Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No. 11c

BRIEFING ITEM Date of Meeting May 27, 2025

DATE: May 9, 2025

The Diversity in Contracting Annual Report to the Commission provides the Port’s

division/department 2024 Women and Minority Business Enterprise (WMBE) results from

administering affirmative efforts to assure equality of contracting opportunities. 2024 was the

sixth full year of the Diversity in Contracting program operations in which Port divisions and

departments established WMBE utilization goals.

In total Port spend, 13.3% ($124M) of the Port’s spend of $932M went to WMBE firms– short of

the 2024 goal of 15% utilization, and an increase from the 12.4% WMBE utilization in 2023.

The Port worked with 388 WMBE firms, short of achieving our “gap year”

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

Template revised September 22, 2016.

2019-2023 Five-Year Goals

(1) Triple the number of WMBE firms that contract with the Port annually (354 firms), 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

 Expanded technical assistance for WMBE firms, coordination with external

partners, and support for internal training to Port staff

Gap Year 2024

2024 was considered a “gap year” for the Program. The Diversity in Contracting team devoted

the year to preparing for new five-year goals by evaluating the program, drafting updates to the

policy, and engaging the community through internal and external listening sessions to identify

procurement barriers.

Gap Year 2024 Port-wide Goals:

In 2024, construction accounted for 61% of the Port’s spend while non-construction accounted

for 39% of Port spend compared to 2023 where spend was nearly even between the two

categories. For construction and non-construction projects combined, 13.3% of the Port’s

spend of $932M went to WMBE firms ($124M) – short of the 2024 goal of 15% utilization but

surpassing its WMBE utilization in 2023 of 12.4%. The following table provides total spend

information by division.

Template revised September 22, 2016.

2024 Total Utilization (Construction and Non-Construction Combined)

WMBE

($ Millions)

Aviation 669

77

11.6

Corporate 140

25

18.0

Economic Development Division 12

Maritime Division

20

18.1

* The majority of NWSA data also falls within Maritime Division data

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 and 2024, a goal of 13%.

In 2024, 11.2% of the Port’s construction spend of $570M went to WMBE firms ($64M) - short

of the 2024 WMBE construction goal of 13% but surpassing its WMBE utilization in 2023 of

9.2%. The following table provides construction spend information by division.

WMBE

($ Millions)

Count

Aviation 439

50

11.4

Corporate 59

Economic Development 7

-

3

Maritime 65

11

16.4

For non-construction, per the DC policy directive, every division and department establishes

WMBE aspirational goals prior to the beginning of the year. Non-construction procurements

include procurements for service agreements (professional services and personal services) and

purchasing (goods and services, and P-card purchases). In non-construction, 16.6% of the Port’s

spend of $362M went to WMBE firms ($60M) - surpassing both its 2024 WMBE non-

construction goal of 15%, as well as its WMBE utilization in 2023 of 15.7%. The following table

provides non-construction spend information by division.

Template revised September 22, 2016.

2024 Non-Construction Utilization

Total

($

Template revised September 22, 2016.

Conclusion

Template revised September 22, 2016.

December 12, 2017 - Women and Minority Business Enterprise Policy Review – Resolution 3737

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