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Contract Compliance & Affirmative Action
Good Faith Effort
 
As a contractor, your time is valuable.  When it comes to contract complinace and Good Faith Efforts, if they're not executed properly, you could lose a contract bid!  You don't want that to happen - by any means....

If you don't have the staff, time or resources to get this part of your bid completed but really want to bid on a project, you have two choices:

 Use this site to help you do your Good Faith Effort, or

 Let us do your Good Faith Effort for you

If you are familiar with Good Faith Effort procedures, click on one of the above choices and take advantage of the resources available on this site or, if you are new to the Good Faith Effort requirements in the construction industry, perhaps an overview of the Good Faith Effort process will assist you in making the right decision:

What is Affirmative Action and Good Faith Effort?


Affirmative Action was established in order to utilize minority (MBE), women (WBE), disabled veteran business enterprises (DVBE) and others, in service, commodity and construction contracts to the maximum extent feasible.  These various groups are collectively known as Disadvantaged Business Enterprises (DBE).

Most public works agencies, both federal and state, require that a "Good Faith Effort" be made by the bidding prime contractor to afford DBE companies every opportunity to participate in the bid as a supplier or sub-contractor.  These agencies requesting the bids, set goals for the participation of DBE companies, based on various ethnic and / or socioeconomic factors.  Some of these goals can be high - over 20% while others (State of California) can be as low as 3% for DVBE participation.

DBE participation requirements for contracting with the State of California changed in 1988 when Governor Pete Wilson signed Executive Order W-172-98, which ordered the cessation of all DBE participation goals with the exception of Disabled Veteran Enterprises (DVBE), which have a current goal of 3%.  School Districts and other entities receiving state funding also require the 3% DVBE participation.

How do I get started with my Good Faith Effort?

First, read the bid documents carefully.  Make sure you understand the requirements of the Good Faith Effort for your particular bid.  Once you have determined what procedures are required, call the awarding agency and ask them if they have any additional information that might help you or if they have a list of DBE companies you can contact. This procedure is usually required in most bids.

You should then place your advertisement or advertisements as specified in the bid documents.  Most agencies require that you bid in both a "Trade" and "Focus" publication at least 10 days prior to bid date. These publications can be paper or electronic (internet) medium.

Once the ad(s) is placed, start contacting DBE's by fax, email or phone.  The bid documents will explain how to do this and how many DBE companies you should contact and if you will need to make further follow up calls. Ther are many resources listing DBE's and you may have to search through many on-line databases to find the DBE trades applicable to your requirements. 

You will be required to negotiate with the DBE's in good faith.  If they submit the lowest responsible bid, accept it, or you may be disqualified.  Record everything you do on paper, this is required by the issuing agency and must be submitted with your bid.

I'm a DBE sub contractor, what can I do to be invited to bid?

Make sure you are properly certified and currently registered with the appropriate agency. You may view the certifying agency list by clicking on either (PDF) or (DOC) format.  Once registered, you will be automatically included in that agency's database, which GC's will search during the bidding process.  You should also check you local newspaper and trade magazines for DBE advertisements and any on-line resources which carry DBE ads, such as those listed on Construction Bid Source Interactive.
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