COMMISSION
AGENDA MEMORANDUM
BRIEFING ITEM

Item No.
Date of Meeting

11c
May 27, 2025

DATE:

May 9, 2025

TO:

Stephen P. Metruck, Executive Director

FROM:

A. Boungjaktha, Managing Director, Economic Development Division
Mian Rice, Director, Diversity in Contracting

SUBJECT: Diversity in Contracting 2024 Annual Report
EXECUTIVE SUMMARY
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"
2024 goal of working with 400 WMBE firms annually. The previous 2019-2023 goal was to work
with 354 firms annually. In 2023, the Port worked with 392 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.
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.

Template revised April 12, 2018.

COMMISSION AGENDA - Briefing Item No. 11c
Meeting Date: May 27, 2025

Page 2 of 6

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
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
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:
(1) Achieve 400 WMBE businesses utilized, and
(2) Increase to 15% the percentage of dollars spent on WMBE contracts
2024 Results
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.

COMMISSION AGENDA - Briefing Item No. 11c
Meeting Date: May 27, 2025

Page 3 of 6

2024 Total Utilization (Construction and Non-Construction Combined)
Division

Total Spend
($ Millions)

WMBE
Spend
($ Millions)
77
25
1

Aviation
669
Corporate
140
Economic Development Division
12
Maritime Division
110
20
Northwest Seaport Alliance*
32
6
Total
932
124
* The majority of NWSA data also falls within Maritime Division data

WMBE %

WMBE Firm
Count

11.6
18.0
9.2
18.1
18.6
13.3

245
118
27
102
29
388

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 ($64M) - short
of the 2024 WMBE construction goal of 13% but surpassing its WMBE utilization in 2023 of
9.2%. The following table provides construction spend information by division.
2024 Construction Utilization
WMBE
Division
Spend
WMBE %
($ Millions)
Aviation
439
50
11.4
Corporate
59
3
5.6
Economic Development
7
0.8
Maritime
65
11
16.4
Northwest Seaport Alliance*
18
5
29.6
Total
570
64
11.2
* The majority of NWSA data also falls within Maritime Division data
Total Spend
($ Millions)

WMBE Firm
Count
100
17
3
49
23
137

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 nonconstruction 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.

COMMISSION AGENDA - Briefing Item No. 11c
Meeting Date: May 27, 2025

Page 4 of 6

2024 Non-Construction Utilization
Total
WMBE
2024
Spend
Spend
Division
WMBE
($
($
Goal %
Millions) Millions)
Aviation
229
27
14.0
Corporate
81
22
17.0
Economic Development Division
5
1
16.0
Maritime Division
45
9
13.0
Northwest Seaport Alliance*
14
Total
362
60
15.0
* The majority of NWSA data also falls within Maritime Division data

2024
WMBE
Actuals %

WMBE
Firm
Count

11.9
27.0
20.8
20.4
4.5
16.6

148
102
24
55
6
260

WMBE Firm Partnerships
The Port worked with 388 WMBE firms, falling 12 firms short of achieving its 2024 goal of
working with 400 WMBE firms annually, and four firms short of the 392 WMBE firms it worked
with in 2023.
2025 Division/Department WMBE Goals
The Port's Diversity in Contracting goals for 2025 is 16% spend with WMBE firms and 500
WMBE firms utilized annually.
For 2025, the Port-wide construction WMBE goal is 14%. Achieving higher construction
utilization is necessary to advance toward a Port-wide (construction and non-construction) goal
of 16% WMBE utilization.
For 2025, the non-construction WMBE goal is 16%. The following table provides the 2025
WMBE aspirational percent goals per division. The goals and figures below are estimates and
we expect not all spending may be realized, and actual results may vary.
2025 Non-Construction WMBE Goals
Projected Total
2025 WMBE
Division
Spend
Projected Spend
($Millions)*
($Millions)*
Aviation Division
201
34
Corporate
51
8
Economic Development Division
4
0.4
Maritime Division
16
2
Total
274
45
*Figures above are estimated, actual amounts may vary

Template revised September 22, 2016.

2025 WMBE
Goal
14%
16%
10%
14%
16%

COMMISSION AGENDA - Briefing Item No. 11c
Meeting Date: May 27, 2025

Page 5 of 6

Conclusion
Under the Diversity in Contracting (DC) Policy Directive, the Port's efforts in setting and meeting
annual non-construction goals by division continue to be successful. Port total spend on nonconstruction has steadily risen for the past four years from $206M in 2021, to arrive at $362M
in 2024, accompanied by consistently high WMBE utilization ranging from 15.4% to 16.6% in
those respective years.
Regarding construction, 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. Tenant Reimbursement Agreement (TRA) projects can also affect WMBE participation.
Port total spend on construction has grown significantly year-over-year for the past three years
from $202M spend in 2022, to $323M in 2023, to $570M spend in 2024. Construction WMBE
utilization has also trended upward year-over-year during that time from 8.5% in 2022, 9.2% in
2023, and 11.2% in 2024. WMBE use in construction, however, needs to be even higher to
achieve Port-wide diversity in contracting goals.
Although the Port did not achieve the 15% overall WMBE utilization goal, the Port's spend with
WMBE businesses grew from 2023 (12.4%) to 2024 (13.3%). The number of total (construction
and non-construction) WMBE firms utilized also remains steady with 388 firms partnered in
2024.
ATTACHMENTS TO THIS BRIEFING
(1)
(2)

Presentation slides
Video

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 16, 2024 - Diversity in Contracting Annual Report and 5 Year Review
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

Template revised September 22, 2016.

COMMISSION AGENDA - Briefing Item No. 11c
Meeting Date: May 27, 2025

Page 6 of 6

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

Template revised September 22, 2016.