Small Business Development Plans and Policies Expanding Opportunities Item No. 7b_supp Date of Meeting March 28, 2017 Overview 1. Highlight Port Small Business Goals and Status 2. Provide information on City of Seattle Procurement policies and programs 3. Outline Port work on business incubators 2 Small Businesses Century Agenda • Use our influence as an institution to promote small business growth and workforce development – Increase the proportion of funds spent by the Port with qualified small business firms on construction, goods and services to 40 percent of the eligible dollars spent. – Increase workforce training, job and business opportunities for local communities in maritime, trade, travel and logistics. LRP Priority Action 1: Expand PortGen program Priority Action 2: Further build a more versatile and a ctive s upplier database Priority 3: Integrate bid levers into procurement acquisition planning Priority 4: Strengthen small business partnership with government agencies 3 2017 Small Business Priorities 1. Expand “PortGen” training to promote opportunities and build small business “capacity” 2. Double the $ spent and # of WMBE firms doing business with the Port 3. Assess the City of Seattle’s procurement efforts to identify potential refinements to Port small business utilization efforts 4. Develop incubator initiatives that support small businesses within the Port’s key clusters (maritime, construction, manufacturing ) Eighteen small businesses participated in our inaugural PortGen class in 2016 4 5 1. Procurement Levers – – 1.5 million ) – Carve Outs: Airport Janitorial Services; Planning Consulting Contract; Construction Management 2. Small Business Requirements (Construction, Consulting) 3. Revised Insurance Requirements for Small Consulting Contracts 4. Revising our Small Works Contract Terms (Shorter & Simpler) 5. Improved Outreach – Construction Industry Day; Project Specific Events (Baggage Optimization; Service Tunnel) 6. Future Opportunity Procurement List & Port Gen 5 Procurement Excellence: Small Business Contracting Improvements Challenges and Opportunities • Small business utilization numbers are good • Disadvantaged business results are not: 6 Port of Seattle 5.3% (WMBE) All Certified and Self - Identified Sound Transit 15.7% (DBE) Construction and A&E Only City of Seattle 15.8% (WMBE) All Certified and Self - Identified City of Seattle’s Focus on Disadvantaged Business • Over the last 15 years each Mayor has sent out an executive order establishing WMBE efforts as an important effort/initiative for the City – City departments/business units are held individually accountable for establishing and contributing to the overall goals – Departments submit annual WMBE plans to the Mayor for approval • Despite passage of I - 200, the City of Seattle has maintained a strong focus on WMBE (including contract enforcement and operation levers like early payments) 7 Driving WMBE Utilization • Every procurement greater than $299K includes a WMBE goal • Bidders must:  Submit an Inclusion Plan (utilization plan) to be deemed as responsive  Upon award, accept their proposed WMBE utilization plan as a contract requirement • Bids not meeting or exceeding WMBE goals are considered non - responsive • Strict payment terms – Primes been paid by the City of Seattle ) – Contract award recipients must submit utilization reports in order to receive payment 8 WMBE Administration & Accountability • City Purchasing and Contracting Office coordinates all WMBE reporting, contracting, and inclusion plan monitoring which they feel is a key to their success • Reporting and analytics capabilities ( including department level goals ) provide the ammunition to push for outcomes and performance • Major departments within the City have dedicated, embedded WMBE liaisons that report directly to department Directors 9 Port 2016 Incubator/Accelerator Study Incubators are key elements of economic development through their support for innovation, entrepreneurship and new venture creation in the economy. Business incubators can be effective economic development tools since they create jobs and help new business take root and grow. ~ Community Attributes, Port Incubator Study 1. There are approximately 60 accelerator, incubators and coworking spaces in King County; 2. Successful incubators provide more than space. 3. Incubator success depends on both operations management on an ongoing basis 4. Among food - focused entrepreneurs, space ranked ahead of funding as a top concern Findings 10 Recommendations 1. Champion small business assistance and coordinate assistance opportunities 2. Provide space or land for incubators Joint Center for Public Sector Contracting • Strengthen partnership with key public sector agencies • Addresses critical Port and regional construction boom • Supports small business and MBE’s seeking opportunities in Port contracting Timeline: 11 Draft MOU A mong Partners Business Plan and Proforma Funding and Partner Commitments Operator Selected Open Center RFP for Center Operator Site Selection Q2 - 2017 Q2 - 2017 Q3 - 2017 Q3 - 2017 Q4 - 2017 Q4 - 2017 Q2 - 2018 Maritime Manufacturing Center & Incubator Port of Kalama Flex Industrial Building • Provides a maritime innovation opportunity : – Incubator facility would occupy portion of larger facility at Fishermen’s Terminal dedicated to maritime and manufacturing businesses – Successful tenants could graduate to other Port facilities – Would provide on - site mentorship and technical assistance – Space can support employee/workforce training Timelines 12 Market Assessment Business Plan and Proforma Completion of Construction Initiate Tenant Recruitment Incubator Occupancy and Services Space Utilization Plan Partnership Agreements Q3 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018 Q2 - 2018 Q3 - 2018 Q4 - 2018 Consider Food Incubator Development • Responds to the burgeoning food “movement” • Addresses critical production space limitations • Provides affordable commercial manufacturing space and shared resources for emerging enterprises • Supports community partners in Seattle and South King County Timelines Between August 2013 and March 2016, the number of kitchen incubators in the U.S. increased by more than 50% to over 200 facilities . Market Demand Assessment Business Plan and Proforma Completion of Construction / TI Tenant Recruitment Incubator Occupancy and Services RFP for Operator Site Selection New/Existing Q3 - 2017 July 2017 Q4 - 2017 Q1 - 2018 Q3 - 2018 (Existing) Q1 - 2019 (New) Q4 - 2018 (Existing) Q2 - 2019 (New) Q4 - 2018 (Existing) Q3 - 2019 (New) Next Steps 1. Implement City of Seattle’s Small Business Utilization Best Practices 2. Consider updating the Port’s small business resolution (3618) 3. Carefully move Port supported incubator projects forward 14 Champions of Inclusion