Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
7c
BRIEFING ITEM
Date of Meeting
March 24, 2020
DATE: February 27, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Mian Rice, Director Diversity in Contracting
SUBJECT: Diversity in Contracting Annual Report
EXECUTIVE SUMMARY
The Diversity in Contracting Annual Report to the Commission provides the Port’s
division/department 2019 WMBE results, 2020 future department/division WMBE goals, and
affirmative efforts to assure equality of contracting opportunities.
2019 was the first full year of Diversity in Contracting program operations. Port divisions and
departments established 2019 WMBE utilization goals for the first time and implemented a
number of initiatives to increase WMBE utilization.
The Port of Seattle established a 12.4 percent Women/Minority Business Enterprise utilization
goal for 2019. This goal did not include construction projects where utilization goals are
established on a project by project basis. The Port’s 2019 WMBE utilization of 15.29 percent
surpassed the annual goal as a result of strong utilization of WMBEs on construction projects
(16.27%).
Staff have met the Port’s five-year goal of 15 percent in the first year of program implementation.
While it is good news to make substantial progress on WMBE utilization, staff is recommending
maintaining the 15% goal for another year and to focus on eliminating specific disparities in
utilization for certain ethnic groups and women.
BACKGROUND AND GOALS
On January 9, 2018, Port Commissioners adopted a new Diversity in Contracting policy directive
with a supporting Resolution 3737, that drives equity in Port contracting. The policy was
developed over the years of 2016/2017, using 2016 as the baseline for what was eventually
passed.
The purpose of this policy directive is to provide the maximum practicable opportunity for
increased participation by minority and women owned and controlled businesses in Port
COMMISSION AGENDA – Briefing Item No. 7c Page 2 of 5
Meeting Date: March 24, 2020
Template revised September 22, 2016.
contracting for public works, consulting services, supplies, material, equipment, and other
services to create the opportunity to leverage Port spend to increase WMBE utilization.
As part of the Diversity in Contracting policy directive, the Port Commission established utilization
goals for both the amount of contracting dollars paid to WMBE firms as well as the number of
WMBE firms under contract to the Port using 2016 baseline utilization results:
5 year goals:
1) Triple the number of WMBE firms that contract with the Port, and
2) Increase to 15% the percentage of dollars spent on WMBE contracts
This policy also directs the establishment of:
• Executive level accountability that drives performance across the Port
• Port-wide goal setting and reporting processes, requiring Divisions/Departments to
establish Annual WMBE Plans that set aspirational goals and performance targets
• Clear lines of responsibility and accountability for implementation with designated WMBE
liaisons for each division
• Enhanced compliance and tracking of key performance objectives and incorporation of
WMBE goals into the Port’s Long Range Plan
• Categories of contracts where inclusion plans and other tools will be used
• Implementation and monitoring procedures to ensure prompt payment and change order
processes
• Expanded technical assistance for WMBE firms, coordination with external partners, and
support for internal training to Port staff
2019 RESULTS
Since the formal establishment of the Diversity in Contracting (DC) policy directive in 2018, 2019
was the first full operational year of establishing affirmative efforts in improving WMBE
utilization on port contracts by setting WMBE aspirational goals and the implementation of
inclusion plans.
Per the DC policy directive, every division/department sets WMBE aspirational goals prior to the
beginning of the year, the 2019 total percent was 12.40%. The table below illustrates by division
the 2019 WMBE results for non-construction procurements which includes P-Card spend. The
final results showed a total WMBE achievement of 12.82%:
2019 Non-Construction Utilization
Division
2019
Goal %
Total Port
Spend
WMBE
%
Aviation (AV)
12%
$109,725,824
14.81%
COMMISSION AGENDA – Briefing Item No. 7c Page 3 of 5
Meeting Date: March 24, 2020
Template revised September 22, 2016.
Corporate
12%
$68,771,669
10.09%
Economic Development Division
(EDD)
12%
$4,760,455
13.23%
Maritime Division (MD)
20%
$13,203,528
15.15%
North West Seaport Alliance (NWSA)
--
$9,393,289
7.36%
P-Card Unclassified
--
$2,982,650
8.39%
Total
12.40%
$208,837,415
12.82%
The Port of Seattle’s Annual Divisional Goals are established on “Non-Construction” spend in the Outside Service
budgets
Port DC staff sets WMBE aspirational goals on construction projects. These aspirational goals are
set on a project by project bases. The table below illustrates the WMBE results per division for
2019, with a total utilization rate of 16.27%:
*2019 Construction
Division
2019 Goal
%
Total Port
Spend
WMBE
%
Aviation (AV)
-
$507,412,826
16.79%
Corporate
-
$1,425,810
13.41%
Economic Development Division
(EDD)
-
$1,796,244
16.37%
Maritime Division (MD)
-
$5,279,170
10.31%
North West Seaport Alliance (NWSA)
-
$26,622,362
2.87%
P-Card Unclassified
Total
$542,536,412
16.27%
*WMBE Aspirational Goals for Construction are set project-by-project
The table below shows the final portwide WMBE attainment for 2019 per division/department,
with a combined WMBE total (construction and non-construction) of 15.29%. The table also
includes the number (297) of WMBE businesses utilized. Both results are compared to the port’s
2016 baseline results of 5.3% and 118 WMBE businesses utilized.
2019 Total Port
(Non-Construction & Construction
Combined)
2016
Baseline
Results
Division
Total Port
Spend
WMBE Spend
WMBE %
Aviation (AV)
$617,138,650
$101,431,466
16.44%
Corporate
$70,197,479
$7,164,365
10.21%
COMMISSION AGENDA – Briefing Item No. 7c Page 4 of 5
Meeting Date: March 24, 2020
Template revised September 22, 2016.
2020 DIVISION/DEPARTMENT GOALS
The table below provides the 2020 WMBE aspirational percent goals per division/department
with a combined total goal of 14.40% utilization for non-construction procurements on outside
services. In comparison, 2019 total goal was 12.40%. The 2020 WMBE aspirational goal is a +2%
increase from 2019.
2020 WMBE Goals by Division – Non-Construction*
Division
2019 WMBE Goal
2020 WMBE
Goal
2020 WMBE
Projected
Spend
Total
Outside
Services
Spend
Aviation Division (AV)
12%
15%
$8,759,147
$58,394,317
Corporate
12.1%
13.4%
$4,017,322
$29,994,358
Economic
Development Division
(EDD)
12%
13.3%
$531,366
$4,020,603
Maritime Division (MD)
20%
15%
$834,647
$5,564,318
Total
12.40%
14.40%
$14,157,483
$97,973,596
The Port of Seattle’s Annual Divisional Goals are established on “Non-Construction” spend in the Outside Service
budgets
Economic Development Division
(EDD)
$6,556,699
$963,058
14.69%
Maritime Division (MD)
$18,482,698
$2,556,859
13.83%
North West Seaport Alliance (NWSA)
$36,015,651
$1,491,250
4.14%
P-Card Unclassified
$2,982,650
$250,265
8.39%
Total (Percent)
5.3%
$751,373,827
$114,857,264
15.29%
Total Number of WMBE Firms
Utilized
118
-
-
297
COMMISSION AGENDA – Briefing Item No. 7c Page 5 of 5
Meeting Date: March 24, 2020
Template revised September 22, 2016.
RECOMMENDATIONS
Although the Port accomplished its portwide goal of 15% prior to its stated 5-year plan within the
Diversity in Contracting policy directive, staff recommends that we maintain this goal until the
conclusion of the 5-year goal which ends in 2023.
Maintaining this goal for additional time will allow staff to continue to focus on the portwide
overall goal yet become targeted in increasing WMBE participation by ethnicity.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
(2) 2020 Diversity in Contracting Plan
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
March 26, 2019 – Diversity in Contracting Annual Report
June 12, 2018 – Commission briefing on Diversity in Contracting program development
January 8, 2018 – Diversity in Contracting 2
nd
reading policy & passage of resolution 3737
December 19, 2017 – Diversity in Contracting Policy Review
December 12, 2017 - Women and Minority Business Enterprise Policy Review – Resolution
3737 (first reading)
December 5, 2017 - Women and Minority Business Enterprise Policy Review
November 28, 2017 –Women and Minority Business Enterprise Policy Review
October 24, 2017 - Women and Minority Business Enterprise Policy Review
July 12, 2017 – Commission Budget Priorities, Building Economic Opportunity in
Underserved Communities
March 28, 2017 – Small Business Development Update
March 22, 2016 – Small Business Utilization briefing
December 14, 2014 – Disparity Study briefing
August 19, 2014 – Small Business Utilization briefing
January 26, 2010 – Adoption of Resolution No. 3618 concerning small business utilization