The Capital Region Transportation Forum.  The Board of Trade and the Greater Washington Partnership co-hosted the virtual meeting of 200 attendees that featured Secretary Shannon Valentine of the Virginia Department of Transportation, Acting Director Everett Lott of the District Department of Transportation, and Secretary Gregory Slater of the Maryland Department of Transportation.

How do we plan for the future of mobility in our area?  The Greater Washington region is expecting an increase of population of more than 1.5 million people by the year 2045 along with an increase of 1 million additional jobs by then.  What kinds of projects, specifically infrastructure and transportation, will need to be in place to cope with this expanded population?

As we all know, Congress and the President passed and signed the $1.2 trillion infrastructure investments and jobs act into law last month and we took this opportunity to talk to the regions’ government leaders in transportation to see how the new funds will affect transportation projects in the greater Washington, DC area.  Virginia is slated to receive $9.9 billion in federal funding while Maryland and the District of Columbia will each receive $7.2 billion and $2.8 billion respectively.  The new bill also earmarked $150 million annually for Metro through the year 2030.

Director Lott laid out plans specifically that will accelerate the District’s asset management program and address bus lane and cycle lane infrastructure expansion through dedicated lanes, bus stop shelters, and accessibility issues specifically through these projects: Cross-Town Cycle Track, 14^th street NW bus corridor, MLK Southeast bus corridor, Minnesota Ave SE bus corridor, K Street Transit project, M Street Southeast, H street and I street bus corridors, and Pennsylvania Ave SE transit corridor.

Virginia will also be accelerating their asset management program to bring much needed maintenance and repairs to the 130,000 miles of roadway and 22,000 bridges.  More locally, there is dedicated funding set aside for Virginia Railway Express and Amtrak to expand regionally as well as the Construction of a new Long Bridge, the freight rail bridge connecting Virginia and DC, helping to alleviate congestion issues and separating rail and freight lines from DC south to Richmond. There will also be a new pedestrian/cycling bridge adjacent to the new Long Bridge creating a safe riding and walking experience across the Potomac.

Maryland laid out some very lofty projects in our area that included the construction of the Purple Line, I-270 beltway, the Frederick Douglas Tunnel for Amtrak reducing more than 7 hours of delays per week, and the Howard Street tunnel to expand the Port of Baltimore’s ability to transport cargo via rail instead of trucks.  In addition, Maryland has a $7 billion backlog of state of good repair for roads, bridges, ports and airports so these dollars will help accelerate maintenance and repairs.

With the passing of the infrastructure law, there are many opportunities for investment into our region’s transportation and infrastructure. Taking a collaborative approach will only benefit the outcomes of current and new projects and positively impact individuals who travel and work in the DMV.

We would like to thank our presenting sponsor Northeast Maglev, community sponsors Transurban and WSP, and supporting sponsors AON, HNTB and AECOM, as well as our moderator, Robert McCartney, former Washington Post editor and columnist, current host of the ‘Think Regionally’ podcast for Metropolitan Washington Council of Governments.

If you missed the event, watch the full recording here.

This content is presented by 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].

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This content is presented by 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.

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

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This content is presented by 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.

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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

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. 

2. 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.

3. 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.

4. 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.

5. 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

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This content is presented by 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.    

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

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Since 2015, the Capital Region Business Forum has brought the mayor and two governors together for a conversation on the top issues facing the region’s business community. This year’s Forum was held on September 9, featuring Muriel Bowser, Mayor of the District of Columbia; Larry Hogan, Governor of Maryland; and Ralph Northam, Governor of Virginia. The three leaders shared a stage for the first time in over a year speaking to about 200 business leaders who joined the Board of Trade, Prince George’s and Northern Virginia Chambers for one of our first large, in-person events of 2021. The conversation was moderated by Tony Pierce, Partner in Charge of the Washington Office at Akin Gump.

Tony opened the discussion by addressing the elephant in the room – the pandemic. While the audience and panel were enthusiastic about being back together, it was understood that there are still challenges to address and overcome for the region to fully recover. The three emphasized that over the last 19 months, navigating these common challenges together, has strengthened their relationship and each were optimistic about the future and the resilience of their economies.

“Our region is interconnected, obviously by jobs and business, but also by personal ties,” Bowser said. “The decisions that we make together will help us get over this pandemic.”

Other topics that were covered were the steps being taken to strengthen and rebuild small and minority businesses ensuring we come out of the pandemic with a diverse economy; the impacts of national labor shortages and the changing priorities of our workforce; the importance of workforce and talent development starting by getting children safely back to in-person school; and innovative improvements to transportation and infrastructure needs.

The leaders agreed that allocating time and resources to address each of these areas will be critical for the region’s business growth and comeback.

If you missed the event, watch the full recording here.

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