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Conforming with Minority and Women-Owned Business Enterprise (MBE/WBE): Good Faith Effort Requirements

SDWSRF projects designated as subject to federal cross-cutting requirements must conform with good faith effort requirements for procurement funded by the SDWSRF loan and/or grant.  This requirement encompasses procurement of contstruction, equipment, supplies, and services

In order to conform with Good Faith Effort requirements, MBE and WBE firms should be provided the opportunity to compete to participate in SDWSRF-funded procurement. The MBE/WBE Fair Share Goals negotiated with USEPA are as follows: 

The 2001 MBE/WBE Goals for SDWSRFare :  Construction - MBE 22%, WBE 9%; Supplies - MBE 17%, WBE 7%; Services - MBE 14%, WBE 7%; Equipment - MBE 16%, WBE 14%

Helpful Links

The following links are available to assist you in identifying MBE/WBE firms for contracting/subcontracting to provide construction, equipment, supplies, or services: 

Good Faith Effort

It is critical that construction bid solicitation documents adequately advise prime contractor bidders of the "good faith effort" six step requirements; conformance with this is a requirement to comply with the MBE/WBE federal cross cutting requirement. 

The SRF loan recipient complies with the MBE/WBE “good faith effort” requirement by following these basic affirmative steps:  

(1)   Place qualified small and minority businesses and women’s business enterprises on solicitation lists;

(2)   Assure that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;

(3)   Divide total requirements, when economically feasible, into small tasks or quantities to permit maximum participation by small and minority business and women’s business enterprises;

(4)   Establish delivery schedules when the requirements of the work permit, which will encourage participation by small and minority-owned businesses and women-owned business enterprises;

(5)   Use the services and assistance of the Small Business Administration and the Minority Business Development Agency Department of Commerce; and

(6)   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 MBE or WBE enterprises, 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 MBE/WBE.  The outreach for potential subcontractors should include adjacent counties if the project is in an area with limited population or limited population diversity.  The water system should obtain from the selected prime contractor documentation concerning the prime contractor’s Good Faith Effort.  This documentation may include mail logs, phone logs, or similar records documenting the use of the above identified sources of information about MBE/WBE firms, the prime contractor’s efforts to contact them, and other efforts to meet the Six Steps Good Faith Effort.



Last modified on: 6/12/2008 2:43 PM