R2009-79 ACCEPTING PROPOSAL FIRST TRANSIT, INC.

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necessary to establish its compliance with Parts 653 and 654, and permit any authorized representative of the United States Deparhnent of Transportation or its operating administrations, the Illinois Department of Transportation, or the City, to inspect the facilities and records associated with the implementation of the drug and alcohol testing program as required under 49 CFR Parts 653 and 654 and review the testing process. The Contractor agrees further to certify annually its compliance with Parts 653 and 654 before March 1 and to submit the Management Information System (MIS)reports before March 1 to the City. To certify compliance the Contractor shall use the "Substance Abuse Certifications" in the "Annual List of Certifications and Assurances for Federal Transit Administration Grants and Cooperative Agreements," which is published annually in the Federal Register. 17.0 TERMINATION All contracts in excess of$10,000 (with the exception of contracts with nonprofit organizations and institutions of higher education,) shall contain suitable provisions for termination by the contracting party including the manner by which it will be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the Contractor. 18.0 BREACHES AND DISPUTE RESOLUTION All contracts in excess of$100,000 shall contain provisions or conditions which will allow for administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate. This may include provisions for bonding, penalties for late or inadequate performance, retained earnings, liquidated damages or other appropriate measures. 19.0 TRANSIT EMPLOYEE PROTECTIVE PROVISIONS The Contractor agrees to carry out the transit operations work on the underlying contract in compliance with terms and conditions determined by the U.S. Secretary of Labor to be fair and equitable to protect the interests of employees employed under this contract and to meet the employee protective requirements of 49 U.S.C. A 5333(b), and U.S. DOL guidelines at 29 C.F.R. Part 215, and any amendments thereto. These terms and conditions are identified in the letter of certification from the U.S. DOL to FTA applicable to the City's project for which Federal assistance is provided to support work on the underlying contract. 20.0 FEDERAL CHANGES T'he Contractor shall at all times comply with all applicable FTA regulations,policies, procedures and directives, including without limitation those listed directly or by reference in the Agreement (Form FTA MA (6) dated October, 1999)between the City and FTA, as they may be amended or promulgated from time to time during the term of 28