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X. Contract Administration SVstem. The Grantee shall maintain a contract administration system that <br />ensures that Grantees/8ubGrantema perform in accordance with the tenns, cnndKiono, and <br />specifications of their contracts or purchase orders. <br />y. Access to Third PartV Contract Records. The Grantee ogneea, and agrees to require its third pudv <br />Grantees and third party GubGrantoes, at as many tiers of the Project as rmquinsd, to provide to <br />the Federal and State awarding agencies or their duly authorized representatives, access to all <br />third party contract records to the extent required by 49 U.S.C. § 5325(g), and retain such <br />documents for st least five (5) years after project oonnp|etinn. <br />Section 15. <br />o� Capital Leases. To the extent applicable, the Grantee agrees to comply with FTA regulations, <br />"Capital Leases," 49 C.F.R. Part 639, and any revision thereto. <br />b. Leases Involving Certificates of Participation. The Grantee agrees to obtain the Deportment's <br />concurrence before entering into any leasing arrangement involving the issuance of certificates of <br />participation in connection with the acquisition nf any capital asset. <br />C. Lease vs. Purchase. The Grantee agrees to obtain the Department's concurrence and a cost <br />analysis will be presented to evaluate the hsnns and conditions prior to entering into any lease <br />agreement. <br />Section 16. Hold Harmless. Except as prohibited or otherwise limited bv State law or except tothe <br />extent that FTA or the Department determines otherwise in writing, upon request by the Federal or State <br />Government, the Grantee ognaea to indemnifv, oaxa, and hold harmless the Federal and State <br />Government and its officers, agents, and employees acting within the scope of their official duties against <br />any liability, including costs and expenses, resulting from any willful or intentional violation by the Grantee <br />of proprietary rights, copyrights, or right of privacy, arising out of the publication, translation, reproduction, <br />delivery, use' or disposition of any data furnished under the Project. The Grantee shall not be required <br />to indemnify the Federal or State Government for any such liability caused by the wrongful acts of Federal <br />or State employees oragents. <br />Section 17. The Grantee understands and agrees <br />that the Federal/State Government retains a Federal/State interest in any real propertv, equipnnent, and <br />supplies financed with Federal/State assistance (Project property) unti|, and to the extent, that the <br />Federal/State Government relinquishes its Federal/State interest in that Project property. With respect <br />tn any Project prupertyfinancedvvithFedera|/8tateassintanoeunderthieAgnaement'theGranteeogrees <br />to comply with the following provisions, except to the extent FTAorthe Department determines otherwise <br />in writing: <br />a. Use of Proiect Property. The Grantee agrees to maintain continuing control of the use of Project <br />property to the extent satisfactory to FTA. The Grantee agrees to use Project property for <br />appropriate Project purposes (which may include joint development purposes that generate <br />program income, both during and after the award period and used to support public transportation <br />activities) for the duration of the useful life of that property, as required by FTA or the Department. <br />Should the Grantee unreasonably delay or fail to use Project propertyduringthnusnfu||ifeofthat <br />property, the Grantee agrees that it may be required to return the entire amount of the Federal and <br />State assistance expended on that property. The Grantee further agrees to notify the Department <br />immediately when any Project prnpertyisvvithdravvnfiomP jeotuseorvvhanonyProject property <br />is used in a manner substantially different from the representations the Grantee has nnodo in its <br />Application nrinthe Project Description for this Agreement for the Project. In turn. the Department <br />shall be responsible for notifying FTA. <br />b. General. The Grantee agrees to comply with the property management standards of 49 C.F.R. a§ <br />18.31 through 18.33, including any amendments thereto, and with other applicable Federal and <br />State regulations and directives. Any exception to the requirements nf49 C.F.R. G§ 18.31 through <br />18.33 requires the express approval of the Federal Government in writing. The Grantee also <br />consents to the Department's reimbursement requirements for premature dispositions of certain <br />Project equipment, as set forth in Subsection 17i of this Agreement. <br />05/27/2015 Page 2|u[30 <br />