Resolution No. 3737
LDOOVO'U'IAUJNl'l              A RESOLUTION of the Port of Seattle Commission establishing a Diversity
in  Contracting  Policy  Directive  to increase women  and
minority business opportunities and to repeal Resolutions
No. 3506 and No. 3618.

WHEREAS, the Port of Seattle mission is committed to create economic opportunity for
all, steward our environment responsibly, partner with surrounding communities, promote
social responsibility, conduct ourselves transparently, and hold ourselves accountable; and
b-bwwwwwwwwwwNNNNNNNNNNI'lllIHHl'l'l'HHl'Otom\lmU'l-hUJNHOLDMNmm-wal-'OLDOONO'IU'l-bWNi-'O             WHEREAS, the economic vitality of a community is strengthened and more resilient
when opportunity is inclusive across our diverse communities; and

WHEREAS, the Port of Seattle is uniquely positioned among public agencies to lead in
efforts ofjustice and equity by providing a level platform to all businesses including women and
minority business Enterprise (WMBE) firms to compete and succeed; and

WHEREAS, the 1998 passage of Initiative 200 by Washington state voters prohibited
racial and gender preferences by state and local government led to an underutilization of
WMBE's at the Port and many other public agencies; and

WHEREAS, In 2003, in response to |-200, the Port passed Resolution No. 3506, a race
neutral  approach  "establishing  a  program  to  develop  mutually  advantageous  business
relationships with small businesses, and firms owned and operated by minorities, women and
disabled"; and

WHEREAS, In 2010, the Port of Seattle passed Resolution  No. 3618, a race neutral
approach to develop "a program to develop mutually advantageous business relationships with
small businesses including those owned and operated by people of color, women, people with
disabilities, veterans, and the socio-economically disadvantaged"; and

WHEREAS, the Port of Seattle's efforts and programs as a result of Resolutions 3506 and
3618 have increased small business participation but have not increased WMBE participation; and

WHEREAS, it is a priority for the Port of Seattle to affirmatively expand its efforts to
increase WMBE participation in port contracts and ensure that WMBEs are afforded fair and
equitable opportunity to compete for port contracts, succeed as subcontractors, and do not
face unfair and unnecessary barriers when seeking and performing on port contracts; and

WHEREAS, current data and the 2014 disparity study show that WMBE participation in
42    Port of Seattle opportunities has been and continues to be disparately low; and
.5 0-)


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44          WHEREAS, this policy will strengthen Port of Seattle efforts to eliminate this disparity
45    and result in more equity, diversity, and inclusion for WMBEs in Port opportunities; and
46
47           WHEREAS, the Port of Seattle seeks to identify and change internal Port processes and
48   standards to clearly establish program goals and create accountability; and
49
50          WHEREAS, the Port of Seattle values a diverse workforce and has engaged in improving
51    diversity and inclusion focused on race and expects to develop a new equity process tool
52    designed  to  integrate  explicit  consideration  of  racial  inequities  and  identification  of
53    interventions for use in policy, program, and budget planning and implementation; and
54
55           WHEREAS, the Port of Seattle is committed to its values of conducting business with the
56    highest ethical standards and our business practices shall  reflect integrity, accountability,
57    honesty, fairness and respect at all levels;
58
59           NOW, THEREFORE, BE IT RESOLVED by the Port of Seattle Commission as follows:
60
61    SECTION 1. Resolution 3506 adopted May 27, 2003, is hereby repealed.
62
63    SECTION 2. Transition from Resolution 3618. The Executive Director may continue to operate
64   under Resolution  No. 3618, as needed, to allow for transition to Resolution 3737, until
65    September 1, 2018, at which time Resolution No. 3618 will be repealed and replaced with
66    Resolution 3737.
67
68    SECTION 3. The Diversity in Contracting Policy Directive as shown in Exhibit A is hereby
69    established.
70
71    SECTION 4. This policy directive shall be labeled and catalogued as appropriate, together with
72    subsequent policy directives, and shall be made readily available for use by Port staff and
73    members ofthe public as a governance document of the Port of Seattle.
74
75          ADOPTED by the Port Commission of the Port of Seattle at a duly noticed meeting
76   thereof, held this W4" day of :SQNMVS   ,
2018, and duly authenticated in open session by
77    the signatures of the                      in favor thereof and the seal of the Commission.
78                       Commissionyvot'ng
79                                  RYAN CALKINS
80
COURTNEY GREGOIR"
81
82
STEPHANIE BOWMAN
83
84
PETER STEINBRUECK
85
86
FRED FELLEMAN
87
88


Resolution No. 3737, Diversity in Contracting Policy Directive                                            Page 2 of 8

89                                            EXHIBIT A
90                              Diversity in Contracting Policy Directive
91
92    SECTION 1.  Purpose.
93
94   The Port finds that minority and women businesses are under-represented and have been
95    under-utilized on Port contracts. The purpose of this policy directive is to provide the maximum
96    practicable  opportunity for increased  participation  by  minority and women  owned  and
97    controlled  businesses  in  Port contracting for public works,  consulting services,  supplies,
98    material, equipment, and other services to create the opportunity to leverage Port spend to

99    increase WMBE utilization.

100
101    SECTION 2.  Definitions.
102
103    For the purposes ofthis chapter:
104
105    "Affirmative efforts" means documented reasonable attempts in good faith to contract with
106    women and minority businesses.
107
108    "Availability" or "available" as used in this chapter means a business that is interested in and
109    capable of performing the work within the time frame required and to the quality specified in
110   the solicitation and contract.
111
112    "Capability" or "capable" as used in this section means that a business appears able to perform
113    a commercially useful function in performance of the work.
114
115    "Commercially useful function" means the performance of real and actual services in the
116    discharge of any contractual endeavor.
117

118    "Contract" means an agreement for public works, consulting services, supplies, material,
119    equipment, or other services.
120
121    "Contract awarding authority" means any individual, office, or division that is receiving the

122    benefit of the contract.
123
124    "Contractor" means a business that has a contract with the Port.
125
126    "Division" means any POrt of Seattle organization structure that has a director that reports to
127    the Executive Director.
128
129    "Women or minority business" (WMBE) means a business that is at least 51 percent owned and
130    controlled by women and/or minority (including, but not limited to African Americans, Native
131    Americans, Asians, and Hispanics) group members.
132


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133    "Central database" means an electronic database that collects, aggregates, and tracks monthly
134    Port-wide, division, and department-level utilization of small business, women and minority

135    owned business, and other classifications across various categories and contract types and
136    promotes transparency for the public.
137
138    "Relevant demographic data" is defined as, but not limited to, AsianPacific Americans, Black
139    Americans, Hispanic Americans, Native Americans, Asian, and Women, and other characteristic
140    information related to a business owner's sexual orientation, sex/gender, race, ethnicity, or
141    veteran status as self-reported and/or certified by another government entity, as deemed
142    necessary or relevant to eliminating disparity in Port contracting.
143
144    "Utilization" is defined as both the percent of contracting dollars paid to WMBE firms as well as

145    the number of WM BE firms under contract.
146
147    SECTION 3.  Scope and Applicability.
148
149    This policy shall apply to all contracts and other activities at the Port, including construction and
150    consulting contracts, purchased goods, and services.
151
152    SECTION 4.  Responsibilities.
153
154   The Executive Director shall pursue the Century Agenda goal to increase WMBE utilization in all
155    Port contracts and shall:
156

157    A.  Achieve the Century Agenda goal to triple the number of WMBE firms that contract with the
158       Port and increase to 15 percent the percentage of dollars spent on WMBE contracts, within
159       five years of the Diversity in Contracting Program implementation;
160
161    B.  Within 120 days of passage of this policy directive, develop 3 Diversity in Contracting
162       Program that identifies affirmative efforts to afford women and minority businesses the
163       maximum practicable opportunity to meaningfully participate on Port contracts and to
164       achieve the Port-wide goals;
165
166    C.  Incorporate these WMBE goals into the Port's Long Range Plan to the fullest extent
167       reasonable, including incorporation into Long Range Plan scorecards, reports, and Long
168       Range Plan updates.  Further, the Executive Director shallgprepare and publish an annual
169       report each year titled Diversity in Contracting Annual Report;
170
171    D.  Improve inclusion and outreach to sustain and improve WMBE participation and to reduce
172       disparity in Port contracting;
173
174    E.  Take  affirmative  efforts  to  assure  equality  of  contracting  opportunity through  the

175       development and application of Inclusion Plans or other tools as necessary; and
176


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177    F.  Expand opportunities for WMBE firms across Port functions, wherever practicable.
178
179    SECTION 5.  Policy.
180
181    A.  The Diversity in Contracting Program shall include:
182
183       (1) Responsibilities, policies, practices, and processes that can change the Port procurement
184          and contracting processes and provide a more receptive environment for the utilization

185           of WMBE rms, and to ensure that businesses and contractors of all tiers working on
186           Port contracts and subcontracts utilize WMBE firms, wherever feasible or as required.
187
188       (2) Development of a standard procedure for the Port-wide WMBE goal setting,  and
189           collection  and  reporting of relevant demographic data to  be stored  in  a  central
190          database.
191
192       (3) Identify categories of contracts that will require WMBE inclusion plans and other tools
193           that will be applied to other categories of contracts Port-wide.
194
195       (4) Clear lines  of responsibility and  accountability for implementation of the WMBE

196          program and a designated WMBE liaison for each division.
197
198       (5) Make WMBE goal setting and affirmative implementation efforts part of the annual
199          performance evaluation for each Port division director and their staff and require
200          standardized WMBE program training, implementation, and coordination for all division
201          leaders and their WMBE representatives.
202
203    B.  The Diversity in Contracting Annual Plan shall include:
204
205       (1) Specific measures the contract-awarding authority will  undertake to increase  the
206          utilization of WMBEs and to reduce disparity in Port contracting; and
207
208       (2) Specific goals by division for WMBE utilization:
209
210          (a) Each Port division will review future procurements to identify available firms on
211              upcoming contracts to  create  a  utilization  goal  that  is justifiable,  bold,  and
212              challenging.
213
214          (b) Construction goals, other than small works, based on historic utilization plus two
215              percent, until such time that a disparity study or other valid internal data can
216              demonstrate a reasonable level of utilization.
217
218   C.  To improve inclusion and outreach to sustain and improve WMBE participation and to
219       reduce disparity in Port contracting, the Port shall:
220


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221       (1) Support training and assistance to Port staff to increase participation in outreach and to
222          learn about the internal and external resources available to include WMBE firms in their
223          procurement and contracting;

224

225       (2) Improve  and  expand technical assistance,  including WMBE  certification,  business
226          development, training, and mentoring programs for WMBE firms to enhance bidding
227          expertise and promote  greater coordination with advocacy organizations, businesses,
228          individuals, and public agencies and other Port departments;
229
230       (3) Create opportunities for members of the contracting and vendor community, Port, and
231          other stakeholders to work collaboratively on recommendations for how the Port can

232          more effectively use the directives in this policy directive;

233

234       (4) Assist contractors desiring to bid on  Port covered contracts to comply with the

235          affirmative  efforts  provisions  for  such  contract,  and  offer  information  as  to
236          organizations and agencies available to assist such contractor in recruiting, mentoring,
237          training, or otherwise preparing potential subcontractors; and
238
239       (5) Cooperate and establish formal and/or informal partnerships and mutual cooperation
240          with the Office of Minority and Women's Business Enterprises and other public agencies
241          to carry out the purposes of this policy directive, as needed.

242
243    D.  Affirmative efforts to assure equality of contracting opportunity required:
244
245       (1) Develop procurement tools, such as WMBE inclusion plans, and require bidders and
246          proposers to comply with the WMBE solicitation requirement in order to sustain and
247          improve participation of WMBE in Port covered contracts;

248

249       (2) Prepare and require that Port covered contracts include specifications pertaining to

250          equal opportunity affirmative efforts to assure equality in contracting opportunity, and
251          goals for subcontracting to women and minority businesses. Any goals established
252          under this chapter shall be reasonably achievable; however, no utilization requirements
253          shall be a condition of contracting, except as may be allowed by RCW 49.60.400;

254

255       (3) Identify and implement a Port-wide method to regularly monitor and measure the Port
256          WMBE program and attainment of the goals by contractors;
257
258       (4) May establish aspirational goals for the participation of women and minority businesses
259          in a particular Port contract on a case-by-case basis;
260

261       (5) Work closely with other divisions and departments to ensure all policies, practices, and
262          processes are consistent and complementary and make it easier for WMBE firms to
263          pursue Port contracts;
264


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265       (6) Define, implement,  and  monitor appropriate processes and  procedures to ensure
266          prompt  payments  and  change  order  processing  to  address  timely  payment  of
267          contractors, suppliers, and subcontractors at all tiers. Review and recommend potential
268          for including prompt pay in performance goals.
269
270    E.  Affirmative efforts in subcontracting:
271
272       (1) All contractors, including WMBE firms, shall actively solicit bids for subcontracts to
273          qualified, available, and capable WMBE to perform commercially useful functions;
274
275       (2) Contractors shall consider the grant of subcontracts to women and minority bidders on
276          the basis of substantially equal proposals in the light most favorable to women and
277          minority businesses;
278
279       (3) At the request of the relevant Port department, when inclusion plans are required,

280          contractors  shall  furnish  evidence  of  the  contractor's  compliance  with  these

281          requirements  of women  and  minority  solicitation  and  will  submit  evidence  of
282          compliance with this section as part of any bid. Contractors shall provide records
283          necessary to document afrmative efforts to subcontract with women and minority
284          businesses on Port contracts;
285
286       (4) Compliance with all requirements and past performance under this policy directive may
287          be included in the evaluation of future procurements; and
288

289       (5) In applying the provisions of this Policy Directive to contracts funded in whole or in part
290          with federal funds and subject to 49 CFR Part 23, Subpart D,   regarding Airport
291          Concessions Disadvantaged Business Enterprises (ACDBE) or 49 CFR 26, Subpart C,
292          regarding Disadvantaged Business Enterprises (DBE), references to Women and Minority
293          Businesses shall also include federally recognized ACDBEs or  DBEs. In the event of a
294          conflict between the provisions of this chapter, or the rules implementing this policy
295          directive, and the requirements of 49 CFR 26, Subpart C, or 49 CFR Part 23, Subpart D, or
296          any other superseding applicable federal statute or regulation, the provisions of the
297          federal statute or regulation shall control.
298
299    F.  Expanding Opportunity.
300
301       (1) The Port shall review and recommend how to expand opportunities for WMBE firms in
302          other Port enterprise opportunities, for example real estate leases, to encourage and
303          promote access to Port facilities by September 1, 2018.
304
305       (2) The Port shall develop a baseline utilization number for veteran owned businesses and
306          propose a reasonable Port-wide goal and division goals to the Commission for inclusion
307          in the Century Agenda by September 1, 2019.
308


Resolution No. 3737, Diversity in Contracting Policy Directive                                            Page 7 of 8

309    SECTION 6.  Program Evaluation.
310
311    A.  Benchmarks and metrics to evaluate the Diversity in Contracting Program shall include:
312
313       (1) Incorporation of these WMBE goals into the Port's Long Range Plan to the fullest extent
314          reasonable, including incorporation into Long Range Plan scorecards, reports, and Long
315           Range Plan updates.
316
317       (2) Specific measures the contract awarding authority will  undertake to increase the
318          participation of women and minority businesses and to reduce disparities, including the
319          number of events or outreach activities conducted to ensure responsiveness to bid
320          opportunities.
321
322       (3) Progress towards specific division WMBE utilization goals, including the number of
323          opportunities a division has available, the goals established for those opportunities and
324          the actual utilization, including periodic review of disparity study results to determine
325          reasonableness of goals.
326

327       (4) Data reporting using the standard procedure identified in the WMBE program for the
328          Port-wide collection and reporting of relevant demographic data including percent of
329          spend, number of businesses, and type of procurements.
330
331       (5) Preparation and publication of an annual report titled Diversity in Contracting Annual
332          Report.
333
334   B.  The Internal Audit Director shall include the Diversity in Contracting Program in Internal
335       Audit Department's 2019 work plan to determine adherence to this policy and include in
336       future years as the Commission Audit Committee deems appropriate.
337
338   SECTION 7.  Fiscal Implications.
339
340    Fiscal implications shall be reviewed by the Executive Director annually, at a minimum, to ensure
341   the implementation of the policy directive is adequately resourced and shall submit a budget
342    request as appropriate.








Resolution No. 3737, Diversity in Contracting Policy Directive                                            Page 8 of 8

Diversity in Contracting Sample Disaggregated Data Dashboard

Race
Black        Hispanic       Native     Asian Pacic   Caucasian     Other        Not         Total
American    American    American    American                            Known

Number of Firms
o   Minority Certified

0   Women & Minority Certified

0   Women Certified

0   Veteran certified
Total Certified (non-duplicated)

o   Minority Self-Identified

0   Women & Minority Self-Identified

0   Women Certified Self-Identified                                                                                                    :
Total Self Identified (non-duplicated)

Amount and Percent of Spend
o   Minority Certified

0   Women & Minority Certified

0   Women Certified

0   Veteran Certied
Total Certified (non-duplicated)

- Minority Self-Identified

0   Women & Minority Self-Identified

0   Women Self-Identified
Total Self-Identied (non-duplicated)

DBE (All Certified)
Minority and Non-Minority
Number of Firms
Amount & Percent of Federal Spend
Amount & Percent of Non-Federal Spend
Amount & Percent of Total Spend

,.