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<br />system (or of any other agency or entity pertorming related functions) receiving FTA assistance <br />to whom the Hatch Act would not otherwise apply. <br />f. False or Fraudulent Statements or Claims. The Contractor acknowledges <br />and agrees that: <br />(1) Civil Fraud. The Program Fraud Civil Remedies Act of 1986, as <br />amended, 31 U.S.C. §§ 3801 et seq., and U.S. DOT regulations, "Program Fraud Civil <br />Remedies," 49 C.F.R. Part 31, apply to its activities in connection with the Project. By executing <br />this Agreement for the Project, the Contractor certifies or affirms the truthfulness and accuracy <br />of each statement it has made, it makes, or it may make in connection with the Project. In <br />addition to other penalties that may apply, the Contractor also understands that if it makes a <br />false, fictitious, or fraudulent claim, statement, submission, certification, assurance, or <br />representation to the Federal/State Government concerning the Project, the Federal/State <br />Government reserves the right to impose on the Contractor the penalties of the Program Fraud <br />Civil Remedies Act of 1986, as amended, to the extent the Federal/State Government deems <br />appropriate. <br />(2) Criminal Fraud. If the Contractor makes a false, fictitious; or fraudulent <br />claim, statement, submission, certification, assurance, or representation to the Federal/State <br />Government or includes a false, fictitious, or fraudulent statement or representation in any <br />agreement with the FederaUState Government in connection with a Project authorized under 49 <br />U.S.C. chapter 53 or any other Federal law, the Federal/State Government reserves the right to <br />impose on the Contractor the penalties of 49 U.S.C. § 5323(1), 18 U.S.C. § 1001 or other <br />applicable Federal/State law to the extent the Federal/State Government deems appropriate. <br />Section 4. Project Expenditures. <br />a. General. The Department shall reimburse the Contractor for allowable costs <br />for work performed under the terms of this Agreement which shall be financed with State funds. <br />The Contractor shall expend funds provided in this Agreement in accordance with the approved <br />07-SC-056 Page 11 of 59 <br />Orange County <br />