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. " , <br />12. PAYMENT PROVISIONS IN THIRD PARTY CONTRACTS. <br />a. Advance Payments. FTA dces not authorize and will not participate in funding payments to a convactor prior to the <br />incurn~~ce of costs by the contractor unless prior written concurrence is obtained from FTA. <br />b. Pm eg,r ss Payments. Grantees may use progress payments provided the following requirements are fotlowed: <br />(1) Progress payments are only made to the contractor for cosfs incurred in the performance of the contract. <br />(2) When progress payments are used, the grantee must obtain tide to property (materials, worl: in progress, and fuushed <br />goods) for which progress payments are made. Alternative security for progress payments by urevocable letter of credit or <br />equivalent means to protect the grentee's interests in the progress payrnents may be used in lieu of obtaining tide. <br />I3. LIQUIDATED DAMAGES PROVISIONS. A grantee may use liquidated damages if it may reasonably expect to suffer <br />damages (increas~ costs on project involved) from late completion and the extent or amount of such damages would be difficult <br />or impossible to determine. <br />The assessment for damages shall be at a spec~c rate per day for each day of overrun in contract time; and the rate must be <br />specified in the third party contract. Any liquidated damages recovered sha11 be credited to the project account involved unless <br />the FTA penruts otherwise. <br />14. CONT'RACT AWARD ANNOUNCEMEIVT. ff a grantee announces contract awards with respect to any procurement for <br />goods and services (including consVuction services) having an aggregate value of $500,000 or more, the grantee shall: <br />a Spacify the amotmt of Federal fiu-ds that will be used to finance the acquisition in any announcement of the contract award <br />for such goods or services; and <br />b. Express the said amount as a percentage of the total costs of the planned acquisition. <br />15. CO1VT'RACT PROVLSIONS. All contracts shall include provisions to define a sound and complete agreement. In addition, <br />contracts and subcontracts shall contain contractual provisions or conditions that allow for. <br />a Administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, including <br />sanctions and penalties as may be appropriate. (All contracts in excess of the small purchase threshold.) <br />b. Tecmination for cause and fa convenience by the grantee or subgrantee including the manner by which it will be effected <br />and the basis for settlement. (All contracts in excess of $10,000.) <br />16. STATUTORY AND REGULATORY REQUIREMEIVTS. A cuirent and comprehensive list of statutory and regulatory <br />requirements applicable to g{antee procurements (such as Davis-Bacon Act, Disadvantaged Business Enterprise, Clean Air, and <br />Buy America) is contained in the FTA Master Agreement. Graniees are responsible for evaluating these requirements for <br />relevance and applicability to each procurement. For example, procurements involving the purchase of iron, steel and <br />manufactiu+ed goods will be subject to the "Buy America" requirements in 49 C.F.R Part 661. Further guidance concerning these <br />requinments and suggested wording for contract clauses may be found in FTA's Third Party Procurement Manual. <br />Fa spacific guidanoe concerning the cross-cutting requirements of other Federal agencies, grantees are advised to contact those <br />agencies. <br />Gordon J. Linton <br />Administrator <br />