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1. has been. paid to subcontractor or is subject to payment to subcontractor, <br />2. has been reimbursed to subcontractor or is subject to reimbursement to <br /> subcontractor, <br />by any source other than Contractor or subcontractor. <br /> <br />SECTION }[VI. <br /> <br />C()tiPLIANCE WITH LAWS/CONSISTENCY WITH MERIT PRINCIPLES <br /> <br />Contractor shall comply with all applicable laws, ordinances, codes, and regu- <br />lations of the state, local, and federal governments. In its administration <br />of the project ~h'.£ch is the subject of this contract, the Contractor shall com-- <br />ply with. the requirem, ents of the "IPA Grant Administration Handbook." Con- <br />tractor expressly agrees that it is subject to and shall abide by the. Assurance: <br />and Grant Conditions contained in Appendix A of such "IPA Grant Administr'ation <br />Handbook." <br /> <br />The Contractor assures and guarantees that the proposed project is consistent <br />with the "fair treatment" merit principle in clause (5) of the third paragraph <br />of Section 2 of the Intergovernmental Personnel Act of 1970, hereinafter <br />referred 'to as the "Act," and the implementing regulations of the U. S. <br />Office of Personnel Management, and with those other merit principles in <br />clauses (1)-(6) of the third paragraph of Section 2 of the Act which apply <br />to the project under this contract. <br /> <br />SECTION XVII. <br /> <br />}iAINTENANCE OF EFFORT <br /> <br /> The Contractor agrees that the funds and resources provided the Contractor <br />under the terms of this contract will in no way be substituted for funds and re- <br />sources from other sources nor :in any way serve to reduce the resources, services~ <br />or other benefits which would have been available to, or provided through, the <br />Contractor had this contract not been executed. <br /> <br />SECTION XVIII. <br /> <br />CONFLICT OF INTEREST <br /> <br />The Contractor covenants that neither it nor any employee or member of <br />its governing body presently has any interest or shall acquire any interest, <br />direct or indirect, which would ccafli~:~t in any manner or del;~'ree with the <br />p e r f or man ce o f .~; e r v i c.. e s r e q u :i :r:'e d t o b e I:> a r f o rmed und e r t t:t:i s ,.: on {:: rac t., <br />The Cont:ractor further covenants t h.~t: in the performance of t:h~_:~ conl:rac ~: <br />no person having such interest shall be employed or: appointed as a member <br />of its governing body'. <br /> <br />The Contractor shall establish and enforce safeguards to prevent members <br />of its governing body or its staff members, subcontractors, or employees <br />from using their positions for a purpose that is or gives the appearance <br />of being motivated by desire for private gain for themselves, or others, <br />particularly those with which they have family, business, or other ties. <br /> <br />No officer, member, or employee of Department or Contractor and no mem- <br />ber of their governing bodies, and no other public official of the <br />governing body of the State or locality or localities in which the con- <br />tract is being carried out who exercises any functions or responsibilities <br />in the review or approval of the undertaking or carrying out of this con- <br />tract shall (l) participate in any decision relating to this contract <br />which affect:s his personal interest or the interest of any corporation, <br />partnership, or .association in which he has a direct or indirect interest; <br />or (2) have any interest, direct or indirect, in this contract or the <br />pr. oceeds thereof. <br /> <br />Page 9 of 15 <br /> <br /> <br />