In the public works and procurement sector, the good faith effort refers to a set of procedures required of companies bidding on government contracts to help satisfy contracts' small, minority, women, and disadvantaged business (ie. DBE, MBE, WBE, UDBE, SBE, DVBE, etc.) participation goals.
Government agencies apply DBE, MBE, WBE, UDBE, SBE, and/or DVBE participation goals to their contracts in an effort to help these disadvantaged businesses get their fair share of government contracting dollars, though not all contracts have participation goals.
To be deemed responsive to a contract's participation requirements, companies bidding on the government contracts must either meet the stated goal through subcontracting portions of the contract, perform the good faith effort, or combination of both.
The most commonly required steps of the good faith effort are:
If a bidder does not complete the the good faith effort, they may be deemed unresponsive and have their bid dismissed. It is important to note that the specifics of the good faith effort may vary from agency to agency. The above summary is intended as a general guide and bidders are strongly encouraged to consult their bid documents before proceeding with their good faith effort.
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