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Principles for Educational Institutions
<br /> (OMB Circular A-21), "2 C.F.R. Part 220,
<br /> applies to Project costs incurred by a Contractor
<br /> that is an institution of higher education.
<br /> (cl) U.S. OMB Guidance for Grants and Agreements"Cost
<br /> Principles for Non-profit Organizations (OMB Circular
<br /> A-122)," 2 C.F.R. Part 230, applies to Project costs incurred by a
<br /> Contractor that is a private nonprofit organization.
<br /> (d1) FAR, at 48 C.F.R., Subpart 31.2, "Contracts with
<br /> Commercial Organizations"applies to Project costs
<br /> incurred by a Contractor that is a for-profit organization.
<br /> Section 9. Reporting, Record Retention, and Access.
<br /> a. Reports. The Contractor shall advise the Department regarding the progress of the
<br /> Project at a minimum quarterly and at such time and in such a manner as the Department may
<br /> require. Such reporting and documentation may include, but not be limited to: operating statistics,
<br /> equipment usage, meetings, progress reports, and monthly performance reports. The Contractor
<br /> shall collect and submit to the Department such financial statements, data, records, contracts, and
<br /> other documents related to the Project as may be deemed necessary by the Department. Such
<br /> reports shall include narrative and financial statements of sufficient substance to be in
<br /> conformance with the reporting requirements of the Department. Progress reports throughout the
<br /> useful life of the project equipment shall be used, in part, to document utilization of the project
<br /> equipment. Failure to fully utilize the project equipment in the manner directed by the Department shall
<br /> constitute a breach of contract, and after written notification by the Department, may result in
<br /> termination of the Agreement or any such remedy as the Department deems appropriate.
<br /> b. Record Retention. The Contractor and its third party contractors shall retain all
<br /> records pertaining to this Project for a period of five (5) years from the date of final payment to the
<br /> Contractor, or until all audit exceptions have been resolved, whichever is longer, in accordance with
<br /> "Records Retention and Disposition Schedule— Public Transportation Systems and Authorities, April 1,
<br /> 2006,"at (http://www.ah.dcr.state.nc.us/records/loca1/).
<br /> C. Access to Records of Contractor and Subcontractors. The Contractor shall permit
<br /> and shall require its third party contractors to permit the Department, the Comptroller General of the
<br /> United States, and the Secretary of the United States Department of Transportation, or their authorized
<br /> representatives, to inspect all work, materials, payrolls, and other data and records with regard to the
<br /> Project, and to audit the books, records, and accounts of the Contractor pertaining to the Project. The
<br /> Department shall reserve the right to reject any and all materials and workmanship for defects and
<br /> incompatibility with Project Description or excessive cost. The Department shall notify the Contractor, in
<br /> writing, if materials and/or workmanship are found to be unacceptable. The Contractor shall have
<br /> ninety (90) days from notification to correct defects or to provide acceptable materials and/or
<br /> workmanship. Failure by the Contractor to provide acceptable materials and/or workmanship, or to
<br /> correct noted defects, shall constitute a breach of contract.
<br /> d. Proiect Closeout. The Contractor agrees that Project closeout does not alter the
<br /> reporting and record retention requirements of this Section 6 of this Agreement.
<br /> Section 10. Project Completion, Audit, Settlement, and Closeout.
<br /> a. Project Completion. Within ninety (90) calendar days following Project completion,
<br /> the end of the Project's period of performance, or termination by the Department, the Contractor agrees
<br /> to submit a final reimbursement request to the Department for eligible Project expenses.
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