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procedures when awarding and administering contracts. The Grantee agrees to give full <br /> opportunity for free, open and competitive procurement for each contract as required by <br /> state and federal law. <br /> B. Fxclusionary or Discriminatorv Sqecifications-Apart from inconsistent requirements <br /> imposed by federal and state law, the Grantee agrees and shall require all of its <br /> contractors for the Project to agree that no federal or state funds shall be used to support <br /> procurement utilizing exclusionary or discriminatory specifications and it will comply with <br /> 49 U.S.C. 5323(h)(2). <br /> C. Award to Other Than the Lowest Bidder- In accordance with the Federal Transit Act, as <br /> amended, 49 U.S.C. Section 5326(c), a Grantee may award a third party contract to other <br /> than the lowest bidder in connection with a procurement, only when such award furthers <br /> objectives that are consistent with the applicable regulations that FTA may issue. <br /> D. Force Account - FTA and the Department reserve the right to determine the extent of its <br /> participation in force account costs. <br /> E. ��Rital Leases - To the extent applicable, the Grantee agrees to comply with FTA <br /> regulations, "Capital 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 <br /> and Acquisition of Goods or Rolling Stock) utilizing FTA assistance must conform with 49 <br /> U.S.C. 5323(j), and FTA regulations, "Buy America Requirements," 49 CFR Part 661. The <br /> Grantee will include the applicable Buy America Certifications and will incorporate its <br /> provisions into every relevant third-party contract. <br /> G. Cargo Preference - Use of United States Flag Vessels. The Grantee agrees to comply <br /> with 46 CFR Part 381 and to insert the substance of those regulations in all applicable <br /> subcontracts issued pursuant to this Agreement. <br /> H. Preference for Rec�rcled Prod�!cts -The Grantee agrees to give preference to the <br /> purchase of recycled products for use in this Project pursuant to the various <br /> Environmental Protection Agency (EPA) guidelines contained in 40 CFR Parts 247-254. <br /> I. Bus Testinp -To the extent applicable, the Grantee agrees to comply with FTA <br /> regulations, "Bus Testing," 49 CFR Part 665, and agrees to obtain applicable certifications <br /> from contractors, subcontractors and manufacturers. <br /> J. Geographic Restrictions -The Grantee and its contractors agree to refrain from using <br /> state or local geographic preferences, except those expressly mandated or encouraged by <br /> federal statute, and as permitted by the Department and FTA. <br /> K. Third Party Disoutes or Brea es -The Grantee agrees to pursue all legal rights available <br /> under any third party contract, and FTA and the Department reserve the right to concur in <br /> any compromise or settlement of any third party contract claim involving the Grantee. The <br /> Grantee will notify FTA and the Department of any current or prospective major dispute <br /> pertaining to any third party contract. If the Grantee seeks to name the Government as a <br /> 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 <br /> derived from any third party recovery. Unless permitted otherwise by the Government, the <br /> Grantee will credit the Project Account with any liquidated damages recovered. <br /> State/Federal Capital Grant page 19 � <br /> � <br />