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I I1 Procedures After Execution 2 Commercially Useful Function (CUF) I 3 4 The Contractor may only take credit for the payments made for Work performed by a DBE that is determined to be performing a CUF. Payment must be 5 commensurate with the work actually performed by the DBE. This applies to all I 6 7 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 8 CUF reviews to ascertain whether DBEs are performing a CUF. A DBE performs a 9 CUF when it is carrying out its responsibilities of its contract by actually I10 performing, managing, and supervising the Work involved. The DBE must be 11 responsible for negotiating price; determining quality and quantity; ordering the 12 material, installing (where applicable); and paying for the material itself. If a DBE I13 does not perform "all" of these functions on a furnish-and-install contract, it has 14 not performed a CUF and the cost of materials cannot be counted toward UDBE 15 COA Goal. Leasing of equipment from a leasing company is allowed. However, I16 leasing/purchasing equipment from the Contractor is not allowed. Lease 17 agreements shall be readily available for review by the Engineer. 18 I19 In order for a DBE traffic control company to be considered to be performing a 20 CUF, the DBE must be in control of its work inclusive of supervision. The DBE 21 shall employ a Traffic Control Supervisor who is directly involved in the I22 management and supervision of the traffic control employees and services. 23 24 The DBE does not perform a CUF if its role is limited to that of an extra participant I25 in a transaction, contract, or project through which the funds are passed in order 26 to obtain the appearance of DBE participation. 27 28 The following are some of the factors that the Engineer will use in determining I29 whether a DBE trucking company is performing a CUF: 30 31 • The DBE shall be responsible for the management and supervision of I32 the entire trucking operation for which it is responsible on the Contract. 33 The owner demonstrates business related knowledge, shows up on site 34 and is determined to be actively running the business. I35 36 • The DBE shall with its own workforce, operate at least one fully licensed, 37 insured, and operational truck used on the Contract. The drivers of the I38 trucks owned and leased by the DBE must be exclusively employed by 39 the DBE and reflected on the DBE's payroll. 40 I41 • Lease agreements for trucks shall indicate that the DBE has exclusive 42 use of and control over the truck(s). This does not preclude the leased 43 truck from working for others provided it is with the consent of the DBE 44 and the lease provides the DBE absolute priority for use of the leased I45 truck. 46 47 • Leased trucks shall display the name and identification number of the I48 DBE. 49 IWEST MARINE VIEW DRIVE UTILITIES PAGE 44 OF 117 August 2018 WORK ORDER#3588 SPECIAL PROVISIONS I