Commercially Useful Function for Certified Firms
Commercially Useful Function Definition
A SB/DVBE certified firm performs CUF when doing all of the following:
- Executes a distinct element of the contract scope of work including supplying of goods/services.
- Performs, manages, or supervises the work including supplying of goods/services.
- Performs work that is normal for the firm’s business services and functions.
- Is responsible, with respect to products, inventories, materials and supplies required for the subcontract, negotiating price, determining quality and quantity, ordering, installing (if applicable), and paying for the material.
- Does not subcontract a portion of the work greater than expected by industry practices.
A SB/DVBE certified firm does NOT perform CUF when:
- The firm is an extra participant involved in a transaction, contract, or project through which funds are passed through in order to obtain the appearance of SB/DVBE participation.
- The firm is not being used to perform the work as stipulated in the bid.
- The firm is no longer used to provide good/services listed in initial bid response.
- SB CUF - California Code of Regulations 1896.15
- DVBE CUF - California Code of Regulations 1896.71
- SB - California Code of Regulations 1896.00-1896.22, et seq.
- SB - Government Code 14837(d)(4)(A)
- DVBE - California Code of Regulations 1896.60-1896.97, et seq.
- DVBE - Military and Veterans Code 999(b)(5)(B)
Department of General Services
West Sacramento, CA 95605
Phone: (916) 375-5936