11a. Presentation - Diversity in Contracting Annual Report

Visit us at https://www.portseattle.org/business/bid-opportunities                  Item No.   11a_supp
Meeting Date: April 13, 2021

ELT Briefing
Diversity in Contracting
2020 Utilization/2021 Goals

Agenda

2020 Diversity in Contracting WMBE Results
What's in the Numbers
2021 Goals
Moving Forward

Diversity in Contracting Policy Directive
The purpose of the 2018 Policy Directive that established the Diversity in Contracting
Department was to advance equity and address WMBE contracting disparities.

Goals - 5-year Benchmarks:
Triple the number of WMBE firms doing business with the Port (118 to 354)
Increase to 15% the amount of spend on WMBE contracts within five years
Annually - All Port Divisions set individual WMBE goals

Portwide WMBE Utilization (Last 5 Years)

WMBE Utilization         2016      2017       2018       2019*       2020
Percent Utilization         5.30%      8.80%       8.90%       10.0%       10.90%
Number of Firms          118       200        258        296         325
* 1st year full implementation


All contracting efforts

2020 Portwide WMBE Utilization

Category               Total Port Spend    Total WMBE Spend   WMBE Utilization
Public Works (Construction)          $495,708,130            $42,540,667                8.6%
Non-Construction                  $199,865,542           $33,241,321              16.6%
Total                           $695,573,672         $75,781,987             10.9%

Please Note: Utilization Percentage May Change

2020 WMBE Division Utilization (Non-Construction)

Division                           2020 Goal              2020 Actual
Aviation (AV)                          15%                     17.1%
Economic Dev. (EDD)                 13%                   15.6%
Maritime (MD)                     15%                  16.0%
*Corporate                         13%                  14.5%
Total                                   14.4%                    16.6%

2020 WMBE Division Utilization (Non-Construction) - *Corporate
2020 WMBE     2021 WMBE      2021 Total Qualified   2021 WMBE Goal %
ELT Member                      2020 Goal    Attainment     Program Spend    Outside Services Spend    of Total Spend
Villa (Police)                                   12%             3.7%                $50,141                   501,419                     10%
Gerard (HR)                             15%          10.9%            $145,433               908,960                 16%
Edwards (External Affairs)                  12%           20.6%             $425,736               3,274,898                  13%
Ehl (OSI)                                     45%            34.3%              $14,750                  29,500                    50%
Fernandes (Internal Audit)                 5%            11.2%               $-                     $1,588                    0%
Freiboth (Labor Relations)                 12%           59.8%               $240                   $2,000                   12%
Gheisar (Equity OEDI)                     11%           2.4%             $395,368              $1,976,844                 20%
Leavitt/Soike (Capital Development)        5%           12.2%            2,842,227             $11,368,910                16%
Leavitt (Environmental)                    5%            8.8%             $70,167                $305,171                  2%
Soike (CPO)                               --             6%              $102,003              $1,020,032                 0%
Ramels (Legal)                            5%            0.1%             $40,508                $810,161                  5%
Thomas (Finance/ICT)                    15%           23%           $2,334,360             $9,390,335                24%
Merritt/Pritchard (Commission)            7%            7.5%             $800.00                $10,000                  8%
7

2020 WMBE Update  Ethnicity Breakout
Ethnicity                  # of Companies       WMBE Spend       Utilization%
Asian                                     49                    $15,050,363                 2.2%
Hispanic                                   30                     $8,587,156                   1.2%
Black or African American                   23                     $9,632,909                   1.4%
Native American                          16                   $15,822,618                 2.3%
Prefer Not to Answer                       9                      $2,127,221                  0.3%
Other                                  1                     $3,000                   0.0%
Caucasian Woman                     124                 $22,772,864               3.3%
*Not Declared                            73                    $1,785,856                  0.3%
Total                                        325                     $75,781,987                  10.90%
8

2020 Highlighted DC Efforts
COVID-19 informational meetings with small businesses (CARES Act)
11 webinars with more than 150+ participants
Increased Promotion of VendorConnect database
690 new registrations  23% are WMBE
PortGen attendance has increased due to virtual platforms
450+ participants in 2020 compared to around 400 in 2019
Partnership with USDOT to offer an Advanced PortGen (six-week workshop series)
96 businesses participated in this Construction and Architecture &
Engineering trainings

2021 WMBE Division Utilization Goals (Non-Construction)

Division                        2020 Goal         2020 Actual         2021 Goal
Aviation (AV)                       15%               17.1%               16%
Economic Dev. (EDD)              13%              15.6%              13%
Maritime (MD)                  15%              16%              15%
Corporate                       13%              14.5%              18%
Total                               14.4%               16.6%                16%

Diversity In Contracting Evaluation
2021 marks beginning of year three of the program
Doing Well                       Challenges
Non-Construction WMBE                    Program is not on path to achieve
participation continues to                  Portwide 5-year WMBE utilization
grow due to Division's efforts               goal of 15% in the two+ years
(Thank You, Commission,                 remaining.
Executive Leadership Team,               Portwide WMBE Utilization would
and Port staff)                               need to grow approximately 12%
Number of utilized WMBE                     year-over-year for each of the
firms in 2020  325 (5 year -                 remaining years to 2023.
Goal 354)

Closer Look: Construction
Construction Spend has
decreased since 2018
WMBE Pre-Bid Analysis: Average      Year     Port Spend   %Growth  $ WMBE Spend  %Growth %Utilization
WMBE Construction Goals -
8% - 9% - Majority of projects       2017   $230,424,913     -      $19,065,459      -      8.27%
Design, Bid, Build
2018
Availability of firms based upon                    $516,504,619   124.20%    $45,287,278    137.5%      8.77%
Work Breakdown Structure
Nuance  Unknown how the Prime       2019     $493,247,548   (4.50%)     $44,969,418    (0.70%)      9.12%
will Buy Out the project to attain set
WMBE goal
(2020) Only 2 Affirmative Efforts            2020     $495,708,130    0.50%     $42,540,667    (5.40%)      8.60%
reviews were conducted for not
meeting Aspirational goals

Closer Look: Non-Construction
WMBE utilization have
increased despite           Year      Port Spend     %Growth    WMBE Spend   %Growth %Utilization
Portwide Spend           2017    $185,473,454            $16,052,757           8.66%
fluctuation
2018     $180,188,026     (2.8%)     $16,479,395     2.7%     9.15%
Due to Port's DC efforts
- Port has almost            2019     $208,650,356    15.8%     $25,258,177    53.3%    12.11%
doubled WMBE
utilization from 2017        2020     $199,865,542    (4.2%)     $33,241,321    31.6%    16.60%
(90% Growth)

Moving Forward
Areas for Potential Improvement
1.   Identify more WMBE opportunities on Design, Bid, Build construction projects
(ex. break down projects)
2.  Lean into stretch goals for Alternative Public Works procurements. After the
project analysis determines a goal use the evaluation process to encourage
exceptional performance.
3.   Evaluate chances for unbundling projects
4.   Increase number of WMBE business utilized (almost there!)
5.   Provide incentives/motivation to retain Portgen training participants on
consulting / A&E contracts

Public Agency of the Year
The Northwest Mountain Minority Supplier Development
Council recently named the Port of Seattle as its Public
Agency of the Year for our Diversity in Contracting program.
The Council 's mission is to drive economic value by
equalizing opportunities.

Questions?

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