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<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 certain Federal and <br />State laws,. regulations, or directives, however, other Project participants, such as subrecipients <br />and third party contractors, will necessarily be involved. Accordingly, the Contractor agrees to <br />take the appropriate measures necessary to ensure that all Project participants comply with <br />applicable Federal and State laws, regulations, and directives affecting their performance, <br />except to the extent the Department determines 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 provisions affect a Project <br />participant. Thus, the Contractor agrees to include adequate provisions to ensure that each <br />Project participant complies with those Federal and State laws, regulations, and directives, <br />except to the extent that the Department determines otherwise in writing. In addition, the <br />Contractor also agrees to require its third party contractors and subrecipients to include <br />adequate provisions to ensure compliance with applicable Federal and State laws, regulations, <br />and directives in each lower tier subcontract and subagreement for the Project, except to the <br />extent that the Department determines otherwise in writing. Additional requirements include the <br />following: <br />(a) Third Party Contracts. Because Project activities performed by a <br />third party contractor must comply with all applicable Federal and State laws, regulations, and <br />directives, except to the extent the Department determines otherwise in writing, the Contractor <br />agrees to include appropriate clauses in each third party contract stating the third party <br />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 pertormed by the <br />Contractor, the Contractor agrees to include in that third party contract those requirements <br />07-SC-056 Page 6 of 59 <br />Orange County <br />