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rather than the third party contractor, is ultimately responsible to the <br />Department for compliance with all applicable Federal and State laws, <br />regulations, and directives, except to the extent that the Department <br />determines otherwise in writing. <br />(2) Significant Participation by a Subcontractor. Although the <br />Contractor may delegate any or almost all Project responsibilities to one or <br />more subcontractors, the Contractor agrees that it, rather than the <br />subcontractor, is ultimately responsible for compliance with all applicable <br />Federal and State laws, regulations, and directives, except to the extent that <br />the Department determines otherwise in writing. <br />(f). Contractor's Responsibility to Extend Federal and State Requirements <br />to <br />Other Entities. <br />(1) Entities Affected. Only entities that are signatories to this Agreement <br />for the Project are parties to this agreement. To achieve compliance with <br />certain Federal and State laws, regulations, or directives, however, other <br />Project participants, such as sub-recipients and third party contractors, will <br />necessarily be involved. Accordingly, the Contractor agrees to take the <br />appropriate measures necessary to ensure that all Project participants <br />comply with applicable Federal and State laws, regulations, and directives <br />affecting their performance, except to the extent the Department determines <br />otherwise in writing. <br />(2) Documents Affected. The applicability provisions of Federal and State <br />laws, regulations, and directives determine the extent to which. their <br />provisions affect a Project participant. Thus, the Contractor agrees to <br />include adequate provisions- to ensure that each Project participant complies <br />with those Federal and State laws, regulations, and directives, except to the <br />extent. that the Department determines otherwise in writing. In addition, the <br />Contractor also agrees to require its third party contractors and sub- <br />recipients to include adequate provisions to ensure compliance with <br />applicable Federal and State laws, regulations, and directives in each lower <br />tier sub-contract and sub-agreement for the Project, except to the extent that <br />the Department determines otherwise in writing. Additional requirements <br />include the following: <br />(a) Third Party Contracts. Because Project activities performed by <br />a <br />third party contractor must comply with all applicable Federal and <br />State laws, regulations, and directives, except to the extent the <br />Department determines otherwise in writing, the Contractor agrees to <br />include appropriate clauses in each third party contract stating the <br />third party contractor's responsibilities under Federal and State laws, <br />regulations, and directives, including any provisions directing the third <br />party contractor to extend applicable. requirements to its <br />subcontractors at the lowest tier necessary. When the third party <br />contract requires the third party contractor to undertake responsibilities <br />for the Project usually performed by the Contractor, the Contractor <br />agrees to include in that third party contract those requirements <br />applicable to the Contractor imposed by the Grant Agreement for the <br />Updated 07/26/10 <br />