COMMISSION AGENDA MEMORANDUM BRIEFING ITEM Item No. Date of Meeting 11c May 26, 2026 DATE: May 26, 2026 TO: Stephen P. Metruck, Executive Director FROM: A. Boungjaktha, Managing Director, Economic Development Division Mian Rice, Director, Diversity in Contracting SUBJECT: Diversity in Contracting 2025 Annual Report EXECUTIVE SUMMARY The Diversity in Contracting Annual Report to the Commission provides the Port's division/department 2025 Women and Minority Business Enterprise (WMBE) results from administering affirmative efforts to assure equality of contracting opportunities. 2025 was the seventh full year of Diversity in Contracting program operations in which Port divisions and departments established WMBE utilization goals. In combined construction and non-construction spend, 15.3% ($151M) of the Port's spend of $990M went to WMBE firms- shy of the 2025-2029 goal of 16% utilization, but achieving a historic high for this metric and in continuation of the generally positive trend seen since 2019. The historic high was driven in part by an increase in both total construction spend as well as construction percent spent with WMBEs. The Port worked with 400 WMBE firms, short of achieving our 2025-2029 goal of working with 500 WMBE firms annually, while also achieving a historic high for this metric and in continuation of the generally positive trend seen since 2019. 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. Template revised April 12, 2018. COMMISSION AGENDA - Briefing Item No. 11c Meeting Date: May 26, 2026 Page 2 of 6 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. 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 2025 (July) -2029 Five Year Goals In 2024, the Diversity in Contracting team prepared 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. This produced new 2025-2029 fiveyear goals which were adopted by the Port Commission on July 8, 2025. 2025-2029 Port-wide Goals: (1) Achieve 500 WMBE businesses utilized annually, and (2) 16% of dollars spent on WMBE contracts 2025 RESULTS In 2025, construction accounted for 62% of the Port's spend while non-construction accounted for 38% of Port spend which was consistent with the distribution of spend in 2024. For construction and non-construction projects combined, 15.3% of the Port's spend of $990M went to WMBE firms ($151M) - short of the 2025 goal of 16% utilization but surpassing its WMBE utilization in 2024 of 13.3% ($124M). Template revised September 22, 2016. COMMISSION AGENDA - Briefing Item No. 11c Meeting Date: May 26, 2026 Page 3 of 6 An increase in both total construction spend as well as construction percent spent with WMBEs resulted in a much larger construction spend with WMBE firms. WMBE construction firms received $21M more on projects in 2025 than in 2024 (a 33% increase). The major driver for the increase in percent spent with WMBEs on major construction projects is attributable to an increase in total spend on GC/CM projects, as well as an increase in percent spent with WMBEs on GC/CM projects. The following table provides total spend information by division. 2025 Total Utilization (Construction and Non-Construction Combined) Total Spend ($ Millions) Division Aviation Corporate Economic Development Division Maritime Division Northwest Seaport Alliance* Total 645 188 3 153 1.4 990 WMBE Spend ($ Millions) 110 19 0.2 22 0.6 151 WMBE % 17.0 10.1 7.3 14.4 44.8 15.3 WMBE Firm Count 270 106 14 99 1 400 * To prevent double-counting, this reflects NWSA data that excludes NWSA dollars and firm counts that are already accounted for under the category of Maritime Division For construction, DC staff establishes WMBE aspirational goals on a project-by-project basis. In 2025, 13.8% of the Port's construction spend of $611M went to WMBE firms ($85M) - surpassing the 2025 WMBE construction goal of 13% as well as its WMBE utilization in 2024 of 11.2%. The following table provides construction spend information by division. 2025 Construction Utilization Total Spend ($ Millions) Division Aviation Corporate Economic Development Maritime Northwest Seaport Alliance* Total 412 113 0 86 0.1 611 WMBE Spend ($ Millions) 68 1 0 15 85 WMBE % 16.5 1.2 17.4 13.8 WMBE Firm Count 119 9 42 148 * To prevent double-counting, this reflects NWSA data that excludes NWSA dollars and firm counts that are already accounted for under the category of Maritime Division Template revised September 22, 2016. COMMISSION AGENDA - Briefing Item No. 11c Meeting Date: May 26, 2026 Page 4 of 6 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, 17.6% of the Port's spend of $379M went to WMBE firms ($67M) - surpassing both its 2025 WMBE nonconstruction goal of 16%, as well as its WMBE utilization in 2024 of 16.6%. The following table provides non-construction spend information by division. 2025 Non-Construction Utilization Total Division Spend ($ Millions) Aviation 232 Corporate 75 Economic Development 3 Maritime Division 67 Northwest Seaport Alliance* 1.3 Total 379 WMBE Spend ($ Millions) 41 18 0.2 7 0.6 67 2024 WMBE Goal % 14 16 10 14 16 2024 WMBE Actuals % 17.8 23.4 7.3 10.5 48.3 17.6 WMBE Firm Count 156 97 14 62 1 264 * To prevent double-counting, this reflects NWSA data that excludes NWSA dollars and firm counts that are already accounted for under the category of Maritime Division WMBE Firm Partnerships The Port worked with 400 WMBE firms, short of achieving its 2025 goal of working with 500 WMBE firms annually but showing an increase from the 388 WMBE firms it worked with in 2024. 2026 DIVISON/DEPARTMENT WMBE GOALS The Port's Diversity in Contracting goals for 2026 is 16% spend with WMBE firms and 500 WMBE firms utilized annually. For 2026, the Port-wide construction WMBE goal is 14%. As demonstrated in 2025, achieving higher construction utilization is necessary to advance Port-wide (construction and nonconstruction) WMBE utilization. For 2026, the non-construction WMBE goal is 16%, representing an estimated $34 million in WMBE spend based on a projected $227 million in non-construction spend. The following table provides the 2026 WMBE aspirational percent goals per division. The goals and figures below are estimates and we expect not all spending may be realized, and actual results may vary. Template revised September 22, 2016. COMMISSION AGENDA - Briefing Item No. 11c Meeting Date: May 26, 2026 Page 5 of 6 2026 Non-Construction WMBE Goals Projected Total 2026 WMBE Spend Projected Spend ($ Millions)* ($ Millions)* Aviation Division 140.1 19.6 Corporate 57.2 10.2 Economic Development Division 4.2 0.2 Maritime Division 25.2 3.5 *Figures above are estimated, actual amounts may vary Division 2026 WMBE Goal 14% 18% 5% 14% CONCLUSION Under the Diversity in Contracting (DC) Policy Directive, amended July 8, 2025, the Port's efforts in setting and meeting annual non-construction goals by division continue to be successful. Port total spend on non-construction has steadily risen for the past five years from $206M in 2021, to arrive at $379M in 2025, accompanied by consistently high WMBE utilization ranging from 15.4% to 17.6% in those respective years. Regarding construction, total spend continued to grow rapidly year-over-year for the past four years from $202M spend in 2022, to triple that to $611M in 2025. Construction WMBE utilization had also trended upward year-over-year during that time from 8.5% in 2022 to 13.8% in 2025. The historical peak reached in 2025 was made possible by the alternative delivery projects like General Construction/Construction Management (GC/CM) projects. Although the Port did not achieve the 16% overall WMBE utilization goal, the Port's spend with WMBE businesses reached the historic high of 15.3%, as well as a historic high of working with 400 WMBE firms. ATTACHMENTS TO THIS BRIEFING (1) Presentation slides PREVIOUS COMMISSION ACTIONS OR BRIEFINGS June 24, 2025- Introduction Resolution 3836 Diversity in Contracting Directive May 27, 2025- Diversity in Contracting Annual Report 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 Template revised September 22, 2016. COMMISSION AGENDA - Briefing Item No. 11c Meeting Date: May 26, 2026 Page 6 of 6 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 Template revised September 22, 2016.