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<br />5. Sanctions for Noncompliance. In the event of the <br />contractor's noncompliance with the nondiscrimination provisions of <br />this contract, the sponsor shall impose such contract sanctions as it <br />or the FAA may determine to be appropriate, including, but not limited <br />to -- <br /> <br />(a) withholding of payments to the contractor under the <br />contract until the contractor canplies, and/or <br /> <br />(b) cancellation, termination, <br />contract, in whole or in part. <br /> <br />or suspension of the <br /> <br />6. Incorporation of Provisions. The contractor shall include <br />the provisions of paragraphs 1 through 5 in every subcontract, <br />including procurements of materials and leases of equipment, unless <br />exempt by the Regulations or directives issued pursuant thereto. The <br />contractor shall take such action with respect to any subcontract or <br />procurement as the sponsor or the FAA may direct as a means of <br />enforcing such provisions including sanctions for noncompliance. <br />Provided, however, that in the event a contractor becomes involved in, <br />or is threatened with, litigation with a subcontractor or supplier as <br />a result of such direction, the contractor may request the sponsor to <br />enter into such litigation to protect the interests of the sponsor <br />and, in addition, the contractor may request the United States to <br />enter into such litigation to protect the interests of the United <br />States. <br /> <br />MINORITY' BUSINESS ENI'ERPRISE (MBE) ASSURAOCES <br /> <br />1. PoliCX' It is the policy of the Department of Transportation <br />(IXYr) that minority business enterprises as defined in 49 CFR Part 23 <br />shall have the maximum opportunity to participate in the performance <br />of contracts financed in whole or in part with Federal funds under <br />this agreement. Consequently, the MBE requirements of 49 CPR Part 23 <br />apply to this agreement. <br /> <br />2. MBE Obligations. The contractor agrees to ensure that <br />minority business enterprises as defined in 49 CFR Part 23 have the <br />maximum opportunity to participate in the performance of contracts and <br />subcontracts financed in whole or in part with Federal funds provided <br />under tJris agreement. In this regard, all contractors shall take all <br />necessary and reasonable steps in accordance with 49 CFR Part 23 to <br />ensure that minority business enterprises have the maximum opportunity <br />to compete for and perform contracts. Contractors shall not <br />discriminate on the basis of race, color, national origin, or sex in <br />the award and performance of OOT-assisted contracts. <br /> <br />2 <br />