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(a) POLICY. IT IS THE POLICY OF THE DEPARTMENT OF <br /> TRANSPORTATION THAT MINORITY BUSINESS ENTERPRISES, AS DEFINED <br /> IN 49 C.F.R. PART 23, SHALL HAVE THE MAXIMUM OPPORTUNITY TO <br /> PARTICIPATE IN THE PERFORMANCE OF CONTRACT5 FINANCED IN WHOLE OR <br /> IN PART WITH FEDERAL FUNDS UNDER THIS AGREEMENT. CONSEQUENTLY, <br /> THE MBE REQUIREMENTS OF 49 C.F.R. PART 23 APPLY TO THIS <br /> AGREEMENT. ' <br /> (b) MBE OBLIGATION. THE RECIPIENT AND ITS CONTRACTORS <br /> AGREE TO ENSURE THAT MINORITY BUSINESS ENTERPRISES AS DEFINED IN ' <br /> 49 C.F.R. PART 23 HAVE THE MAXIMUM OPPORTUNITY TO PARTICIPATE IN <br /> THE PERFORMANCE OF CONTRACTS AND SUBCONTRACTS FINANCED IN WHOLE OR <br /> IN PART WITH FEDERAL FUNDS PROVIDED UNDER THIS AGREEMENT. IN THIS <br /> REGARD ALL RECIPIENTS AND CONTRACTORS SHALL TAKE ALL NECESSARY AND <br /> REASONABLE STEPS IN ACCORDANCE WITH 49 C.F.R. PART 23 TO ENSURE <br /> THAT MINORITY BUSINESS ENTERPRISES HAVE THE MAXIMUM OPPORTUNITY <br /> TO COMPETE FOR AND PERFORM CONTRACTS. RECIPIENTS AND THEIR <br /> CONTRACTORS SHALL NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, <br /> NATIONAL ORIGIN OR SEX IN THE AWARD AND PERFORMANCE OF CONTRACTS <br /> ASSISTED BY THE DEPARTMENT OF TRANSPORTATION. <br /> (2) If, as a condition of assistance, the Recipient has <br /> submitted and the Department of Transportation has approved a <br /> minority business enterprise affirmative action program that the <br /> R�cipient agrees to carry out, that program is incorporated into <br /> this financial assistance Agreement by reference. That program <br /> shall be treated as a legal obligation and failure to carry out <br /> its terms shall be treated as a violation of this Agreement. Upon <br /> notification to the Recipient of its failure to carry out the <br /> approved program, the Department of Transportation shall impose <br /> such sanctions as noted in 49 C.F.R. Part 23, Subpart E, which <br /> sanctions may include termination of the Agreement or other <br /> measures that may affect the Recipient's ability to obtain future <br /> financial assistance from the Department of Transportation. <br /> (3) The Recipient shall advise each sub-recipient, <br /> contractor, and subcontractor that failure to carry out the <br /> requirements set forth in 49 C.F.R. § 23 . 43 (a) shall constitute . <br /> a breach of contract and, after the notification of the <br /> Department of Transportation, may result in termination of the <br /> Agreement or contract by the Recipient or such remedy as the , <br /> Recipient deems appropriate. <br /> (4) The Recipient sha11 take action concerning lessees as <br /> follows: <br /> (a) The Recipient shall not exclude MBE's from <br /> participation in business opportuni.ties by entering into <br /> long-term, exclusive agreements with non-MBE's for the <br /> operation of major transportation-related activitie� for the <br /> provision of goods and services to the facility or to the <br /> public on the facility. <br /> Page 14 <br />