Commercially Useful Function

A California certified SB, MB or DVBE business must be deemed to perform a Commercially Useful Function (CUF) by meeting ALL of the following CUF requirements for Contract/Purchase Order (PO) award consideration:

  1. Is responsible for the execution of a distinct element of the work of the contract.
  2. Carries out its obligation by actually performing, managing, or supervising the work involved.
  3. Performs work that is normal for its business services and functions.
  4. Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing (if applicable) and making payment.
  5. Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.