7a Supp
Item No.: 7a_supp Meeting Date: December 2, 2014 Port of Seattle Disparity Study Briefing Office of Social Responsibility (OSR) Study conducted by BBC Research & Consulting Outline What is a Disparity Study? Commission Historical Context Key Terms Study and Results Opportunities and Recommendations Next Steps 2 What is a Disparity Study? What An in-depth analysis of the number of specified individuals or groups who are available to participate in certain opportunities and those that actually do. Purpose To help determine whether the environment is fair and equitable to all parties involved, and support for remedies to address underrepresentation. Mandatory Nature Disparity studies are not mandatory, except for race-conscious measures in the Ninth Circuit Court Jurisdiction 3 Commission Historical Context Unanimous support & approval to conduct a Disparity Study for construction and constructionrelated professional services Expressed desire for increased Small Business opportunities, and to better understand the level of participation of minority and women-owned businesses Proactive encouragement to Port staff to be inclusive of small and minority owned businesses in the future of the Port's Small Business Program 4 Key Terms Disadvantaged Business Enterprise (DBE) Minority-owned Business Enterprise (MBE) Women-owned Business Enterprise (WBE) Small Business Enterprise (SBE) 5 Port Construction and Construction-related Professional Services Contracts Funding Mix Federally Assisted: The Port can influence DBE outcomes Approximately 10% of these Port of Seattle contracts are federally assisted. Federally Assisted Locally Approximately 90% of Locally Funded: Funded these Port of Seattle Limited MWBE impact due to I-200 contracts are locally funded. 6 Study And Results 7 Scope of Analysis Over 1,000 construction and construction-related professional services contracts included in the study. Study period include contracts executed between January 1, 2010 and September 30, 2013. Dollars Contract types Number (millions) Construction 681 $190 Construction-related Professional Services 367 52 Total 1,048 $242 Contracts review include those from 344 primes and 704 subcontractors 8 Key Elements of a Disparity Study Community engagement Legal analysis and framework Review of contracting, program measures Utilization analysis Focus of this presentation Availability analysis Disparity analysis Explanations for any disparities Analyses of marketplace conditions Recommendations and implementation 9 Utilization Analysis Percentage of construction, professional services dollars that went to M/WBEs Percentage of construction & professional service dollars Port data Prime Port contracts, subcontracts Utilized vendors Other information Telephone surveys Business information Lines of work Year established Race/ethnicity and gender 10 Availability Analysis Percentage of contract dollars that M/WBEs ready, willing, able to perform Relative availability of M/WBEs Port data sources Availability Prime contracts, Race/ethnicity and gender Estimate subcontracts Other information Black American-owned 2.4 % Asian-Pacific American-owned 2.2 Telephone surveys Subcontinent Asian American-owned 1.8 Lines of work Hispanic American-owned 4.8 Contractor role Native American-owned 2.4 Year established Total MBE 13.7 % Relative capacity Qualifications and interest WBE (white women-owned) 4.5 Race/ethnicity and gender Total MBE/WBE 18.2 % 11 Disparity Analysis Index that compares utilization to availability on study contracts 10% M/WBE UTILIZATION x 100 56 18% Disparities of 100 or more include parity, the state of being equal. M/WBE AVAILABILITY Disparities of 80 or less considered substantial according to several courts, noted by acceptance as evidence for adverse conditions for MBE/WBEs. 12 Overall Disparity Indices *Index of 96 driven by one Black 24 American-owned business that received 80 percent of the total dollars that went to Black American-owned businesses. Otherwise, index of 24. Disparities of 100 or more include parity Disparities of 80 or less considered substantial 13 Results by Type of Contract Disparities of 100 or more include parity Disparities of 80 or less considered substantial **Construction-related Professional Services includes architectural and engineering contracting. 14 General Observations Use results to set overall DBE goal, inform program measures Consider tracking participation of MBE/WBEs Ensure SBE/DBE/MBE/WBEs receive committed work Enforce prompt payment policies Explore partnerships to encourage MBE/WBE participation 15 OSR Recommendations and Next Steps Assist Port division leaders in setting meaningful annual small business and MBE goals Develop and Implement a Training & Capacity Building Program (Accelerator program) Rebrand and refresh the Port's Small Business Program to "Small Business & Inclusion Program" Update the Small Business Resolution (No. 3618) Consider Race-and-Gender conscious within our Federal DBE program 16 Recommendations and Next Steps Continued Continue collaborative work with stakeholders: Public Agencies Small Business Group, which includes: Community Representatives Capital Development Division Central Procurement Office Commission Office Report back to Commission on outreach progress in 6 months Conduct another disparity study in three-five years 17 Thank you! Questions? 18
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