Compliance & Legal
Commercially Useful Function (CUF)
A requirement that a diverse subcontractor perform real, substantial work rather than simply passing through funds.
In context
How Commercially Useful Function works in supplier diversity
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
Real-world example
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