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m. Contract Administration System. The Contractor shall maintain a contract <br />administration system that ensures that contractors/subcontractors pertorm in accordance with <br />the terms, conditions, and specifications of their contracts or purchase orders. <br />n. Access to Third Party Contract Records. The Contractor agrees, and agrees <br />to require its third party contractors and third party subcontractors, at as many tiers of the <br />Project as required, to provide to the State awarding agencies or their duly authorized <br />representatives, access to all third. party contract records to the extent required by 49 U.S.C. § <br />5325(8), and retain such documents for at least five (5) years after project completion. <br />Section 12. Leases. <br />a. Caoital Leases. To the extent applicable, the Contractor agrees to comply <br />with FTA regulations, "Capital Leases," 49 C.F.R. Part 639, and any revision thereto. <br />b. Leases Involving Certificates of Participation. The Contractor agrees to <br />obtain the Department's concurrence before entering into any leasing arrangement involving the <br />issuance of certificates of participation in connection with the acquisition of any capital asset. <br />Section 13. Hold Harmless. Except as prohibited or otherwise limited by State law or <br />except to the extent that the Department determines otherwise in writing, upon request by the <br />State Government, the Contractor agrees to indemnify, save, and hold harmless the State <br />Government and its officers, agents, and employees acting within the scope of their official <br />duties against any liability, including costs and expenses, resulting from any willful or intentional <br />violation by the Contractor of proprietary rights, copyrights, or right of privacy, arising out of the <br />publication, translation,- reproduction, delivery, use, or disposition of any data furnished under <br />the Project. The Contractor shall not be required to indemnify the State Govemment for any <br />such liability caused by the wrongful acts of State employees or agents. <br />Section 14. Use of Real Property. Equipment, and Supplies. The Contractor understands <br />and agrees that the State Government retains a State interest in any real property, equipment, <br />and supplies financed with State assistance (Project property) until, and to the extent, that the <br />Project 07-US-056 ~ Page 35 of 49 <br />Orange County <br />