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Conforming with Disadvantaged Business Enterprise (DBE) Good Faith Effort Requirements

Last Update:  May 14, 2014

 

SDWSRF projects subjected to federal cross-cutting requirements must conform to "Good Faith Effort" requirements for procurement funded by the SDWSRF loan and/or grant.  This requirement encompasses procurement of construction, equipment, supplies, and services.

In order to conform to Good Faith Effort requirements, DBE firms should be provided the opportunity to compete and to participate in SDWSRF-funded procurement.

The Fair Share Goals negotiated with US EPA for Minority Business Enterprises and Women’s Business Enterprises (MBE/WBE) for 2012 are:  Construction - MBE 11%, WBE 4%; Supplies - MBE 2%, WBE 1%; Equipment - MBE 2%, WBE 2%; Services - MBE 4%, WBE 2%.

Helpful Links

The following links are available to assist you in identifying MBE/WBE firms for solicitation  for  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 DBE requirement. 

The SRF loan recipient complies with the DBE Good Faith Effort requirement by following these basic affirmative steps:  

(1)   Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government recipients, this will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources;

(2)   Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date;

(3)   Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. For Indian Tribal, State and local Government recipients, this will include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process;

(4)   Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to handle individually;

(5)   Use the services and assistance of the SBA, the Minority Business Development Agency of the Department of Commerce and the CalTrans Unified Certification Program; and

(6)   If the prime contractor awards subcontracts, require the prime contractor to take the affirmative steps in paragraphs (1) through (5).    

While you are not required to award contracts or subcontracts to DBEs, 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 DBEs.  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 should include mail logs, phone logs, electronic searches and communication, newspaper clippings or similar records documenting the use of the above identified sources of information about DBEs, the prime contractor’s efforts to contact them, and other efforts to meet the Good Faith Effort six step requirements.

Guidance from CDPH                  

USEPA Forms 

The following forms MUST be included in the bid solicitation:  Forms 6100-3  and 6100-4 must be submitted to the water system with each responsive bid; Form 6100-2  must be available to subcontractor bidders, and may be submitted by potential subcontractors to USEPA Region 9

EPA Form 6100-2 (PDF)Opens in new window.

Requirement: SRF funding recipient required to have prime contractors provide form to subcontractors
Provided by: Prime Contractors
Completed by: DBE Subcontractors (completion/submittal not required)
Submitted to: DBE may submit to EPA Region 9 DBE coordinator (Joseph Ochab, DBE Coordinator, USEPA Region 9 (MTS-4), 75 Hawthorne Street, San Francisco, CA  94105)

EPA Form 6100-3 (PDF)Opens in new window.

Requirement: SRF funding recipient required to have prime contractors provide form to subcontractors
Provided by: Prime Contractors
Completed by: DBE Subcontractors
Submitted to: MUST SUBMIT to Water System (SRF funding recipient) as part of bid or proposal package

EPA Form 6100-4 (PDF)Opens in new window.

Requirement:  SRF funding recipient required to have prime contractors complete the form
Provided by: SRF Funded Water System
Completed by: Prime Contractors
Submitted to:  MUST SUBMIT to Water System (SRF funding recipient) as part of bid or proposal package 

 
 
Last modified on: 5/19/2014 1:37 PM