Commercially Useful Function (CUF) Questions-DVBE

All new and renewing DVBE applicants must respond to the Commercially Useful Function (CUF) Questions below. 

Your response must demonstrate how you, as a certified DVBE contractor, subcontractor or supplier meets the commercially useful function requirements under Military and Veterans Code section 999(b)(5)(B).  

A business performing a commercially useful function is one that does all of the following:

• Is responsible for the execution of a distinct element of the work of the contract.
• Carries out its obligation by actually performing, managing, or supervising the work involved.
• Performs work that is normal for its business, services and function.
• Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

A contractor, subcontractor, or supplier will not be considered to perform a commercially useful function if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DVBE participation.

On a separate sheet of paper, please respond to and/or provide each of the following:

1. Provide a detailed explanation of your firm's business process from the point of starting a contract or receiving a purchase order to the point of delivery of the products and/or services. 
   • Describe your firm's products and/or services.
   • Provide a copy of your firm's brochure or marketing materials, if available.
   • Describe the specific tasks your firm performs with its own resources.
   • Describe how your firm manages and supervises the workforce to meet contractual requirements.
2. Provide a current copy of all business and professional licenses, certificates and permits required for your firm to do business in California.
3. When fulfilling a contract or purchase order, does your firm subcontract or intend to subcontract any of its work?  If the answer is "yes", describe the type of work, the amount of work, and identify the outside individual or business that will perform the work.
4. During the past year, what dollar amount was subcontracted by your company to outside business concerns and/or individuals?   (Express this amount as a percentage of your gross receipts.) 
5. If you are a service provider's representative for another entity or entities, you must provide the agreement between you and the entity or entities that you are representing. 
   • If you don't have an agreement,
     • Explain why you don't have an agreement, and
     • Explain the arrangement between you and your service provider that enables you to transact business with each other.
6. If you are a Non-Manufacturer (i.e., reseller, retailer, distributor, or wholesaler of goods), provide a list of your major product suppliers and manufacturers.
   • Include a contact person's name and phone number for each company listed.
   • Specify the percentage of your annual cost of goods sold for each product supplier/manufacturer.
   • Provide a detailed description of the service(s) they perform and/or the products they provide for your company (i.e., warehousing, shipment, billing, office space, etc).
   • Provide a copy of all agreements with your major product suppliers and manufacturers. 
     • If you don't have an agreement,
       • Explain why you don't have an agreement and
       • Explain the arrangement between you and your product supplier/manufacturer that enables you to transact business with each other.
     • If you are a manufacturer's representative, you must provide the agreement between you and your product supplier/manufacturer that documents the responsibilities of both parties. 
7. Specify the task(s) that the qualifying disabled veteran perform(s) or is responsible for, when fulfilling a contractual or purchase order obligation.
8. Describe how the qualifying disabled veteran contributes to managing and supervising your workforce in direct response to a contract or purchase order.