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received. The period of performance for all expenditures shall extend from July 1, 2008 to
<br />June 30, 2009, unless written authorization to the contrary is provided by the Department.
<br />Any requests to change the Period of Performance must be made in accordance with the
<br />policies and procedures established by the Department or FTA. The Contractor shall
<br />commence, carry on, and complete the approved Project with all practicable dispatch, in a
<br />sound, economical, and efficient manner.
<br />d. Contractor's Capacity. The Contractor agrees to maintain sufficient legal,
<br />financial, technical, and managerial capability to:
<br />(1) Plan, manage, and complete the Project and provide for the use of
<br />Project property;
<br />(2) Carry out the safety and security aspects of the Project; and
<br />(3) Comply with the terms of this agreement, the Master Agreement
<br />between the FTA and the Department, the Approved Project Budget,
<br />the Project schedules, the Contractor's annual Certifications and
<br />Assurances to the Department, and applicable Federal and State
<br />laws, regulations, and directives.
<br />e. Administrative Requirements. The Contractor agrees to comply with the
<br />following Federal and State administrative requirements:
<br />(1) U.S. DOT regulations, "Uniform Administrative Requirements for Grants
<br />and Cooperative Agreements to State and Local Governments," 49 C.F.R. Part 18 at
<br />(http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#pagel ).
<br />(2) Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter 5B
<br />at (http://reports.oah.state.nc.us/ncac.asp).
<br />f. Application of Federal State and Local Laws, Regulations, and Directives.
<br />To achieve compliance with changing federal requirements, the Contractor makes note that
<br />federal, state and local requirements may change and the changed requirements will apply to
<br />this Agreement as required.
<br />g. Contractor's Primary Responsibility to Comply with Federal and State
<br />Requirements. Irrespective of involvement by any other participant in the Project, the
<br />Contractor agrees that it, rather than the participant, is ultimately responsible for compliance
<br />with all applicable Federal and State laws, regulations, and directives, the Master Agreement
<br />between the FTA and the Department, and this Agreement, except to the extent that the
<br />Department determines otherwise in writing. Unless otherwise authorized in writing by the
<br />Department, the Contractor shall not assign any portion of the work to be performed under this
<br />Agreement, or execute any contract, amendment, or change order thereto, or obligate itself in
<br />any manner with any third party with respect to its rights and responsibilities under this
<br />Agreement without the prior written concurrence of the Department. Further, the Contractor
<br />shall incorporate the provisions of this Agreement into any lease arrangement and shall not
<br />enter into any lease arrangement without the prior concurrence of the Department. Any lease
<br />approved by the Department shall be subject to the conditions or limitations governing the
<br />lease as set forth by the FTA and the Department. If the Contractor leases any Project asset
<br />to another party, the Contractor agrees to retain ownership of the leased asset, and assure
<br />that the Lessee will use the Project asset to provide mass transportation service, either
<br />through a "Lease and Supervisory Agreement" between the Contractor and Lessee, or another
<br />similar document. The Contractor agrees to provide a copy of any relevant documents.
<br />(1) Significant Participation by a Third Party Contractor. Although the
<br />Contractor may enter into a third party contract, after obtaining approval from the Department,
<br />in which the third party contractor agrees to provide property or services in support of the
<br />Project, or even carry out Project activities normally performed by the Contractor (such as in a
<br />NCDOT/PTD/FM
<br />Revised 8/4/2008 Page 3 of 28
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