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as 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. § <br />5325(8), and retain such documents for at least five (5) years after project completion. <br />Section 16. Construction. Except to the extent the Department determines otherwise <br />in writing, the Contractor agrees as follows: <br />a. Drafting Review and Approval of Construction Plans and Specifications. The <br />Contractor agrees to submit drawings, designs, and/or description of work for construction, <br />renovation, or facility improvement projects, including the purchase or construction of bus <br />shelters to the Department for its review and approval prior to solicitation. <br />b. MBE/WBE/DBE Participation. The Contractor agrees to record and report <br />DBE/MBE/VVBE business good faith efforts in accordance with N.C.G.S. 143-128.2(f). <br />c. Supervision of Construction. The Contractor agrees to provide and maintain <br />competent and adequate engineering supervision at the construction site to ensure that the <br />complete work conforms to the approved plans and specifications. <br />d. Construction Reports. The Contractor agrees to provide progress reports and <br />other data and information as may be required by the Department. <br />e. Protect Management for Major Capital Projects. To the extent applicable, <br />the Contractor agrees to comply with FTA regulations, "Project Management Oversight," 49 <br />C.F.R. Part 633, and any subsequent Project Management Oversight regulations FTA may <br />issue. <br />f. Seismic Safety. The Contractor agrees to comply with the Earthquake <br />Hazards Reduction Act of 1977, as amended, 42 U.S.C. §§ 7701 et seq., with Executive Order <br />No. 12699, "Seismic Safety of Federal and Federally-Assisted or Regulated New Building <br />Construction," 42 U.S.C. § 7704 note, and with U.S. DOT regulations, "Seismic Safety," 49 <br />C.F.R. Part 41, specifically, 49 C.F.R. § 41.117. <br />Section 17. Leases. <br />a. Capital Leases. All lease agreements must be approved by the Department <br />prior to execution. 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. b. <br />Leases Involving Certificates of Participation. The Contractor agrees to obtain the <br />Department's concurrence before entering into any leasing arrangement involving the issuance <br />of certificates of participation in connection with the acquisition of any capital asset. <br />Section 18. Use of Real Property, Equipment, and Supplies. The Contractor <br />understands and agrees that the Federal/State Government retains aFederal/State interest in <br />any real property, equipment, and supplies financed with Federal/State assistance (Project <br />property) until, and to the extent, that the Federal/State Government relinquishes its <br />Federal/State interest in that Project property. With respect to any Project property financed <br />with Federal/State assistance under this Agreement, the Contractor agrees to comply with the <br />following provisions, except to the extent FTA or the Department determines otherwise in <br />writing: <br />a. Use of Project Property. The Contractor agrees to maintain continuing <br />control of the use of Project property to the extent satisfactory to FTA. The Contractor agrees <br />to use Project property for appropriate Project purposes (which may include joint development <br />purposes that generate program income, both during and after the award period and used to <br />support public transportation activities) for the duration of the useful life of that property, as <br />required by FTA or the Department. Should the Contractor unreasonably delay or fail to use <br />Project property during the useful life of that property, the Contractor agrees that it may be <br />required to return the entire amount of the Federal and State assistance, expended on that <br />property. The Contractor further agrees to notify the Department immediately when any <br />Updated 07/26/10 22 <br />