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contractor's responsibilities under Federal and State laws, regulations, and directives, including <br />any provisions directing the third party contractor to extend applicable requirements to its <br />subcontractors at the lowest tier necessary. When the third party contract requires the third <br />party contractor to undertake responsibilities for the Project usually performed by the <br />Contractor, the Contractor agrees to include in that third party contract those requirements <br />applicable to the Contractor imposed by the Grant Agreement for the Project or the FTA Master <br />Agreement and extend those requirements throughout each tier except as the Department <br />determines otherwise in writing. Additional guidance pertaining to third party contracting is <br />contained in the FTA's "Best Practices Procurement Manual." FTA and the Department caution, <br />however, that FTA's "Best Practices Procurement Manual" focuses mainly on third party <br />procurement processes and may omit certain other Federal requirements applicable to the work <br />to be performed. <br />(b) Subagreements. Because Project activities performed by a <br />subcontractor/ subrecipient must comply with all applicable Federal and State laws, regulations, <br />and directives except to the extent that the Department determines otherwise in writing, the <br />Contractor agrees as follows: <br />1 Written subagreement. The Contractor agrees to enter <br />into a written agreement with each subrecipient (subagreement) stating the terms and <br />conditions of assistance by which the Project will be undertaken and completed. <br />2 Compliance with Federal Requirements. The Contractor <br />agrees to implement the Project in a manner that will not compromise the Contractor's <br />compliance with Federal and State laws, regulations, and directives applicable to the Project <br />and the Contractor's obligations under this Agreement for the Project and the FTA Master <br />Agreement. Therefore, the Contractor agrees to include in each subagreement appropriate <br />clauses directing the subrecipient to comply with those requirements applicable to the <br />Contractor imposed by this Agreement for the Project or the FTA Master Agreement and extend <br />Project 07-US-056 Page 7 of 49 <br />Orange County <br />