Item 6a Reso 3618

RESOLUTION No. 3618 
A RESOLUTION of the Port Commission of the Port of Seattle
("Port") to establish a program that will 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. 
WHEREAS, port districts have authority to engage in economic development programs; and 
WHEREAS, it is in the Port "s economic interest and social responsibility to encourage
competition within the supply chain to increase the pool of qualified vendors; and 
WHEREAS, the Port is committed to increase the utilization of small businesses through
enhanced transparency, accountability, and to protect equal opportunity in all areas of business;
and 
WHEREAS, the Port established the Office of Social Responsibility ("OSR") in 2008, with one
of its main objectives to assist small businesses; 
NOW, THEREFORE, BE IT RESOLVED, by the Port Commission of the Port of Seattle, to
update the Port"s Small Business Initiative and rename it the Small Contractor and Supplier
("SCS") Program ("Program") as follows: 

Section 1.    SMALL CONTRACTOR AND SUPPLIER PROGRAM PURPOSE AND
GOALS 
The intent of the Program is to provide guidance and create a formal method for the Port and its
contractors to expand opportunities to utilize Port-certified small businesses as prime contractors,
subcontractors and suppliers. The Program shall be conducted in compliance with federal and
state statutes and grant requirements, and shall be consistent with all other Port policies and
procedures.
The Program further seeks to encourage competition within the supply chain and to increase the
pool of SCS firms utilized in Port procurements. The Program shall achieve these goals by
expanding the Port"s outreach efforts, providing opportunities to a broader pool of SCS firms,
and supporting initiatives and programs that will enhance the growth and strengthen the capacity
of SCS firms to work with the Port. OSR shall work with Port departments and external partners
to promote inclusive practices and activities such as technical assistance and targeted outreach
events. 
All competitive processes shall be conducted in a manner that is consistent, fair, transparent, and
conducive to providing equal opportunities for SCS firms in Port procurements. In accordance
with Initiative 200 (RCW 49.60.400), the Port shall not discriminate against, or grant preferential
treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin
in the operation of public contracting. Initiative 200 prohibits awarding of contracts based on

race or gender preference, therefore the Port shall establish voluntary goals for Minority and
Women Business Enterprises (M/WBEs) in public contracting. In addition, the Port is
committed to diversity and strongly encourages the use of SCS firms to include other socioeconomically
disadvantaged and diverse groups such as people with disabilities, veteran, veteran
service disabled, lesbian, gay, bisexual, and transgender-owned businesses. 

Specific goals of the Program will be to: 
a.  Increase opportunity and utilization of SCS firms in Port procurements; 
b.  Identify and reduce barriers to equal opportunity and participation by SCS firms in Port
procurements and contracts; 
c.  Develop comprehensive outreach and communication strategies to provide SCS firms an
opportunity to participate in Port procurements and contracts; 
d.  Engage and partner with other public and private entities to enhance resources and gather
best practices; 
e.  Develop, implement, and operate a system of data collection for the Program. 
Section 2.    PROGRAM ELEMENTS 
a.  Pricing Incentive for Goods and Purchased Services:
The Port"s Chief Executive Officer (CEO) shall develop a tool to give a 5% pricing
incentive and to authorize a contract award to a SCS firm that is within 5% of the lowest
price submitted by a non-SCS firm. This pricing incentive shall apply to goods and
purchased services only where price is the determining factor. The incentive shall begin
at the time the new Port SCS certification program is established, which is estimated to
be first quarter of 2011. 
b.  Small Contractor and Supplier Utilization Requirement: 
The CEO shall be authorized to establish mandatory utilization requirements on major
construction projects, professional and personal services, and purchased service contracts
for SCS firms. The mandatory SCS utilization requirement may be used after careful
review by OSR in collaboration with the requesting department representative and the
Central Procurement Office (CPO), to determine if a small business utilization
requirement is appropriate for a specific procurement. The factors to consider include
whether there are sufficient subcontracting opportunities and a sufficient number of SCS
firms available in the specific categories. The decision whether to apply small business
utilization requirements for a specific procurement should be made as part of the
acquisition planning for each project. This requirement shall be considered part of
responsible bidder criteria rather than part of the responsiveness criteria. OSR shall
monitor and ensure ongoing compliance with the small business utilization requirement
throughout the duration of the contract.

c.  Evaluation Criteria for Utilization of Small Contractors and Suppliers 
When using a proposal evaluation selection process (as opposed to low bid), the Port may
make evaluation points available for proposals that commit to use SCS firms to perform
work or meet SCS goals. This criterion may apply to purchased services and personal
and professional services. OSR and the requesting department representative shall
determine when to use evaluation points on a case-by-case basis. 
d.   Utilization Procedures for Small Businesses in Personal and Professional Services
Procurements (Category I only) 
For procurements that follow Category I process (see Port Procedures, CPO-1), the Port
shall select a SCS provided there are at least three qualified and interested SCS firms 
identified in the selected category or categories of work. If there are fewer than three
qualified and interested SCS firms in the appropriate category or categories of work, the
Port does not require a small business to be selected. CPO requires the selection decision
to be documented.
e.  Small Business Size Standard and Port Certification: 
Many of the national Small Business Administration (SBA) revenue size limits for small
businesses are quite large and do not accurately reflect the actual revenue size range of
our local small businesses. The Port hereby establishes a small business revenue size
standard based on 50% of the current SBA size standard and a limit on personal net worth
of $750,000 of the business owner. (See SBA size standards as set forth in Title 13, Code
of Federal Regulations, and Part121.) 
Section 3.    IMPLEMENTATION ROLES AND RESPONSIBILITIES 
The following individuals, divisions and departments of the Port will participate in the execution
of the Program as follows: 
a.  CEO - The CEO, or his/her designee, is authorized to execute, administer, and enforce
the Program. The CEO will authorize new procedures or will amend existing procedures
and goals to implement the Program. Procedures will include the process for
investigating complaints or violations of the Program. The CEO may direct Port staff to
develop and implement initiatives to expand opportunities for SCS firms when he or she
determines it is in the Port"s best interest to do so. 
b.  Senior Executive Team  The Senior Executive Team shall take all necessary steps to
educate Port staff about policies and procedures of the Program and shall ensure
compliance through accountability measures. Each Senior Executive Team member shall
use his/her best efforts to meet the goals of the Program. 
c. Office of Social Responsibility ("OSR")  The CEO shall designate OSR to manage,
execute, and monitor the Program. OSR shall work with the Port Divisions during the
acquisition planning stage to establish appropriate strategies for competitive Port
procurements for goods and purchased services, professional and personal services, and
construction. OSR shall set annual Port-wide SCS participation goals and work with
Divisions to set division-level goals and shall conduct education and training for Port

managers and staff. OSR shall administer a Port certification process for SCS firms
based on the size standard as defined in Section 2e of this Resolution. OSR shall
collaborate with community-based programs on business development and initiatives,
technical assistance, outreach, and related policy issues. 
d. Capital Development Division ("CDD")  The CDD, which includes the Central
Procurement Office (CPO), Engineering, Port Construction Services, Aviation Project
Management, and Seaport Project Management, shall work collaboratively with OSR to
promote the SCS Program in Port procurement activities. CPO shall work
collaboratively with OSR in developing and implementing specific procedures to carry
out the intent of the Program.
e.  Divisions: All Port directors, managers, and procurement staff shall participate in
education and training related to the Program. All Divisions shall work collaboratively
with OSR to promote the Program in all Port procurement activities and shall work
together to identify specific project SCS goals and/or utilization requirements and
voluntary M/WBE goals. 

Section 4.    MONITORING AND REPORTING 
a.  Monitoring and Reporting: The CEO shall require OSR to create the necessary tools to
monitor and report activities associated with the Program. 
b.  Annual Goal Setting: OSR shall assist Divisions in establishing SCS annual goals for
each Division and shall monitor and track annual Port-wide goals.
c.  Annual Reports to the Port Commission and the CEO: OSR shall report annually to the
Port Commission and the CEO about the Program"s annual goal setting, monitoring, and
reporting of the Program. Reports on the Program"s progress and results shall include
results from outreach, programming, and community partnering efforts. 
d. Tracking: The Port currently tracks small businesses and certified M/WBEs and
Disadvantaged Business Enterprises (DBE) participation as prime contractors and subcontractors
on major construction contracts and prime contractor participation only on
professional/personal services and good/purchased services. Beginning in 2010, the OSR
will take lead responsibility, work with the CPO and with the requesting department
representatives, for sub-contractor tracking on professional/personal services and
goods/purchased services In the future, the Port may track contract participation by ethnic
group as well as collect data on other diverse and socio-economically disadvantaged
groups such as veterans, veteran service disabled, persons with disabilities, lesbian, gay
bisexual, and transgender individuals. 

Section 5:  VOLUNTARY GOALS FOR CERTIFIED MINORITY AND WOMEN
BUSINESS ENTERPRISES (M/WBE) 
The Port strongly encourages the utilization of diverse suppliers in all Port procurements and
contracts which includes the participation of certified M/WBE.




Voluntary Goals for Certified M/WBE Who Are SCS Firms: 
The CEO shall be authorized to establish voluntary M/WBE goals on major construction
projects, professional and personal service contracts, and goods and purchased services. The 
success or failure of any particular project or procurement to reach the M/WBE goals shall not
result in any benefit or penalties to the bidder or awarded firms. 
Section 6.    DEFINITIONS 
a.  Small Contractor and Supplier (SCS)  Small businesses certified by the Port or King
County that fall within a revenue size cap of 50% of SBA"s national size standards as
well as owner"s personal net worth cap of $750,000 (three year average).
b.  Minority Business Enterprise (MBE)  Businesses that are certified as Minority Business
Enterprises as defined by the Washington State Office of Minority and Women
Enterprises (OMWBE) as set forth in WAC 326-02-030.
c.  Women Business Enterprise (WBE)  Businesses that are certified as Women Business
Enterprises as defined by OMWBE as set forth in WAC 326-020-030. 
d.  Disadvantaged Business Enterprise (DBE)  DBEs are for-profit small businesses where
socially and economically disadvantaged individuals own at least a 51% interest in the
business and also control management and daily business operations. African
Americans, Hispanics, Native Americans, Asian-Pacific, Subcontinent Asian Americans,
and women are groups considered socially and economically disadvantaged. Other
individuals can qualify as socially and economically disadvantaged on a case-by-case
basis through Washington State Uniform Certification Program (UCP). In order to
qualify as a DBE, a business must first be certified by the state through the state Uniform
Certification Program (UCP). 
e.  Small Business: Currently, there is not a revenue size certi fication for small businesses
either by the Small Business Administration (SBA) or Port. The SBA does certify and
administer the Small Disadvantaged Business Enterprise Programs (SDB), which are
used exclusively by federal government agencies (mainly Department of Defense). The
Port"s current practice is to allow firms to "self-identify" on all Port rosters that they are
small businesses using 100% of the SBA"s size standards.
f.   Certification: The Port shall develop a SCS certification process to verify revenue size of
the small business and the personal net worth of the SCS owner. SCS firms that are
certified M/WBEs will be counted for this Program, however, those firms whose
revenues exceed the 50% size standard and whose personal net worth exceeds $750,000,
will not be included in the SCS Program. The Port may recognize other national
certifications primarily for identification purposes (ex: NW Minority Business Council,
National Women Business Enterprise Council, National Lesbian and Gay Chamber of
Commerce" Lesbian, Gay, Bisexual, Transgender Business Enterprise (LGBTBE)
Certification).

ADOPTED by the Port Commission of the Port of Seattle this _______ day of 2010, and duly
authenticated in open session by the signatures of the Commissioners voting in favor thereof and
the Seal of the Commission duly affixed. 
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Port Commission

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