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Section 3: Evaluating a CUF

To ensure each DBE firm is performing a CUF, TxDOT must monitor contract activity and certify in writing that DBE firms are performing a CUF. To determine whether a DBE firm is performing a CUF, five elements must be considered: management, workforce, equipment, materials, and performance.

A CUF review is required for all DBE firms on all federally-funded projects, including projects with no DBE goal. This also includes DBE truckers, suppliers and other vendors where a subcontract is not required.

TxDOT field personnel conduct CUF reviews and inspect jobsites to verify that the DBE firm is performing and managing the work. The reviewer’s activities include making observations and interviewing DBE personnel.

Field staff review project-related documents such as:

These documents identify and support who is paying and supervising employees, ordering and paying for materials, and whose equipment is used on the project.

To qualify for goal credit, DBEs must perform a CUF.

If a DBE firm is presumed not to be performing a CUF, TxDOT will notify the DBE firm and offer the opportunity to provide rebuttal information. If the presumption prevails, no work performed by the DBE will count as eligible participation. The denial of goal credit may occur before or after a CUF determination has been made by TxDOT.

If the denial of goal credit results in a goal shortfall, the prime contractor will be required to obtain a substitute DBE to meet the contract goal or provide an adequate good faith effort when applicable. CUF determinations are not subject to administrative appeal to USDOT.

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