Resolution No. 3737, Diversity in Contracting Policy Directive Page 1 of 8
Resolution No. 3737 1
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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
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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
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WHEREAS, the economic vitality of a community is strengthened and more resilient 12
when opportunity is inclusive across our diverse communities; and 13
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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 and 16
minority business Enterprise (WMBE) firms to compete and succeed; and 17
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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
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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
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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
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WHEREAS, the Port of Seattle’s efforts and programs as a result of Resolutions 3506 and 33
3618 have increased small business participation but have not increased WMBE participation; and 34
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WHEREAS, it is a priority for the Port of Seattle to affirmatively expand its efforts to 36
increase WMBE participation in port contracts and ensure that WMBEs are afforded fair and 37
equitable opportunity to compete for port contracts, succeed as subcontractors, and do not 38
face unfair and unnecessary barriers when seeking and performing on port contracts; and 39
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WHEREAS, current data and the 2014 disparity study show that WMBE participation in 41
Port of Seattle opportunities has been and continues to be disparately low; and 42
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Resolution No. 3737, Diversity in Contracting Policy Directive Page 3 of 8
EXHIBIT A 89
Diversity in Contracting Policy Directive 90
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SECTION 1. Purpose. 92
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The Port finds that minority and women businesses are under-represented and have been 94
under-utilized on Port contracts. The purpose of this policy directive is to provide the maximum 95
practicable opportunity for increased participation by minority and women owned and 96
controlled businesses in Port contracting for public works, consulting services, supplies, 97
material, equipment, and other services to create the opportunity to leverage Port spend to 98
increase WMBE utilization. 99
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SECTION 2. Definitions. 101
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For the purposes of this chapter: 103
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“Affirmative efforts” means documented reasonable attempts in good faith to contract with 105
women and minority businesses. 106
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“Availability” or “available” as used in this chapter means a business that is interested in and 108
capable of performing the work within the time frame required and to the quality specified in 109
the solicitation and contract. 110
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“Capability” or “capable” as used in this section means that a business appears able to perform 112
a commercially useful function in performance of the work. 113
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“Commercially useful function” means the performance of real and actual services in the 115
discharge of any contractual endeavor. 116
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“Contract” means an agreement for public works, consulting services, supplies, material, 118
equipment, or other services. 119
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“Contract awarding authority” means any individual, office, or division that is receiving the 121
benefit of the contract. 122
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“Contractor” means a business that has a contract with the Port. 124
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“Division” means any Port of Seattle organization structure that has a director that reports to 126
the Executive Director. 127
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“Women or minority business” (WMBE) means a business that is at least 51 percent owned and 129
controlled by women and/or minority (including, but not limited to African Americans, Native 130
Americans, Asians, and Hispanics) group members. 131
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“Central database” means an electronic database that collects, aggregates, and tracks monthly 133
Port-wide, division, and department-level utilization of small business, women and minority 134
owned business, and other classifications across various categories and contract types and 135
promotes transparency for the public.
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“Relevant demographic data” is defined as, but not limited to, Asian-Pacific Americans, Black 138
Americans, Hispanic Americans, Native Americans, Asian, and Women, and other characteristic 139
information related to a business owner’s sexual orientation, sex/gender, race, ethnicity, or 140
veteran status as self-reported and/or certified by another government entity, as deemed 141
necessary or relevant to eliminating disparity in Port contracting. 142
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“Utilization” is defined as both the percent of contracting dollars paid to WMBE firms as well as 144
the number of WMBE firms under contract. 145
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SECTION 3. Scope and Applicability. 147
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This policy shall apply to all contracts and other activities at the Port, including construction and 149
consulting contracts, purchased goods, and services. 150
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SECTION 4. Responsibilities. 152
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The Executive Director shall pursue the Century Agenda goal to increase WMBE utilization in all 154
Port contracts and shall: 155
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A.
Achieve the Century Agenda goal to triple the number of WMBE firms that contract with the 157
Port and increase to 15 percent the percentage of dollars spent on WMBE contracts, within 158
five years of the Diversity in Contracting Program implementation; 159
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B.
Within 120 days of passage of this policy directive, develop a Diversity in Contracting 161
Program that identifies affirmative efforts to afford women and minority businesses the 162
maximum practicable opportunity to meaningfully participate on Port contracts and to 163
achieve the Port-wide goals; 164
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C. Incorporate these WMBE goals into the Port’s Long Range Plan to the fullest extent 166
reasonable, including incorporation into Long Range Plan scorecards, reports, and Long 167
Range Plan updates. Further, the Executive Director shall prepare and publish an annual 168
report each year titled Diversity in Contracting Annual Report; 169
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D.
Improve inclusion and outreach to sustain and improve WMBE participation and to reduce 171
disparity in Port contracting; 172
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E.
Take affirmative efforts to assure equality of contracting opportunity through the 174
development and application of Inclusion Plans or other tools as necessary; and 175
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Resolution No. 3737, Diversity in Contracting Policy Directive Page 5 of 8
F. Expand opportunities for WMBE firms across Port functions, wherever practicable. 177
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SECTION 5. Policy. 179
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A.
The Diversity in Contracting Program shall include: 181
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(1) Responsibilities, policies, practices, and processes that can change the Port procurement 183
and contracting processes and provide a more receptive environment for the utilization 184
of WMBE firms, and to ensure that businesses and contractors of all tiers working on 185
Port contracts and subcontracts utilize WMBE firms, wherever feasible or as required. 186
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(2) Development of a standard procedure for the Port-wide WMBE goal setting, and 188
collection and reporting of relevant demographic data to be stored in a central 189
database. 190
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(3) Identify categories of contracts that will require WMBE inclusion plans and other tools 192
that will be applied to other categories of contracts Port-wide. 193
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(4) Clear lines of responsibility and accountability for implementation of the WMBE 195
program and a designated WMBE liaison for each division. 196
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(5) Make WMBE goal setting and affirmative implementation efforts part of the annual 198
performance evaluation for each Port division director and their staff and require 199
standardized WMBE program training, implementation, and coordination for all division 200
leaders and their WMBE representatives. 201
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B.
The Diversity in Contracting Annual Plan shall include: 203
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(1) Specific measures the contract-awarding authority will undertake to increase the 205
utilization of WMBEs and to reduce disparity in Port contracting; and 206
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(2) Specific goals by division for WMBE utilization: 208
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(a) Each Port division will review future procurements to identify available firms on 210
upcoming contracts to create a utilization goal that is justifiable, bold, and 211
challenging. 212
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(b) Construction goals, other than small works, based on historic utilization plus two 214
percent, until such time that a disparity study or other valid internal data can 215
demonstrate a reasonable level of utilization. 216
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C.
To improve inclusion and outreach to sustain and improve WMBE participation and to 218
reduce disparity in Port contracting, the Port shall: 219
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Resolution No. 3737, Diversity in Contracting Policy Directive Page 6 of 8
(1) Support training and assistance to Port staff to increase participation in outreach and to 221
learn about the internal and external resources available to include WMBE firms in their 222
procurement and contracting; 223
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(2) Improve and expand technical assistance, including WMBE certification, business 225
development, training, and mentoring programs for WMBE firms to enhance bidding 226
expertise and promote greater coordination with advocacy organizations, businesses, 227
individuals, and public agencies and other Port departments; 228
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(3) Create opportunities for members of the contracting and vendor community, Port, and 230
other stakeholders to work collaboratively on recommendations for how the Port can 231
more effectively use the directives in this policy directive; 232
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(4) Assist contractors desiring to bid on Port covered contracts to comply with the 234
affirmative efforts provisions for such contract, and offer information as to 235
organizations and agencies available to assist such contractor in recruiting, mentoring, 236
training, or otherwise preparing potential subcontractors; and 237
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(5) Cooperate and establish formal and/or informal partnerships and mutual cooperation 239
with the Office of Minority and Women’s Business Enterprises and other public agencies 240
to carry out the purposes of this policy directive, as needed. 241
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D.
Affirmative efforts to assure equality of contracting opportunity required: 243
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(1) Develop procurement tools, such as WMBE inclusion plans, and require bidders and 245
proposers to comply with the WMBE solicitation requirement in order to sustain and 246
improve participation of WMBE in Port covered contracts; 247
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(2) Prepare and require that Port covered contracts include specifications pertaining to 249
equal opportunity affirmative efforts to assure equality in contracting opportunity, and 250
goals for subcontracting to women and minority businesses. Any goals established 251
under this chapter shall be reasonably achievable; however, no utilization requirements 252
shall be a condition of contracting, except as may be allowed by RCW 49.60.400; 253
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(3) Identify and implement a Port-wide method to regularly monitor and measure the Port 255
WMBE program and attainment of the goals by contractors; 256
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(4) May establish aspirational goals for the participation of women and minority businesses 258
in a particular Port contract on a case-by-case basis; 259
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(5) Work closely with other divisions and departments to ensure all policies, practices, and 261
processes are consistent and complementary and make it easier for WMBE firms to 262
pursue Port contracts; 263
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(6) Define, implement, and monitor appropriate processes and procedures to ensure 265
prompt payments and change order processing to address timely payment of 266
contractors, suppliers, and subcontractors at all tiers. Review and recommend potential 267
for including prompt pay in performance goals. 268
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E.
Affirmative efforts in subcontracting: 270
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(1) All contractors, including WMBE firms, shall actively solicit bids for subcontracts to 272
qualified, available, and capable WMBE to perform commercially useful functions; 273
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(2) Contractors shall consider the grant of subcontracts to women and minority bidders on 275
the basis of substantially equal proposals in the light most favorable to women and 276
minority businesses; 277
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(3) At the request of the relevant Port department, when inclusion plans are required, 279
contractors shall furnish evidence of the contractor's compliance with these 280
requirements of women and minority solicitation and will submit evidence of 281
compliance with this section as part of any bid. Contractors shall provide records 282
necessary to document affirmative efforts to subcontract with women and minority 283
businesses on Port contracts; 284
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(4) Compliance with all requirements and past performance under this policy directive may 286
be included in the evaluation of future procurements; and 287
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(5) In applying the provisions of this Policy Directive to contracts funded in whole or in part 289
with federal funds and subject to 49 CFR Part 23, Subpart D, regarding Airport 290
Concessions Disadvantaged Business Enterprises (ACDBE) or 49 CFR 26, Subpart C, 291
regarding Disadvantaged Business Enterprises (DBE), references to Women and Minority 292
Businesses shall also include federally recognized ACDBEs or DBEs. In the event of a 293
conflict between the provisions of this chapter, or the rules implementing this policy 294
directive, and the requirements of 49 CFR 26, Subpart C, or 49 CFR Part 23, Subpart D, or 295
any other superseding applicable federal statute or regulation, the provisions of the 296
federal statute or regulation shall control. 297
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F.
Expanding Opportunity. 299
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(1) The Port shall review and recommend how to expand opportunities for WMBE firms in 301
other Port enterprise opportunities, for example real estate leases, to encourage and 302
promote access to Port facilities by September 1, 2018. 303
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(2) The Port shall develop a baseline utilization number for veteran owned businesses and 305
propose a reasonable Port-wide goal and division goals to the Commission for inclusion 306
in the Century Agenda by September 1, 2019. 307
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SECTION 6. Program Evaluation. 309
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A. Benchmarks and metrics to evaluate the Diversity in Contracting Program shall include: 311
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(1) Incorporation of these WMBE goals into the Port’s Long Range Plan to the fullest extent 313
reasonable, including incorporation into Long Range Plan scorecards, reports, and Long 314
Range Plan updates. 315
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(2) Specific measures the contract awarding authority will undertake to increase the 317
participation of women and minority businesses and to reduce disparities, including the 318
number of events or outreach activities conducted to ensure responsiveness to bid 319
opportunities. 320
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(3) Progress towards specific division WMBE utilization goals, including the number of 322
opportunities a division has available, the goals established for those opportunities and 323
the actual utilization, including periodic review of disparity study results to determine 324
reasonableness of goals. 325
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(4) Data reporting using the standard procedure identified in the WMBE program for the 327
Port-wide collection and reporting of relevant demographic data including percent of 328
spend, number of businesses, and type of procurements. 329
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(5) Preparation and publication of an annual report titled Diversity in Contracting Annual 331
Report. 332
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B. The Internal Audit Director shall include the Diversity in Contracting Program in Internal 334
Audit Department’s 2019 work plan to determine adherence to this policy and include in 335
future years as the Commission Audit Committee deems appropriate. 336
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SECTION 7. Fiscal Implications. 338
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Fiscal implications shall be reviewed by the Executive Director annually, at a minimum, to ensure 340
the implementation of the policy directive is adequately resourced and shall submit a budget 341
request as appropriate. 342
Diversity in Contracting Sample Disaggregated Data Dashboard
Race
Black
American
Hispanic
American
Native
American
Asian Pacific
American
Caucasian
Other
Not
Known
Total
Number of Firms
Minority Certified
Women & Minority Certified
Women Certified
Veteran certified
Total Certified (non-duplicated)
Minority Self-Identified
Women & Minority Self-Identified
Women Certified Self-Identified
Total Self- Identified (non-duplicated)
Amount and Percent of Spend
Minority Certified
Women & Minority Certified
Women Certified
Veteran Certified
Total Certified (non-duplicated)
Minority Self-Identified
Women & Minority Self-Identified
Women Self-Identified
Total Self-Identified (non-duplicated)
DBE (All Certified)
Minority and Non-Minority
Number of Firms
Amount & Percent of Federal Spend
Amount & Percent of Non-Federal Spend
Amount & Percent of Total Spend
