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C. Period of Performance. This Agreement shall commence upon the date of <br />execution, unless specific written authorization from the Department to the contrary is received. <br />The period of performance for all expenditures shall extend from July 1, 2009 to June 30, <br />2010, unless written authorization to the contrary is provided by the Department. Any requests <br />to change the Period of Performance must be made in accordance with the policies and <br />procedures established by the Department or FTA. The Contractor shall commence, carry <br />on, and complete the approved Project with all practicable dispatch, in a sound, economical, <br />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 laws, <br />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 <br />Grants and Cooperative Agreements to State and Local <br />Governments," 49 C.F.R. Part 18 at <br />(http: / /www. access. gpo. gov /nara /cfr /cfr- table- search.htmI #page1). <br />(2) Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter <br />5B 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 Contractor <br />agrees that it, rather than the participant, is ultimately responsible for compliance with all <br />applicable Federal and State laws, regulations, and directives, the Master Agreement between <br />the FTA and the Department, and this Agreement, except to the extent that the Department <br />determines otherwise in writing. Unless otherwise authorized in writing by the Department, the <br />Contractor shall not assign any portion of the work to be performed under this Agreement, or <br />execute any contract, amendment, or change order thereto, or obligate itself in any manner with <br />any third party with respect to its rights and responsibilities under this Agreement without the <br />prior written concurrence of the Department. Further, the Contractor shall incorporate the <br />provisions of this Agreement into any lease arrangement and shall not enter into any lease <br />arrangement without the prior concurrence of the Department. Any lease approved by the <br />Department shall be subject to the conditions or limitations governing the lease as set forth by <br />the FTA and the Department. If the Contractor leases any Project asset to another party, the <br />Contractor agrees to retain ownership of the leased asset, and assure that the Lessee will use <br />the Project asset to provide mass transportation service, either through a "Lease and <br />Supervisory Agreement" between the Contractor and Lessee, or another similar document. The <br />Contractor agrees to provide a copy of any relevant documents. <br />Page 3 of 36 <br />