RESOLUTION No. 3618, as amended

A RESOLUTION ofthe Port Commission ofthe Port of Seattle to
establish a program that will develop mutually advantageous business
relationships with small businesses including those owned and operated
by people of color, women, people with disabilities, veterans, and the
socio-economically disadvantaged.

WHEREAS, port districts have authority to engage in economic development programs; and

WHEREAS, it is in the Port of Seattle's ("Port") economic interest and social responsibility to encourage
competition within the supply chain to increase the pool of qualied vendors; and

WHEREAS, the Port is committed to increase the utilization of small businesses through enhanced
transparency, accountability, and to protect equal opportunity in all areas of business; and

WHEREAS, the Port established the Ofce of Social Responsibility ("OSR") in 2008, with one of its
main objectives to assist small businesses;

NOW, THEREFORE, BE IT RESOLVED, by the Port Commission ofthe Port of Seattle, to update
the Port's Small Business Initiative and rename it the Small Contractor and Supplier ("SCS") Program
("Program") as follows:

Section 1.      SMALL CONTRACTOR AND SUPPLIER PROGRAM PURPOSE AND GOALS

The intent of the Program is to provide guidance and create a formal method for the Port and its
contractors to expand opportunities to utilize Port-certied small businesses as prime contractors, sub-
contractors and suppliers. The Program shall be conducted in compliance with federal and state statutes
and grant requirements, and shall be consistent with all other Port policies and procedures.

The Program further seeks to encourage competition within the supply chain and to increase the pool of
SCS rms utilized in Port procurements. The Program shall achieve these goals by expanding the Port's
outreach efforts, providing opportunities to a broader pool of SCS rms, and supporting initiatives and
programs that will enhance the grth and strengthen the capacity of SCS rms to work with the Port.
OSR shall work with Port departments and external partners to promote inclusive practices and activities
such as technical assistance and targeted outreach events.

All competitive processes shall be conducted in a manner that is consistent, fair, transparent and
conducive to providing equal opportunities to SCS rms in Port procurements.  In accordance with
Initiative 200 (RCW 49.60.400), the Port shall not discriminate against, or grant preferential treatment to,
any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of
public contracting.  Initiative 200 prohibits awarding of contracts based on race or gender preference,
therefore the Port shall establish voluntary goals for Minority and Women Business Enterprises
(M/WBEs) in public contracting.  In addition, the Port is committed to diversity and strongly encourages
the use of SCS rms to include other socioeconomically disadvantaged and diverse groups such as
people with disabilities, veteran, veteran service disabled, lesbian, gay, bisexual, and transgender-owned
businesses.

Specic goals of the Program will be to:

Increase opportunity and utilization of SCS rms in Port procurements;
Identify and reduce barriers to equal opportunity and participation by SCS rms in Port
procurements and contracts;
Develop comprehensive outreach and communication strategies to provide SCS rms an
opportunity to participate in Port procurements and contracts;
Engage and partner with other public and private entities to enhance resources and gather best
practices;
Develop, implement, and operate a system of data collection for the Program.

Section 2.      PROGRAM ELEMENTS

a.   Pricing Incentive for Goods and Purchased Services:
The Port's Chief Executive Ofcer ("CEO") shall develop a tool to give a 5% pricing incentive
and to authorize a contract award to a SCS rm that is within 5% of the lowest price submitted by
a non-SCS rm. This pricing incentive shall apply to goods and purchased services only where
price is the determining factor. The incentive shall begin at the time the new Port SCS
certication program is established, which is estimated to be rst quarter of 201 1.

Small Contractor and Supplier Utilization Requirement:

The CEO shall be authorized to establish mandatory utilization requirements on major
construction projects, professional and personal service, and purchased service contracts for SCS
rms. The mandatory SCS utilization requirement may be used after careful review by OSR in
collaboration with the requesting department representative and the Central Procurement Ofce
(CPO), to determine if a small business utilization requirement is appropriate for a specic
procurement. The factors to consider include whether there are sufcient subcontracting
opportunities and a sufcient number of SCS rms available in the specic categories. The
decision whether to apply small business utilization requirements for a specic procurement
should be made as part of the acquisition planning for each project. This requirement shall be
considered part of responsible bidder criteria rather than part of the responsiveness criteria. OSR
shall monitor and ensure ongoing compliance with the small business utilization requirement
throughout the duration of the contract.

Evaluation Criteria for Utilization of Small Contractors and Suppliers

When using a proposal evaluation selection process (as opposed to low bid), the Port may make
evaluation points available for proposals that commit to use SCS rms to perform work or meet
SCS goals. This criterion may apply to purchased services and personal and professional
services. OSR and the requesting department representative shall determine when to use
evaluation points on a case-by-case basis.

Utilization Procedures for Small Businesses in Personal and Professional Services Procurements
(Category I only)

For procurements that follow Category I process (see Port Procedures, CPO-1), the Port shall
select a small business provided there are at least three qualied and interested small businesses
identied in the selected category or categories of work. If there are fewer than three qualied

and interested small rms in the appropriate category or categories of work, the Port does not
require a small business to be selected. CPO requires the selection decision to be documented.

Small Business Size Standard and Port Certication:
Many of the national Small Business Administration (SBA) revenue size limits for small
businesses are quite large and do not accurately reect the actual revenue size range of our local
small businesses. The Port hereby establishes a small business revenue size standard based on
50% of the prevailing SBA size standard and a limit on personal net worth of $750,000 ofthe
business owner. (See SBA size standards as set forth in Title 13, Code of Federal Regulations,
and Part121.)

Section 3.      IMPLEMENTATION ROLES AND RESPONSIBILITIES

The following individuals, divisions and departments of the Port will participate in the execution of the
Program as follows:

a.   CEO - The CEO, or his/her designee, is authorized to execute, administer, and enforce the
Program. The CEO will develop new procedures or amend existing procedures and goals to
implement this Program. Procedures will include the process for investigating complaints or
violations of the Program. The CEO may direct Port staff to develop and implement initiatives to
expand opportunities for SCS rms when he or she determines it is in the Port's best interest to
do so.

Senior Executive Team  The Senior Executive Team shall take all necessary steps to educate
Port staff about policies and procedures of the Program and shall ensure compliance through
accountability measures. Each Senior Executive Team member shall use his/her best efforts to
meet the goals of the Program.

Ofce of Social Responsibility ("OSR")  The CEO shall designate OSR to manage, execute, and
monitor the Program. OSR shall work with the Port Divisions during the acquisition planning
stage to establish appropriate strategies for competitive Port procurements for goods and
purchased services, professional and personal services, and construction. OSR shall set annual
Port-wide SCS participation goals and work with Divisions to set division-level goals and shall
conduct education and training for Port managers and staff. OSR shall administer a Port
certication process for SCS rms based on the size standard established by the CEO. OSR shall
collaborate with community-based programs on business development and initiatives, technical
assistance, outreach, and related policy issues.

Capital Development Division ("CDD")  The CDD, which includes the Central Procurement
Ofce (CPO), Engineering, Port Construction Services, Aviation Project Management, and
Seaport Project Management, shall work collaboratively with OSR to promote the SCS Program
in Port procurement activities. CPO shall work collaboratively with OSR in developing and
implementing specic procedures to carry out the intent of the Program.

Divisions: All Port directors, managers, and procurement staff shall participate in education and
training related to the Program. All Divisions shall work collaboratively with OSR to promote
the Program in all Port procurement activities and shall work together to identify specic project
SCS goals and/or utilization requirements and voluntary M/WBE goals.

Section 4.      MONITORING AND REPORTING

a.   Monitoring and Reporting: The CEO shall require OSR to create the necessary tools to monitor
and report activities associated with the Program.

b.   Annual Goal Setting: OSR shall assist Divisions in establishing SCS annual goals for each
Division and shall monitor and track annual Port-wide goals.

c.   Annual Reports to the Port Commission and the CEO: OSR shall report annually to the Port
Commission and the CEO about the Program's annual goal setting, monitoring and reporting of
the Program. Reports on the Program's progress and results shall include results from outreach,
programming, and community partnering efforts.

d. Tracking: The Port currently tracks small businesses and certied M/WBEs and Disadvantaged
Business Enterprises (DBE) participation as prime contractors and sub-contractors on major
construction contracts and prime contractor participation only on professional/personal services
and good/purchased services. Beginning in 2010, the OSR will take lead responsibility, work
with the CPO and work with the requesting department representatives, for sub-contractor
tracking on professional/personal services and goods/purchased services.  In the future, the Port
may track contract participation by ethnic group as well as collect data on other diverse and
socio-economically disadvantaged groups such as veterans, veteran service disabled, persons with
disabilities, lesbian, gay bisexual, and transgender individuals.

Section 5:   VOLUNTARY GOALS FOR CERTIFIED MINORITY AND WOMEN BUSINESS
ENTERPRISES (M/WBE)

The Port strongly encourages the utilization of diverse suppliers in all Port procurements and contracts
which includes the participation of certied M/WBE.

Voluntary Goals for Certied M/WBE Who Are SCS Firms:

The CEO shall be authorized to establish voluntary M/WBE goals on major construction projects,
professional and personal service contracts, and goods and purchased services. Because these M/WBE
goals are purely voluntary, the success or failure of any particular project or procurement to reach the
M/WBE goals shall not result in any benet or penalties to the bidder or awarded rms.

Section 6.      DEFINITIONS

a.   Small Contractor and Supplier (SCS)  Small businesses certied by the Port or King County that
fall within a revenue size cap of 50% of SBA's national size standards as well as owner's
personal net worth cap of $750,000 (three year average).

b.   Minority Business Enterprise (MBE)  Businesses that are certied as Minority Business
Enterprises as dened by the Washington State Ofce of Minority and Women Enterprises
(OMWBE) as set forth in WAC 326-02-03 0(24).

0.   Women Business Enterprise (WBE)  Businesses that are certied as Women Business
Enterprises as dened by OMWBE as set forth in WAC 326-020-03 0(41).

d.   Disadvantaged Business Enterprise (DBE)  DBEs are for-prot small businesses where socially
and economically disadvantaged individuals own at least a 51% interest in the business and also
control management and daily business operations. African Americans, Hispanics, Native
Americans, Asian-Pacic, Subcontinent Asian Americans, and women are groups considered
socially and economically disadvantaged. Other individuals can qualify as socially and
economically disadvantaged on a case-by-case basis through the state Uniform Certication
Program (UCP). In order to qualify as a DBE, a business must rst be certied by the state
through the state Uniform Certication Program (UCP).

6.   Small Business: The SBA 8(a) certication for socially and economically disadvantaged
businesses is based on 100% of SBA's size standards, which is used only in federal
procurements. The Port's current practice is to allow rms to 'self-identify' on all Port rosters
that they are small businesses using 100% of the SBA's size standards.

f.   Certication: The Port shall develop a SCS certication process to verify revenue size of the
small business and the personal net worth of the small business owner. SCS rms that are
certied M/WBEs will be counted for this Program, however, those rms whose revenues exceed
the 50% size standard and whose personal net worth exceeds $750,000, will not be included in
the SCS Program. The Port may recognize other national certications primarily for
identication purposes (ex: NW Minority Business Council, National Women Business
Enterprise Council, National Lesbian and Gay Chamber of Commerce' Lesbian, Gay, Bisexual,
Transgender Business Enterprise (LGBTBE) Certication).

ADOPTED by the Port Commission ofthe Port of Seattle thisdah.2lalay of 2010, and duly
authenticated in open session by the signatures of the Commissioners voting in favor thereof and the Seal
of the Commission duly afxed.

GAE}. TAREETON

ROB HOLLAND
JOHNMCREIGHTON
TOM ALBRO


Port Commission