Construction Bid Source
Good Faith Effort Basics - An Introduction
For the General Contractor, the Good Faith Effort process can be a daunting task, often requiring the services of a full-time employee to handle all of the required research, establish DBE subcontractor lists, submit invitations to bid, make follow up phone calls and submit completed documentation with the bid package.
Affirmative Action was established in 1961 to utilize the services of 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%.
DBE participation requirements for contracting with the State of California changed in 1998 when Governor Pete Wilson signed Executive Order W-172-98, which ordered the cessation of all DBE participation goals for state funded projects. Disabled Veteran Enterprises, however, were exempted from this Executive Order and contractors were obliged to continue including at least 3% DVBE participation goals on State Funded projects - or show that a Good Faith Effort was performed.
This status changed on July 23rd, 2009, when Assembly Bill AB 21 was signed into law, which included a provison that Good faith Efforts were no longer needed for DVBE's. In accordance with AB 21, contractors are now REQUIRED to include DVBE's on State Funded projects. The participation levels vary according to the size of the project.
Simultaneously with the new requirement for DVBE's, the State of California implemented a Race-Conscious Disadvantaged Business Enterprise (RC DBE) Program. This program includes African American, Asian Pacific American, Women, and Native American businesses. All Federally funded contracts require inclusion of this category, also known as UDBE, (Underutilized Disadvantaged Business Enterprise).
If you are new to the Good Faith Effort process, take a look at our step-by-step outline of how to successfully complete a Good Faith Effort.
Step-By-Step guide to Good Faith Efforts
Or perhaps you would like us to ask us to do your Good Faith Effort for you. Click on the link below to get started:
