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<br />"(5) The contractor will furnish all information and reports required by Executive Order No. 11246, as amended, an!"! cy
<br />the rules, regulations, and orders of the Secretary of labor, or pursuant thereto, and will permit access to his books,
<br />records, and accounts by the contracting agency and the Secretary of labor for purposes of investigation to ascertain
<br />compliance with such rules, regulations, and orders.
<br />
<br />"(6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of
<br />such rules, regulations, or orders, this contract may be canceled, terminated, or suspended in wholp. or in part and the
<br />contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in
<br />Executive Order No. 11246, as amended, and such other sanctions may be imposed and remedies invoked as provided in
<br />Executive Order No 11246, as amended, or by rule, regulations, or order of the Secretary of labor, or as otherwise
<br />provided by law.
<br />
<br />"(7) The contractor will include the provIsions of Paragraphs (1) through (7) in every subcontract or purchase order
<br />unless exempted by rules, regulations, or orders of the Secretary of labor issued pursuant to Section 204 of Executive
<br />Order No. 11246, as amended, so that such provisions will be binding upon each subcontractor or vendor The contractor
<br />will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means
<br />of enforcing such provisions, including sanctions for noncompliance Provided, however, that in the event the contractor
<br />becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the
<br />contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of
<br />the United States.
<br />
<br />I
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<br />7. The State shall (1) comply with the above provisions in construction work carried out by itself, (2) assist and cooperate
<br />actively with the Secretary of the Interior and the Secretary of labor in Obtaining the compliance of contractors and
<br />subcontractors with the above contract provisions and with the rules, regulations, and relevant orders of the Secretary of
<br />labor, (3) obtain and furnish to the Secretary of the Interior and to the Secretary of labor such information as they may
<br />require for the supervision of such compliance, (4) enforce the obligation of contractors and subcontractors under such
<br />provisions, rules, regulations, and orders, (5) carry out sanctions and penalties for violation of such obligations imposed
<br />upon contractors subcontractors by the Secretary of labor or the Secretary of the Interior pursuant to Part II, Subpart
<br />D, of Executive Order No. 11246, as amended, and (6) refrain from entering into any contract with a contractor debarred
<br />from Government contracts under Part II, Subpart D, of Executive Order No 11246, as amended. In addition, the State
<br />agrees that if it fails or refuses to comply with these undertakings, the HCRS may take any or all of the following actions:
<br />Cancel, terminate, Or suspend in whole or in part this grant, refrain from extending any further assistance to the applicant
<br />under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance
<br />has been received from such applicant, and refer the case to the Department of Justice for appropriate legal proceedings.
<br />
<br />E. Conflict of Interests
<br />
<br />1. No official or employee of the State or Federal Government who is authorized in his official capacity to negotiate, make,
<br />accept, or approve, or to take part in such decisions regarding a contract or subcontract in connection with this project
<br />shall have any financial or other personal interest in any such contract or subcontract.
<br />
<br />2. No person performing services for the State or Federal Government in connection with this project shall have a financial
<br />or other personal interest other than his employment or retention by the State, or Federal Government, in any contract
<br />or subcontract in connection with this project. No officer or employee of such person retained by the State or Federal
<br />Government shall have any financial or other personal interest in any real property acquired for this project unless such
<br />interest is openly disclosed upon the public records of the State, and such officer, employee or person has not
<br />participated in the acquisition for or on behalf of the State
<br />
<br />3. No member of or delegate to Congress shall be admitted to any share or part of this agreement, or to any benefit to arise
<br />hereupon, unless such benefit shall be in the form of an agreement made with a corporation for its general benefit.
<br />
<br />I
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<br />4 The State and the Director shall be responsible for enforcing the above conflict of interest provisions.
<br />
<br />F.
<br />
<br />Hatch Act
<br />
<br />The State will comply with the provisions of the Hatch Act which provides that no officer or employee of the State whose
<br />principal employment is in connection with any activity which is financed in whole or in part pursuant to this agreement shall
<br />take part in any of the political activity prescribed in the Hatch Political Activity Act, 5 U.S C. Sec 118k (1964). with the
<br />exceptions therein enumerated.
<br />
<br />G. Project Costs
<br />
<br />1. Project costs eligible for assistance shall be determined upon the basis of the criteria set forth in the Manual and FMC
<br />74-4.
<br />
<br />2. The agreement may include the use of the indirect cost rate currently approved, in accordance with FMC 74-4, for the
<br />State that is a party to this agreement.
<br />
<br />H Project Administration
<br />
<br />The State shall promptly submit such reports and documentation as the Director may request.
<br />
<br />2. Any moneys advanced to the State are "public moneys" (owned by the Federal Government) and shall be deposited in a
<br />bank with FDIC insurance coverage and the balances exceeding the FDIC coverage shall be collaterally secured as
<br />provided for in 12 U.S ,C 265
<br />
<br />3 The State shall use any funds received by way of advance payment from the United States under the terms of this
<br />agreement solely for the project or project stage described in the agreement.
<br />
<br />4 Properties and facilities acquired or developed with Fund assistance shall be available for inspection by the Service at such
<br />intervals as the Director shall require The State will promptly submit onsite inspection reports prepared under existing
<br />agreements between the Service and the State
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