Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
11a
BRIEFING ITEM
Date of Meeting
April 16, 2024
DATE: April 9, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
Mian Rice, Director, Diversity in Contracting
SUBJECT: Diversity in Contracting 2023 Annual Report and Five-Year (2019-2023) Review
EXECUTIVE SUMMARY
2023 Diversity in Contracting Annual Report
The Diversity in Contracting Annual Report to the Commission provides the Port’s
division/department 2023 Women and Minority Business Enterprise (WMBE) results from
administering affirmative efforts to assure equality of contracting opportunities.
2023 was the fifth full year of the Diversity in Contracting program operations in which Port
divisions and departments established WMBE utilization goals. In total spend, which includes
both construction and non-construction, 12.4% of the Port’s spend of $627M went to WMBE
firms ($77.7M) – short of the 2023 goal of 15% utilization, and on par with the 12.6% WMBE
utilization in 2022.
In construction, where utilizations goals are established on a project-by-project basis, 2023 was
the second year the staff established a Port-wide goal. 9.2% of the Port’s construction spend of
$323.3M went to WMBE firms ($29.9M) - short of its 13% WMBE construction goal but
surpassing its 8.5% WMBE utilization in 2022. In non-construction, 15.7% of the Port’s spend of
$303.7M went to WMBE firms ($47.8M) - meeting its 15% goal for 2023 and showing a slight
decrease from the 16.4% WMBE utilization in 2022.
The Port did exceed its five-year goal of tripling the number of WMBE businesses working with
the Port annually (354 WMBE firms by 2023) by having worked with 392 WMBE firms in 2023, a
marked increase from 351 WMBE firms in 2022.
The Port’s Diversity in Contracting goals for 2024 is 15% spend with WMBE firms and 400
WMBE firms utilized annually. At the same time, over the course of this gap year in the
Program, the Diversity in Contracting team is evaluating the program, drafting updates to the
policy, and engaging the community throughout. The goal is to have a first reading of an
updated Diversity in Contracting Resolution by the end of 2024 so that the Port can build on the
progress achieved over these past five years to eliminate, even more effectively, specific
disparities in utilization for certain ethnic groups and women.
COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
Diversity in Contracting Five-Year Review (2019-2023)
In 2016, the Port began focusing on the diversity of businesses it partners with. In that year,
only 5.3% of the Port’s spend was with WMBE firms, and the Port partnered with only 118 firms
annually. In 2018, the Diversity in Contracting Policy Directive and Resolution was created,
leveraging the findings from 2016 to set the Program’s goals. The goals were to, within five
years of the Diversity in Contracting Program implementation, increase to 15% the total Port
spend with WMBE firms and triple the number of WMBE firms that the Port partners with to
reach 354 firms annually. The first full year of the program was 2019, with the five-year
benchmark concluding at the end of 2023.
This report provides the Port’s division/department Woman and Minority Business Enterprise
(WMBE) results over the five-year period.
Over the five years of its implementation, Diversity in Contracting (DC) Policy Directive &
Resolution achieved its primary goal of increasing the utilization of WMBE firms on Port
contracts due to the Program’s internal and external affirmative efforts of establishing WMBE
aspirational goals on contracts, requiring inclusion plans, and bolstering outreach and training
efforts.
Port-wide (construction and non-construction) WMBE spend over the five-years was 12.4%
($376M) of the $3B total Port spend with outside vendors, short of the 15% goal. Well above,
however, WMBE utilization before the program began, which in 2016 was 5.3%.
In construction, WMBE spend over the five-years was 9.5% ($175.9M) of the $1.8B total Port
spend with outside vendors. In non-construction, WMBE spend over the five-years was 16.7%
($200M) of the $1.2B total Port spend with outside vendors.
On an annual basis, the Port starts from zero in its tracking of firms utilized and percent
achieved. The Port partnered with a total of 392 WMBE businesses over the course of 2023,
exceeding its policy goal of working with 354 firms annually which was triple the 2016 baseline
of 118 firms annually. Over the five-years, the Port partnered with 791 unique WMBE firms.
BACKGROUND AND GOALS
On January 9, 2018, the Port Commissioners adopted a new Diversity in Contracting (DC) policy
directive with a supporting Resolution, to advance 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.
COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
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
2023 Results
2023 was the fifth full year of Diversity in Contracting operations. The table below shows the
Port-wide WMBE attainment for 2023, with 12.4% of total (construction and non-construction
combined) spend going to WMBE businesses, short of the Port’s 15% goal. The 392 WMBE firm
partnerships achieved in 2023 far exceeds the WMBE firm partnership goal of 354 firms.
2023 Total Utilization (Construction and Non-Construction Combined)
Division
Total Spend
(dollars)
WMBE Spend
(dollars)
WMBE %
WMBE Firm
Count
Aviation (AV)
454.9 M
46.6 M
231
Corporate
81.9 M
18.5 M
126
Economic Development Division (EDD)
5.1 M
1.1 M
29
Maritime Division (MD) 80.7 M 11.0 M 13.6% 100
North West Seaport Alliance (NWSA)
4.4 M
0.6 M
1
Total
627.0 M
77.7 M
392
COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
For construction, since the program launch in 2019, DC staff have established WMBE
aspirational goals on a project-by-project basis. In 2022, the Port set an annual Port-wide
construction goal for the first time at 11.5%, and in 2023, a goal of 13%. The Port came closer to
meeting that goal in 2023 by achieving 9.2% WMBE utilization, an increase from the 8.5%
achieved in 2022.
2023 Construction Utilization*
Division
Total Spend
(dollars)
WMBE Spend
(dollars)
WMBE %
WMBE Firm
Count
Aviation (AV)
260.6 M
20.7 M
7.9%
70
Corporate
22.5 M
3.4 M
15.2%
15
Economic Development Division (EDD)
1.4 M
0.0 M
3.4%
5
Maritime Division (MD)
38.1 M
5.7 M
15.0%
27
Northwest Seaport Alliance (NWSA)
0.9 M
N/A
N/A
N/A
Total
323.3 M
29.9 M
9.2%
93
*WMBE Aspirational Goals for Construction are set project-by-project
For non-construction, per the DC policy directive, every division and department sets WMBE
aspirational goals prior to the beginning of the year. The table below illustrates, by division, the
2023 WMBE results for non-construction procurements which includes P-Card spend. The Port
narrowly missed its 2023 non-construction goal of 16% WMBE spend, landing at 15.7%.
2023 Non-Construction Utilization
Division
Total Spend
(dollars)
WMBE
Spend
(dollars)
2023
WMBE
Goal %
2023
WMBE %
WMBE
Firm
Count
Aviation (AV)
194.4 M
25.9 M
15% *
21%**
164
Corporate
59.4 M
15.0 M
17%
25.3%
113
Economic Development Division (EDD)
3.7 M
1.1 M
16%
28.3%
25
Maritime Division (MD)
42.6 M
5.3 M
21% *
23%**
73
Northwest Seaport Alliance (NWSA)
3.5 M
0.6 M
N/A
16.4%
1
Total
303.7 M
47.8 M
16%
15.7%
307
*These goals were established on outside service spend budgets
** These percentages represent WMBE utilization on outside services spent. Overall WMBE utilization in
2023 for aviation was 13.3% and for maritime 12.4%
2024 Division/Department WMBE Goals
The table below provides the 2024 WMBE aspirational percent goals per division with a
combined total Port-wide goal of 15% utilization for non-construction procurements. The goals
and figures below are estimates and we expect not all spending may be realized, and actual
results may vary.
COMMISSION AGENDA – Briefing Item No. 11a Page 5 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
2024 Non-Construction WMBE Goals
Division
Projected Total
Spend (dollars)
2024 WMBE
Projected Spend
(dollars)
2024 WMBE
Goal
Aviation Division (AV)
140 M
19.6 M
14%
Corporate
49 M
8.3 M
17%
Economic Development Division (EDD)
5.5 M
0.9 M
16%
Maritime Division (MD)
14.7 M
1.9 M
13%
Total
208.6 M
31.3 M
15%
For 2024, the construction WMBE goal (Portwide) is 13%. Having ended 2023 with 9.2% WMBE
Utilization on construction, we believe 13% WMBE Utilization is a stretch goal for 2024.
Achieving 13% in construction utilization is necessary to advance toward a Port-wide
(construction and non-construction) goal of 15% WMBE utilization.
Five-Year (2019-2023) Results
The table below shows the Port-wide WMBE attainment from 2019 to 2023, per division, with
12.4% of total spend (construction and non-construction) going to WMBE businesses. Over the
five years, the Port partnered with 791 unique WMBE firms.
2019-2023 Total Utilization (Construction and Non-Construction Combined)
Division
Total Spend
(dollars)
WMBE Spend
(dollars)
WMBE %
WMBE Firm
Count
Aviation
2,216.1 M
238.6 M
10.8%
448
Corporate
332.8 M
76.1 M
22.9%
303
Economic Development
20.1 M
4.0 M
20.1%
68
Maritime
445.0 M
54.4 M
12.2%
224
NWSA
27.1 M
2.8 M
10.4%
3
Total
3,041.0 M
376.0 M
12.4%
791
For construction, since the program launch in 2019, DC staff have established WMBE
aspirational goals on a project-by-project basis. In 2022, staff set a Port Wide Annual
Construction goal for the first time, at 11.5%. In 2023, the Port-wide Construction goal was
13%.
Over the five-year period the Port spent 9.5% of its outside construction spend of $1.8 B with
WMBE Firms ($175.9 M), partnering with a total of 222 WMBE firms. The table below reflects,
by division, the construction dollars in 2019-2023 driven to WMBE businesses, WMBE spend
percentage, and number of WMBE firms partnered.
COMMISSION AGENDA – Briefing Item No. 11a Page 6 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
2019-2023 Construction Utilization*
Division
Total Spend
(dollars)
WMBE Spend
(dollars)
WMBE %
WMBE Firm
Count
Aviation
1,463.8 M
133.5 M
9.1%
161
Corporate
81.2 M
9.6 M
11.8%
42
Economic Development
4.5 M
0.2 M
3.7%
9
Maritime
289.9 M
32.6 M
11.3%
78
Total
1,842.9 M
175.9 M
9.5%
222
*WMBE Aspirational Goals for Construction are set project-by-project
For non-construction, the Port met its five-year non-construction goal of 15%. Over the five-
year period the Port spent 16.7% of its outside non-construction spend with WMBE Firms
($200.1 M), partnering with a total of 600 WMBE firms. The table below illustrates, by division,
the 2019-2023 WMBE results for non-construction procurements which includes P-Card spend.
2019-2023 Non-Construction Utilization
Division
Total Spend
(dollars)
WMBE Spend
(dollars)
WMBE %
WMBE Firm
Count
Aviation
752.2 M
105.1 M
14.0%
302
Corporate
251.6 M
66.5 M
26.4%
264
Economic Development
15.6 M
3.9 M
24.8%
60
Maritime
155.1 M
21.8 M
14.1%
151
NWSA
23.6 M
2.8 M
11.9%
3
Total
1,198.1 M
200.1 M
16.7%
600
From one year to the next since 2016, the Port has steadily increased WMBE participation in
both the percent spent with WMBE firms and the number of WMBE firms partnered. The table
below illustrates the Port’s WMBE percentages and number of firms utilized from one year to
the next.
2016-2023 WMBE Utilization Percentage and Firm Count
Utilization
2016
2017
2018
2019
2020
2021
2022
2023
Policy Goal
WMBE Percentage
5.3%
8.8%
8.9%
10%
10.9%
12.1%
12.6%
12.4%
15%
WMBE Firm Count
118
200
258
296
325
344
329
394
354
Issues/Challenges
Under the Diversity in Contracting (DC) Policy Directive, the Port’s efforts in setting and meeting
annual non-construction goals by division have been successful. The percent utilization of
WMBE firms in non-construction has exceeded the 15% goal for the past two years. The
number of total (construction and non-construction) WMBE firms utilized has also largely
trended upward over the past five years, culminating with 392 firms partnered in 2023.
COMMISSION AGENDA – Briefing Item No. 11a Page 7 of 7
Meeting Date: April 16, 2024
Template revised September 22, 2016.
Regarding construction, however, Initiative-200 makes it difficult to hit our goals. 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 construction projects on a project-by-
project basis, based upon project scope and WMBE availability. WMBE attainment in
construction projects have ranged between 8.6% (2020) and 13.1% (2021), averaging at 9.5%
over the past five years. WMBE use in construction needs to increase to achieve Port-wide
diversity in contracting goals.
Although the Port did not achieve the 15% overall WMBE utilization goal, the Port has made
tremendous progress in increasing the utilization of WMBE businesses and will continue
dismantling disparities in contracting. The number of WMBE businesses utilized on an annual
basis has grown steadily year-over-year and this upward trend is expected to continue.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 23, 2024 – Commission Order to update the Port’s Diversity in Contracting goals for
2024
April 12, 2023 – Diversity in Contracting Annual Report
April 12, 2022 – Diversity in Contracting Annual Report
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 2nd 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