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PUBLIC SECTOR CONTRACTS (Including Local Governments) <br />financial assistance received by the State <br />and transferred or disbursed to non -State <br />entities. Both federal and State funds <br />maintain their identity as they are subgranted <br />to other organizations. Pursuant to N.C.G.S. <br />143C- 6- 23(a)(1), the terms "State grant <br />funds" and "State grants" do not include any <br />payment made by the Medicaid program, the <br />Teachers' and State Employees' <br />Comprehensive Major Medical Plan, or other <br />similar medical programs. <br />(17) " Subgrantee" has the meaning in G.S. <br />143C- 6- 23(a)(3): a non -State entity that <br />receives a grant of State funds from a <br />grantee or from another subgrantee but does <br />not include any non -State entity subject to <br />the audit and other reporting requirements of <br />the Local Government Commission. <br />(18) "Unit of Local Government has the meaning <br />in G.S. 143C- 1- 1(d)(29): A municipal <br />corporation that has the power to levy taxes, <br />including a consolidated city- county as <br />defined by G.S. 160B -2(1), and all boards, <br />agencies, commissions, authorities, and <br />institutions thereof that are not municipal <br />corporations. <br />Relationships of the Parties <br />Independent Contractor: The Grantee is and shall <br />be deemed to be an independent Contractor in the <br />performance of this Contract and as such shall be <br />wholly responsible for the work to be performed and <br />for the supervision of its employees. The Grantee <br />represents that it has, or shall secure at its own <br />expense, all personnel required in performing the <br />services under this agreement. Such employees shall <br />not be employees of, or have any individual <br />contractual relationship with, the Agency. <br />Subcontracting: The Grantee shall not subcontract <br />any of the work contemplated under this Contract <br />without prior written approval from the Agency. Any <br />approved subcontract shall be subject to all <br />conditions of this Contract. Only the subcontractors <br />or subgrantees specified in the Contract documents <br />are to be considered approved upon award of the <br />Contract. The Agency shall not be obligated to pay <br />for any work performed by any unapproved <br />subcontractor or subgrantee. The Grantee shall be <br />responsible for the performance of all of its <br />subgrantees and shall not be relieved of any of the <br />duties and responsibilities of this Contract. <br />Subgrantees: The Grantee has the responsibility to <br />ensure that all subgrantees, if any, provide all <br />information necessary to permit the Grantee to <br />comply with the standards set forth in this Contract. <br />Assignment: No assignment of the Grantee's <br />obligations or the Grantee's right to receive payment <br />hereunder shall be permitted. However, upon written <br />request approved by the issuing purchasing authority, <br />the State may: <br />(a) Forward the Grantee's payment check(s) <br />directly to any person or entity designated by <br />the Grantee, or <br />(b) Include any person or entity designated by <br />Grantee as a joint payee on the Grantee's <br />payment check(s). <br />In no event shall such approval and action obligate <br />the State to anyone other than the Grantee and the <br />Grantee shall remain responsible for fulfillment of all <br />Contract obligations. <br />Beneficiaries: Except as herein specifically <br />provided otherwise, this Contract shall inure to the <br />benefit of and be binding upon the parties hereto and <br />their respective successors. It is expressly <br />understood and agreed that the enforcement of the <br />terms and conditions of this Contract, and all rights of <br />action relating to such enforcement, shall be strictly <br />reserved to the Agency and the named Grantee. <br />Nothing contained in this document shall give or <br />allow any claim or right of action whatsoever by any <br />other third person. It is the express intention of the <br />Agency and Grantee that any such person or entity, <br />other than the Agency or the Grantee, receiving <br />services or benefits under this Contract shall be <br />deemed an incidental beneficiary only. <br />Indemnity <br />Indemnification: The Grantee agrees to indemnify <br />and hold harmless the Agency, including any of its <br />Divisions, and any of its officers, agents and <br />employees, from liability of any kind, and from any <br />claims of third parties arising out of any act or <br />omission of the Contractor in connection with the <br />performance of this Contract to the extent permitted <br />by law. <br />Default and Termination <br />Termination by Mutual Consent: The Parties may <br />terminate this Contract by mutual consent with 60 <br />days notice to the other party, or as otherwise <br />provided by law. <br />Termination for Cause: If, through any cause, the <br />Grantee shall fail to fulfill its obligations under this <br />Contract in a timely and proper manner, the Agency <br />shall have the right to terminate this Contract by <br />giving written notice to the Grantee and specifying <br />the effective date thereof. <br />In that event, all finished or unfinished deliverable <br />items prepared by the Grantee under this Contract <br />NCDA &CS - General Terms and Conditions — Public - Local Governmental Entities <br />Eff. 07/14;4/15;1/17 Page 2 of 4 <br />