COMMISSION 
AGENDA MEMORANDUM                Item No.       6d 
ACTION ITEM                   Date of Meeting     July 11, 2017 
DATE:    June 22, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Dave Caplan, Senior Director Strategic Initiatives 
Dave McFadden, Managing Director Economic Development 
SUBJECT:  Supplier Outreach and Procurement System (CIP #C800907) 
Amount of this request:           $800,000 
Total estimated project cost:         $800,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) proceed with the Supplier
Outreach and Procurement System project; (2) procure hardware, software, vendor services,
and maintenance; and (3) use Port staff for implementation, for a total project cost not to
exceed $800,000. 
EXECUTIVE SUMMARY 
This project will provide an integrated supplier outreach and procurement solution that utilizes
vendor provided systems for contact management, communication, and event tracking with a
Port-developed component for procurement management. This system supports the Port's
Small, Minority, Woman and Disadvantaged business outreach, vendor registration and
utilization efforts. By establishing and improving communication channels to existing and
potential suppliers and contractors, the system will allow us to conduct targeted outreach by
sorting and selecting vendors in a variety of ways in addition to increasing the diversity of
available suppliers in our database. With searchable features, internal and external buyers will
have access to the vendor information to assist in making purchasing decisions, establishing
utilization goals, and support PRIME contractor outreach to small and disadvantaged business
entities. The system will not only allow us to communicate events and upcoming procurement
opportunities,   but  will  also  facilitate  our  procurement  and  bid  submission
processes. Integrating these activities will allow us to seamlessly move and track businesses
from interested suppliers to successful contractors and vendors. 
A key Century Agenda strategy is to use our influence as an institution to promote small and
woman and minority owned business (WMBE) growth. One stated objective is to increase the
proportion of funds spent by the Port with qualified small business on construction, goods and
services to 40 percent of the eligible dollars spent. In addition, the Port is driving to significantly

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 2 of 5 
Meeting Date: July 11, 2017 
increase our Women and Minority Business Enterprise (WMBE) spend from our current level of
5 percent. To support this effort, the proposed system will allow Port staff to build an
increased base of suppliers to determine availability, simplify access, and target outreach
efforts.
The Procurement and Roster Management System (PRMS) was developed in 2011 to provide a
consolidated vendor roster and bid management system. It wasn't designed for small business 
and WMBE  outreach or to provide information to help Port staff set small business
participation goals. Given the growth of the Port and business demands, this is not an effort
that can be done manually using existing procurement tools. To meet these new objectives, the
proposed system will manage procurements, facilitate the identification of matching suppliers,
and provide a searchable supplier directory to support prime contractors and other businesses
in identifying small business and WMBE partners.
JUSTIFICATION 
This project includes several important benefits. 
(1)   New reporting requirements for the Century Agenda small business and WMBE goals
require Port staff to track supplier outreach, engagement, and work completed at the
Port. This system will allow staff to record, track, and easily find suppliers within all
needed work categories and provide insights into the effectiveness of programs to
increase participation. 
(2)   The current process to identify small and WMBE  businesses for procurement
opportunities is time consuming and confusing. This system will streamline supplier
searches for both internal Port procurements and external  firms looking for
opportunities or small business and minority sub-contractors. Given the Port
procurement environment of expedited requests and limited resources to aggregate
firm information this supplier directory will improve results against goals. 
DETAILS 
Scope of Work 
(3)   Develop  a  procurement  system  providing  central  supplier  registration  and
management, procurement management, online business directory, and dashboard
features. 
(4)   Integrate procurement system with online supplier contact and event management
systems used by Public Affairs and Economic Development, Peoplesoft Financials, and
Contractor Data Systems to centralize and share supplier information. 
Schedule 
Commission Approval                  2017 Quarter 3 
Outreach Management Systems Available      2017 Quarter 4 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 3 of 5 
Meeting Date: July 11, 2017 
Project Complete                     2019 Quarter 1 
Cost Breakdown                         This Request       Total Project 
Port Labor and Contracted Services                 $800,000          $800,000 
Total                                        $800,000           $800,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Procure and integrate multiple vendor systems for diversity tracking, outreach,
event management, procurement, and supplier registration 
Cost Implications: $820,000 Project Costs; $2,870,000 5 Year Total Cost of Ownership 
Pros: 
(1)   Individual products have been developed over time to conform to industry best
practices. 
(2)   Research conducted has not identified a "one size fits all" solution; multiple vendor
systems provide the best fit for each need: outreach, event management and
communications; small business and diversity tracking; and electronic procurement
management. 
(3)   Some vendor solutions provide access to a vendor managed database of suppliers and
the ability to share some information between agencies. 
Cons: 
(1)   Multiple systems are needed to meet all requirements so data will be duplicated and
suppliers and Port staff will have multiple system logins. 
(2)   Higher 5 year total cost of ownership, both in software licensing fees and integration
maintenance to keep data in sync across the multiple systems. 
(3)   Reporting on all supplier-related metrics may be possible only with significant manual
time from Port staff. 
This is not the recommended alternative. 
Alternative 2  Develop a comprehensive procurement management system with a single
supplier database, robust tracking, and external search capabilities. Integrate with outreach and
event management systems. 
Cost Implications: $800,000 Project Costs; $1,470,000 5 Year Total Cost of Ownership 
Pros: 
(1)   Provides best fit to meet business requirements. 
(2)   Quick delivery of a solution for outreach and event management by incorporating
tools already used by Port staff. 
(3)   Lower 5 year total cost of ownership due to lower maintenance, licensing, and
services costs. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 4 of 5 
Meeting Date: July 11, 2017 
(4)   Provides for close integration with the Contractor Data System used by the Port to
manage construction contracts and service agreements and utilizes Port's business
intelligence tool, Tableau. 
(5)   Minimizes the duplication of data and the number of systems required for suppliers
and Port staff. 
Cons: 
(1)   Does not provide the Port with access to a vendor-provided supplier database that is
shared with other agencies, although, integration with a future, local system is
possible. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                        $700,000          $0      $700,000 
Current change                       $100,000           0     $100,000 
Revised estimate                       $800,000           0     $800,000 
AUTHORIZATION 
Previous authorizations                        $0          $0          $0 
Current request for authorization             $800,000           0     $800,000 
Total authorizations, including this request      $800,000           0      $800,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
This project was included in the 2016-2020 capital budget and plan of finance under committed
CIP #C800907 in the amount of $700,000. After additional analysis it was determined that a
larger budget will be necessary to meet the objectives for this project. The remaining $100,000
for the capital funding will be transferred from the IT Renewal/Replacement CIP (C800097) to
the project (C800907) resulting in no net change to the overall capital budget. 
Financial Analysis and Summary 
Project cost for analysis         $800,000 
Business Unit (BU)            Central Procurement Office and Economic Development 
Effect on business performance   NA 
(NOI after depreciation) 
IRR/NPV (if relevant)           NA 
CPE Impact                Less than $.01 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 5 of 5 
Meeting Date: July 11, 2017 
Future Revenues and Expenses (Total cost of ownership) 
Annual maintenance costs are estimated to increase by $35,000. This will be budgeted in the
Information & Communication Technology (ICT) Operating Budget. In order to actively manage
outreach, contacts and supplier information, it is assumed one additional full-time employee 
will be needed, starting in 2018, to support both Central Procurement Office (CPO) and
Economic Development (ED) activities. This will be budged in the CPO and ED organization
operating budgets. 
ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 













Template revised September 22, 2016; format updates October 19, 2016.