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Resolution No. 3737 1
2
A RESOLUTION of the Port of Seattle Commission establishing a Diversity 3
in Contracting Policy Directive to increase women and 4
minority business opportunities and to repeal Resolutions 5
No. 3506 and No. 3618. 6
7
WHEREAS, the Port of Seattle mission is committed to create economic opportunity for 8
all, steward our environment responsibly, partner with surrounding communities, promote 9
social responsibility, conduct ourselves transparently, and hold ourselves accountable; and 10
11
WHEREAS, the economic vitality of a community is strengthened and more resilient 12
when opportunity is inclusive across our diverse communities; 13
14
WHEREAS, the Port of Seattle is uniquely positioned among public agencies to lead in 15
efforts of justice and equity by providing a level platform to all businesses including Women 16
and Minority Business Enterprise (WMBE) firms to compete and succeed; and 17
18
WHEREAS, the 1998 passage of Initiative 200 by Washington State voters prohibited 19
racial and gender preferences by state and local government led to an underutilization of 20
WMBE’s at the Port and many other public agencies; and 21
22
WHEREAS, In 2003, in response to I-200, the Port passed Resolution No. 3506 a race 23
neutral approach “establishing a program to develop mutually advantageous business 24
relationships with small businesses, and firms owned and operated by minorities, women and 25
disabled”; and 26
27
WHEREAS, In 2010, the Port of Seattle passed Resolution No. 3618, a race neutral 28
approach to develop “a program to develop mutually advantageous business relationships with 29
small businesses including those owned and operated by people of color, women, people with 30
disabilities, veterans, and the socio-economically disadvantaged,”; and 31
32
WHEREAS, the Port of Seattle efforts and programs as a result of Resolutions 3506 and 33
3618 have increased small business participation but have not increased WMBE participation; 34
and 35
36
WHEREAS, it is a priority for the Port of Seattle to affirmatively expand its efforts to 37
increase WMBE participation in Port Contracts and ensure that WMBEs are afforded fair and 38
equitable opportunity to compete for Port Contracts, succeed as subcontractors, and do not 39
face unfair and unnecessary barriers when seeking and performing on Port Contracts; and40
Item No.: __8f Reso__
Meeting Date: January 9, 2018
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WHEREAS, current data and the 2014 disparity study shows that WMBE participation in 41
Port of Seattle opportunities has been and continues to be disparately low; and 42
43
WHEREAS, this policy will strengthen Port of Seattle efforts to eliminate this disparity 44
and result in more equity, diversity and inclusion for WMBE’s in Port opportunities; and 45
46
WHEREAS, the Port of Seattle seeks to identify and change internal Port processes and 47
standards to clearly establish program goals and create accountability; and 48
49
WHEREAS, the Port of Seattle is committed to its values of conducting business with the 50
highest ethical standards and our business practices shall reflect integrity, accountability, 51
honesty, fairness and respect at all levels; 52
53
NOW, THEREFORE, BE IT RESOLVED by the Port of Seattle Commission as follows: 54
55
SECTION 1. Resolution 3506 adopted May 27, 2003, is hereby repealed. 56
57
SECTION 2. Transition from Resolution 3618. The Executive Director may continue to operate 58
under Resolution No. 3618, as needed, to allow for transition to Resolution 3737, until 59
September 1, 2018, at which time Resolution No. 3618 will be repealed and replaced with 60
Resolution 3737. 61
62
SECTION 3. The Diversity in Contracting Policy Directive as shown in Exhibit A is hereby 63
established. 64
65
SECTION 4. This Policy Directive shall be labeled and catalogued as appropriate, together with 66
subsequent Policy Directives, and shall be made readily available for use by Port staff and 67
members of the public as a governance document of the Port of Seattle. 68
69
ADOPTED by the Port Commission of the Port of Seattle at a duly noticed meeting 70
thereof, held this _____day of ____________, 2018, and duly authenticated in open session by 71
the signatures of the Commissioners voting in favor thereof and the seal of the Commission. 72
73
_________________________________ 74
75
_________________________________ 76
77
_________________________________ 78
79
_________________________________ 80
81
_________________________________ 82
Port of Seattle Commissioners83
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EXHIBIT A 84
Diversity in Contracting Policy Directive 85
86
SECTION 1 Purpose. 87
88
The Port finds that minority and women businesses are under-represented and have been 89
under-utilized on Port Contracts. The purpose this Policy Directive is to provide the maximum 90
practicable opportunity for increased participation by minority and women owned and 91
controlled businesses. Port Contracting in public works, consulting services, supplies, material, 92
equipment, other services creates the opportunity to leverage Port spend to increase WMBE 93
utilization. 94
95
SECTION 2 Definitions. 96
97
For the purposes of this chapter: 98
99
"Affirmative Efforts" means documented reasonable attempts in good faith to Contract with 100
Women and Minority Businesses. 101
102
"Availability" or "Available" as used in this chapter means a business that is: interested in 103
and capable of performing the work within the time frame required and to the quality specified 104
in the solicitation and Contract. 105
106
"Capability" or "Capable" as used in this section means that a business appears able to 107
perform a Commercially Useful Function in performance of the work. 108
109
"Commercially Useful Function" means the performance of real and actual services in the 110
discharge of any contractual endeavor. 111
112
"Contract” means an agreement for public works, consulting services, supplies, material, 113
equipment, or other services. 114
115
"Contractor" means a business that has a Contract with the Port. 116
117
"Division” means any Port of Seattle organization structure that has a director that reports 118
to the Executive Director. 119
120
"Women or Minority Business" (WMBE) means a business that is at least 51 percent owned 121
and controlled by women and/or minority (including, but not limited to African Americans, 122
Native Americans, Asians, and Hispanics) group members. 123
124
“Central Database” means an electronic database that collects aggregates and tracks 125
monthly Port-wide, division and department-level utilization of small business, Women and 126
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Minority Owned Business, and other classifications across various categories and Contract types 127
and promotes transparency for the public.
128
129
“Relevant demographic data” is defined as characteristic information related to a business 130
owner’s sex/gender, race, ethnicity or veteran status as self-reported and/or certified by 131
another government entity. 132
133
“Utilization” is defined as both the percent of Contracting dollars paid to WMBE firms as 134
well as the number of WMBE firms under Contract. 135
136
SECTION 3 Scope and Applicability. 137
138
This policy shall apply to all covered Contracts and other activities at the Port, including 139
construction and consulting Contracts, purchased goods and services. 140
141
SECTION 4 Responsibilities. 142
143
The Executive Director shall pursue the Century Agenda goal to increase WMBE utilization in all 144
Port Contracts and shall: 145
146
A.
Within 120 days of passage of this Policy Directive, develop a Diversity in Contracting 147
Program that identifies affirmative efforts to afford Women and Minority Businesses the 148
maximum practicable opportunity to meaningfully participate on Port Contracts and 149
achieve the goal to triple the number of WMBE firms that Contract with the Port and 150
increase to 15% the percentage of dollars spent on WMBE Contracts, within five years of 151
program implementation. 152
153
B. Incorporate these WMBE goals into the Port’s Long Range Plan (LRP) to the fullest extent 154
reasonable, including incorporation into LRP scorecards, reports, and LRP updates. 155
Further, the Executive Director shall prepare and publish an annual report each year titled 156
Diversity in Contracting Annual Report. 157
158
C.
Improve inclusion and outreach to sustain and improve WMBE participation in Port 159
Contracts; 160
161
D.
Take affirmative efforts to assure equality of Contracting opportunity through the 162
development and application of Inclusion Plans or other tools as necessary; 163
164
E.
Expand opportunities for WMBE firms across Port functions, wherever practicable. 165
166
Section 5 Policy. 167
168
A.
The Diversity in Contracting Program shall include: 169
170
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(1) Responsibilities, policies, practices, and processes that can change the Port 171
procurement and contracting processes and provide a more receptive environment 172
for the utilization of WMBE firms, and to ensure that businesses and contractors of all 173
tiers working on Port Contracts and subcontracts utilize WMBE firms, wherever 174
feasible or as required; 175
176
(2) Development of a standard procedure for the Port-wide WMBE goal setting, and 177
collection and reporting of relevant demographic data to be stored in a central 178
database. 179
180
(3) Categories of covered Contracts that will require WMBE Inclusion Plans and other 181
tools that will be applied to other categories of Contracts Port-wide. 182
183
(4) Clear lines of responsibility and accountability for implementation of the WMBE 184
Program and a designated WMBE liaison for each division. 185
186
(5) Make WMBE goal setting and affirmative implementation efforts part of the annual 187
performance evaluation for each Port division director and their staff and require 188
standardized WMBE program training, implementation and coordination for all 189
Division leaders and their WMBE representatives. 190
191
B.
As instructed by the annual WMBE plan, the Port of Seattle Long Range Plan shall include 192
as Priority Actions: 193
194
(1) Specific measures the Contract awarding authority will undertake to increase the 195
utilization of Women and Minority Businesses. 196
197
(2) Specific goals by Division for WMBE utilization: 198
199
(a) Each Port Division will review future procurements to identify available firms on 200
upcoming Contracts to create a utilization goal that is justifiable, bold and 201
challenging. 202
203
(b) Construction goals, other than small works, based on historic utilization plus 2%, 204
until such time that a disparity study or other valid internal data can 205
demonstrate a reasonable level of utilization. 206
207
C.
Improve inclusion and outreach to sustain and improve WMBE participation in Port 208
Contracts: 209
210
(1) Support training and assistance to Port staff to increase participation in outreach and 211
to learn about the internal and external resources available to include WMBE firms in 212
their procurement and Contracting 213
214
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(2) Improve and expand technical assistance, including WMBE certification, business 215
development, training and mentoring programs for WMBE firms to enhance bidding 216
expertise and promote greater coordination with advocacy organizations, businesses, 217
individuals and public agencies and other Port departments; 218
219
(3) Create opportunities for members of the contracting and vendor community, Port and 220
other stakeholders to work collaboratively on recommendations for how the Port can 221
more effectively use the directives in this Policy Directive. 222
223
(4) Assist contractors desiring to bid on Port covered Contracts to comply with the 224
affirmative efforts provisions for such Contract, and offer information as to 225
organizations and agencies available to assist such contractor in recruiting, mentoring, 226
training, or otherwise preparing potential subcontractors. 227
228
(5) Cooperate and establish formal and/or informal partnerships and mutual cooperation 229
with other public agencies to carry out the purposes of this Policy Directive, as 230
needed; 231
232
D.
Affirmative efforts to assure equality of contracting opportunity required: 233
234
(1) Develop procurement tools, such as WMBE inclusion plans, and require bidders and 235
proposers to comply with the WMBE solicitation requirement in order to sustain and 236
improve participation of WMBE in Port covered Contracts; 237
238
(2) Prepare and require that Port covered Contracts include specifications pertaining to 239
equal opportunity affirmative efforts to assure equality in Contracting opportunity, 240
and goals for subcontracting to Women and Minority Businesses. Any goals 241
established under this chapter shall be reasonably achievable, however, no utilization 242
requirements shall be a condition of Contracting, except as may be allowed by RCW 243
49.60.400; 244
245
(3) Identify and implement a Port-wide method to regularly monitor and measure the 246
Port WMBE program and attainment of the goals by contractors. 247
248
(4) May establish aspirational goals for the participation of Women and Minority 249
Businesses in a particular Port Contract on a case-by-case basis. 250
251
(5) Work closely with other divisions and departments to ensure all policies, practices and 252
processes are consistent and complementary and make it easier for WMBE firms to 253
pursue Port Contracts; 254
255
(6) Define, implement, and monitor appropriate processes and procedures to ensure 256
prompt payments and change order processing to address timely payment of 257
contractors, supplier and subcontractors at all tiers. Review and recommend potential 258
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for including prompt pay in performance goals. 259
260
E.
Affirmative efforts in Subcontracting: 261
262
(1) All Contractors, including WMBE firms, shall actively solicit bids for subcontracts to 263
qualified, available, and Capable WMBE to perform Commercially Useful Functions. 264
265
(2) Contractors shall consider the grant of subcontracts to women and minority bidders 266
on the basis of substantially equal proposals in the light most favorable to Women and 267
Minority Businesses. 268
269
(3) At the request of the relevant Port Department, when inclusion plan are required, 270
Contractors shall furnish evidence of the Contractor's compliance with these 271
requirements of women and minority solicitation and will submit evidence of 272
compliance with this section as part of any bid. Contractors shall provide records 273
necessary to document affirmative efforts to subcontract with Women and Minority 274
Businesses on Port Contracts; and 275
276
(4) Compliance with all requirements and past performance under this Policy Directive 277
may be included in the evaluation of future procurements. . 278
279
(5) In applying the provisions of this Policy Directive to Contracts funded in whole or in 280
part with federal funds and subject to 49 CFR Part 23, Subpart D, references to 281
Women and Minority Businesses shall also include federally recognized disadvantaged 282
business enterprises. In the event of a conflict between the provisions of this chapter, 283
or the rules implementing this Policy Directive, and the requirements of 49 CFR Part 284
23, Subpart D, or any other superseding applicable federal statute or regulation, the 285
provisions of the federal statute or regulation shall control. 286
287
F.
Expanding Opportunity 288
289
(1) The Port shall review and recommend how to expand opportunities for WMBE firms in 290
other Port enterprise opportunities, for example real estate leases, to encourage and 291
promote access to Port facilities by September 1, 2018. 292
293
(2) The Port shall develop a baseline utilization number for Veteran Owned businesses 294
and propose a reasonable Port-wide goal and division goals to the Commission for 295
inclusion in the Century Agenda by September 1, 2019. 296
297
SECTION 6 Program Evaluation. 298
299
A. Benchmarks and metrics to evaluate the Diversity in Contracting program shall include: 300
301
(1) Incorporation of these WMBE goals into the Port’s Long Range Plan (LRP) to the 302
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fullest extent reasonable, including incorporation into LRP scorecards, reports, and 303
LRP updates. 304
305
(2) Specific measures the Contract awarding authority will undertake to increase the 306
participation of Women and Minority Businesses; including the number of events or 307
outreach activities conducted to ensure responsiveness to bid opportunities 308
309
(3) Progress towards specific Division WMBE utilization goals, including the number of 310
opportunities a division has available, the goals established for those opportunities 311
and the actual utilization, including periodic review of Disparity Study results to 312
determine reasonableness of goals. 313
314
(4) Data reporting using the standard procedure identified in the WMBE Program for the 315
Port-wide collection and reporting of relevant demographic data including percent of 316
spend, number of businesses, and type of procurements. 317
318
(5) Preparation and publication of an annual report titled Women and Minority Business 319
Enterprise Utilization and Participation Annual Report 320
321
B. The Internal Audit Director shall include the Diversity in Contracting Program in Internal 322
Audit Department’s 2019 Work Plan to determine adherence to this policy and include in 323
future years as the Commission Audit Committee deems appropriate. 324
325
SECTION 7 Fiscal Implications 326
327
Fiscal implications shall be reviewed by the Executive Director annually, at a minimum, to ensure 328
the implementation of the Policy Directive is adequately resourced and shall submit a budget 329
request as appropriate. 330
331
