Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11a
BRIEFING ITEM
Date of Meeting
April 13, 2021
DATE: April 13, 2021
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 2020 Woman and Minority Business Enterprise (WMBE) results, 2021 future
department/division WMBE goals, and affirmative efforts to assure equality of contracting
opportunities.
2020 was the second full year of Diversity in Contracting program operations. Port divisions and
departments established 2020 WMBE utilization goals. The Port of Seattle established a 14.4
percent WMBE utilization goal for 2020. This goal did not include construction projects where
utilization goals are established on a project by project basis.
Despite 2020’s economic challenges, the Port continued to make great strides surpassing 2019
results in achieving a portwide WMBE utilization of 10.9% for 2020, and almost reaching its five-
year goal of tripling the number of WMBE businesses working with the Port (325 WMBE firms vs.
five-year goal of 354 firms), by the year 2023. On an annual basis, the Port starts from zero in its
tracking of firms utilized and percent achievements.
As the Port continues to grow in its WMBE utilization, staff is continuing its positive steps to
achieve the goals set forth by the Commission, including the continued focus on eliminating
specific disparities in utilization for certain ethnic groups and women.
BACKGROUND AND GOALS
On January 9, 2018, the Commission adopted a new Diversity in Contracting (DC) policy directive
with supporting Resolution No. 3737, that drives equity in Port contracting. The policy was
developed over the years 2016 and 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. 11a Page 2 of 6
Meeting Date: April 13, 2021
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:
Five-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 new policy also directs the establishment of:
• Executive level accountability that drives performance across the Port.
• Portwide 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.
2020 RESULTS
Last year was the second year of DC policy/program implementation.
Per the DC policy directive, every division/department sets WMBE aspirational goals prior to the
beginning of the year, the 2020 total percent was 14.4%. The table below illustrates by division
the 2020 WMBE results for non-construction procurements which includes P-Card spend. The
Port exceeded its 2020 non-construction goal and invested over $33 million in WMBE firms for
an overall utilization rate of 16.6%:
COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 6
Meeting Date: April 13, 2021
Template revised September 22, 2016.
2020 Non-Construction Utilization
Division
2020
Goal %
Total Port
Spend
WMBE
Spend
WMBE
%
Aviation (AV)
15%
$135,779,054
$23,256,420
17.1%
Corporate
13%
$32,934,255
$4,780,519
14.5%
Economic Development Division
(EDD)
13%
$2,752,428
$429,630
15.6%
Maritime Division (MD)
15%
$24,579,489
$3,922,997
16.0%
North West Seaport Alliance (NWSA)
N/A
$3,816,797
$851,756
22.3%
P-Card Unclassified
N/A
$3,520
$0
Total
$199,865,542
$33,241,321
16.6%
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
2020, with a total utilization rate of 8.6%:
*2020 Construction
Division
2020
Goal %
Total Port Spend
WMBE Spend
WMBE %
Aviation (AV)
-
$383,347,598
$31,870,515
8.3%
Corporate
-
$459,474
$41,484
9.0%
Economic Development
Division (EDD)
-
$5,722,870
$855,413
14.9%
Maritime Division (MD)
-
$13,737,251
$1,707,437
12.4%
North West Seaport
Alliance (NWSA)
-
$92,440,937
$8,065,818
8.7%
P-Card Unclassified
Total
$495,708,130
$42,540,667
8.6%
*WMBE Aspirational Goals for Construction are set project-by-project
The table below shows the final portwide WMBE attainment for 2020 per division/department,
with a combined WMBE total (construction and non-construction) of 10.9%. The table also
includes the number (325) of WMBE businesses utilized. Both results are compared to the Port’s
2016 baseline results of 5.3% and 118 WMBE businesses utilized.
COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 6
Meeting Date: April 13, 2021
Template revised September 22, 2016.
The table below illustrates the annual progression of the Port’s WMBE percentages and number
of firms utilized for that given year.
WMBE Utilization
2016
2017
2018*
2019
2020
Percentage
5.3%
8.8%
8.9%
10%
10.9%
Number of Firms
118
200
258
296
325
*Diversity in Contacting program launch
2021 DIVISION/DEPARTMENT GOALS
The table below provides the 2021 WMBE aspirational percent goals per division/department
with a combined total goal of 16% utilization for non-construction procurements on outside
services.
Division
Projected Total
Outside Services
Spend
2021 WMBE
Projected Spend
2021 WMBE
Goal
Aviation Division (AV)
$63,136,847
$10,101,895
16%
Corporate
$29,294,647
$5,247,688
18%
Economic Development Division (EDD)
$4,596,651
$597,564
13%
Maritime Division (MD)
$4,464,575
$669,686
15%
Total
$103,818,352
$16,642,182
16%
The Port of Seattle’s Annual Divisional Goals are established on “Non-Construction” spend in the Outside Service
budgets
2020 Total Port
(Non-
Construction & Construction
Combined)
2016
Baseline
Results
Division
Total Port Spend
WMBE Spend
WMBE %
Aviation (AV)
$519,126,652
$55,126,935
10.6%
Corporate
$33,393,729
$4,822,002
14.4%
Economic Development Division (EDD)
$8,475,298
$1,285,043
15.2%
Maritime Division (MD)
$38,316,739
$5,630,434
14.7%
North West Seaport Alliance (NWSA)
$96,257,733
$8,917,574
9.3%
P-Card Unclassified
$3,520
$0
0.0%
Total (Percent)
5.3%
$695,573,672
$75,781,987
10.9%
Total Number of WMBE Firms Utilized
118
-
-
325
COMMISSION AGENDA – Briefing Item No. 11a Page 5 of 6
Meeting Date: April 13, 2021
Template revised September 22, 2016.
Issues/Challenges
Under the Diversity in Contracting (DC) Policy Directive, the Port’s divisional efforts in setting
annual ‘non-construction’ percent goals have been successful. The percent utilization of WMBE
firms continues to be a positive influence. This includes the number (#) of WMBE firms utilized,
which in 2020 was 325 firms. By the year 2023, the Ports five-year goal is a utilization of 354
WMBE firms. On an annual basis, the Port starts at zero in its quest to achieve its 5 year WMBE
goals.
However, under Washington State’s construction bidding laws and policies, in conjunction with
the State’s anti-affirmative action clauses, government entities have far less control over WMBE
utilization on low-bid lump sum procurements. As a result, WMBE participation maybe impacted
regardless of their overall availability to work on Port projects.
The Port currently sets WMBE aspirational goals on a project-by-project bases, based upon
project scope and WMBE availability. We have been averaging between eight to nine percent on
our construction projects thus far. These averages will need to increase in order to achieve the
set DC goals.
The Port has made tremendous progress increasing the utilization of WMBE businesses. It may
be difficult to hit the Port’s five-year goal of 15 percent utilization. The Port would need to grow
approximately 12% year-over-year for the remaining years to 2023 to hit this goal.
Recommendations
The Port continues to set WMBE Divisional goals but explores expanded ways to improve upon
the Construction utilization of WMBE firms. This would be done by:
• Leveraging more alternative delivery methods like Design/Build (D/B) or General
Contractor/Construction Management (GC/CM) procurements. Alternative delivery
methods such as these may allow Port staff to continue to push the construction
contacting limits to not only achieve, but perhaps exceed project WMBE goals.
• Evaluate chances for unbundling of projects.
• Further breakdown project scopes of work.
• Better tie-in’s with PortGen training participants within the consulting and A&E
contracts.
• Continue to outreach and conduct workshops/trainings.
• Continued partnerships with community and trade organizations.
• Continued partnerships with Primes.
The proposed Port study to identify barriers to WMBE utilization can also help identify additional
policy or program refinements that help the Port achieve its five-year Diversity in Contracting
policy goals.
COMMISSION AGENDA – Briefing Item No. 11a Page 6 of 6
Meeting Date: April 13, 2021
Template revised September 22, 2016.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
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
