Common use of Good Faith Effort Clause in Contracts

Good Faith Effort. To demonstrate good faith efforts to meet the Contract DBE goal, a Contractor shall, on an ongoing basis, document the steps it takes to obtain DBE participation in accordance with 49 CFR Part 26.53 and Appendix A, including but not limited to the following: 1. Conducing market research to identify small business contractors and suppliers and soliciting through all reasonable and available means the interest of all certified DBEs that have the capability to perform the work of the Contract. This may include attendance at pre-bid and business matchmaking meetings and events, advertising and/or written notices, posting of Notices of Sources Sought and/or Requests for Proposals, written notices or emails to all DBEs listed in the State’s directory of transportation firms that specialize in the areas of work desired (as noted in the DBE directory) and which are located in the area or surrounding areas of the project. Should solicit this interest as early in the acquisition process as practicable to allow the DBEs to respond to the solicitation and submit a timely offer for the subcontract. Determine with certainty if the DBEs are interested by taking appropriate steps to follow up initial solicitations. 2. Selecting portions of the work to be performed by DBEs in order to increase the likelihood that the DBE goals will be achieved. This includes, where appropriate, breaking out Contract work items into economically feasible units (for example, smaller tasks or quantities) to facilitate DBE participation, even when the Contractor might otherwise prefer to perform these work items with its own forces. This may include, where possible, establishing flexible timeframes for performance and delivery schedules in a manner that encourages and facilitates DBE participation. 3. Providing interested DBEs with detailed information about the plans, specifications, and requirements of the Contract in a timely manner to assist them in responding to a solicitation with their offer for the subcontract. Attempt to contact all potential subcontractors on the same day and use similar methods to contact them; 4. Negotiating in good faith with interested DBEs. Make a portion of the work available to DBE subcontractors and suppliers and select those portions of the work or material needs consistent with the available DBE subcontractors and suppliers, so as to facilitate DBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional Agreements could not be reached for DBEs to perform the work. Consider a number of factors in negotiating with subcontractors, including DBE subcontractors. Take a firm’s price and capabilities as well as Contract goals into consideration. The fact that there may be some additional costs involved in finding and using DBEs is not in itself sufficient reason for failure to meet the contract DBE goal, as long as such costs are reasonable. The ability or desire of a Contractor to perform the work of a Contract with its own organization does not relieve the responsibility to make good faith efforts. Contractors are not, however, required to accept higher quotes from DBEs if the price difference is excessive or unreasonable. 5. Not rejecting DBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor’s standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union status) are not legitimate causes for the rejection or non-solicitation of bids in the Contractor’s efforts to meet the Contract DBE goal. Another practice considered an insufficient good faith effort is the rejection of the DBE because its quotation for the work was not the lowest received. However, nothing in this paragraph shall be construed to require the Contractor to accept unreasonable quotes in order to satisfy the Contract DBE goal. Inability to find a replacement DBE at the original price is not alone sufficient to support a finding that good faith efforts have been made to replace the original DBE. The fact that the Contractor has the ability and/or desire to perform the contract work with its own forces does not relieve the Contractor of the obligation to make good faith efforts to find a replacement DBE, and it is not a sound basis for rejecting a prospective replacement DBE’s reasonable quote. Attempt, wherever possible, to negotiate prices with potential subcontractors which submitted higher than acceptable price quotes. Keep a record of efforts, including the names of businesses contacted and the means and results of such contacts. 6. Making efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance as required by the recipient or Contractor. 7. Making efforts to assist interested DBEs in obtaining necessary equipment, supplies, materials, or related assistance or services. 8. Effectively using the services of available minority/women community organizations; minority/women contractors’ groups; local, State, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEs. If the Contractor fails to meet the Contract DBE goal, they must submit documented evidence of good faith effort(s) with the CR-268 final DBE Report to the DCR/AA for review and approval. Submittal of such information does not imply DCR/AA approval. The Department’s DCR/AA has sole authority to determine whether the Contractor met the Contract DBE goal or made adequate good faith efforts to do so. If the DCR/AA determines that the Contractor has failed to meet the Contract DBE goal or made adequate good faith effort to do so, the Department will follow Section 105.

Good Faith Effort. To demonstrate good faith efforts to meet the Contract DBE ESBE goal, a Contractor shall, on an ongoing basis, document the steps it takes to obtain DBE ESBE participation in accordance with 49 CFR Part 26.53 and Appendix A, including but not limited to the following: 1. Conducing market research to identify small business contractors and suppliers and soliciting through all reasonable and available means the interest of all certified DBEs ESBEs that have the capability to perform the work of the Contract. This may include attendance at pre-bid and business matchmaking meetings and events, advertising and/or written notices, posting of Notices of Sources Sought and/or Requests for Proposals, written notices or emails to all DBEs ESBEs listed in the State’s directory of transportation firms that specialize in the areas of work desired (as noted in the DBE ESBE directory) and which are located in the area or surrounding areas of the project. Should solicit Solicit this interest as early in the acquisition process as practicable to allow the DBEs ESBEs to respond to the solicitation and submit a timely offer for the subcontract. Determine with certainty if the DBEs ESBEs are interested by taking appropriate steps to follow up initial solicitations. 2. Selecting portions of the work to be performed by DBEs ESBEs in order to increase the likelihood that the DBE ESBE goals will be achieved. This includes, where appropriate, breaking out Contract work items into economically feasible units (for example, smaller tasks or quantities) to facilitate DBE ESBE participation, even when the Contractor might otherwise prefer to perform these work items with its own forces. This may include, where possible, establishing flexible timeframes for performance and delivery schedules in a manner that encourages and facilitates DBE ESBE participation. 3. Providing interested DBEs ESBEs with detailed information about the plans, specifications, and requirements of the Contract in a timely manner to assist them in responding to a solicitation with their offer for the subcontract. Attempt to contact all potential subcontractors on the same day and use similar methods to contact them; 4. Negotiating in good faith with interested DBEsESBEs. Make a portion of the work available to DBE ESBE subcontractors and suppliers and select those portions of the work or material needs consistent with the available DBE ESBE subcontractors and suppliers, so as to facilitate DBE ESBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs ESBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional Agreements could not be reached for DBEs ESBEs to perform the work. Consider a number of factors in negotiating with subcontractors, including DBE ESBE subcontractors. Take a firm’s price and capabilities as well as Contract goals into consideration. The fact that there may be some additional costs involved in finding and using DBEs ESBEs is not in itself sufficient reason for failure to meet the contract DBE Contract ESBE goal, as long as such costs are reasonable. The ability or desire of a Contractor to perform the work of a Contract with its own organization does not relieve the responsibility to make good faith efforts. Contractors are not, however, required to accept higher quotes from DBEs ESBEs if the price difference is excessive or unreasonable. 5. Not rejecting DBEs ESBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor’s standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union status) are not legitimate causes for the rejection or non-solicitation of bids in the Contractor’s efforts to meet the Contract DBE ESBE goal. Another practice considered an insufficient good faith effort is the rejection of the DBE ESBE because its quotation for the work was not the lowest received. However, nothing in this paragraph shall be construed to require the Contractor Bidder to accept unreasonable quotes in order to satisfy the Contract DBE ESBE goal. Inability to find a replacement DBE ESBE at the original price is not alone sufficient to support a finding that good faith efforts have been made to replace the original DBEESBE. The fact that the Contractor has the ability and/or desire to perform the contract work with its own forces does not relieve the Contractor of the obligation to make good faith efforts to find a replacement DBEESBE, and it is not a sound basis for rejecting a prospective replacement DBE’s ESBEs reasonable quote. Attempt, wherever possible, to negotiate prices with potential subcontractors which submitted higher than acceptable price quotes. Keep a record of efforts, including the names of businesses contacted and the means and results of such contacts. 6. Making efforts to assist interested DBEs ESBEs in obtaining bonding, lines of credit, or insurance as required by the recipient or Contractor. 7. Making efforts to assist interested DBEs ESBEs in obtaining necessary equipment, supplies, materials, or related assistance or services. 8. Effectively using the services of available minority/women community organizations; minority/women contractors’ groups; local, State, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEsESBEs. If the Contractor fails to meet the Contract DBE ESBE goal, they must submit documented evidence of good faith effort(s) with the CR-268 final DBE ESBE Report to the DCR/AA for review and approval. Submittal of such information does not imply DCR/AA approval. The Department’s DCR/AA has sole authority to determine whether the Contractor met the Contract DBE goal or made adequate good faith efforts to do so. If the DCR/AA determines that the Contractor has failed to meet the Contract DBE ESBE goal or made adequate good faith effort to do so, the Department will follow Section 105.

Good Faith Effort. To demonstrate good faith efforts to meet the Contract DBE SBE goal, a Contractor shall, on an ongoing basis, adequately document the steps it takes to obtain DBE participation in accordance with 49 CFR Part 26.53 and Appendix ASBE participation, including but not limited to the following: 1. Conducing Conducting market research to identify qualified potential small business contractors subcontractors and suppliers and soliciting through all reasonable and available means means, the interest of all certified DBEs registered SBEs that have the capability to perform the work of the Contract. This may include attendance at pre-bid and business matchmaking meetings and events, advertising and/or written notices, posting of Notices of Sources Sought and/or Requests for Proposals, written notices or emails to all DBEs registered SBEs listed in the State’s directory of transportation firms New Jersey Selective Assistance Vendor Information (NJSAVI) database that specialize in the areas of work desired (as noted in the DBE directorySAVI) and which are located in the area or surrounding areas of the project. Should solicit Solicit this interest as early in the acquisition process as practicable to allow the DBEs SBEs to respond to the solicitation and submit a timely offer for the subcontract. Determine with certainty if the DBEs SBEs are interested by taking appropriate steps to follow up initial solicitations.. Request a listing of small businesses from the New Jersey Department of the Treasury, Division of Property Management and Construction if none are known to the Contractor 2. Selecting portions of the work to be performed by DBEs SBEs in order to increase the likelihood that the DBE SBE goals will be achieved. This includes, where appropriate, breaking out Contract work items into economically feasible units (for example, smaller tasks or quantities) to facilitate DBE SBE participation, even when the Contractor might otherwise prefer to perform these work items with its own forces. This may include, where possible, establishing flexible timeframes for performance and delivery schedules in a manner that encourages and facilitates DBE SBE participation. 3. Providing interested DBEs all potential SBE subcontractors with detailed information about the plans, specifications, and requirements of the Contract in a timely manner to assist them in responding to a solicitation with their offer for the subcontract. Attempt to contact all potential subcontractors on the same day and use similar methods to contact them;. 4. Negotiating in good faith with interested DBEsSBEs. Make a portion of the work available to DBE SBE subcontractors and suppliers and select those portions of the work or material needs consistent with the available DBE SBE subcontractors and suppliers, so as to facilitate DBE SBE participation. Evidence of such negotiation includes the names, addresses, and telephone numbers of DBEs SBEs that were considered; a description of the information provided regarding the plans and specifications for the work selected for subcontracting; and evidence as to why additional Agreements could not be reached for DBEs SBEs to perform the work. Consider a number of factors in negotiating with subcontractors, including DBE SBE subcontractors. Take a firm’s price and capabilities as well as Contract goals into consideration. The fact that there may be some additional costs involved in finding and using DBEs SBEs is not in itself sufficient reason for failure to meet the contract DBE Contract SBE goal, as long as such costs are reasonable. The ability or desire of a Contractor to perform the work of a Contract with its own organization does not relieve the responsibility to make good faith efforts. Contractors are not, however, required to accept higher quotes from DBEs SBEs if the price difference is excessive or unreasonable. 5. Not rejecting DBEs SBEs as being unqualified without sound reasons based on a thorough investigation of their capabilities. The contractor’s standing within its industry, membership in specific groups, organizations, or associations and political or social affiliations (for example union vs. non-union status) are not legitimate causes for the rejection or non-solicitation of bids in the Contractor’s efforts to meet the Contract DBE SBE goal. Another practice considered an insufficient good faith effort is the rejection of the DBE SBE because its quotation for the work was not the lowest received. However, nothing in this paragraph shall be construed to require the Contractor Bidder to accept unreasonable quotes in order to satisfy the Contract DBE SBE goal. Inability to find a replacement DBE SBE at the original price is not alone sufficient to support a finding that good faith efforts have been made to replace the original DBESBE. The fact that the Contractor has the ability and/or desire to perform the contract work with its own forces does not relieve the Contractor of the obligation to make good faith efforts to find a replacement DBESBE, and it is not a sound basis for rejecting a prospective replacement DBESBE’s reasonable quote. Attempt, wherever possible, to negotiate prices with potential subcontractors which submitted higher than acceptable price quotes. Keep a record of efforts, including the names of businesses contacted and the means and results of such contacts. 6. Making efforts to assist interested DBEs SBEs in obtaining bonding, lines of credit, or insurance as required by the recipient or Contractor. 7. Making efforts to assist interested DBEs SBEs in obtaining necessary equipment, supplies, materials, or related assistance or services. 8. Effectively using the services of available minority/women community organizations; minority/women contractors’ groups; local, State, and Federal minority/women business assistance offices; and other organizations as allowed on a case-by-case basis to provide assistance in the recruitment and placement of DBEs. If the Contractor fails to meet the Contract DBE SBE goal, they must submit documented evidence of good faith effort(s) to meet the goal with the CR-268 final DBE SBE Report to the DCR/AA for review and approval. Submittal of such information does not imply DCR/AA approval. The Department’s DCR/AA has sole authority to determine whether the Contractor met the Contract DBE SBE goal or made adequate good faith efforts to do so. If the DCR/AA determines that the Contractor has failed to meet the Contract DBE SBE goal or made adequate good faith effort to do so, the Department will follow Section 105.