CUF
Commercially Useful Function
Compliance & LegalDefinition
A requirement that a diverse subcontractor perform real, substantial work rather than simply passing through funds.
More Information
CUF requirements prevent pass-through arrangements where a diverse firm is used in name only. A firm performs a commercially useful function when it is responsible for execution of work, carries out distinct elements, and is not acting merely as a conduit. CUF violations can result in loss of certification and contract penalties.
Example
An MBE trucking company must actually transport goods with its own trucks and drivers rather than simply brokering loads to non-diverse carriers.