D.C. Mun. Regs. tit. 10, r. 10-A704
Although the number of federal jobs declined between 1990 and 1998, retaining and even increasing federal employment should be an important part of the city's economic development agenda. Not only does the federal government buffer the District's economy from cyclical boom and bust cycles, it generates significant private employment. 704.1
The District's status as the nation's capital and seat of the United States government is intrinsic to the local economy. The federal government employs 191,900 workers in the District, and federal activities account for almost 35 percent of the region's economic output. It accounts for one in every 3.5 jobs in the District. The continued presence of the federal government and related uses is a key source of the District's preeminence in the region. Supporting this presence is important to maintain the District's central position in the metropolitan economy. 704.2
Decentralization of federal jobs from the city has been a concern since the 1950s. The combination of interstate highways, suburbanization of the workforce, lack of available land, and national security issues resulted in the relocation of many federal offices to Maryland and Virginia in the 1950s and 1960s. Despite the government's continued strong presence in the District, its "60/40 rule" regarding federal employment (see text box) has functioned more as a guiding policy than a strict mandate.
The 60/40 Rule
The 60/40 rule refers to a federal guideline on the distribution of federal jobs within the Washington Metropolitan Area. The rule was first established in the 1968 Comprehensive Plan as a symbolic commitment to retain the District of Columbia as the seat of the federal government during a period when many jobs and residents were leaving the city for the suburbs. A goal was set to retain at least 60 percent of the region's federal jobs within the District, and thus allow no more than 40 percent of the federal jobs to locate in the Washington suburbs.
The 60/40 rule remains an important guiding principle behind federal location decisions. However, it has functioned as a guideline rather than an absolute standard. The actual regional share of federal jobs dropped below 60 percent in the 1970s and currently stands at about 53 percent. Pressure to relocate federal jobs to the suburbs continues to be strong due to factors such as security, congestion, housing costs, and a desire to be closer to the suburban workforce.
Looking forward, the District should continue to retain as much federal employment as it can. Federal jobs have historically provided tremendous job opportunities for District residents, ranging from entry level and clerical jobs to advanced managerial and highly skilled positions. 704.5
Even greater opportunities lie in federal procurement. As shown in Figure 7.2, procurement in the metropolitan region surpassed direct federal spending on wages in the mid-1990s, and has continued to grow more rapidly than other categories of federal spending ever since. A substantial amount of procurement spending-more than $11 billion in 2003-already occurs within the District, as shown in Table 7.4. 704.6
Figure 7.2: Components of Federal Spending, Washington Metro Area, 1983-2994
More concerted and strategic efforts should be made to capture contract services in the future, leveraging the District's already strong presence in computer systems design; engineering; and management, scientific, and technical consulting services. 704.8
Table 7.4: Federal Procurement By Area and Type, FY 2003
Policy ED-1.2.1: Sustaining the Federal Workforce
Advocate for the retention of the federal workforce within the District, consistent with the Federal Elements of the Comprehensive Plan. 704.10
Policy ED-1.2.2: Federal Workforce Growth
Support the growth of the federal workforce in the District, particularly in leased office space whose owners pay District property taxes. Consistent with the Federal Elements, ensure that federal expansion plans support the District's neighborhood revitalization and job creation programs. 704.11
Policy ED-1.2.3: Procurement and Outsourcing Opportunities
Improve the District's competitive position for capturing Federal procurement and outsourcing dollars. The District should help local businesses take advantage of procurement opportunities while working to attract new firms that can also take advantage of these opportunities. The District should work closely with local and regional economic development agencies to formulate attraction and retention strategies for such businesses, including tax and financial incentives. 704.12
Action ED-1.2.A: Retention and Recruitment Programs
Work with private-sector economic development organizations to discourage federal jobs and agencies from leaving the city, and to enhance the District's ability to capitalize on federal procurement opportunities. 704.13
Action ED-1.2.B: Technical Assistance
Provide local firms with technical assistance in bidding on federal procurement contracts so that the District's companies and workers may capture a larger share of this economic activity. Periodically evaluate the success of local technical assistance programs, and make adjustments as needed to achieve higher rates of success. 704.14
Action ED-1.2.C: Retaining Federal Employment
Work proactively with NCPC to develop strategies such as the "60/40 rule" to avoid relocation of federal jobs from the District to suburban and exurban locations. 704.15
The provisions of Title 10, Part A of the DCMR accessible through this web interface are codification of the District Elements of the Comprehensive Plan for the National Capital. As such, they do not represent the organic provisions adopted by the Council of the District of Columbia. The official version of the District Elements only appears as a hard copy volume of Title 10, Part A published pursuant to section 9 a of the District of Columbia Comprehensive Plan Act of 1994, effective April 10, 1984 (D.C. Law 5-76; D.C. Official Code § 1 -301.66)) . In the event of any inconsistency between the provisions accessible through this site and the provisions contained in the published version of Title 10, Part A, the provisions contained in the published version govern. A copy of the published District Elements is available www.planning.dc.gov.
D.C. Mun. Regs. tit. 10, r. 10-A704