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u. Award to Other than the Lowest Bidder. In accordance with Federal and State
<br />statutes, a third party contract may be awarded to other than the lowest bidder, if the award furthers an
<br />objective (such as improved long-term operating efficiency and lower long-term costs). When specified
<br />in .bidding documents, factors such as discounts, transportation costs, and life cycle costs will be
<br />considered in determining which bid is lowest. Prior to the award of any contract equal to or greater
<br />than $2,500 to other than apparent lowest bidder, the Contractor shall submit its recommendation along
<br />with basis/reason for selection to the Department for pre-award approval.
<br />v. Award to Responsible Contractors. The Contractor agrees to award third party
<br />contracts only to responsible contractors who possess potential ability to successfully perform under
<br />the terms and conditions of the proposed procurement. Consideration will be given to such matters as
<br />contractor integrity, compliance with public policy, record of past performance, and financial and
<br />technical resources. Contracts will not be awarded to parties that are debarred, suspended, or
<br />otherwise excluded from or ineligible for participation in Federal assistance programs or activities in
<br />accordance with the Federal debarment and suspension rule, 49 C.F.R. 29. For procurements over
<br />$25,000, the Contractor shall comply, and assure the compliance of each third party contractor and
<br />subrecipient at any tier, with the debarment and suspension rule. FTA and the Department recommend
<br />that grantees use a certification form for projects over $25,000, which are funded in part with Federal
<br />funds. A sample certification form can be obtained from the Department. The Contractor also agrees to
<br />check a potential contractor's debarment/suspension status at the following Web site:
<br />http://epls.a rnet.gov/.
<br />w. Procurement Notification Requirements. With respect to any procurement for goods
<br />and services (including construction services) having an aggregate value of $500,000 or more (in
<br />Federal funds), the Contractor agrees to:
<br />(1) Specify the amount of Federal and State funds that will be used to finance the
<br />acquisition in any announcement of the contract award for such goods or services; and
<br />(2) Express the said amount as a percentage of the total costs of the planned
<br />acquisition.
<br />x. Contract Administration System. The Contractor shall maintain a contract
<br />administration system that ensures that contractors/subcontractors perform in accordance with the
<br />terms, conditions, and specifications of their contracts or purchase orders.
<br />y. Access to Third Partv Contract Records. The Contractor agrees, and agrees to
<br />require its third party contractors and third party subcontractors, at as many tiers of the Project as
<br />required, to provide to the Federal and 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. § 5325(g),
<br />and retain such documents for at least five (5) years after project completion.
<br />Section 15. Leases.
<br />a. Capital Leases. To the extent applicable, the Contractor agrees to comply with FTA
<br />regulations, "Capital Leases," 49 C.F.R. Part 639, and any revision thereto.
<br />b. Leases Involving Certificates of Participation. The Contractor agrees to obtain the
<br />Department's concurrence before entering into any leasing arrangement involving the issuance of
<br />certificates of participation in connection with the acquisition of any capital asset.
<br />Section 16. Hold Harmless. Except as prohibited or otherwise limited by State law or except to
<br />the extent that FTA or the Department determines otherwise in writing, upon request by the Federal or
<br />State Government, the Contractor agrees to indemnify, save, and hold harmless the Federal and State
<br />Government and its officers, agents, and employees acting within the scope of their official duties
<br />against any liability, including costs and expenses, resulting from any willful or intentional violation by
<br />the Contractor of proprietary rights, copyrights, or right of privacy, arising out of the publication,
<br />translation, reproduction, delivery, use, or disposition of any data furnished under the Project. The
<br />Contractor shall not be required to indemnify the Federal or State Government for any such liability
<br />caused by the wrongful acts of Federal or State employees or agents.
<br />Section 17. Use of Real Property, Equipment, and Supplies. The Contractor understands
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