11b. Memo

Diversity in Contracting Annual Report

AGENDA MEMORANDUM                        Item No.          11b 
BRIEFING ITEM                            Date of Meeting       April 12, 2022 
DATE:   April 6, 2022 
TO:      Stephen P. Metruck, Executive Director 
FROM:  Dave McFadden, Managing Director, Economic Development Division 
Mian Rice, Director of Diversity in Contracting 
SUBJECT: Diversity in Contracting Annual Report 
The  Diversity  in  Contracting  Annual  Report  to  the  Commission  provides  the  Port's
division/department 2021 Woman and Minority Business Enterprise (WMBE) results, 2022 future
department/division WMBE goals, and affirmative efforts to assure equality of contracting
2021 was the third full year of the Diversity in Contracting program operations. Port divisions and
departments established 2021 WMBE utilization goals. The Port of Seattle established a 16 percent
WMBE utilization goal for 2021. This goal did not include construction projects where utilization
goals are established on a project-by-project basis.
Despite 2021's economic challenges, the Port continued to make great strides surpassing 2020's 
results in achieving a Port-wide WMBE utilization goal of 12.1% for 2021. In addition, the Port 
continues to make strides towards reaching its five-year goal of tripling the number of WMBE
businesses working with the Port (344 WMBE firms vs five-year goal of 354 firms), by the year 2023.
On an annual basis, the Port starts from zero in its tracking of firms utilized and percent
achievements. As the Port continues to grow in its WMBE utilization, staff is continuing its positive
steps to achieve the goals set forth by the Commission, including the continued focus on eliminating
specific disparities in utilization for certain ethnic groups and women.
On January 9, 2018, the Port Commissioners adopted a new Diversity in Contracting (DC) policy 
directive with a supporting Resolution 3737, that drives equity in Port contracting. The policy was
developed over the years of 2016-2017, using 2016 as the baseline for what was eventually passed. 
The purpose of this policy directive is to provide the maximum practicable opportunity for increased
participation by minority and women owned and controlled businesses in Port contracting for public

Template revised April 12, 2018.

COMMISSION AGENDA  Briefing Item No. 11b                                 Page 2 of 6 
Meeting Date: April 12, 2022 
works, consulting services, supplies, materials, equipment, and other services to create the
opportunity to leverage Port spending to increase WMBE utilization. 
As part of the Diversity in Contracting policy directive, the Port Commission established utilization
goals for both the amount of contracting dollars paid to WMBE firms as well as the number of WMBE
firms under contract to the Port using 2016 baseline utilization results: 

1)  Triple the number of WMBE firms that contract with the Port, and 
2)  Increase to 15% the percentage of dollars spent on WMBE contracts 
This new policy also directs the establishment of: 
Executive level accountability that drives performance across the Port
Port-wide goal setting and reporting processes, requiring Divisions/Departments to establish
Annual WMBE Plans that set aspirational goals and performance targets 
Clear lines of responsibility and accountability for implementation with designated WMBE
liaisons for each division 
Enhanced compliance and tracking of key performance objectives and incorporation of WMBE
goals into the Port's Long-Range Plan 
Categories of contracts where inclusion plans, and other tools will be used 
Implementation and monitoring procedures to ensure prompt payment and change order
Expanded technical assistance for WMBE firms, coordination with external partners, and support
for internal training to Port staff 
Last year was the third year of the DC policy/program implementation.
Per the DC policy directive, every division/department sets WMBE aspirational goals prior to the
beginning of the year, the 2020 total percentage was 16%. The table below illustrates by division the
2021 WMBE results for non-construction procurements which includes P-Card spend. The Port did
not meet its 2021 non-construction goal of 16%. Although the target was missed, the Port invested
over $26 million in WMBE firms for an overall utilization rate of 16.1%. The table below reflects the
dollars in 2021 driven to WMBE businesses broken down by Division: 
2021  Non-Construction  2021 Goal %   Total Port Spend   WMBE Spend         WMBE %
Utilization                                                                                      2021 
Aviation (AV)               16%            $144,653,626       $17,734,128             12.3% 
Corporate                 18%           $26,903,881       $4,116,780             15.3% 
Economic  Development  13%          $3,280,584        $518,484             15.8% 
Division (EDD) 
Maritime Division (MD)     15%           $25,124,214        $3,467,059             13.8% 
Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. 11b                                 Page 3 of 6 
Meeting Date: April 12, 2022 
Northwest       Seaport  N/A           $4,447,881        $533,951              12.0% 
Alliance (NWSA) 
P-Card Unclassified         N/A            $165,811           $13,400 
Total                                         $204,575997        $26,383,802             13.84% 
The Port of Seattle's Annual Divisional Goals are established on "non-Construction" spend in
the Outside Service budgets 
Since the program launch, DC staff have established WMBE aspirational goals for Construction on a
project-by-project basis. The table below illustrates the WMBE results on Construction per division
for 2021, with a total WMBE utilization rate of 11.5%:
*2021 Construction                Total Port Spend    WMBE Spend                  WMBE % 
Aviation (AV)                        $246,986,105        $29,037,487       11.8% 
Corporate                          $87,335             $6,967            8% 
Economic Development Division  $2,898,163         $135            0% 
Maritime Division (MD)             $12,297,524         $1,173,022        9.5% 
North  West  Seaport  Alliance  $7,105,022         $62,853,857      11.3% 
Total                                  $37,322,803         $325,178,389      11.5% 
*WMBE Aspirational Goals for Construction are set project-by-project 
The table below shows the final Port-wide WMBE attainment for 2021 per division/department,
with a combined WMBE total (construction and non-construction) of 12.1%.  The table also
includes the number (344) of WMBE businesses utilized.

2021 Total Port                      Total Port Spend   WMBE Spend       WMBE % 
(Non-Construction & Construction
Aviation (AV)                          $391,639,731      46,771,614          11.9% 
Corporate                          $27,046,620       $4,123,748         15.2% 
Economic  Development  Division  $5,660,128       $518,484          8.4% 
Maritime Division (MD)              $32,781,657       $4,640,082         12.4% 
North   West   Seaport   Alliance  $4,447,881       $533,951          12.0% 
P-Card Unclassified                   $165,811           $13,400             0.0% 
Total (Percent)                        $530,738,524      $64,069,018         12.1% 
Total  Number  of  WMBE  Firms          -                   -           344 
Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. 11b                                 Page 4 of 6 
Meeting Date: April 12, 2022 
The table below illustrates the annual progression of the Port's WMBE percentages and number of
firms utilized for that given year. 
WMBE    2016      2017     2018*     2019      2020         2021 
Percentage    5.3%         8.8%         8.9%         10%         10.9%             12.1% 
Number of    118        200        258        296         325            344 
*Diversity in Contacting program launch 
The table below provides the 2022 WMBE aspirational percent goals per division/department with a
combined total goal of 15% utilization for non-construction procurements on outside services.
Division                              Projected Total      2021 WMBE       2021 WMBE Goal 
Outside      Projected Spend 
Services Spend 
Aviation Division (AV)                $133,865,506      $20,079,826                  15% 
Corporate                          $33,966,564       $4,755,319                  14% 
Economic Development Division    $5,259,683       $736,356                  14% 
Maritime Division (MD)             $6,613,343        $1,058,135                  16% 
Total                                 $179,705,097      $26,629,635                  15% 
Construction Annual WMBE Goal 
For the first time, the Port is establishing an initial construction WMBE goal. For 2022, the established
WMBE goal is 12.5%. This initial goal was established by utilizing the 2021 construction WMBE
results, plus one percent. 
Under the Diversity in Contracting (DC) Policy Directive, the Port's divisional efforts in setting annual
'non-construction' percent goals have been successful. The percent utilization of WMBE firms
continues to be a positive influence. This includes the number (#) of WMBE firms utilized, which in
2021 was 344 firms. By the year 2023, the Ports five-year goal is a utilization of 354 WMBE firms. On
an annual basis, the Port starts at zero in its quest to achieve its 5-year WMBE goals. 
However, under Washington State's construction bidding laws and policies, in conjunction with the
State's anti-affirmative action clauses, government entities have far less control over WMBE
utilization on low-bid lump sum procurements. As a result, WMBE participation might be impacted
regardless of their overall availability to work on Port projects.

Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. 11b                                 Page 5 of 6 
Meeting Date: April 12, 2022 
The Port currently sets WMBE aspirational goals on a project-by-project basis, based upon project
scope and WMBE availability. We have been  averaging between eight to ten percent on our
construction projects thus far. These averages will need to increase in order to achieve the set DC
The Port has made tremendous progress increasing the utilization of WMBE businesses. We are
heading the right direction; however, we may fall short of hitting the Port's five-year goal of 15
percent utilization by the end of 2023, which is the final year of the established 5-year goal cycle. 
The Port continue to set WMBE Divisional goals but explore expanded ways to improve upon the
Construction utilization of WMBE firms. This would be done by: 
Leveraging  more  alternative  delivery  methods  like  Design/Build  (D/B)  or  General
Contractor/Construction Management (GC/CM) procurements. Alternative delivery methods
such as these may allow Port staff to continue to push the construction contacting limits to not
only achieve, but perhaps exceed project WMBE goals.
Evaluate chances for unbundling of projects 
Further breakdown project scopes of work 
Better tie-in's with PortGen training participants within the consulting and A&E contracts 
Continue to outreach and conduct workshops/trainings 
Continued partnerships with community and trade organizations 
Continued partnerships with Primes 
The Port is conducting a study to identify barriers to WMBE utilization which can also help identify
additional policy or program refinements that will help the Port achieve its current and future
Diversity in Contracting policy goals. 
(1)   Presentation 
April 13, 2021  Diversity in Contracting Annual Report 
March 26, 2019  Diversity in Contracting Annual Report 
June 12, 2018  Commission briefing on Diversity in Contracting program development 
January 8, 2018  Diversity in Contracting 2nd reading policy & passage of resolution 3737 
December 19, 2017  Diversity in Contracting Policy Review 
December 12, 2017 - Women and Minority Business Enterprise Policy Review  Resolution 3737 (first
December 5, 2017 - Women and Minority Business Enterprise Policy Review 
November 28, 2017 Women and Minority Business Enterprise Policy Review 
October 24, 2017 - Women and Minority Business Enterprise Policy Review 
July 12, 2017  Commission Budget Priorities, Building Economic Opportunity in underserved
March 28, 2017  Small Business Development Update 
Template revised September 22, 2016.

COMMISSION AGENDA  Briefing Item No. 11b                                 Page 6 of 6 
Meeting Date: April 12, 2022 
March 22, 2016  Small Business Utilization briefing 
December 14, 2014  Disparity Study briefing 
August 19, 2014  Small Business Utilization briefing 
January 26, 2010  Adoption of Resolution No. 3618 concerning small business utilization 

Template revised September 22, 2016.

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