Item No. 9d supp 
Meeting Date: June 12, 2018 
Diversity in Contracting

Diversity In Contracting 
Division Goal                          Outreach and
Setting             Contracting         Inclusion 

Organizational        Monitoring,
Structure           Reporting &
Evaluation 
Promoting Equity in Contracting 
2

Purpose and Goal 
Advance equity and address contracting disparities by increasing the utilization
of Women Minority Business Enterprises and other disadvantaged firms 
Goals: 
1.    Triple the number of WMBE firms doing business with the Port 
2.    Increase to 15% the amount of spend on WMBE contracts within 5 years 
Policy Requirements: 
Set Division level goals and establish Annual Plans 
Develop Contracting Methods & Tools 
Provide Outreach and Technical Assistance 
Address Organizational Structure/Roles and Responsibilities 
Establish Compliance Elements 
Conduct Monitoring, Reporting and Evaluation 

3

Key Milestones 
Time Frame                                        Activity 
May 2018                 Define elements of Diversity in Contracting (DIC) Program: 
Establish executive level accountability 
Establish organizational and governance structure 
Divisional goals approach 
Contracting Mechanisms 
June 2018                  Application to contracting and procurement 
Kick-off community meetings and messaging 
July 2018                    Tools developed for setting division/department goals available 
July  November 2018       Pilot WMBE contracting and procurement/apply lessons learned 
September- October 2018   Divisions/Departments establish goals 
October 2018               Executive/key leadership training (performance goals identified) 
January 2019               Management/staff performance goals established 
January-February 2019      All divisions submit Annual Plan 
January                     Annual program evaluation (including lessons learned) 
February 2019              Prior year reporting to Commission (annually) 
End 2019                   Internal audit program review 
4

Organization & Accountability 
Completed to date: 
Discussed alignment with broader Port equity work 
Evaluated organization models at City of Seattle and other jurisdictions 
Completed evaluation of short term staffing needs 
Next Steps: 
Establish team to finalize
Ownership and                                  organizational charts and
Organization                          October 2018 
Accountability                                         management
responsibilities for overall
program 
Management
Accountability       responsibilities         Q4 2018               Develop training materials
established                                           to orient ELT and Port
leadership about program
Identify staff                                                 goals and requirements 
and tools
Resources                            Q3 2018                Synch with ePerformance for
needed for
success                                               2019. 
5

Port of Seattle Priorities 
Economic 
Aviation              Maritime                                   Corporate 
Development
Equity                                           COMMUNITY

Sustainability                                     ENVIRONMENT
Safety/                          SAFETY / PREPAREDNESS / RESILIENCY 
Resiliency 
Fiscal 
Responsibility                              FINANCIAL MANAGEMENT

Lines of Business / Operations / Asset Management

Department/Division Goal Setting 
Completed to date: 
Spending tables and tracking tools by Department/Division have been initiated 
Initiated piloting process to link aspirational goal setting to budget process 
Identified "departments" for goal setting purposes 
Identified
Division           Define        Departments and              Next Steps 
"Divisions"           ownership 
Assessment 
May 2018                         Pilot goal setting
process 
Align Goal Setting
Process
and Tracking with
Q2 2018                           Provide orientation
Alignment        Established
Divisions                                                        to staff regarding
WMBE goal setting 
Establish        Standardized      Internal training
methods for goal
SOP's                         Q3-Q4 2018                 Establish WMBE
setting 
goals during budget
Annual                                          development 
Goal setting and           In line with
division plans for         budget season
Plans            inclusion          Q3-Q4 2018 
7

Annual Plan Cycle 
Aligned with annual budget process 
Departments identify future procurement needs

Liaisons support goals and strategies 
Departments define aspirational goals for said procurements, and identify engagement strategies 

Recorded by Division for accountability and tracking 
Goals and strategies are consolidated into Annual Division Plans 
Annual Plan provided to Commission with prior year report 
Division goals and strategies are rolled up into the Port's Annual DIC (WMBE) Plan 
8

Outreach and Inclusion 
Completed to date: 
Development of Supplier/Vendor database in progress
Engagement with external agencies to expand suppliers 
Doubled potential suppliers in contact database 
Strong Results So Far 
2016   2017   % Change 
Outreach &        Expand
messaging                                                  Percent   5.3%   8.8%      66% 
Education                          Q3 2018 
and outreach 
Firms     118    200      69% 
Public and          Establish
WMBE                                  Next Steps 
Community                    Q3 2018 
Stakeholder
Partners            Group                                                  Continued database
development 
Expanded        Develop
Assistance        Collaborative         Q3 2018                                Continued PortGen 
Offerings 
offerings 
Develop Publicly
Database                        Go live 
Searchable &                                                             Organize WMBE
Development      Accessible DB        Q1 2019 
stakeholder group 
9

Outreach Examples 
During Small Business week
we promoted small
businesses that are part of
the Port family and our
PortGen workshops. 
Web traffic to our Port
small business page
increased 10% during
"Small Business Week." 
Social media posts reached
more than 11,227 people. 
Quarterly success stories
are being developed. 
LinkedIn promotions 
10

Monitoring, Reporting & Evaluation 
Completed to date: 
Spending tables and tracking tools by Department/Division have been initiated 
Process defined for ePerformance alignment to support accountability 
Diversity in Contracting policy elements have been tied to the Long Range Plan 
Mechanisms                                               Next Steps: 
Compliance       and Roles       Q2-Q3 2018 
defined                                                          Refine roles and
complete
Data tools
Data &       developed to                                     responsibility matrix 
Q2-Q3 2018 
Dashboards       support
reporting                                                         Develop dashboard
Progress                                                             structure 
Visibility           available
internally and          Q3 2018                                    Establish tools for
externally 
current and accurate
Program      Internal Audit                                 reporting visible to
conduct             Q4 2019 
Review         assessment                                      all audiences 
11

Contracting 
Completed to date: 
Inclusion plans for Construction and Service Agreements have been drafted 
Initial outreach to contractor and consultant associations 
Identified procurement to pilot in 2018 
Next Steps 
Define roll-out
Application                            May 2018 
plan                                                     Train staff for
implementation 
Training &           Internal          Training - July                 Hire WMBE specialist 
Pilot Inclusion          process              2018 
Plan              education         Pilot  Q3 & Q4                 Define & document
lessons learned from
Meet with
Outreach to       ACEC, AGC, &                                  initial procurements 
Q3 2018 
Community         WMBE
Community 

12

Small Dollar Contracts 
P-Card      Direct Buy        3 Quote 
< $150K (Purchasing) 
Dollar Value                               < $5K         < $50K 
< $200K (Consulting) 
Ability to Purchase Direct with Firm 
CPO Manages Procurement 
Greatest ability to directly influence utilization of WMBE firms 
Port-wide P-Card training begins July 2018 
Encourage direct purchasing from MWBE firms 
Reminder: Port cannot provide an award preference based on WMBE status 

13

Inclusion Plan  Consulting Services 
Port of Seattle                                            Inclusion Plan (IP) Elements 
Establishes aspirational goal per procurement 
Evaluates Inclusion Plan during selection 
Inclusion Plan is part of award decision         1.  Commitment to MWBE 
Proposer                                       2.  Evaluation of past performance 
Defines Inclusion Plan for the contract 
Outreach WMBE early during procurement    3.  Key person to manage IP 
Active engagement: 
Include WMBE in the work              4.  Proactive management plan 
Manage subconsultants & prompt pay 
14

Inclusion Plan  Low Bid Construction 
Port of Seattle 
Establishes aspirational goal per contract                    Inclusion Plan Elements 
Evaluates Inclusion Plan as a matter of responsibility 
Bidder                                             1.  Commitment to MWBE; or 
Defines bidder's Inclusion Plan (IP) 
Bidder can supplement IP prior to responsibility        2.  Demonstrated affirmative
decision                                                     efforts; & 
MWBE commitment by firm or by percentage 
Affirmative Efforts = necessary and reasonable         3.  Key person to manage IP; & 
action to achieve the aspirational goal. 
Active engagement: 
Include WMBE in the work                    4.  Proactive management plan 
Manage subconsultants & prompt pay 
15

Challenges and Recommendations 
1. Historic data insufficient to use a "historic plus" approach for
construction 
Recommendation: For first 2-3 years (2018-2020) identify
aspirational goals on a contract by contract basis. Move to historical
plus approach after utilization and data has improved 
2.  Concerns about increased costs for purchases and time
associated with getting quotes for P-Card & Direct Buys 
Recommendation: CPO and Legal will provide training. Port
encourages utilization of MWBE firms, cost reasonableness and fiscal
accountability. 
16

Challenges and Recommendations 
3.  Responsibility for overall effort & alignment with Port-wide
equity work 
Recommendation: Assign small team to address alignment to ensure
Diversity In Contracting does not lose momentum 
4.  Concerns about increased project costs/capital costs associated
with implementation 
Recommendation: Establish team led by CDD to determine how to
incorporate cost adjustments 
17

Challenges and Recommendations 
5.  Concerns about increased procurement time to address
inclusion plan and protests 
Recommendation:  Develop process with clearly defined roles. Train
dedicated MWBE Compliance Officers to address Inclusion Plan review.
Include additional 30+ days for major construction for review,
revisions, and potential challenges/protests.


18

Looking Forward 
1.  Continue to gear up to implement Diversity
in Contracting across the Port 
2.  Increase outreach and assistance  work
with public affairs to drive interest in
program 
3.  Pilot procurements and contracting to
establish basic practices 
Apply "lessons learned" from key
projects 
4.  Establish One Port accountability,
governance and evaluation 
5.  Assess, Adjust & Improve 
Committed to Diversity and Inclusion 
19