Question=Regarding the "Commercially Useful Function (CUF)" requirement, do temporary workers supplied by a DVBE, and who work directly on the jobsite, qualify as a CUF?

• Question No. 2 is the revised version of this question submitted by the Contractor. Please refer to question No. 2 and it's response.  

Question= Would like you to clarify for prime bidders that hiring a DVBE subcontractor to supply temporary workers for this job satisfies the Commercially Useful Function criteria, in that the workers will be "...responsible for performing a distinct element of the work and carry out its responsibility by actually performing...the work."

The Office of Small Business & DVBE Services (OSDS)has approved this approach:

January 12, 2007
"Re: your last question about performing a distinct element of the project, if the temp worker is doing the work of the contract, you are fulfilling the requirement.
 The key to meeting this expectation is: the type of work that is being done by the worker.  It doesn't matter if they're with a crew of the prime's employees or if they're working alone - as long as the hours/type of work can be tied back to the project.
 
Sherry A. Felder
Small Business & DVBE Certification Officer
Office of Small Business & DVBE Services (OSDS)
California Department of General Services, Procurement
707 3rd Street, 1st Floor, Room 400, West Sacramento, CA 95605
Direct: 916.375.4927 -or- Operator: 916.375.4940
Fax: 916.375.4950
www.pd.dgs.ca.gov/smbus

Also, this approach was used on CalTrans Contract #03-0E3604 by Berkeley Engineering (prime) and Cornwell technologies (DVBE). Please contact Mr. Mike Sanchez, North region Asst Labor Compliance Officer at (530) 822-5345

• As stated in Section 2-1.02 of the Special Provisions, a DVBE contractor or subcontractor must perform a commercially useful function, that is, be responsible for the execution of a distinct element of the work and carry out its responsibility by actually performing, managing, or supervising the work.  An extra participant will not be considered to perform a commercially useful function.  In fulfulling the DVBE requirements the bidder (prime contractor) must include the names of all the participating DVBE firms with a complete description of work or supplies to be provided by each and the dollar value of each DVBE transaction.  When less than 100 percent of the item of work is not performed by the DVBE, the prime must report the exact portion of the owrk to be performed by the DVBE to include planned location of the work.
  
  For the purpose of labor compliance, workers furnished by a firm, whose business is supplying temporary workers to a public works project, will be considered employees of the prime contractor or subcontractor requiring the services unless the firm participates as a subcontractor on the project.  When considering the use of temporary workers, the contractor should  review California Labor Codes 1779 and 1780.    

Question= According to pg 177 of the specs the contractor is required to pay the installation costs of the water meter. Since the contractor is installing the meter is the contractor also required to pay the costs of water during the plant establishment period?

• Section 20-4.06 of the Standard Specifications states that, "If water is available from an irrigation system to be installed under the contractor an existing State-owned facility within the limits of the project, water for highway planting work may be obtained from these facilities free of charge. Where water is not available from these facilities, the Contractor shall make the arrangements for furnishing and applying water and shall pay all costs involved."