Commercially Useful Function (CUF Clause Samples

Commercially Useful Function (CUF. The Contractor may only take credit for the payments made for Work performed by a DBE that is determined to be performing a CUF. This applies to all DBEs performing Work on a project, whether or not the DBEs are COA, if the Contractor wants to receive credit for their participation. The Engineer will conduct CUF reviews to ascertain whether DBEs are performing a CUF. A DBE performs a CUF when it is carrying out its responsibilities of its contract by actually performing, managing, and supervising the Work involved. The DBE must be responsible for negotiating price; determining quality and quantity; ordering the material and installing (where applicable); and paying for the material itself. If a DBE does not perform “all” of these functions on a furnish-and-install contract, it has not performed a CUF and the cost of materials cannot be counted toward DBE COA Goal. Leasing of equipment from a leasing company is allowed. However, leasing/purchasing equipment from the Contractor is not allowed. Lease agreements shall be readily available for review by the Engineer. In order for a DBE traffic control company to be considered to be performing a CUF, the DBE must be in control of its work inclusive of supervision. The DBE shall employ a Traffic Control Supervisor who is directly involved in the management and supervision of the traffic control employees and services. The DBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, contract, or project through which the funds are passed in order to obtain the appearance of DBE participation. The Engineer will use the following factors in determining whether a DBE trucking company is performing a CUF: • The DBE shall be responsible for the management and supervision of the entire trucking operation. The owner demonstrates business related knowledge, shows up on site and is active in running the business. • The DBE finances are independently controlled by the DBE. • The DBE shall with its own workforce, operate at least one fully licensed, insured, and operational truck used on the Contract. Employees are shown exclusively on the DBE payroll. • The DBE may lease trucks without drivers from a non-DBE truck leasing company. If the DBE leases trucks from a non-DBE truck leasing company and uses its own employees as drivers, it is entitled to credit for the total value of these hauling services. • Lease agreements for trucks shall indicate that the DBE has exclusive use of and con...

Commercially Useful Function (CUF. A DBE performs a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carrying out its responsibility by actually performing, managing and supervising the work involved. To perform a commercially useful function, the DBE must also be responsible, with respect to materials and supplies used on the contract, for preparing the estimate, negotiating price, determining quality and quantity, ordering the material, arranging delivery, installing (where applicable), and paying for the material and supplies itself for the project.

Commercially Useful Function (CUF. 8 The Contractor may only take credit for the payments made for Work performed 9 by a DBE that is determined to be performing a CUF. Payment must be 10 commensurate with the work actually performed by the DBE. This applies to all 11 DBEs performing Work on a project, whether or not the DBEs are COA, if the 12 Contractor wants to receive credit for their participation. The Engineer will 13 conduct CUF reviews to ascertain whether DBEs are performing a CUF. A DBE 14 performs a CUF when it is carrying out its responsibilities of its contract by 15 actually performing, managing, and supervising the Work involved. The DBE 16 must be responsible for negotiating price; determining quality and quantity;

Commercially Useful Function (CUF. 50 A MSVWBE performs a commercially useful function when it is responsible for 51 execution of the work of the contract and is carrying out its responsibilities by 1 actually performing, managing, and supervising the work involved. To perform a 2 commercially useful function, the MSVWBE must also be responsible, with 3 respect to materials and supplies used on the contract, for negotiating price, 4 determining quality and quantity, ordering the material, and installing (where 5 applicable) and paying for the material itself. 7 The MSVWBE does not perform a CUF if its role is limited to that of an extra 8 participant in a transaction, contract, or Project through which the funds are 9 passed in order to obtain the appearance of MSVWBE participation. 11 Manufacturer (MSVWBE) – A MSVWBE firm that operates or maintains a 12 factory or establishment that produces on the premises the materials, supplies, 13 articles, or equipment required under the Contract. A MSVWBE Manufacturer 14 shall produce finished goods or products from raw or unfinished material or 15 purchase and substantially alters goods and materials to make them suitable for 16 construction use before reselling them. 18 Minority Business Enterprise (MBE) – A minority owned business meeting the 19 requirements of RCW 39.19 and WAC 326-20 and certified by the Washington 20 State Office of Minority & Women’s Business Enterprises.

Commercially Useful Function (CUF. 49 CFR 26.55(c)(1) defines 33 commercially useful function as: “A DBE performs a commercially useful function 34 when it is responsible for execution of the work of the contract and is carrying 35 out its responsibilities by actually performing, managing, and supervising the 36 work involved. To perform a commercially useful function, the DBE must also be 37 responsible, with respect to materials and supplies used on the contract, for 38 negotiating price, determining quality and quantity, ordering the material, and 39 installing (where applicable) and paying for the material itself. To determine 40 whether a DBE is performing a commercially useful function, you must evaluate 41 the amount of work subcontracted, industry practices, whether the amount the 42 firm is to be paid under the contract is commensurate with the work it is actually 43 performing and the DBE credit claimed for its performance of the work, and other 44 relevant factors.” 45

Commercially Useful Function (CUF. 7 The Contractor may only take credit for the payments made for Work performed 8 by a FSBE that is determined to be performing a CUF. Payment must be 9 commensurate with the work actually performed by the FSBE. This applies to all 10 FSBEs performing Work on a project, if the Contractor wants to receive credit 11 for their participation. The Engineer will conduct CUF reviews to ascertain 12 whether FSBEs are performing a CUF. A FSBE performs a CUF when it is 13 carrying out its responsibilities of its contract by actually performing, managing, 14 and supervising the Work involved. The FSBE must be responsible for 15 negotiating price; determining quality and quantity; ordering the material, 16 installing (where applicable); and paying for the material itself. If a FSBE does 17 not perform “all” of these functions on a furnish-and-install contract, it has not 18 performed a CUF and the cost of materials cannot be counted toward FSBE 19 Goal. Leasing of equipment from a leasing company is allowed. However, 20 leasing/purchasing equipment from the Contractor is not allowed. Lease 21 agreements shall be provided prior to the Subcontractor beginning Work. Any

Commercially Useful Function (CUF. A CUF occurs when a DBE has the responsibility for the execution of the work and carrying out such responsibilities by actually performing, managing, and supervising the work.

Commercially Useful Function (CUF. 47 In any case, you may only take credit when the associated DBE that is determined to be 48 performing a Commercially Useful Function (CUF). 49 50 • A DBE performs a CUF when it is responsible for execution of a distinct element 51 of Work and is carrying out its responsibilities by performing, managing and 1 supervising the Work involved. The DBE must also be responsible with respect 2 to materials and supplies used on the Contract. For example; negotiating price, 3 determining quality, determining quantities, ordering, installing (if applicable) and 4 paying for the material itself. 5 7 in a transaction, Contract, or project through which funds are passed. 8

Commercially Useful Function (CUF. An ESBE performs a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carrying out its responsibility by actually performing, managing and supervising the work involved. . To perform a commercially useful function, the ESBE must also be responsible, with respect to materials and supplies used on the contract, for preparing the estimate, negotiating price, determining quality and quantity, ordering the material, arranging delivery, installing, (where applicable), and paying for the material and supplies itself for the project.