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b. Administrative Requirements. The Contractor agrees to comply with the following
<br /> Federal and State administrative requirements:
<br /> (1) U.S. DOT regulations, "Uniform Administrative Requirements for
<br /> Grants and Cooperative Agreements to State and Local Governments," 49
<br /> G.F.R. Part 18 at (http://www.access.gpo.gov/nara/cfr/cfr-table-
<br /> search.html#page1).
<br /> (2) Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter
<br /> 5B at(http://reports.oah.state.nc.us/ncac.asr)).
<br /> C. Application of Federal, State, and Local Laws Regulations and Directives. To
<br /> achieve compliance with changing federal requirements, the Contractor makes note that federal, state
<br /> and local requirements may change and the changed requirements will apply to this Agreement as
<br /> required.
<br /> d. Contractor's Primary Responsibility to Comply with Federal and State Requirements.
<br /> Irrespective of involvement by any other participant in the Project, the Contractor agrees that it, rather
<br /> than the participant, is ultimately responsible for compliance with all applicable Federal and State laws,
<br /> regulations, and directives, the Master Agreement between the FTA and the Department, and this
<br /> Agreement, except to the extent that the Department determines otherwise in writing. Unless otherwise
<br /> authorized in writing by the Department, the Contractor shall not assign any portion of the work to be
<br /> performed under this Agreement, or execute any contract, amendment, or change order thereto, or
<br /> obligate itself in any manner with any third party with respect to its rights and responsibilities under this
<br /> Agreement without the prior written concurrence of the Department. Further, the Contractor shall
<br /> incorporate the provisions of this Agreement into any lease arrangement and shall not enter into any
<br /> lease arrangement without the prior concurrence of the Department. Any lease approved by the
<br /> Department shall be subject to the conditions or limitations governing the lease as set forth by the FTA
<br /> and the Department. If the Contractor leases any Project asset to another party, the Contractor agrees
<br /> to retain ownership of the leased asset, and assure that the Lessee will use the Project asset to provide
<br /> mass transportation service, either through a "Lease and Supervisory Agreement" between the
<br /> Contractor and Lessee, or another similar document. The Contractor agrees to provide a copy of any
<br /> relevant documents.
<br /> (1) Significant Participation by a Third Party Contractor. Although the
<br /> Contractor may enter into a third party contract, after obtaining approval from the Department, in which
<br /> the third party contractor agrees to provide property or services in support of the Project, or even carry
<br /> out Project activities normally performed by the Contractor (such as in a turnkey contract), the
<br /> Contractor agrees that it, rather than the third party contractor, is ultimately responsible to the
<br /> Department for compliance with all applicable Federal and State laws, regulations, and directives,
<br /> except to the extent that the Department determines otherwise in writing.
<br /> (2) Significant Participation by a Subcontractor. Although the Contractor
<br /> may delegate any or almost all Project responsibilities to one or more subcontractors, the Contractor
<br /> agrees that it, rather than the subcontractor, is ultimately responsible for compliance with all applicable
<br /> Federal and State laws, regulations, and directives, except to the extent that the Department
<br /> determines otherwise in writing.
<br /> (3) Significant Participation by a Lessee of a Contractor. Although the
<br /> contractor may lease project property and delegate some or many project responsibilities to one or
<br /> more lessees, the Contractor agrees that it, rather than any lessee, is ultimately responsible for
<br /> compliance with all applicable Federal laws, regulations, and directives, except to the extent that FTA
<br /> determines otherwise in writing.
<br /> e. Contractor's Responsibility to Extend Federal and State Requirements to Other
<br /> Entities.
<br /> (1) Entities Affected. Only entities that are signatories to this Agreement for the
<br /> Project are parties to this agreement. To achieve compliance with certain Federal and State laws,
<br /> regulations, or directives, however, other Project participants, such as subrecipients and third party
<br /> contractors, will necessarily be involved. Accordingly, the Contractor agrees to take the appropriate
<br /> measures necessary to ensure that all Project participants comply with applicable Federal and State
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