11b. Presentation
Diversity in Contracting Annual Report
Visit us at https://www.portseattle.org/business/bid-opportunities Item No. 11b Meeting Date: April 12, 2022 Diversity in Contracting 2021 Annual Report Dave McFadden, Managing Director, Economic Development Mian Rice, Director, Diversity in Contracting Lawrence Coleman, WMBE Manager, Diversity in Contracting April 12, 2022 Agenda Policy Directive 2021 Diversity in Contracting (DC) WMBE Results What's in the Numbers DC Program Activities 2022 Goals Moving Forward 2 Diversity in Contracting Policy Directive Advance equity and address contracting disparities by increasing the utilization of Women Minority Business Enterprises and other disadvantaged firms Five-year Policy Benchmarks: Increase to 15% the amount of spend on WMBE contracts within 5 years (Baseline: 5.3%) Triple the number of WMBE firms doing business with the Port (Baseline: 118) (Goal is 354) 3 2021 Port-wide WMBE Utilization Total Port Category Total WMBE Spend WMBE Utilization Spend Public Works (Construction) 325,178,389 37,322,803 11.5% Non-Construction 205,560,136 26,746,215 13.0% Total 64,069,018 466,669,509 12.1% WMBE Utilization improved from 10.9% to 12.1% in 2021 4 Port-wide WMBE Utilization (Last 6 Years) 2018 WMBE Utilization 2016 2017 2019 2020 2021 (Program Start) Percent 5.30% 8.80% 8.90% 10.0% 10.90% 12.1% Utilization Number of Firms 118 200 258 296 318 344 5 2021 WMBE Utilization WMBE Breakout WMBE Type WMBE Spend Percent of Port Companies Spend Minority Men $39,220,338 7.4% 139 Minority Women $3,447,152 0.6% 47 Minority Men & $42,667,490 8.0% 186 Women Caucasian Women $21,401,528 4.0% 158 WMBE $64,069,018 12.0% 344 6 2021 WMBE Utilization Ethnicity Breakout Ethnicity Ethnicity Spend Ethnicity Percent Ethnic Companies Asian $10,683,311 2.0% 53 Black or African $10,020,271 1.9% 30 American Latinx $11,451,900 2.2% 29 Multi-Racial $3,986,285 0.8% 3 Native American $7,852,250 1.5% 14 Other Minority ** $188,693 0.0% 3 Minority Ethnicity Total* $44,182,710 8.3% 132 Caucasian Women $21,401,528 4.0% 158 *Includes P-Card purchases which are not broken down by ethnicity. **Respondents stated they are a minority but did not specify ethnicity. Ethnicity data for WMBE firms only. 7 2021 WMBE Division Utilization (Non-Construction) Division 2021 Goal 2021 Actual Aviation (AV) 16% 12.3% Economic Dev. (EDD) 13% 15.8% Maritime (MD) 15% 13.8% *Corporate 18% 15.3% Total 16% 13.0% 8 2021 WMBE Division Utilization (Non-Construction) - *Corporate Department 2021 Goal 2021 WMBE Attainment (Percentage) Police 10% 2.3% Human Resources 16% 22% External Affairs 13% 19.9% Office of Strategic Initiatives 50% 83.7% Internal Audit 0% 7.7% Labor Relations 12% 40.9% Diversity, Equity & Inclusion 20% 7.9% Engineering/Port Construction Services 10% 11.5% Environmental 2% 0.1% Central Procurement Office 5% 5.1% Legal 5% 0.1% Finance/ICT/BI 19% 24.6% Commission 8% 10.9% *Corporate Goal: 18% Attainment: 15.3% 9 Closer Look: Non-Construction Non-Construction Year Port Spend WMBE Spend % Utilization 2021 WMBE Spend decreased 3% from previous year 2017 $16,052,757 8.66% Possible pause or delay of $185,473,454 some contracts from late 2020 to 2021 2018 $180,188,026 $16,479,395 9.15% Late Reporting of Payments made to WMBEs 2019 $208,650,356 $25,258,177 12.11% What were the major drivers of spend? 2020 $199,865,542 $32,974,802 16.50% Still progress from 2019 utilization pre-Covid 2021 $205,561,136 $26,746,215 13% 10 Closer Look: Construction Construction Construction WMBE Spend has Year Port Spend % Change WMBE Spend % Utilization increased since 2017 WMBE Pre-Bid Analysis: Average 2017 $230,424,913 -- $19,065,459 8.27% WMBE Construction Goals - 10% - 12% (Majority of projects Low- Bid) 2018 $516,504,619 124.20% $45,287,278 8.77% Availability of firms based upon Work Breakdown Structure 2019 $493,247,548 (4.50%) $44,969,418 9.12% (2021) Only 2 Affirmative Efforts reviews were conducted for not 2020 $495,708,130 0.50% $42,530,283 8.58% meeting Aspirational goals 2021 $325,178,389 (34.4%) $37,322,803 11.5% 11 2021 Training and Outreach Efforts Training 101 Level: 2021 PortGen Class attendance has increased due to virtual platforms 722 businesses attended seminars we sponsored 201 Level: Advanced PortGen training series in partnership with USDOT 301 Level: First WMBE/SBE Business Accelerator Program Engagement WMBE partner orgs (Highline SBDC, Tabor 100, NMAC, Ethic Chambers) to support Covid-19 relief Participation in Association of General Contractors (AGC) Diversity Sub-Committee Capacity Building Federal Disadvantage Business Enterprise (DBE) Trainings (Internal & External) Internal WMBE Utilization Department/Divisions Trainings Pushing Construction goals and efforts 12 Diversity in Contracting 2022 Goals 13 2022 WMBE Division Utilization Goals (Non-Construction) Division 2022 Goal 2021 Actual 2021 Goal Aviation (AV) 15% 12.3% 15% Economic Dev. (EDD) 14% 15.6% 14% Maritime (MD) 16% 16% 16% Corporate 14% 14.5% 18% Port Wide 15% 13% 16% 14 2022: Establishing Construction Goals 2022 is the first year Port will have annual construction goals by division Goal Setting Support for Divisions o Forecast Future Spending o Analyze historical WMBE utilization Construction o Calculate 2021 Actual 2022 Goal o Adjust Utilization Challenges Total 11.5% 12.5% Forecasting, accurate and consistent process Solution Diversity in Contracting is establishing an initial Port-wide goal for construction 15 DC Program Benchmark Check-In 2021 was third year of the DC program Pro We continue to see an overall increase in WMBE Utilization Number of utilized WMBE firms in 2021 344 (5 year - Goal 354) Con Program is not on target to achieve Port-wide 5-year WMBE utilization goal of 15%. Port will not achieve 15% without increasing construction WMBE utilization 16 Leveraging Construction 1. Encouraging more Alternative Delivery Methodologies (Best Value) vs Low Bid projects Increasing Diversity in Contracting evaluation points within RFP sections Evaluate Diversity in Contracting efforts or better tie in within the Project Approach sections that are in RFP's 2. Push harder on low-bid WMBE Aspirational Goals (May increase Affirmative Efforts reviews) Be OK to move to next bidder with the possibility of higher bid price 3. Increased compliance of established and accepted WMBE goal on projects Stronger enforcement tools Posting of WMBE Results of Primes 17 Moving Forward Complete WMBE Analysis Study Continue to focus on WMBE businesses utilized Provide ongoing training to WMBE/DBE businesses o PortGen (101) o Advanced PortGen (201) o WMBE/SBE Business Accelerator (301) Pushing Federal DBE Certification on upcoming federally assisted projects Maximize WMBE goals on future alternative contracting methodology contracts (GC/CM, D/B, JOC) Capacity building: support WMBE businesses pursuing small works and JOC projects Explore development of an Architectural & Engineering program for small business, Veteran, WMBE businesses 18 Thank You 19
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