What Are Common Pitfalls in Demonstrating DBE Good Faith Efforts and How Can They Be Avoided?

Most businesses when bidding on government-funded construction projects will attempt to comply with the law and meet the needs of the Disadvantaged Business Enterprise (DBE) program, meaning that most firms will attempt to include subcontractors owned by disadvantaged individuals in society such as ethnic minorities, women, the disabled, and more.

However, there are some notable pitfalls that businesses must avoid to prove good faith efforts in complying with the DBE program. Learn what these pitfalls are and how they can be avoided below. 

Poor Documentation 

Companies must provide quality documentation of all efforts to comply with the DBE program and include as many certified DBE businesses as possible. If the documentation is not thorough and accurate enough, your company could be found to be non-compliant with the DBE program. Thus, you need to keep thorough records of all activities and conversations you have with DBEs, including phone calls, emails, faxes, meeting transcripts, and more. 

Documentation Must Be Timely 

You must submit all documentation by the requisite deadlines; failure to do so can also lead you into noncompliance with the DBE program. Thus, be sure to know all of the required documentation and the deadlines that need to be met. 

Lack of Genuine Effort to Include DBEs 

Your company must do more than just go through the motions to include DBEs when deciding upon subcontractors; you must actually engage with DBEs in your search to be in compliance. Thus, be assertive and aggressive in finding and engaging with DBEs when hiring and using subcontractors for your contractual work. In addition, after your initial contact with a DBE, you need to follow up with them to determine whether they have been hired or not. Failing to follow up with a DBE can potentially be seen as you and your company not making a genuine effort to include DBEs in your search. 

Denying DBEs Without Legitimate Reasons 

Just denying DBEs for no apparent good reason can lead to noncompliance with the DBE program. Social affiliations and industry standing are not good enough reasons to reject a DBE; rejecting a DBE (and really any company) can only be legally done via reasons based on performance. Document the reasons and the logic behind your decision to ensure you are in compliance. Contact us to learn more about our company, services, and how we can help to ensure you include a diverse group of subcontractors when filtering out work of important clients such as city, county, state, and U.S. federal agencies.