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FOLLWING THE LAW AND THE SPECIFIC DEFINITION OF CUF

 

Commercially Useful Function

 

Extract from DGS Web Site http://www.pd.dgs.ca.gov/dvbe/dvbeprogchanges.htm

 

To enable State of California contractors and contracting officials to better understand, identify, and report cases of potential DVBE program violations, they must be aware of the requirements placed on Disabled Veteran Business Enterprise (DVBE) contractors, subcontractors or suppliers to provide a "commercially useful function."

 

A DVBE contractor, subcontractor or supplier (person or entity) is considered performing a commercially useful function when it meets the following criteria:

 

  1. The business concern, person or entity is: responsible for the execution of a distinct element of the work of the contract; carrying out its obligation by actually performing, managing or supervising the work involved; and performing work that is normal for its business services and functions, and
  2. The business concern, person or entity is not further subcontracting a greater portion of the work than would be expected by normal industry practices.

Don't add to or take away from the law, it says what is says, nothing more nothing less

 

  1.  THIS DVBE, The business concern, person or entity is: responsible for the execution of a distinct element of the work of the contract;  we provide products that the customer needs or wants to get their work done, or we provide labor support to accomplish some aspect of work on the job site or elsewhere in support of our customer, or we implement proprietary processes to help the contractor or customer be more competitive, efficient or focused, or we contract for a specific portion of work that is required by the scope of work reflected in a contract, or we provide assistance on any matter that is within our purview (range of vision, understanding, or cognizance)  that is acceptable to the customer.  carrying out its obligation by actually performing, managing or supervising the work involved; and performing work that is normal for its business services and functions, and none of this is contracted out
  2. THIS DVBE, The business concern, person or entity is not further subcontracting a greater portion of the work than would be expected by normal industry practices.  When we serve as primes on contracts we may subcontract but we will not exceed what would be expected by normal industry practices.  When we serve as subs on public works projects we never subcontract work.

THE END

 

CUF CAN GET COMPLICATED IF YOU CARE TO READ MORE JUST SCROLL ON DOWN

Regardless if your a veteran or a contractor looking to do the right thing, it can all be confusing and frustraiting.

 

 

 

 

Different agencies have different opinions about the CUF issue....But we know their is the law as reflected on the DGS web site:

Why is there is so much ambiguity between different agencies, it is because they are operating on a different set of rules than the DVBE...

These rules are imaginary - they are concepts of individual belief systems, office politics and not based on the law, as defined above.

It is a sad state of affairs when office politics ruins the opportunity for our service disabled veterans.  Many  who cause this problems for our veterans have never served a day in the armed forces and there are those who down right don't care.  It has just become office politics.

The Ambiguity has to stop:

There are several patterns of incorrect reasoning that arise from the imprecise use of language. An ambiguous word, phrase, or sentence is one that has two or more distinct meanings. The inferential relationship between the propositions included in a single argument will be sure to hold only if we are careful to employ exactly the same meaning in each of them. The fallacies of ambiguity all involve a confusion of two or more different senses.
It trades upon the use of an ambiguous word or phrase in one of its meanings in one of the propositions of an argument but also in another of its meanings in a second proposition.  The Law is simple and succinct!  No need to make up your own interpretations.

 

 

 

  It can be as complicated or as simple as you want it....

Lets keep it simple..  The info below and other's who use subject interpretations over complicate

      Ask anyone to describe CUF is a kin to defining terms as noted below. 

Distinct elements of work. A 'work for hire' is an exception to the general rule that the person who creates a work is the author of that work and holds all rights to the work product. This is a concept of intellectual property protection outlined in Section 101 of the 1976 Copyright Act.    In addition, any action in any form that promotes a result cam be considered distinct elements of work         of the contract Any actions taken in support any requirements of a contract while in compliance with the law, agreements, terms and trade practices is therefore appropriate, regardless if the contract is between prime contractor and sub contractor or astate agency and prime contractor.

responsible for the execution (This DVBE) will initiate actions to ensure the agreement is fulfilled for an agreed upon dollar amount. The agreement may not directly impact terms and conditions of the first party's contract for which a relationship exists in which another contract is made to facilitate needs and requirements brought about by the first party's contract..)

If any gets to this point it would be interesting to have opinions on potential DVBE program violations and a explanation backed by specific law instead of subject interpretations that over complicate the law.

It goes with out saying that  illegal activitie should be punished by law and  there are some stiff penalties written into law that governs this program.

How many potential anything exist today - I understand a potential fire may create a great hazard to a community- so outlaw candles in the home and of course no more back yard ba r- b - q's.   Anyone who start a small business who get certified with the state are potential thieves, my goodness the same holds true to DVBEs, so we implement a program for potential violators.  Where does this ironic practice begin and end, only with the people wanting to do business with our great state of California.  Big business is above all this crap, so its the small guys and gals that get this abuse.

The point to all of this is - DVBEs are being put on a pedestal and then banged up with frivolous accusations!

Why Are Service Disabled Veterans Exposed To This Insanity

Because some agencies think their way is the right way - and they think they are in compliance with the law.

Next thing you know - your morally bankrupt -Can't win for losing and what little ambitions you had starting out as a DVBE simply fades away because you were one of the weak ones - where only the strongest survive

or your a DVBE  more focused on making a living for your family doing local work and perhaps going after federal opportunities...

 

 

A problem is recognized, here is an offering that is positive and constructive to solve it:   No one is trying to be judgmental, engaged in finger pointing to specific organizations or activities or intrusive on anyone who  may feel their standards are sacred. 

Solution 1.  Identify CUF as a significant point about the veteran/s who is certified as the DVBE.

Not unlike the small business who have the same CUF standard, you ask the owner/s that are certified.

Simply ask one of the principal DVBE veteran reachable by phone, carrying out its obligation by actually performing, do you take calls regarding your business, hello, this is mike dvbe#77242 I have a state agency that has just issued me a PO for  some supplies and I got a contractor that I'm sourcing supplies for and I need to send a couple of new guys to support the contractor in his project, managing or supervising the work involved; and the question is asked, is this what your normally do in the course of your business activities as a DVBE, yea, most of the times the customer wants products and other times they want service and sometimes they want both, Another question, what is the distinct element of work you are doing for the state agency, I make sure the products they contracted for at the price agreed upon are delivered with in the time frame agreed. distinct element of the work of the contract, What about the element of work for the contractor, Like the state agency I provide products and in the case of the contractor on this project I provide services too, I think these are the distinct element your talking about. distinct element of the work  Another Question, Are your customers happy with the prices and value they are getting from your relationship, Like the state agency I provide products and in the case of the contractor on this project I provided services too, they got what the contract calls for, they are getting what we all agreed to. Another Question is it useful answered by the logic neurons that fill the vacuum of hollow recesses of the cortex,  this considered performing a commercial function (providing products and services as agreed to in an agreement between two parties) - is it useful - The law requires DVBEs to participate,  so I surmise, it's not just a commercial function - but a commercially useful function. Another Question Mr. Mike are you sub contracting  out the subcontract work you get from contractors. No I don't and as a rule contractors won't let you sub out, because of the strict nature of state contracting.  There is a tier 1 tier 2 and a tier 0 that is usually reported on at the beginning of projects, but it doesn't mean that you can't sub contract out, but usually you don't.  Thanks for your time Mr. Mike it seems like you meet all the qualification and you are providing a commercially useful function but you know I have to pass all this to my boss. 

 

I would expect the same standards apply to the certified Small Businesses,

all being assessed under a standard that is mutual for all.

he/she owns the business or he meets the criteria's of a managing, supervising or is otherwise active in his company's business activity. 

Just accept the CUF concept is meet and leave it alone...

The law noted below is fairly obvious

and if a state official applies standards beyond this governing law,

their actions should be counseled by superiors and ultimately a policy letter should be written addressing this ambiguity.

 

Memorandum For Record

It has been brought to my attention that some officials are not applying uniform standards when it comes to CUF as it relates to any state certified business.

Part of the confusion is driven by the identified 3 elements that could constitute a  DVBE:  

business concern, (could be LLC or Corporation or sole propritorship -   a group of people or one person)  

person (sole propritorship or individual or a husband and wife or a family team generally a group of people or one person )

entity ( could be a not for profit or LLC  -   a group of people or one person )

There may be other variables that contribute to differences in understanding relative to CUF but it is enough to say that our standard  is reflected in the codes of compliance itself, don't add to it or take away from it.  It is simple and straight forward.

It is the policy of this agency that the definition found in our codes of compliance will be followed without prejudice or any personally perceived standards:

Actions to be taken to determine CUF: 

Simply insure any business meets the criteria's of a managing, supervising or is otherwise active in sales, trades and or services that have been stated by the DVBE and or what you have come to know about the DVBE leaves the impression that they meet this criteria, and that they are not further subcontracting work above what is normal for their industry. 

All contracts have the potential of having different standard and scope of work and it our main focus to ensure the work and standards of work are in compliance with the rules and policies that we know to be common in the market place and in compliance with the law.

Anything that is know or perceived to be in conflict with the law should be thoroughly documented and forwarded for appropriate action

It is not the intent of this activity to scrutinize CUF so as to leave the impression that we are seeking more than a confirmation that the business entity is not a front for some other activity who would circumvent our small business and or DVBE program for a illegal purpose.

Small business and the DVBE small business are the cornerstone upon which there is community pride of our small businesses, the DVBEs and thankfulness come hand in hand for the contribution that everyone makes to the market place.

Keep it simple.

The law noted below is fairly obvious

 

                                    A DVBE contractor, subcontractor or supplier (person or entity) is considered performing a

                                    commercially useful function when it meets the following criteria:

 

  1. The business concern, person or entity is: responsible for the execution of a distinct element of the work of the contract; carrying out its obligation by actually performing, managing or supervising the work involved; and performing work that is normal for its business services and functions, and
  2. The business concern, person or entity is not further subcontracting a greater portion of the work than would be expected by normal industry practices.