Commercially-Useful-Function 49 CFR Part 26 FHWA 1273 Section II.10 - - PowerPoint PPT Presentation

Florida Department of Transportation

Commercially-Useful-Function

49 CFR Part 26 FHWA 1273 Section II.10

FDOT Standard Specification 7-25 Chapter 2 Compliance Manual

Florida Department of Transportation

Purpose of the CUF

A DBE performs a CUF when the DBE is responsible for execution of the work and is actually performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the material itself.

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Primary Areas in Assessing CUF

Management Workforce Equipment Materials Performance

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Management

• Is the DBE scheduling work operations?
• Is the DBE ordering equipment and supplies?
• Is the DBE preparing and submitting certified payrolls?
• Is the DBE responsible for hiring and firing employees?
• A “no” response requires further inquiry to assess if a

DBE is separate and independent from the prime contractor.

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Workforce

• Are employees moving between the DBE and the Prime

contractor?

• Are employees listed on the DBE and prime contractor’s

payroll?

• Does the DBE share office space with the prime contractor?
• Is there a discrepancy between the company identification

badge and the information provided by the employee during labor interviews?

• A “yes” response requires further inquiry and follow-up to

determine if a DBE is managing its own workforce.

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Equipment

• Who is the owner of the equipment?
• Observe equipment and assess signage. Is there a sign over

an original sign?

• Who is operating the equipment? Is the operator an

employee of the DBE?

• What is reflected on the daily notes? Does the inspector

identify the equipment used by the DBE?

• If it is unclear that DBE has control over equipment, further

inquiry and follow-up is required.

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Materials

• Did the DBE order its own materials?
• Are invoices for materials and supplies addressed to the

DBE?

• Who paid for the materials? Is payment made by a joint

check bearing the DBE and prime contractor’s signatures?

• If it is unclear that DBE is responsible for ordering materials

and supplies, further inquiry and follow-up is required.

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Performance

• Does the DBE have a contract with the prime contractor?
• Has the DBE performed 30% of the overall contract?
• Is a portion of the DBE’s work performed by the prime

contractor or any other companies?

• If it is unclear that the DBE is performing the work

specified in its agreement with the prime contractor, further inquiry and follow-up is required.

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When to complete a CUF report for a DBE?

A commercially Useful Function report must be completed once a month for the first 3 months a DBE firm is active in the area of work certified, on a Federally funded project. If after 3 months, the DBE has not performed at least 30% of the total value of the contract/subcontract amount (listed on Certification of Sublet), a final CUF report must be conducted at the end of the DBE work time on the project to assess performance.

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CUF Form

Form # 275-021-18:

• CUF monitoring report

must be completed during a DBE firm’s first three active months

• Additional CUF’s may be

necessary at the discretion of the DCCM

• All project identification

must be filled out in its entirety (Section 1)

• DBE identification must

be complete (Section 2)

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CUF Observation

• Three parts to this section
• Work of the DBE firm
• Workforce of the DBE firm
• Equipment of the DBE

firm

• Workforce and equipment

are true or false

• If the DBE doesn’t have

uniforms, the “No uniforms” box needs to be checked

• Complete all sections

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Administrative Review

• DBE’s payroll reflects #

& type of workers

• Daily diary reflects

foremen & workers

• Payrolls from other

contractors do not include DBE workers

• Payments entered into

EOC

• Observed work matches

block 14 & EOC

• List subcontracts to non-

DBE’s

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Record of Review

• When all data in Sections 1 through 4 are complete, submit the CUF form (with

attachments) to the PA for review and concurrence, then to the DCCM for final review and concurrence.

• Once the form and its attachments are signed by both and returned, retain

the form and the attachments as one document package.

• If either party marks “more investigation” in Box 38, coordinate a review

meeting with the Project Administrator and DCCM.

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CUF Best Practices

• Know who are your DBE’s working on the project
• Provide as much detail as possible when completing the type
• f work
• Include photos to document work
• Use comment box when further information is needed for

explanation

• Ensure all sections of the CUF form are completed
• Refer to the CUF card when completing observations
• When reviewing the CUF report, seek clarification when in doubt

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What Questions do you have???