Item No. 7b_supp 
Meeting Date:  September 27, 2016 
Procurement Excellence 

Nora Huey 
Director, CPO

Procurement Excellence 
Transform Central Procurement Office (CPO) & other procurement
stakeholders 
Building capabilities 
Changing the way we work 
To better support 
Century Agenda goals 
Ease of doing business with the Port 
Business growth and results 

Today: Update on status as BCG engagement ends 
1

Changing our trajectory 
Delivering on Century Agenda goals 
Making it easier to work with the Port 
Improving CPO and broader Port capabilities 
Breaking down silos to drive collaboration 
Tracking to deliver $5M+ in savings within 12 months 

See appendix for detailed list of specific accomplishments 
2

New way of working: 
Small, Women & Minority Business 
FROM                TO 
Defined ownership 
No clear, single owner 
CPO collaboration w/
Uncoordinated efforts 
Economic Development
Inconsistent focus on          (EDD) 
individual procurements 
Acquisition planning
Unclear analytics            forces the conversation 
process or owner 
Well-defined analytics 

These changes will help achieve utilization goals 
3

Results of partnership 
Targets    Process to set "smart" targets in 2017 and beyond 
Outreach   Comprehensive Port Gen strategy 
Bid Levers   Guidance document, process to apply consistently 
WMBE   Defined utilization strategy, incl. federal funding 
KPIs & Tools  Refined approach to track and report 
Org     Clarified responsibilities between CPO, EDD 

More to be done, but great momentum underway 
4

New way of working: 
Total-Cost-of-Ownership (TCO) 
Objective: Incorporate lifetime costs into purchasing 
(ex. maintenance, downtime, energy, etc.) 
1  Specific procurements 
(ex. baggage system, gate seating, PLBs) 
2  Training 

3  Port-wide roll-out 
New analytical tools in place to facilitate decisions 
5

TCO benefits 
Cross functional           Environmental 
Maintenance 
~11% energy savings 
*VFDs for baggage system 
CPO       AVPMG 
Smart risk taking         While saving money 
"This is the first real sign of the smart           5-10% lifetime cost
risking taking leadership is always
talking about." Senior PM                       savings 
TCO helping achieve Century Agenda goals 
6

New way of working: 
Environmental purchasing 
Port has strong program...     ...but gaps in purchasing policy 
Environmental focus areas            Policy gaps 
Air Quality                Disbanded working group 
Energy                 Process for environmental
Land stewardship              purchasing lacks clarity 
Materials management         Not tied to specs used in
Wildlife protection             design & construction 
Water quality 
CPO and Environmental teams partnering to address 
7

What we are doing differently 
More purposeful use of environmental bid levers 
Environmental product guidelines and specs to aid purchasing 
Clear environmental purchasing process and ownership 


Process already being tested on procurements 
8

New way of working: 
Breaking down silos 
Procurement
Cross-functional, not just CPO 
Excellence 
Procurement
Leadership commitment 
Council 
Strategy
Clarifying roles, process 
Execution Team 
Calendar, 
Daily application 
Acq. Planning 
Better collaboration and planning  Better results 
9

Transition to Port-led effort 
Port staff now...          All resources on SharePoint 
...trained on and applying new
tools, templates, processes 
Screenshot of PEX SharePoint 
...owning current initiatives and
program management 
...developing new initiatives     -Tools 
-Templates 
-Training materials 
-Guidance documents 
Now need to sustain commitment 
10

Actions to maintain momentum 
Leadership commitment 
CEO, COO, Procurement Council 
Continue with governance, process 
Procurement Council, Program Management Office 
Celebrate wins, collaboration publicly 
ELT meetings, Commission briefings, staff emails 
Commissioners can help ensure success 

Change takes time...but we have the pieces in place 
11

Thank you! 
Questions? 
12

Backup: Long list of deliverables and
accomplishments (1/2) 
Strategy & Leadership       Century Agenda      Planning & Collaboration      Org & Capabilities 
Procurement Council made up    Methodology to set future       v1 of Procurement Calendar     CPO hires for existing open
of key ELT-level stakeholders      SBE/WMBE targets              and process to update           positions (including reducing
as ongoing guidance body       De-averaged targets across       Acquisition planning cover        span breakers in construction) 
New procurement strategy for      project categories              sheet to drive alignment on      New Planning & Analytics
the Port approved by ELT         Port Gen strategy and 2017        key decisions earlier in           function within CPO 
Cross-functional team of Port      calendar (including plan for       process                   Creation of CPO SMEs for key
leaders to "operationalize" the      WMBE certification drives)        Improved operating model        capabilities 
strategy and re-define key       WMBE strategy                between CPO, EDD on         Trainings on: 
roles and responsibilities         Partnership with WA OMWBE to     SBE/WMBE                    Strategic procurement levers 
support certificationdrives        Established monthly CPO           Total cost of ownership 
Put in place bidding levers to       newsletters to engage Port          Process improvement 
encourage SBE/WMBE         Improved investment           PMO & Initiative mgmt 
participation                   committee requirements           A&E tool & negotiation 
Identified contracting levers       process recommendation          Investment Cmte analysis 
that can ease doing business      Procurement Excellence
with the Port                   SharePoint for key trainings
SBE data audit, clean-up, and      and resources 
process improvement 
Define SBE/WMBE KPIs and
leading performance indicators 
SBE/WMBE reporting
dashboard design 
SBE/WMBE organization
recommendation 
Complete 
In progress, will complete by 9/30 
In progress, will be completed by Port after 9/30

Backup: Long list of deliverables and
accomplishments (2/2) 
Specific Procurements          Process Improvements              New Tools 
Negotiated savings on snow removal       Small works terms & conditions            PMO tool to facilitate tracking and
equipment                       Small works insurancematrix             reporting of Procurement Excellence
Consolidated maritime security contract      Work authorizationdate setting process        initiatives 
driving savings, SBE/WMBE utilization       Assessment of superfluous forms and        Financial impact tool to track financial
Optimized queue mgmt staffing in Q4          signature in CPO process                 impact of Procurement Excellence 
Procurement plan for potential Q2 2017       Continuous improvement process           A&E rate tool to replace MINT and
Airport customer facing services             introduced for all four CPO groups             support more effective negotiations with
Credit card rates reduction negotiation        Clear roles, responsibilities and decision        consultants 
Innovative airport janitorial contract         rights for cross-function collaboration       Procurement calendar to support
driving savings and SBE utilization             points in procurement process               forward-planning 
Airport gate seating master agreement        Planning, intake, selection,execution       Supplier database to support better
driving significantsavings                   Clarified purchasing rules of               supplier management, outreach and
PLB master agreement driving significant        engagement                        development (esp. for SBE/WMBE) 
savings                             Formal procurement planning process        Guidelines for RDs and CAs to complete
Consolidated roofing contracts             reduces procurement delays               high quality and efficientselections 
Baggage major construction contract       Recommendationsto alter CPO            SOW/RFP templates and exemplars 
incorporating TCO of key components        involvementin change orders 


Complete 
In progress, will complete by 9/30 
In progress, will be completed by Port after 9/30

Backup: Environmental product
guidelines 
Develop Port    Peer                     Develop Port   Peer
guidelines   guidelines                     guidelines   guidelines 
Office                                    Operations & Maintenance 
Computers                          Asphalt, concrete 
Electronics                           Cleaners 
Recycling                                Compost 
Fluorescent                          Carpet 
Lamp Recycling 
Vegetation
Lighting                               Management 
Paper                             Paint 
Printers, toner                           Janitorial 
Cartridges 
Pest Management 
Furniture 
Plastic "Lumber" 
Vehicles 
Marine Lumber 
Antifreeze 
Solar-powered
Biodiesel                               Devices 
Vehicles                               Snow and Ice
Lubricants                             Products 
Tire Retreading                           Fertilizers, Organic
Fuel                                 and Landscaping 
Wheel-weights