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. Florida Department of Transportation
Primary Areas in Assessing CUF Management Workforce Equipment Materials Performance Florida Department of Transportation
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. Florida Department of Transportation
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. Florida Department of Transportation
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. Florida Department of Transportation
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. Florida Department of Transportation
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. Florida Department of Transportation
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. Florida Department of Transportation
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) Florida Department of Transportation
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 Florida Department of Transportation
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 Florida Department of Transportation
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. Florida Department of Transportation
CUF Best Practices • Know who are your DBE’s working on the project • Provide as much detail as possible when completing the type of 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 observation s • When reviewing the CUF report, seek clarification when in doubt Florida Department of Transportation
What Questions do you have??? Florida Department of Transportation
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