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provision applies to all divisions of the Recipient, including divisions tasked with law enforcement or
<br /> investigatory functions. Federal Interest in Recovery.The Federal Government retains the right to a
<br /> proportionate share of any proceeds recovered from any third party,based on the percentage of the
<br /> federal share for the Underlying Agreement.Notwithstanding the preceding sentence,the Recipient
<br /> may return all liquidated damages it receives to its Award Budget for its Underlying Agreement rather
<br /> than return the federal share of those liquidated damages to the Federal Government, provided that the
<br /> Recipient receives FTA's prior written concurrence. Enforcement.The Recipient must pursue its legal
<br /> rights and remedies available under any third party agreement or any federal,state,or local law or
<br /> regulation.
<br /> FTA Master Agreement
<br /> Agreement(28)Section 39(b). Notification to FTA; Flow Down Requirement.If a current or prospective
<br /> legal matter that may affect the Federal Government emerges,the Recipient must promptly notify the
<br /> FTA Chief Counsel and FTA Regional Counsel for the Region in which the Recipient is located.The
<br /> Recipient must include a similar notification requirement in its Third Party Agreements and must require
<br /> each Third Party Participant to include an equivalent provision in its subagreements at every tier,for any
<br /> agreement that is a"covered transaction"according to 2 C.F.R.§§ 180.220 and 1200.220.
<br /> (1)The types of legal matters that require notification include, but are not limited to,a major
<br /> dispute, breach,default,litigation,or naming the Federal Government as a party to litigation or a legal
<br /> disagreement in any forum for any reason.
<br /> (2)Matters that may affect the Federal Government include, but are not limited to,the Federal
<br /> Government's interests in the Award,the accompanying Underlying Agreement,and any Amendments
<br /> thereto,or the Federal Government's administration or enforcement of federal laws,regulations,and
<br /> requirements.
<br /> (3)Additional Notice to U.S.DOT Inspector General.The Recipient must promptly notify the U.S.
<br /> DOT Inspector General in addition to the FTA Chief Counsel or Regional Counsel for the Region in which
<br /> the Recipient is located,if the Recipient has knowledge of potential fraud,waste,or abuse occurring on
<br /> a Project receiving assistance from FTA.The notification provision applies if a person has or may have
<br /> FY2022 Contractors Manual—Procurement 9-57 submitted a false claim under the False Claims Act,31
<br /> U.S.C. §3729,et seq.,or has or may have committed a criminal or civil violation of law pertaining to
<br /> such matters as fraud,conflict of interest, bid rigging,misappropriation or embezzlement,bribery,
<br /> gratuity,or similar misconduct involving federal assistance.This responsibility occurs whether the
<br /> Project is subject to this Agreement or another agreement between the Recipient and FTA,or an
<br /> agreement involving a principal,officer,employee,agent,or Third Party Participant of the Recipient. It
<br /> also applies to subcontractors at any tier. Knowledge,as used in this paragraph,includes,but is not
<br /> limited to, knowledge of a criminal or civil investigation by a Federal,state,or local law enforcement or
<br /> other investigative agency,a criminal indictment or civil complaint,or probable cause that could support
<br /> a criminal indictment,or any other credible information in the possession of the Recipient. In this
<br /> paragraph, "promptly" means to refer information without delay and without change.This notification
<br /> provision applies to all divisions of the Recipient,including divisions tasked with law enforcement or
<br /> investigatory functions.
<br /> Termination for Default
<br /> If the Contractor does not deliver goods or materials in accordance with any subsequent contract
<br /> delivery schedule,or,if any subsequent contract is for services,the Contractor fails to perform in the
<br /> manner called for in a subsequent contract,or if the Contractor fails to comply with any other
<br /> provisions of a subsequent contract,the Buyer(s) may terminate the contract for default. Termination
<br /> shall be effected by serving a notice of termination on the Contractor setting forth the manner in which
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