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Resolution No. 3737
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A RESOLUTION of the Port of Seattle Commission to establish a Diversity
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in Contracting Policy Directive to increase women and
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minority business opportunities and to repeal Resolutions
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No. 3506 and No. 3618.
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WHEREAS, the Port of Seattle mission is committed to create economic opportunity for
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all, steward our environment responsibly, partner with surrounding communities, promote
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social responsibility, conduct ourselves transparently, and hold ourselves accountable; and
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WHEREAS, the economic vitality of a community is strengthened and more resilient
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when opportunity is inclusive across our diverse communities;
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WHEREAS, the Port of Seattle is uniquely positioned among public agencies to lead in
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efforts of justice and equity by providing a level platform to all businesses including Women
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and Minority Business Enterprise (WMBE) firms to compete and succeed; and
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WHEREAS, the 1998 passage of Initiative 200 by Washington State voters prohibited
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racial and gender preferences by state and local government led to an underutilization of
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WMBE’s at the Port and many other public agencies; and
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WHEREAS, In 2003, in response to I-200, the Port passed Resolution No. 3506 a race
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neutral approach “establishing a program to develop mutually advantageous business
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relationships with small businesses, and firms owned and operated by minorities, women and
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disabled”; and
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WHEREAS, In 2010, the Port of Seattle passed Resolution No. 3618, a race neutral
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approach to develop “a program to develop mutually advantageous business relationships with
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small businesses including those owned and operated by people of color, women, people with
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disabilities, veterans, and the socio-economically disadvantaged,”; and
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WHEREAS, the Port of Seattle efforts and programs as a result of Resolutions 3506 and
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3618 have increased small business participation but have not increased WMBE participation;
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and
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WHEREAS, it is a priority for the Port of Seattle to affirmatively expand its efforts to
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increase WMBE participation in Port Contracts and ensure that WMBEs are afforded fair and
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equitable opportunity to compete for Port Contracts, succeed as subcontractors, and do not
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face unfair and unnecessary barriers when seeking and performing on Port Contracts; and
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Item No.: __6c_Reso_____
Meeting Date: December 5 , 2017
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WHEREAS, current data and the 2014 disparity study shows that WMBE participation in
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Port of Seattle opportunities has been and continues to be disparately low; and
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WHEREAS, this policy will strengthen Port of Seattle efforts to eliminate this disparity
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and result in more equity, diversity and inclusion for WMBE’s in Port opportunities; and
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WHEREAS, the Port of Seattle seeks to identify and change internal Port processes and
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standards to clearly establish program goals and create accountability; and
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WHEREAS, the Port of Seattle is committed to its values of conducting business with the
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highest ethical standards and our business practices shall reflect integrity, accountability,
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honesty, fairness and respect at all levels;
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NOW, THEREFORE, BE IT RESOLVED by the Port of Seattle Commission as follows:
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SECTION 1. Resolution 3506 adopted May 27, 2003, is hereby repealed.
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SECTION 2. Transition from Resolution 3618. The Executive Director may continue to operate
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under Resolution No. 3618, as needed, to allow for transition to Resolution 3737, until
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September 1, 2018, at which time Resolution No. 3618 will be repealed and replaced with
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Resolution 3737.
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SECTION 3. The Diversity in Contracting Policy Directive as shown in Exhibit A is hereby
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established.
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SECTION 4. This Policy Directive shall be labeled and catalogued as appropriate, together with
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subsequent Policy Directives, and shall be made readily available for use by Port staff and
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members of the public as a governance document of the Port of Seattle.
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ADOPTED by the Port Commission of the Port of Seattle at a duly noticed meeting
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thereof, held this _____day of ____________, 2017, and duly authenticated in open session by
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the signatures of the Commissioners voting in favor thereof and the seal of the Commission.
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_________________________________
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_________________________________
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_________________________________
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Port of Seattle Commissioners
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EXHIBIT A
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Diversity in Contracting Policy Directive
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SECTION 1 Purpose.
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The Port finds that minority and women businesses are under-represented and have been
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under-utilized on Port Contracts. The purpose this Policy Directive is to provide the maximum
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practicable opportunity for increased participation by minority and women owned and
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controlled businesses. Port Contracting in public works, consulting services, supplies, material,
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equipment, other services creates the opportunity to leverage Port spend to increase WMBE
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utilization.
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SECTION 2 Definitions.
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For the purposes of this chapter:
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"Affirmative Efforts" means documented reasonable attempts in good faith to Contract with
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Women and Minority Businesses.
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"Availability" or "Available" as used in this chapter means a business that is: interested in
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and capable of performing the work within the time frame required and to the quality specified
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in the solicitation and Contract.
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"Capability" or "Capable" as used in this section means that a business appears able to
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perform a Commercially Useful Function in performance of the work.
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"Commercially Useful Function" means the performance of real and actual services in the
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discharge of any contractual endeavor.
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"Contract” means an agreement for public works, consulting services, supplies, material,
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equipment, or other services.
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"Contractor" means a business that has a Contract with the Port.
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"Division” means any Port of Seattle organization structure that has a director that reports
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to the Executive Director.
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"Women or Minority Business" (WMBE) means a business that is at least 51 percent owned
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and controlled by women and/or minority (including, but not limited to African Americans,
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Native Americans, Asians, and Hispanics) group members.
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“Central Database” means an electronic database that collects aggregates and tracks
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monthly Port-wide, division and department-level utilization of small business, Women and
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Minority Owned Business, and other classifications across various categories and Contract types
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and promotes transparency for the public.
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“Relevant demographic data” is defined as characteristic information related to a business
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owner’s sex/gender, race, ethnicity or veteran status as self-reported and/or certified by
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another government entity.
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“Utilization” is defined as both the percent of Contracting dollars paid to WMBE firms as
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well as the number of WMBE firms under Contract.
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SECTION 3 Scope and Applicability.
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This policy shall apply to all covered Contracts and other activities at the Port, including
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construction and consulting Contracts, purchased goods and services.
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SECTION 4 Responsibilities.
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The Executive Director shall pursue the Century Agenda goal to increase WMBE utilization in all
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Port Contracts and shall:
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A. Within 120 days of passage of this Policy Directive, develop a Diversity in Contracting
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Program that identifies affirmative efforts to afford Women and Minority Businesses the
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maximum practicable opportunity to meaningfully participate on Port Contracts and
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achieve the goal to triple the number of WMBE firms that Contract with the Port and
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increase to 15% the percentage of dollars spent on WMBE Contracts, within five years of
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program implementation.
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B. Incorporate these WMBE goals into the Port’s Long Range Plan (LRP) to the fullest extent
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reasonable, including incorporation into LRP scorecards, reports, and LRP updates.
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Further, the Executive Director shall prepare and publish an annual report each year titled
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Diversity in Contracting Annual Report.
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C. Improve inclusion and outreach to sustain and improve WMBE participation in Port
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Contracts;
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D. Take affirmative efforts to assure equality of Contracting opportunity through the
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development and application of Inclusion Plans or other tools as necessary;
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E. Expand opportunities for WMBE firms across Port functions, wherever practicable.
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Section 5 Policy.
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A. The Diversity in Contracting Program shall include:
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(1) Responsibilities, policies, practices, and processes that can change the Port
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procurement and contracting processes and provide a more receptive environment
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for the utilization of WMBE firms, and to ensure that businesses and contractors of all
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tiers working on Port Contracts and subcontracts utilize WMBE firms, wherever
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feasible or as required;
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(2) Development of a standard procedure for the Port-wide WMBE goal setting, and
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collection and reporting of relevant demographic data to be stored in a central
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database.
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(3) Categories of covered Contracts that will require WMBE Inclusion Plans and other
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tools that will be applied to other categories of Contracts Port-wide.
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(4) Clear lines of responsibility and accountability for implementation of the WMBE
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Program and a designated WMBE liaison for each division.
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(5) Make WMBE goal setting and affirmative implementation efforts part of the annual
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performance evaluation for each Port division director and their staff and require
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standardized WMBE program training, implementation and coordination for all
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Division leaders and their WMBE representatives.
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B. As instructed by the annual WMBE plan, the Port of Seattle Long Range Plan shall include
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as Priority Actions:
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(1) Specific measures the Contract awarding authority will undertake to increase the
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utilization of Women and Minority Businesses.
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(2) Specific goals by Division for WMBE utilization:
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(a) Each Port Division will review future procurements to identify available firms on
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upcoming Contracts to create a utilization goal that is justifiable, bold and
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challenging.
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(b) Construction goals, other than small works, based on historic utilization plus 2%,
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until such time that a disparity study or other valid internal data can
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demonstrate a reasonable level of utilization.
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C. Improve inclusion and outreach to sustain and improve WMBE participation in Port
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Contracts:
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(1) Support training and assistance to Port staff to increase participation in outreach and
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to learn about the internal and external resources available to include WMBE firms in
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their procurement and Contracting
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(2) Improve and expand technical assistance, including WMBE certification, business
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development, training and mentoring programs for WMBE firms to enhance bidding
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expertise and promote greater coordination with advocacy organizations, businesses,
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individuals and public agencies and other Port departments;
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(3) Create opportunities for members of the contracting and vendor community, Port and
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other stakeholders to work collaboratively on recommendations for how the Port can
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more effectively use the directives in this Policy Directive.
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(4) Assist contractors desiring to bid on Port covered Contracts to comply with the
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affirmative efforts provisions for such Contract, and offer information as to
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organizations and agencies available to assist such contractor in recruiting, mentoring,
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training, or otherwise preparing potential subcontractors.
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(5) Cooperate and establish formal and/or informal partnerships and mutual cooperation
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with other public agencies to carry out the purposes of this Policy Directive, as
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needed;
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D. Affirmative efforts to assure equality of contracting opportunity required:
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(1) Develop procurement tools, such as WMBE inclusion plans, and require bidders and
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proposers to comply with the WMBE solicitation requirement in order to sustain and
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improve participation of WMBE in Port covered Contracts;
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(2) Prepare and require that Port covered Contracts include specifications pertaining to
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equal opportunity affirmative efforts to assure equality in Contracting opportunity,
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and goals for subcontracting to Women and Minority Businesses. Any goals
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established under this chapter shall be reasonably achievable, however, no utilization
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requirements shall be a condition of Contracting, except as may be allowed by RCW
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49.60.400;
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(3) Identify and implement a Port-wide method to regularly monitor and measure the
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Port WMBE program and attainment of the goals by contractors.
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(4) May establish aspirational goals for the participation of Women and Minority
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Businesses in a particular Port Contract on a case-by-case basis.
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(5) Work closely with other divisions and departments to ensure all policies, practices and
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processes are consistent and complementary and make it easier for WMBE firms to
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pursue Port Contracts;
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(6) Define, implement, and monitor appropriate processes and procedures to ensure
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prompt payments and change order processing to address timely payment of
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contractors, supplier and subcontractors at all tiers. Review and recommend potential
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for including prompt pay in performance goals.
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E. Affirmative efforts in Subcontracting:
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(1) All Contractors, including WMBE firms, shall actively solicit bids for subcontracts to
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qualified, available, and Capable WMBE to perform Commercially Useful Functions.
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(2) Contractors shall consider the grant of subcontracts to women and minority bidders
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on the basis of substantially equal proposals in the light most favorable to Women and
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Minority Businesses.
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(3) At the request of the relevant Port Department, when inclusion plan are required,
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Contractors shall furnish evidence of the Contractor's compliance with these
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requirements of women and minority solicitation and will submit evidence of
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compliance with this section as part of any bid. Contractors shall provide records
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necessary to document affirmative efforts to subcontract with Women and Minority
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Businesses on Port Contracts; and
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(4) Compliance with all requirements and past performance under this Policy Directive
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may be included in the evaluation of future procurements. .
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(5) In applying the provisions of this Policy Directive to Contracts funded in whole or in
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part with federal funds and subject to 49 CFR Part 23, Subpart D, references to
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Women and Minority Businesses shall also include federally recognized disadvantaged
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business enterprises. In the event of a conflict between the provisions of this chapter,
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or the rules implementing this Policy Directive, and the requirements of 49 CFR Part
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23, Subpart D, or any other superseding applicable federal statute or regulation, the
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provisions of the federal statute or regulation shall control.
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F. Expanding Opportunity
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(1) The Port shall review and recommend how to expand opportunities for WMBE firms in
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other Port enterprise opportunities, for example real estate leases, to encourage and
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promote access to Port facilities by September 1, 2018.
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(2) The Port shall develop a baseline utilization number for Veteran Owned businesses
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and propose a reasonable Port-wide goal and division goals to the Commission for
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inclusion in the Century Agenda by September 1, 2019.
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SECTION 6 Program Evaluation.
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A. Benchmarks and metrics to evaluate the Diversity in Contracting program shall include:
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(1) Incorporation of these WMBE goals into the Port’s Long Range Plan (LRP) to the
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fullest extent reasonable, including incorporation into LRP scorecards, reports, and
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LRP updates.
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(2) Specific measures the Contract awarding authority will undertake to increase the
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participation of Women and Minority Businesses; including the number of events or
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outreach activities conducted to ensure responsiveness to bid opportunities
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(3) Progress towards specific Division WMBE utilization goals, including the number of
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opportunities a division has available, the goals established for those opportunities
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and the actual utilization, including periodic review of Disparity Study results to
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determine reasonableness of goals.
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(4) Data reporting using the standard procedure identified in the WMBE Program for the
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Port-wide collection and reporting of relevant demographic data including percent of
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spend, number of businesses, and type of procurements.
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(5) Preparation and publication of an annual report titled Women and Minority Business
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Enterprise Utilization and Participation Annual Report
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B. The Internal Audit Director shall include the Diversity in Contracting Program in Internal
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Audit Department’s 2019 Work Plan to determine adherence to this policy and include in
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future years as the Commission Audit Committee deems appropriate.
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SECTION 7 Fiscal Implications
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Fiscal implications shall be reviewed by the Executive Director annually, at a minimum, to ensure
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the implementation of the Policy Directive is adequately resourced and shall submit a budget
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request as appropriate.
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