Bill Overview
Title: Diversity and Inclusion Transparency in the Defense Industrial Base Act
Description: This bill provides that the Department of Defense (DOD) must require each contractor who is awarded a major contract to submit a report on diversity and inclusion by the last day of each full fiscal year during the period of the contract. In relation to a major defense acquisition program, a major contract means each of the six largest prime, associate, or government-furnished equipment contracts that is in excess of $40 million and that is not a firm, fixed-price contract. DOD must annually submit to Congress a report summarizing the diversity and inclusion reports. Such reports must be made publicly available on a DOD website.
Sponsors: Rep. Brown, Anthony G. [D-MD-4]
Target Audience
Population: Individuals employed by major defense contractors
Estimated Size: 3500000
- The bill affects contractors involved in major defense acquisition programs.
- The diversity and inclusion reports are aimed at enhancing transparency within major contractors in the defense industry.
- The requirement for reporting applies to the largest defense contractors engaging with contracts over $40 million.
Reasoning
- The policy directly impacts employees of prime defense contractors, who are commonly involved in projects over $40 million. This group includes engineers, project managers, and HR personnel.
- Employees at these companies may or may not feel an immediate direct impact on their daily tasks, as reporting requirements are typically handled by specific departments (e.g., HR, compliance).
- Over time, improved diversity and inclusion may indirectly influence workplace satisfaction and opportunities for underrepresented groups.
- We include multiple demographics in the simulation, accounting for geographic and professional diversity.
- The act’s requirements are likely to improve transparency and accountability, with potential long-term benefits in workplace culture and processes.
Simulated Interviews
Project Manager (Washington, D.C.)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think the transparency will push companies to improve their diversity initiatives.
- There might be an initial increase in workload for HR, but it's manageable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Senior Engineer (Texas)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I'm not directly impacted, but I expect some organizational changes.
- It seems like a good move for future talent attraction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
HR Specialist (California)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm directly involved in compiling reports, so this will affect my workload significantly.
- Long-term effects could be positive for workplace culture.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Compliance Officer (Massachusetts)
Age: 44 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 13/20
Statement of Opinion:
- The reporting requirement is critical for accountability.
- I'm optimistic this will lead to more inclusive practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Retired, former defense contractor executive (New York)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- In my years of work, transparency in diversity was always avoided.
- A structured report requirement will hopefully bring change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Contract Negotiator (Alabama)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- The reporting could streamline some aspects of negotiation.
- There's a chance for improved equity among subs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Software Developer (Florida)
Age: 27 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- Important first step for someone like me to feel included.
- Hope my company follows through with real changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Defense Analyst (Colorado)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- This could lead to some valuable insights into the workings of defense contractors.
- I'm not sure if it will lead to immediate improvements.
- Transparency is always a positive step.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Talent Acquisition Specialist (Virginia)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 15/20
Statement of Opinion:
- There is potential for more diverse talent pools.
- It will require careful tracking and follow-up.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Diversity and Inclusion Consultant (Arizona)
Age: 31 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- Finally, some accountability for what I've been pushing for years.
- It’s a huge step in the right direction, but needs enforcement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $8500000 (Low: $6000000, High: $12000000)
Year 2: $8755000 (Low: $6200000, High: $12500000)
Year 3: $9027650 (Low: $6304000, High: $12875000)
Year 5: $9526350 (Low: $6502000, High: $13675000)
Year 10: $10504265 (Low: $7004000, High: $15035000)
Year 100: $22094547 (Low: $13000000, High: $32000000)
Key Considerations
- This policy introduces new reporting requirements which might marginally increase operational overheads for contractors.
- Public accessibility of reports might pressure contractors to enhance diversity and inclusion practices, with associated costs possibly offset by improved employee satisfaction and performance.