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, c <br /> when awarding and administering contracts. The Grantee agrees to give full opportunity for free,open and <br /> competitive procurement for each contract as required by state and federal law. <br /> B. Exclusionary or Discriminatory Specifications-Apart from inconsistent requirements imposed by federal and <br /> state law,the Grantee agrees and shall require all of its contractors for the Project to agree that no federal or <br /> state funds shall be used to support procurement utilizing exclusionary or discriminatory specifications and it <br /> will comply with 49 U.S.C.5323(h)(2). <br /> C. Award to Other Than the Lowest Bidder-In accordance with the Federal Transit Act,as amended,49 U.S.C. <br /> Section 5326(c),a Grantee may award a third party contract to other than the lowest bidder in connection with <br /> a procurement,only when such award furthers objectives that are consistent with the applicable regulations <br /> that FTA may issue. <br /> D. Force Account-FTA and the Department reserve the right to determine the extent of its participation in force <br /> account costs. <br /> E. Capital Leases-To the extent applicable,the Grantee agrees to comply with FTA regulations,"Capital <br /> Leases,"49 CFR Part 639,and any revision thereto. <br /> F. Buy America-Each third party contract(valued at more than$100,000 for Construction and Acquisition of <br /> Goods or Rolling Stock)utilizing FTA assistance must conform with 49 U.S.C.5323(j),and FTA regulations, <br /> "Buy America Requirements,"49 CFR Part 661. The Grantee will include the applicable Buy America <br /> Certifications and will incorporate its provisions into every relevant third-party contract. <br /> G. Cargo Preference-Use of United States Flag Vessels. The Grantee agrees to comply with 46 CFR Part 381 <br /> and to insert the substance of those regulations in all applicable subcontracts issued pursuant to this <br /> Agreement. <br /> H. Preference for Recycled Products-The Grantee agrees to give preference to the purchase of recycled <br /> products for use in this Project pursuant to the various Environmental Protection Agency(EPA)guidelines <br /> contained in 40 CFR Parts 247-254. <br /> I. Bus Testing-To the extent applicable,the Grantee agrees to comply with FTA regulations,"Bus Testing,"49 <br /> CFR Part 665,and agrees to obtain applicable certifications from contractors,subcontractors and <br /> manufacturers. <br /> J. Geographic Restrictions-The Grantee and its contractors agree to refrain from using state or local <br /> geographic preferences,except those expressly mandated or encouraged by federal statute,and as permitted <br /> by the Department and FTA. <br /> K. Third Party Disputes or Breaches-The Grantee agrees to pursue all legal rights available under any third <br /> party contract,and FTA and the Department reserve the right to concur in any compromise or settlement of <br /> any third party contract claim involving Che Grantee. The Grantee will notify FTA and the Department of any <br /> current or prospective major dispute pertaining to any third party contract. If the Grantee seeks to name the . <br /> Govemment as a party to the litigation,the Grantee agrees to inform both FTA and the Department before <br /> doing so. The Government retains a right to a proportionate share of any proceeds derived from any third <br /> party recovery. Unless permitted otherwise by the Government,the Grantee will credit the Project Account <br /> with any liquidated damages recovered. <br /> L. Fly America- Grantee will comply with 49 U.S.C.§40118,4 CFR§52 and U.S.GAO Guidelines B-138942, <br /> 1981 U.S.Comp.Gen. LEXIS 2166, March 31, 1981 regarding costs of intemational air transportation by U.S. <br /> Flag air carriers. <br /> M. Relocation&Land Acquisition. Grantee agrees to comply with 42 U.S.C.§§4601 et seq.,and 49 CFR 24 <br /> regarding relocation and real property acquisition. <br /> State/Federa!Capital Grant page 17 <br />