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Port reports quarterly contracting shortfall; local business participation dips to ~10%
Summary
Contract administrator Norma Nelson reported the Port’s third-quarter contracting activity (Jan–Mar 2010) showing local business participation near 10.18% for the quarter, below the 20% goal, while cumulative fiscal-year participation remained above target at ~23.92%. Commissioners asked staff to investigate IT contracting and options to increase LBE participation.
Norma Nelson, contract administrator, presented the Port’s third-quarter contracting activity report for the January 1–March 31, 2010 reporting period as required by Administrative Code Section 6.64. She reported the quarter’s local-business participation fell short of the 20% goal and cited a quarter figure of about 10.18%. Nelson said that when the quarter is folded into cumulative fiscal-year activity the port’s subcontracting to local business enterprises stood at roughly 23.92%.
Nelson told commissioners several reasons explain the quarter’s shortfall: (1) much port work is maritime-related and difficult to subcontract to LBEs; (2) more port work during the quarter was directed to other city departments (notably the Department of Public Works) where in-house staff performed work that might otherwise have been contracted; and (3) a sizable share of the quarter’s contracting involved amendments to existing contracts with little opportunity for LBE participation.
Commissioners questioned the Extech (IT) professional-services contract and other upcoming IT procurements. Staff explained that many IT contracts are handled through central city master contracts and COIT/Office of Contract Administration processes and that the port has limited control over the pool of IT consultants used on citywide IT master agreements. City counsel/other staff noted a complicating factor is that software licenses and certain software maintenance agreements are not subject to the city’s local-participation rules, which may reduce opportunities to hit LBE goals on IT work.
Commissioners asked staff to investigate further and report back on how the port could increase LBE participation in upcoming IT procurements (including a large inventory/maintenance software procurement the port anticipates), and staff said they would follow up with the port IT manager and Office of Contract Administration. Nelson and commissioners said citywide contracting reforms are underway and that staff may return later in the summer with policy recommendations.
Next steps: staff to look further into IT contract participation, discuss options with the Office of Contract Administration and port IT, and consider policy recommendations this summer.
