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<br />1LXAS TRAFFIC SAFElY PROGRAM CONTRACT <br />G7. Audit <br />The Contractor shaH comply with the requirements of the SingJe Audit Act of 1984, PL 98- <br />502, ensuring that the single audit report includes the coverage stipulated in the fol1owjng, as <br />appropriate: <br />... Paragraphs 6, 8, and 9 of OMB Circular A-l28, "Audits of State and Local <br /> Governments," or, <br />... OMB Circular A-133, "Audits of Institutions of Higher Education and Other <br /> Nonprofit Institutions. <br />G8. Subcontracts <br />Any subcontract for professional services rendered by individuals or organizations not a part of <br />the Contractor's organization shall not be executed without prior authorization and approval of <br />the subcontract by the Department and, when federal funds are involved, the U.S. Department <br />of Transportation. <br />Subcontracts in excess of $25,000 shall contain all required provisions of this contract. <br />No subcontract will relieve the Contractor of its responsibility under this contract. <br />G9. Termination <br />The Department may terminate this contract at any time before the date of completion <br />whenever it is determined that the Contractor has failed to comply with the conditions of the <br />contract. The Department shall give written notice to the Contractor at least seven days prior <br />to the effective date of termination and specify the effective date of termination and the <br />reason for termination. <br />If both parties to this contract agree that the continuation of the contract in whole or in part <br />would not produce beneficial results commensurate with the further expenditure of funds, the <br />parties shaH agree upon the termination conditions, including the effective date and the <br />portion to be terminated. <br />Upon termination of this contract, whether for cause or at the convenience of the parties <br />hereto, all finished or unfinished documents, data, studies, surveys, reports, maps, drawings, <br />models, photographs, etc. prepared by the Contractor shall, at the option of the Department, <br />become the property of the Department. <br />The Department shall compensate the Contractor for those eligible expenses incurred during <br />the contract period which are directly attributable to the completed portion of the work <br />covered by this contract, provided that the work has been completed in a manner satisfactory <br />and acceptable to the Department. The Contractor shall not incur new obligations for the <br />terminated portion after the effective date of termination. <br />6/91 Page 7 of 13 <br />