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the Department, and applicable Federal and State laws, regulations, and <br />directives. <br />b. Administrative Requirements. The Contractor agrees to comply with the following <br />Federal and State administrative requirements: <br />(1) U.S. DOT regulations, "Uniform Administrative Requirements for <br />Grants and Cooperative Agreements to State and Local Governments," 49 <br />C.F.R. Part 18 at (http://www.access.gpo.gov/nara/cfr/cfr-table- <br />search.html#page1). <br />(2) Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter <br />56 at (http://reports.oah.state.nc.us/ncac.asp). <br />c. Application of Federal, State, and Local Laws. Regulations, and Directives. To <br />achieve compliance with changing federal requirements, the Contractor makes note that federal, state <br />and local requirements may change and the changed requirements will apply to this Agreement as <br />required. <br />d. Contractor's Primary Responsibility to Comply with Federal and State Requirements. <br />Irrespective of involvement by any other participant in the Project, the Contractor agrees that it, rather <br />than the participant, is ultimately responsible for compliance with all applicable Federal and State laws, <br />regulations, and directives, .the Master Agreement between the FTA and the Department, and this <br />Agreement, except to the extent that the Department determines otherwise in writing. Unless otherwise <br />authorized in writing by the Department, the Contractor shall not assign any portion of the work to be <br />performed under this Agreement, or execute any contract, amendment, or change order thereto, or <br />obligate itself in 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 shall <br />incorporate the provisions of this Agreement into any lease arrangement and shall not enter into any <br />lease 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 the FTA <br />and the Department. If the Contractor leases any Project asset to another party, the Contractor agrees <br />to retain ownership of the leased asset, and assure that the Lessee will use the Project asset to provide <br />mass transportation service, either through a "Lease and Supervisory Agreement" between the <br />Contractor and Lessee, or another similar document. The Contractor agrees to provide a copy of any <br />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, in which <br />the third party contractor agrees to provide property or services in support of the Project, or even carry <br />out Project activities normally performed by the Contractor (such as in a turnkey contract), the <br />Contractor agrees that it, rather than the third party contractor, is ultimately responsible to the <br />Department for compliance with all applicable Federal and State laws, regulations, and directives, <br />except to the extent that the Department determines otherwise in writing. <br />(2) Significant Participation by a Subcontractor. Although the Contractor <br />may delegate any or almost all Project responsibilities to one or more subcontractors, the Contractor <br />agrees that it, rather than the subcontractor, is ultimately responsible for compliance with all applicable <br />Federal and State laws, regulations, and directives, except to the extent that the Department <br />determines otherwise in writing. <br />(3) Significant Participation by a Lessee of a Contractor. Although the <br />contractor may lease project property and delegate some or many project responsibilities to one or <br />more lessees, the Contractor agrees that it, rather than any lessee, is ultimately responsible for <br />compliance with all applicable Federal laws, regulations, and directives, except to the extent that FTA <br />determines otherwise in writing. <br />e. Contractor's Responsibility to Extend Federal and State Reauirements to Other <br />Entities. <br />(1) Entities Affected. Only entities that are signatories to this Agreement for the <br />Project are parties to this agreement. To achieve compliance with certain Federal and State laws, <br />regulations, or directives, however, other Project participants, such as subrecipients and third party <br />contractors, will necessarily be involved. Accordingly, the Contractor agrees to take the appropriate <br />Updated 9/17/10 Page 3 of 34 <br />