How to Meet Good Faith Effort Requirements for Government Bids

Winning government contracts often requires meeting Good Faith Effort (GFE) requirements to ensure inclusivity in public sector projects. Contractors must demonstrate proactive efforts to engage Disadvantaged Business Enterprises (DBEs), Minority/Women-Owned Business Enterprises (M/WBEs), Disabled Veteran firms, and other socially and economically disadvantaged businesses. Failure to meet these standards can lead to disqualification or legal issues for companies bidding on government-funded construction projects in the United States of America.

Meeting Good Faith Effort (GFE) requirements is essential for government contractors. In this guide, we outline the steps to ensure compliance:

• Understand what constitutes a Good Faith Effort (Good Faith Effort Documentation Services).
• Conduct proper outreach to DBEs and M/WBEs (DBE Outreach Journal).
• Document all outreach efforts for compliance verification.
• Submit detailed logs and proof of communication.
• Avoid common pitfalls that could result in non-compliance.

1. Understand What Constitutes a Good Faith Effort

Government agencies require contractors to make genuine, measurable attempts to involve DBEs in bidding opportunities. This means:

• Actively seeking and contacting certified DBEs and small businesses.
• Providing equal opportunities for participation.
• Ensuring fair contract terms and conditions.
• Following specific outreach guidelines outlined in bid documents.

Each state and federal agency may have different requirements, so it’s essential to review the solicitation documents carefully.

2. Conduct Proper Outreach to DBEs and M/WBEs

To demonstrate compliance, you must prove that you have actively solicited participation from DBEs. Effective outreach includes:

• Advertising in trade publications and minority business directories.
• Sending bid invitations via email, phone, and fax with sufficient response time.
• Participating in networking events, contractor meetings, and pre-bid conferences (Contractor Calendar).
• Using state and local DBE directories to find subcontractors.
• Providing technical assistance or offering flexible contract terms to make bidding accessible for small businesses.

3. Document All Outreach Efforts for Compliance Verification

Proper documentation is critical to proving compliance. Maintain detailed records of:

• Bid invitation emails and phone logs.
• Meeting attendance sheets.
• Advertisement placements and dates.
• Follow-up attempts and responses from DBEs.
• Signed DBE agreements or rejection letters.

Government agencies often audit outreach efforts, so it’s crucial to keep everything organized and accessible.

4. Submit Detailed Logs and Proof of Communication

Once outreach efforts are complete, contractors must submit evidence of compliance. Most agencies require:

• Outreach logs listing contacted DBEs and other certified business types.
• Copies of emails, letters, and phone call records.
• Affidavits or declarations of efforts made.
• A final summary of participation percentages.

Using Compliance News' Good Faith Effort Documentation Services, contractors can streamline this process with automated tracking and reporting tools.

5. Avoid Common Pitfalls That Could Result in Non-Compliance

Even well-intentioned contractors can make mistakes that jeopardize their eligibility for government contracts.

Common Pitfalls Include:

• Failing to start outreach early enough.
• Only contacting a small number of DBEs.
• Not following up with DBEs who expressed interest.
• Lack of documentation proving outreach efforts.
• Using unqualified or uncertified subcontractors.

Final Thoughts

Meeting Good Faith Effort requirements is not just a regulatory box to check—it’s a crucial part of ensuring fair competition in government contracting. By proactively engaging DBEs and maintaining thorough documentation, contractors can secure more bids and avoid compliance issues. 

It is also important to note that many Veteran and Disabled Veteran Small Business programs exist that often require Good Faith Effort Outreach, such as the SDOVSB (Service-Disabled Veteran-Owned Small Business), the VOSB (Veteran-Owned Small Business) programs, and other veteran certification programs that exist at the state level. 

Many cities, counties, and states also have their own particular MBE (Minority Business Enterprise), WBE (Woman Business Enterprise), and small business certification programs that often require good faith effort outreach. This is in addition to the federal DBE program which is in turn administered by each individual state and by the District of Columbia and Puerto Rico.

Need help ensuring your Good Faith Effort compliance? Learn more about our outreach and documentation services here.