Visit us at https://www.portseattle.org/diversity Diversity in Contracting 2025 Annual Report Mian Rice, Director, Diversity in Contracting Lawrence Coleman, Program Manager, Diversity in Contracting Emily Ho, Program Manager, Diversity in Contracting Item No. 11c supp Meeting Date: May 26, 2026 May 26, 2026 Agenda 2025 WMBE Results 2026 WMBE Goals 2026 Next Steps 2 Diversity in Contracting Policy Directive Purpose: Advance equity and address contracting disparities by increasing the utilization of Women Minority Business Enterprises and other disadvantaged firms Previous Goals 2019-2023 - Resolution 3737  Increase the amount of spend on WMBE contracts to 15%  Increase the number of WMBE firms doing business with the Port to 354 Gap Year Goals 2024  Increase the amount of spend on WMBE contracts to 15%  Increase the number of WMBE firms doing business with the Port to 400 Current Goals 2025 - 2029 - Resolution 3836 passed July 2025:  Increase the amount of spend on WMBE contracts to 16%  Increase the number of WMBE firms doing business with the Port to 500 3 2025 WMBE Results 4 2016-2025 Port-wide WMBE Utilization 600 15% 14% 500 11% 13% 12% 12% 13% 9% 342 300 200 100 366 14% 12% 400 9% 359 349 392 388 400 10% 8% 258 5% 16% 6% 200 4% 118 2% 0 0% 2016 2017 2018 2019 2020 WMBE firm # 2021 2022 WMBE% 2023 2024 2025 5 2025 Port-wide WMBE Utilization Category Total Port Spend ($ Millions) WMBE Spend ($ Millions) WMBE Utilization Public Works (Construction) 611 85 13.8% Non-Construction 379 67 17.6% 990 151 15.3% Total 6 2025 Port-wide Spend Distribution 7 WMBE Utilization by Ethnicity 2022-2025 WMBE Spend ($Millions) 2022 2023 $10 $7 $12 2025 20 40 21 60 80 31 $39 $9 $30 $20 $47 0 $14 $9 $19 $17 $31 $7 11 $9 $16 $13 $20 2024 $5 $3 100 120 140 160 300 350 400 Native American Multiracial WMBE Firm Number 2022 68 37 2023 22 129 2024 28 14 6 56 92 52 2025 33 166 0 50 Caucasian AANHPI 100 150 Black or African American 41 26 36 12 6 3 11 5 5 61 46 200 250 Hispanic/Latino 38 21 8 5 Other 8 2025 Division Goal Attainment (Non-Construction) Division Total Spend WMBE Spend 2025 WMBE Actuals WMBE Goal ($Millions) ($ Millions) Aviation 232 41 14% 17.8% Corporate 75 18 16% 23.4% Maritime 67 7 14% 10.4% Economic Development 3 0.2 10% 7.3% 9 2025 Corporate Departments Goal Attainment (Non-Construction) Department Chief Financial Office Group Engineering Environmental Legal External Relations Police Port Construction Services Equity / Workforce Human Resources Equity / EDI Executive Director Central Procurement Office Internal Audit Commission Strategic Initiatives Labor Relations Total Spend ($ Millions) 22.56 20.78 8.08 4.66 4.44 4.25 4.18 2.81 1.12 0.45 0.26 0.20 0.17 0.07 0.05 0.02 WMBE Spend ($Millions) 6.67 4.98 3.00 0.30 1.35 0.03 0.27 0.19 0.20 0.13 0.04 0.07 0.12 0.01 0.05 0.00 WMBE Goal 30% 25% 20% 2% 18% 8% 26% 21% 21% 5% 15% 20% 10% 50% 5% WMBE Actuals 30% 24% 37% 7% 30% 1% 7% 7% 18% 28% 15% 36% 71% 19% 94% 6% 10 Key 2025 Data Takeaways • Construction produced 62% of WMBE dollars in 2025. • Port construction delivered approximately $85M in WMBE spend (13.8% of $661M total spend). Record construction WMBE attainment. • GC/CM spend doubled, and GC/CM WMBE utilization increased from 10% to 16% resulting in an additional $23M to WMBE in 2025. • Highly specialized contracts limit WMBE participation regardless of intent. • Direct WMBE vendor relationships provide the most consistent results. • 2024 service agreement performance helped set the stage for 2025 construction results. • Large service contracts (e.g., $39M janitorial/facilities maintenance) drive consistent multi-million dollar WMBE outcomes. 11 Non-Construction Use 2019-2025 25% 20% 20% 16% 17% 16% 15% $362 $276 $210 $203 17% 17% $379 15% $304 10% $206 5% 0% 2019 2020 2021 2022 Total Dollars ($Millions) 2023 WMBE% 2024 2025 12 Construction Use 2019-2025 25% $611 $570 20% $497 $495 15% 13% $323 $326 9% 9% 9% 11% 14% 10% 9% $202 5% 0% 2019 2020 2021 2022 Total Dollars ($Millions) 2023 WMBE% 2024 2025 13 2025 Training and Outreach 2025 Training and Events Results • PortGen Events: • Organized and hosted: 16 events • Participants: 284 WMBE firms • NEW - PortGen 101 Webinars • Advanced PortGen: 27 WMBE/small • Accelerator: 13 graduates • NEW - Small Business Recognition 2025 Outreach Results • Community engagement events: 10 • VendorConnect registrations: 137 new WMBE firms • NEW - Tabor 100 weekly office hours 14 2025 Diversity in Contracting Report Card Virtues • Total WMBE utilization reached a record high of 15.3% • Construction WMBE utilization reached a record high of 13.8% • Port spent a record amount with WMBE firms ($151 M) Challenges • Federal impacts to DBE Program • Specialized work - High dollars but low WMBE availability • Training fatigue • Increasing the number of firms partnered with annually 15 2026 Goals 16 2026 Program Goals 2025-2029 Port-Wide Goals Number of WMBE Firms Utilized: 500 Non-Construction and Construction Percent Spend with WMBE firms: 16% Sub-Goal - Construction Percent Spend: 14% Division Goals (Non-Construction) 2026 Goal Aviation (AV) 14% Economic Dev. (EDD) 5% Maritime (MD) 14% Corporate 18% 17 2026 Training and Outreach New Initatives Learning Opportunities • PortGen 101 Videos On-Demand with monthly live Q&A • Capacity Building Mentorship Program Events • Construction Industry Day • Architecture and Engineering Industry Day • Goods and Services Vendor Day Internal Training and Engagement of Port Buyers • Relationships with Port teams that spend a lot • Port-wide resources on how to find WMBE firms 18 Other Next Steps • Expand Small Business and WMBE participation in specialized scopes • Expand direct contracting opportunities with A&E firms • Cash Flow: Improve prompt payment procedures for construction projects (in collaboration with CMG and CPO) -Change Order Focus • Improve insurance flexibility for small businesses (in collaboration with Risk Management) • Provide continued technical assistance to WMBE/DBE and small businesses - particularly on Project Labor Agreements, and Badging Requirements • Continued partnership with partner governmental entities (e.g WSDOT, Sound Transit, King County, City of Seattle) - Federal DBE program • Economic uncertainties may impact capital project spend and small/diverse business community 19 Thank You 20