Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11b
BRIEFING ITEM
Date of Meeting
April 12, 2022
DATE: April 6, 2022
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Mian Rice, Director of 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 2021 Woman and Minority Business Enterprise (WMBE) results, 2022 future
department/division WMBE goals, and affirmative efforts to assure equality of contracting
opportunities.
2021 was the third full year of the Diversity in Contracting program operations. Port divisions and
departments established 2021 WMBE utilization goals. The Port of Seattle established a 16 percent
WMBE utilization goal for 2021. This goal did not include construction projects where utilization
goals are established on a project-by-project basis.
Despite 2021’s economic challenges, the Port continued to make great strides surpassing 2020’s
results in achieving a Port-wide WMBE utilization goal of 12.1% for 2021. In addition, the Port
continues to make strides towards reaching its five-year goal of tripling the number of WMBE
businesses working with the Port (344 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 Port Commissioners adopted a new Diversity in Contracting (DC) 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 contracting for public
COMMISSION AGENDA – Briefing Item No. 11b Page 2 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
works, consulting services, supplies, materials, equipment, and other services to create the
opportunity to leverage Port spending 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
• 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
2021 RESULTS
Last year was the third year of the 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 percentage was 16%. The table below illustrates by division the
2021 WMBE results for non-construction procurements which includes P-Card spend. The Port did
not meet its 2021 non-construction goal of 16%. Although the target was missed, the Port invested
over $26 million in WMBE firms for an overall utilization rate of 16.1%. The table below reflects the
dollars in 2021 driven to WMBE businesses broken down by Division:
2021 Non-Construction
Utilization
2021 Goal %
Total Port Spend
WMBE Spend
2021
Division
Aviation (AV)
16%
$144,653,626
$17,734,128
Corporate
18%
$26,903,881
$4,116,780
Economic Development
Division (EDD)
13%
$3,280,584
$518,484
Maritime Division (MD)
15%
$25,124,214
$3,467,059
COMMISSION AGENDA – Briefing Item No. 11b Page 3 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
Northwest Seaport
Alliance (NWSA)
N/A
$4,447,881
$533,951
P-Card Unclassified
N/A
$165,811
$13,400
Total
$204,575997
$26,383,802
The Port of Seattle’s Annual Divisional Goals are established on “non-Construction” spend in
the Outside Service budgets
Since the program launch, DC staff have established WMBE aspirational goals for Construction on a
project-by-project basis. The table below illustrates the WMBE results on Construction per division
for 2021, with a total WMBE utilization rate of 11.5%:
*2021 Construction
Total Port Spend
WMBE Spend
WMBE %
Division
Aviation (AV)
$246,986,105
$29,037,487
11.8%
Corporate
$87,335
$6,967
8%
Economic Development Division
(EDD)
$2,898,163
$135
0%
Maritime Division (MD)
$12,297,524
$1,173,022
9.5%
North West Seaport Alliance
(NWSA)
$7,105,022
$62,853,857
11.3%
Total
$37,322,803
$325,178,389
11.5%
*WMBE Aspirational Goals for Construction are set project-by-project
The table below shows the final Port-wide WMBE attainment for 2021 per division/department,
with a combined WMBE total (construction and non-construction) of 12.1%. The table also
includes the number (344) of WMBE businesses utilized.
2021 Total Port
(Non-
Construction & Construction
Combined)
Total Port Spend
WMBE Spend
WMBE %
Division
Aviation (AV)
$391,639,731
46,771,614
11.9%
Corporate
$27,046,620
$4,123,748
15.2%
Economic Development Division
(EDD)
$5,660,128
$518,484
8.4%
Maritime Division (MD)
$32,781,657
$4,640,082
12.4%
North West Seaport Alliance
(NWSA)
$4,447,881
$533,951
12.0%
P-Card Unclassified
$165,811
$13,400
0.0%
Total (Percent)
$530,738,524
$64,069,018
12.1%
Total Number of WMBE Firms
Utilized
-
-
344
COMMISSION AGENDA – Briefing Item No. 11b Page 4 of 6
Meeting Date: April 12, 2022
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
2021
Percentage
5.3%
8.8%
8.9%
10%
10.9%
12.1%
Number of
Firms
118
200
258
296
325
344
*Diversity in Contacting program launch
2022 DIVISION/DEPARTMENT GOALS
The table below provides the 2022 WMBE aspirational percent goals per division/department with a
combined total goal of 15% utilization for non-construction procurements on outside services.
Non-Construction
Division
Projected Total
Outside
Services Spend
2021 WMBE
Projected Spend
2021 WMBE Goal
Aviation Division (AV)
$133,865,506
$20,079,826
15%
Corporate
$33,966,564
$4,755,319
14%
Economic Development Division
(EDD)
$5,259,683
$736,356
14%
Maritime Division (MD)
$6,613,343
$1,058,135
16%
Total
$179,705,097
$26,629,635
15%
Construction Annual WMBE Goal
For the first time, the Port is establishing an initial construction WMBE goal. For 2022, the established
WMBE goal is 12.5%. This initial goal was established by utilizing the 2021 construction WMBE
results, plus one percent.
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
2021 was 344 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 might be impacted
regardless of their overall availability to work on Port projects.
COMMISSION AGENDA – Briefing Item No. 11b Page 5 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
The Port currently sets WMBE aspirational goals on a project-by-project basis, based upon project
scope and WMBE availability. We have been averaging between eight to ten 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. We are
heading the right direction; however, we may fall short of hitting the Port’s five-year goal of 15
percent utilization by the end of 2023, which is the final year of the established 5-year goal cycle.
Recommendations
The Port continue to set WMBE Divisional goals but explore 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 Port is conducting a study to identify barriers to WMBE utilization which can also help identify
additional policy or program refinements that will help the Port achieve its current and future
Diversity in Contracting policy goals.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 13, 2021 – Diversity in Contracting Annual Report
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
COMMISSION AGENDA – Briefing Item No. 11b Page 6 of 6
Meeting Date: April 12, 2022
Template revised September 22, 2016.
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