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Federal laws, regulations, and directives, except to the extent that FTA <br />determines otherwise in writing. <br />h. Contractor's Responsibility to Extend Federal and State Requirements to <br />Other Entities. <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 <br />certain Federal and State laws, regulations, or directives, however, other <br />Project participants, such as subrecipients and third party contractors, will <br />necessarily be involved. Accordingly, the Contractor agrees to take the <br />appropriate measures necessary to ensure that all Project participants <br />comply with applicable Federal and State laws, regulations, and directives <br />affecting their performance, except to the extent the Department determines <br />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 <br />provisions affect a Project participant. Thus, the Contractor agrees to include <br />adequate provisions to ensure that each Project participant complies with <br />those Federal and State laws, regulations, and directives, except to the <br />extent that the Department determines otherwise in writing. In addition, the <br />Contractor also agrees to require its third party contractors, subrecipients, <br />and lessees to include adequate provisions to ensure compliance with <br />applicable Federal and State laws, regulations, and directives in each lower <br />tier subcontract and subagreement for the Project, except to the extent that <br />the Department determines otherwise in writing. Additional requirements <br />include the following: <br />(a) Third Party Contracts. Because Project activities performed by a <br />third party contractor must comply with all applicable Federal and State <br />laws, regulations, and directives, except to the extent the Department <br />determines otherwise in writing, the Contractor agrees to include <br />appropriate clauses in each third party contract stating the third party <br />contractor's responsibilities under Federal and State laws, regulations, <br />and directives, including any provisions directing the third party <br />contractor to extend applicable requirements to its subcontractors at <br />the lowest tier necessary. When the third party contract requires the <br />third party contractor to undertake responsibilities for the Project <br />usually performed by the Contractor, the Contractor agrees to include <br />in that third party contract those requirements applicable to the <br />Contractor imposed by the Grant Agreement for the Project or the FTA <br />Master Agreement and extend those requirements throughout each tier <br />except as the Department determines otherwise in writing. Additional <br />guidance pertaining to third party contracting is contained in the FTA's <br />"Best Practices Procurement Manual." FTA and the Department <br />caution, however, that FTA's "Best Practices Procurement Manual" <br />focuses mainly on third party procurement processes and may omit <br />certain other Federal requirements applicable to the work to be <br />performed. <br />(b) Subagreements. Because Project activities performed by a <br />subcontractor /subrecipient must comply with all applicable Federal and <br />State laws, regulations, and directives except to the extent that the <br />Department determines otherwise in writing, the Contractor agrees as <br />follows: <br />Updated 04/15/16 <br />