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g <br />h. <br />Requirements for Grants and Cooperative Agreements to State and Local Governments," 49 <br />C.F.R. Part 18 at http://www.access.gpo.gov /nara /cfr /cfr- table- search.html #pagel; (2) <br />Title 19A North Carolina Administrative Code (N.C.A.C.) Subchapter 513 at <br />http://reports.oah.state.nc.us/ncac.as <br />Application of Federal, State, and Local Laws, Regulations, and Directives. To achieve <br />compliance with changing federal requirements, the Recipient makes note that federal, state <br />and local requirements may change and the changed requirements will apply to this <br />Agreement as required. <br />Full and Open Competition. In accordance with 49 U.S.C. § 5325(a), the Recipient agrees to <br />conduct all procurement transactions in a manner that provides full and open competition. <br />Recipient's Responsibility to Extend Federal and State Requirements to Other Entities. <br />a. Entities Affected. Only entities that are signatories to this Agreement for the Project <br />are parties to this agreement. To achieve compliance with certain Federal and State <br />laws, regulations, or directives, however, other Project participants, such as <br />subrecipients and third party contractors, will necessarily be involved. Accordingly, <br />the Recipient agrees to take the appropriate measures necessary to ensure that all <br />Project participants comply with applicable Federal and State laws, regulations, and <br />directives affecting their performance <br />b. Documents Affected. The applicability provisions of Federal and State laws, <br />regulations, and directives determine the extent to which their provisions affect a <br />Project participant. Thus, the Recipient agrees to include adequate provisions to <br />ensure that each Project participant complies with those Federal and State laws, <br />regulations, and directives. In addition, the Recipient also agrees to require its third <br />party contractors and subrecipients to include adequate provisions to ensure <br />compliance with applicable Federal and State laws, regulations, and directives in <br />each lower tier subcontract and subagreement for the Project. Additional <br />requirements include the following: (a) Third Party Contracts. Because Project <br />activities performed by a third party contractor must comply with all applicable <br />Federal and State laws, regulations, and directives, the Recipient agrees to include <br />appropriate clauses in each third party contract stating the third party contractor's <br />responsibilities under Federal and State laws, regulations, and directives, including <br />any provisions directing the' third party contractor to extend applicable <br />requirements to its subcontractors at the lowest tier necessary. When the third <br />party contract requires the third party contractor to undertake responsibilities for <br />the Project usually performed by the Recipient, the Recipient agrees to include in <br />that third party contract those requirements applicable to the Recipient imposed by <br />the Grant Agreement for the Project. Additional guidance pertaining to third party <br />contracting is contained in the FTA's "Best Practices Procurement Manual." (b) <br />Subagreements. Because Project activities performed by a subcontractor/ <br />subrecipient must comply with all applicable Federal and State laws, regulations, <br />and directives, the Recipient agrees as follows: <br />i. Written Subagreement. The Recipient agrees to enter into a written <br />agreement with each subrecipient (subagreement) stating the terms and <br />conditions of assistance by which the Project will be undertaken and <br />completed. <br />ii. Compliance with Federal Requirements. The Recipient agrees to implement <br />the Project in a manner that will not compromise the Recipient's compliance <br />with Federal and State laws, regulations, and directives applicable to the <br />Project and the Recipient's obligations under this Agreement for the Project. <br />Therefore, the Recipient agrees to include in each subagreement appropriate <br />Page 2 of 18 <br />