Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11a
BRIEFING ITEM
Date of Meeting
April 11, 2023
DATE: April 11, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Mian Rice, Director Diversity in Contracting
SUBJECT: Diversity in Contracting 2022 Annual Report
EXECUTIVE SUMMARY
The Diversity in Contracting Annual Report to the Commission provides the Port’s
division/department 2022 Woman and Minority Business Enterprise (WMBE) results, 2023
department/division WMBE goals, and affirmative efforts to assure equality of contracting
opportunities.
2022 was the fourth full year of the Diversity in Contracting program operations, in which Port
divisions and departments established 2022 WMBE utilization goals. On an annual basis, the Port
starts from zero in its tracking of firms utilized and percent achieved.
In non-construction, 16.4% of the Port’s total spend of $269M went to WMBE firms ($44.2M) -
meeting its 15% goal for 2022 and showing a marked increase from the 14.6% WMBE utilization
in 2021. This goal did not include construction projects where utilization goals are established on
a project-by-project basis.
In construction, 2022 was the first year the Port established a goal. 7.5% of the Port’s total spend
of $203M went to WMBE firms ($15.1M) - short of its 12.5% goal and its 11.5% WMBE utilization
in 2021.
In total spend, which includes both non-construction and construction, 12.6% of the Port’s total
spend of $472.2M went to WMBE firms ($59.3M) – making progress towards the 2023 goal of
15% utilization, and demonstrating a slight increase from the 12.1% WMBE utilization in 2021.
In addition, the Port continues to make strides towards its five-year goal of tripling the number
of WMBE businesses working with the Port (354 WMBE firms by 2023) by having worked with
351 WMBE firms in 2022, an increase from 344 in 2021.
COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 6
Meeting Date: April 11, 2023
Template revised September 22, 2016.
As the Port continues to grow in its WMBE utilization, staff is continuing to make progress on 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. 2019 was the first full year the program and goals came into effect.
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 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.
The policy also directed 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 include 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.
2022 Results
2022 was the fourth year of the DC policy/program implementation.
COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 6
Meeting Date: April 11, 2023
Template revised September 22, 2016.
Per the DC policy directive, every division/department sets WMBE aspirational goals prior to the
beginning of the year. The table below illustrates by division the 2022 WMBE results for non-
construction procurements which includes P-Card spend. The Port met its 2022 non-construction
goal of 15%. The Port has driven $44.2M of work to WMBE firms for an overall utilization rate of
16.4%. The table below reflects the dollars in 2022 driven to WMBE businesses broken down by
Division:
2022 Non-Construction Utilization
Division
Total Port Spend
WMBE Spend
2022
WMBE %
Aviation (AV)
$189.4M
$29.9M
15.8%
Corporate
$30.9M
$8.2M
26.6%
Economic Development Division (EDD)
$3.7M
$0.6M
16.8%
Maritime Division (MD)
$20M
$4.5M
22.4%
Northwest Seaport Alliance (NWSA)
$25.3M
$1M
4%
Total
$269.2M
$44.2M
16.4%
The Port of Seattle’s Annual Division Goals are established on “Non-Construction” spend in Divisions’ Outside Service budgets
Since the program launch in 2019, DC staff have established WMBE aspirational goals for
Construction on a project-by-project basis. In 2022, we set a 12.5% Portwide Annual Construction
goal for the first time. However, lower total Port spend on construction, and a large, specialized
project with low WMBE availability resulted in 7.5% total WMBE utilization in construction, as
shown in the table below:
2022 Construction Utilization*
2022 Construction*
Total Port Spend
WMBE Spend
WMBE%
Aviation (AV)
$164.6M
$9.8M
6%
Corporate
$48.7K
$1.6K
3.5%
Economic Development
Division (EDD)
$6.5M
$1.2M
18.5%
Maritime Division (MD)
$2.8M
$1.2M
43.3%
Northwest Seaport
Alliance (NWSA)
$28.8M
$2.6M
9%
Total
$203M
$15.1M
7.5%
*WMBE Aspirational Goals for Construction are set project-by-project
The table below shows the final Port-wide WMBE attainment for 2022 per division/department,
with a combined WMBE total (construction and non-construction) of 12.6%. The table also
includes the number (351) of WMBE businesses utilized.
2022 Total Port Spend (Construction & Non-Construction Combined)
Division
Total Port Spend
WMBE Spend
WMBE %
Aviation (AV)
$354M
$39.6M
11.2%
Corporate
$30.9M
$8.2M
26.6%
Economic Development Division (EDD)
$10.2M
$1.8M
17.9%
Maritime Division (MD)
$22.7M
$5.7M
24.9%
COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 6
Meeting Date: April 11, 2023
Template revised September 22, 2016.
Northwest Seaport Alliance (NWSA)
$54.1M
$3.6M
6.7%
Total Port Spend
$472.2M
$59.3M
12.6%
Total Number of WMBE Firms Utilized
351
The table below illustrates the Port’s WMBE percentages and number of firms utilized from one
year to the next. Since 2016, the Port has steadily increased WMBE participation in both
measurements.
Port WMBE Utilization 2016-2022
WMBE
Utilization
2016
2017
2018*
2019
2020
2021
2022
Policy
Goal
Percentage
5.3%
8.8%
8.9%
10%
10.9%
12.1%
12.6%
15%
Number of
Firms
118
200
258
296
325
344
351
354
2023 DIVISION/DEPARTMENT GOALS
The table below provides the 2023 WMBE aspirational percent goals per division/department with a
combined total goal of 15% utilization for non-construction procurements on outside services.
2023 Non-Construction Goals
Division
Projected Total
Outside Services
Spend
2023 WMBE Projected
Spend
2023 WMBE Goal
Aviation Division (AV)
$112.3M
$15.7M
14%
Corporate
$40.9M
$6.5M
16%
Economic Development
Division (EDD)
$3.9M
$0.6M
14%
Maritime Division (MD)
$5.9M
$1.2M
20%
Total
$163M
$24M
15%
Construction Annual WMBE Goal
For 2023, the construction WMBE goal is 13%. This goal is based on historical WMBE utilization over the
past three years (average percent utilization between 2020-2022 was 9.93%). Despite ending 2022 with
7.5% WMBE Utilization on construction, we anticipate more projects to be in the construction phase in
2023 and believe 13% WMBE Utilization is a stretch goal for 2023. Achieving 13% in construction
utilization is necessary to reach the Port-wide (construction and non-construction) 5-year goal of 15%
WMBE utilization.
Issues/Challenges
Under the Diversity in Contracting (DC) Policy Directive, the Port’s efforts in setting annual non-
construction goals by division have been successful. The percent utilization of WMBE firms in non-
construction continues to follow an upward trajectory. This includes the number of total (construction
and non-construction) WMBE firms utilized, which in 2022 was 351 firms. By the year 2023, the Port’s
COMMISSION AGENDA – Briefing Item No. 11a Page 5 of 6
Meeting Date: April 11, 2023
Template revised September 22, 2016.
five-year goal is 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 procurement 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 may be impacted regardless of their
overall availability to work on Port projects.
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 8% to 10% on our construction projects thus
far. These averages will need to increase to achieve the set DC goals.
2023 is the last and final year of the 5-year goal for Diversity in Contracting Policy Directive to try to
achieve the 15% utilization goal. Although we may run short of the 15% utilization goal, the Port has made
tremendous progress in increasing the utilization of WMBE businesses and will continue to strive to
achieve the 15% goal in its final year. The number of WMBE businesses utilized on an annual basis has
continued to grow and appears likely, if the upward trend continues, to reach the 5-year goal of tripling
the number of WMBE firms we partner with.
Recommendations
The Port continues to set WMBE Divisional goals while exploring additional ways to increase the utilization
of WMBE firms on construction projects. 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.
• Evaluating opportunities for unbundling projects.
• Continuing to breakdown project scopes of work.
• Establishing better tie-ins with PortGen training participants within consulting and A&E.
• Continuing to outreach and conduct workshops/trainings.
• Continuing to partner with community and trade organizations.
• Continuing to partner with industry primes.
The Port is completing a WMBE analysis study in 2023 to identify barriers to WMBE utilization which will
also help inform additional policy or program refinements that will enable the Port to achieve its current
and future Diversity in Contracting Policy Directive goals. Once the initial 5-year cycle of the DC Program
concludes at the end of 2023, the Port will reassess future goals informed by past WMBE data collected
and studies conducted.
ATTACHMENTS TO THIS BRIEFING
(1) Video
(2) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 12, 2022 – Diversity in Contracting Annual Report
COMMISSION AGENDA – Briefing Item No. 11a Page 6 of 6
Meeting Date: April 11, 2023
Template revised September 22, 2016.
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 and 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