Common use of Commercially Useful Function (CUF Clause in Contracts

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 control over the truck. This does not preclude the leased truck from working for others provided it is with the consent of the DBE and the lease provides the DBE absolute priority for use of the leased truck. • Leased trucks shall display the name and identification number of the DBE. • Leased trucks shall be driven by DBE employees included in the DBE’s payroll. The DBE may lease trucks from another DBE including a DBE owner-operator. The DBE who leases trucks from another DBE shall claim participation for the total value of the transportation services the lessee DBE provides on the Contract.

Commercially Useful Function (CUF. 22 The Contractor may only take credit for the payments made for Work performed 23 by a DBE FSBE that is determined to be performing a CUF. Payment must be 24 commensurate with the work actually performed by the FSBE. This applies to all DBEs 25 FSBEs performing Work on a project, whether or not the DBEs are COA, if the Contractor wants to receive credit 26 for their participation. The Engineer will conduct CUF reviews to ascertain 27 whether DBEs FSBEs are performing a CUF. A DBE FSBE performs a CUF when it is 28 carrying out its responsibilities of its contract by actually performing, managing, 29 and supervising the Work involved. The DBE FSBE must be responsible for 30 negotiating price; determining quality and quantity; ordering the material and material, 31 installing (where applicable); and paying for the material itself. If a DBE FSBE does 32 not perform “all” of these functions on a furnish-and-install contract, it has not 33 performed a CUF and the cost of materials cannot be counted toward DBE COA FSBE 34 Goal. Leasing of equipment from a leasing company is allowed. However, 35 leasing/purchasing equipment from the Contractor is not allowed. Lease 36 agreements shall be readily available for review by provided prior to the EngineerSubcontractor beginning Work. 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 Any 37 use of the traffic control employees and servicesContractor’s equipment by a FSBE may not be credited as countable 38 participation. 40 The DBE FSBE does not perform a CUF if its role is limited to that of an extra 41 participant in a transaction, contract, or project through which the funds are 42 passed in order to obtain the appearance of DBE FSBE participation. 44 In order for a FSBE traffic control company to be considered to be performing a 45 CUF, the FSBE must be in control of its work inclusive of supervision. The FSBE 46 shall employ a Traffic Control Supervisor who is directly involved in the 47 management and supervision of the traffic control employees and services. 49 The following are some of the factors that the Engineer will use the following factors in determining 50 whether a DBE FSBE trucking company is performing a CUF: 51 1 • The DBE FSBE shall be responsible for the management and supervision 2 of the entire trucking operationoperation for which it is responsible on the 3 contract. The owner demonstrates business related knowledge, 4 shows up on site and is active in determined to be actively running the 5 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 control over the truck. This does not preclude the leased truck from working for others provided it is with the consent of the DBE and the lease provides the DBE absolute priority for use of the leased truck. • Leased trucks shall display the name and identification number of the DBE. • Leased trucks shall be driven by DBE employees included in the DBE’s payroll. The DBE may lease trucks from another DBE including a DBE owner-operator. The DBE who leases trucks from another DBE shall claim participation for the total value of the transportation services the lessee DBE provides on the Contract.

Commercially Useful Function (CUF. 25 The Contractor may only take credit for the payments made for Work performed 26 by a DBE that is determined to be performing a CUF. Payment must be 27 commensurate with the work actually performed by the DBE. This applies to all 28 DBEs performing Work on a project, whether or not the DBEs are COA, if the 29 Contractor wants to receive credit for their participation. The Engineer will 30 conduct CUF reviews to ascertain whether DBEs are performing a CUF. A DBE 31 performs a CUF when it is carrying out its responsibilities of its contract by 32 actually performing, managing, and supervising the Work involved. The DBE 33 must be responsible for negotiating price; determining quality and quantity; 34 ordering the material and material, installing (where applicable); and paying for the material 35 itself. If a DBE does not perform “all” of these functions on a furnish-and-install 36 contract, it has not performed a CUF and the cost of materials cannot be counted 37 toward DBE UDBE COA Goal. Leasing of equipment from a leasing company is 38 allowed. However, leasing/purchasing equipment from the Contractor is not 39 allowed. Lease agreements shall be readily available for review provided prior to the Subcontractor 40 beginning Work. Any use of the Contractor’s equipment by a DBE may not be 41 credited as countable participation. 43 The DBE does not perform a CUF if its role is limited to that of an extra 44 participant in a transaction, contract, or project through which the Engineerfunds are 45 passed in order to obtain the appearance of DBE participation. 47 In order for a DBE traffic control company to be considered to be performing a 48 CUF, the DBE must be in control of its work inclusive of supervision. The DBE 49 shall employ a Traffic Control Supervisor who is directly involved in the 50 management and supervision of the traffic control employees and services. 1 The DBE does not perform a CUF if its role is limited to following are some of the factors 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 2 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 control over the truck. This does not preclude the leased truck from working for others provided it is with the consent of the DBE and the lease provides the DBE absolute priority for use of the leased truck. • Leased trucks shall display the name and identification number of the DBE. • Leased trucks shall be driven by DBE employees included in the DBE’s payroll. The DBE may lease trucks from another DBE including a DBE owner-operator. The DBE who leases trucks from another DBE shall claim participation for the total value of the transportation services the lessee DBE provides on the Contract.: