What is Good Faith Effort?
Good faith effort exists to ensure that prime contractors use minority and under represented businesses on government contracts. Depending on the agency, city or state the requirements may vary. Most agencies require DBE and UDBE Good Faith Effort, but again this may vary depending on the agency. Please see below for Federal GFE Requirements:
It is critical that construction bid solicitation documents adequately advise prime contractor bidders of the Good Faith Effort six step requirements; conformance with this process is essential in complying with the DBE requirements. The SRF loan recipients comply with the DBE Good Faith Effort by following these basic affirmative steps:
- Place qualified small, disadvantaged, minority-, women- or veteran-owned business enterprises on solicitation lists;
- Assure that DBEs are solicited whenever they are potential sources;
- Divide total requirements, when economically feasible, into small tasks or quantities to permit maximum participation by DBEs;
- Establish delivery schedules when the requirements of the work permit, which will encourage participation by DBEs;
- Use the services and assistance of the Small Business Administration and the Minority Business Development Agency Department of Commerce, and CalTrans Unified Certification Program, as appropriate; and
- Require the prime contractor, if subcontracts are to be let, to take the affirmative steps in paragraphs (1) through (5).
While you are not required to award contracts or subcontracts to DBEs, such firms must be provided the opportunity to compete to participate. The potential prime contractor preparing a bid should provide adequate time (typically at least 5 days) for preparation of subcontract proposals by potential subcontractors and suppliers, including DBEs. The outreach for potential subcontractors should include adjacent counties if the project is in an area with limited population or limited population diversity. Proof of the outreach process must be present via documentation.
This documentation should include mail logs, phone logs, electronic searches and communication, or similar records documenting the use of the above identified sources of information about DBEs, the prime contractor’s efforts to contact them, and other efforts to meet the Good Faith Effort six step requirements.
- Contact awarding department to identify potential DVBEs.
- Contact other state, federal agencies, and local DVBE organizations to identify potential DVBEs.
- Publish advertisements in trade and focus papers, 14 calendar days prior to bid due date.
- Invite potential DVBE contractors to bid on your project.
- Consider bids from potential DVBE’s
Finding DVBE/SBE/MBE/DBE Businesses:
We can help you, we have a massive database containing information for minority and economically disadvantaged businesses. We will customize your Solicitation log to meet the needs of your project. We utilize our technology to optimize the search process, ensuring that the desired project requirements will be fulfilled. If you are having trouble locating a potential businesses feel free to call, fax or email us.
Too busy to contact firms on your own?
We offer full service good faith effort bid outreach so do not hesitate to ask for our assistance.