Good faith effort (GFE) advertising is a critical requirement for contractors bidding on public works projects in California. Understanding these requirements and executing them properly can mean the difference between a winning bid and a disqualified proposal. This comprehensive guide walks you through everything you need to know about GFE advertising in California.

## What is Good Faith Effort?

Good faith effort (GFE) refers to documented evidence that a contractor has made a sincere, active attempt to solicit bids from, and award subcontracts to, minority-owned, women-owned, and disadvantaged business enterprises (MBEs, WBEs, DBEs). The California Department of General Services (DGS) and federal agencies require GFE documentation for public works projects exceeding certain thresholds.

The purpose of good faith effort requirements is to promote economic inclusion and ensure that historically underutilized business groups have genuine opportunities to participate in public construction projects. Rather than imposing rigid quotas, GFE rules focus on documented outreach and good-faith attempts to include diverse subcontractors.

## Legal Basis for GFE Requirements

Good faith effort requirements in California stem from multiple sources:

**Federal Requirements:** The Davis-Bacon Act and related federal procurement regulations require GFE for federally-funded projects. These requirements apply to highway construction, water projects, airport improvements, and other federal initiatives.

**State of California Requirements:** California Government Code Section 14837 requires GFE documentation for state-funded projects. The California Public Works Code also incorporates GFE requirements for prevailing wage projects.

**Local Agency Requirements:** Many cities and counties have adopted their own GFE requirements for locally-funded projects, often mirroring state and federal standards.

## Who Must Comply with GFE Requirements?

Not every construction project requires good faith effort advertising. Understanding when GFE is mandatory is essential for compliance.

**Projects that typically require GFE:** - Public works projects over $25,000 (federal threshold) - State-funded construction projects - County and city public works projects with prevailing wage requirements - Highway construction (Caltrans projects) - Water district projects - School district construction - Public facility improvements - Housing authority projects

**Projects that may not require GFE:** - Small, local projects under agency thresholds - Purely private projects (even if adjacent to public property) - Emergency repairs under specific exemptions - Design-only contracts (typically)

Your project specifications or bid documents will explicitly state whether GFE is required. Always review the bid documents carefully.

## What Constitutes Adequate Good Faith Effort?

California and federal agencies look for documented evidence of genuine outreach efforts. "Good faith" means you made sincere, active attempts—not just perfunctory gestures.

**Required GFE documentation typically includes:**

1. **Notification**: Certified evidence that you sent solicitations to potential DBE/MBE/WBE subcontractors. This must be sent far enough in advance (typically 10+ business days before bid due date) to allow response.

2. **Source Lists**: Documentation showing where you obtained lists of qualified diverse subcontractors. Sources include the DGS Supplier Clearinghouse, local DBE directories, Chamber of Commerce listings, and industry associations.

3. **Outreach Records**: Evidence of contact attempts—emails, phone call logs, meeting notes, returned solicitations. Multiple contact attempts (at least 2-3 per subcontractor) demonstrate good faith.

4. **Subcontractor Quotes**: Written quotes from at least some DBE/MBE/WBE firms solicited, even if not awarded. If no bids were received, documentation explaining attempts and reasons for non-response.

5. **Advertisement**: Proof of advertising the opportunity in publications targeting minority and women-owned businesses. The Daily Reporter publishes legal GFE notices that fulfill this requirement.

6. **Award Decisions**: If you awarded work to DBE/MBE/WBE firms, clear documentation of the subcontract. If you didn't, written explanation of why alternative sources were selected.

## GFE Advertising Requirements

Advertising your project to the DBE/MBE/WBE community is a cornerstone of good faith effort. This is where The Daily Reporter plays a critical role.

**How to advertise for good faith effort:**

1. **Publication Selection**: Choose publications that reach your target diverse business community. For California construction, The Daily Reporter is certified by DGS as a "Trade Newspaper" and "Focused Newspaper," meeting official requirements for GFE advertising.

2. **Timing**: Place your GFE ad at least 10 business days before your bid deadline. Earlier is better—this gives potential subcontractors time to develop proposals and request clarifications.

3. **Content**: Your GFE notice should include project name and location, bid deadline, project scope, trades sought, and contact information.

4. **Targeted Outreach**: Contact known DBE/MBE/WBE firms directly via email and phone calls to document good faith efforts.

5. **Record Keeping**: Keep solicitation emails, returned proposals, and phone logs as evidence of good faith effort.

## Conclusion

Good faith effort advertising is both a legal requirement and an opportunity to support California's diverse business community. By understanding requirements and maintaining thorough documentation, you ensure compliance and demonstrate commitment to diversity in construction.