Under 49 CFR Part 26, the federal framework for DOT-funded DBE programs, a bidder can satisfy a contract's DBE requirement in one of two ways. Meet the numeric goal with documented DBE commitments. Or fall short of the goal but show good faith efforts: steps that, by their scope, intensity, and appropriateness, could reasonably be expected to achieve the goal even if they did not. Appendix A to Part 26 lays out what counts: soliciting DBEs early enough for them to respond, breaking work into smaller pieces DBEs can perform, and not rejecting a DBE quote just because it is not the lowest. The regulation says “mere pro forma efforts” do not count. Whether an agency accepts a bidder's good faith effort documentation is a judgment call. That call can decide whether a bid is accepted or rejected as non-responsive. DBE goals and the documentation requirements are set at the project level. Catch them early enough to solicit DBE subs and suppliers properly. Nonlinear surfaces DBE participation goals when it reads a bid package, the same way it surfaces bonding and prequalification requirements.
Knowledge Base
What is a good faith effort (DBE compliance)?
A good faith effort is the documented, genuine attempt a bidder makes to meet a project's Disadvantaged Business Enterprise (DBE) participation goal. An agency can accept that documented effort in place of hitting the goal, as long as the effort was real and reasonable.
