2002-113
FILE REFERENCE FORM
2002-113
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Amended by Ordinance No. 2002-399 12/10/02 JR
Amended by Ordinance No. 2003-220 07/15/03 JR
Amended by Ordinance No. 2004-078 03/23/04 JR
Amended by Ordinance No. 2004-177 06/15/04 JR
Amended by Ordinance No. 2004-178 06/15/04 JR
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND
MCDONALD TRANSIT ASSOCIATES, INC. TO PROVIDE PASSENGER MOTOR CARRIER
TRANSIT MANAGEMENT AND OPERATION SERVICES FOR THE CITY; PROVIDING
FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City of Denton has advertised for, received and evaluated proposals for the
management and operation of the City's passenger motor carder system based on the selection
criteria set forth in the request for proposals; and
WHEREAS, the City Council finds that McDonald Transit Associates, Inc. ("McDonald")
offers the best value to the City based upon the selection criteria listed in the request for proposals;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble o f this ordinance are
incorporated into the body of this ordinance as if fully set forth herein.
SECTION 2. The agreement for management and operation of the City's passenger motor
carrier system is awarded to McDonald. The City Manager, or his designee is hereby authorized to
enter in the agreement for such services in substantially the same form as the agreement attached
hereto and made a part hereof by reference (the "Agreement").
SECTION 3. The City Manager, or his designee, is authorized to expend funds provided for
in the Agreement and to exercise the City's rights and obligations thereunder.
SECTION 4.
approval.
This ordinance shall become effective immediately upon its passage and
PASSED AND APPROVED this the
-- day of ~-~-~' ,2002.
EULINE BROCK, MAYOR
ATTEST:
BY: -z.: ~,,~-~7~ '
AGREEMENT TO PROVIDE MANAGEMENT AND OPERATION
SERVICES FOR PASSENGER MOTOR CARRIER TRANSIT SYSTEM
THIS AGREEMENT is entered into by and between the City of Denton, Texas,
a Home Rule Municipal Corporation, (hereinafter referred to as "City") and McDonald
Transit Associates, Inc., a Texas corporation (herein after referred to as "Company").
WHEREAS, the City and Company desire to enter into this Agreement to provide
for the management and operation of the City's passenger motor carder transit system
(called the "Link" or "Transit System"); and
WHEREAS, McDonald is engaged in the business of providing management
services for the operation of transit systems and has trained and experienced personnel
available for that purpose; and
NOW, THEREFORE, the parties hereto mutually agree as follows:
L INDEPENDENT CONTRACTOR
The City does hereby engage Company as an independent contractor to advise
Client and to manage the operation of the Transit System in and about the City of
Denton, Texas including additions to and extensions thereof, as provided herein. The
Company agrees to supply such services in an efficient and economical manner.
IL PURPOSE
The purpose o£ this Agreement is to secure and provide all management and
supervisory services, including the employment of drivers, dispatchers and other
personnel reasonably required and necessary for the efficient operation of the Transit
System under City's policies and in a way which will provide the quality and quantity of
service as determined from time to time by City. Company will not, however, be
expected to achieve results beyond the limits of the funding and other resources made
available to it for management &the Transit System.
ill. SCOPE OF SERVICES
The Company will be responsible for the management and day-to-day operation
of'the Transit System in an efficient and effective manner, and for providing consultation
and recommendations to the City, in all areas of' public transportation. The Company
shall be responsible to City, or its designee.
All services to be rendered by the Company shall be subject to the reasonable
supervision and control of City. The Company shall make recommendations, or City
Page 1
may request information or recommendations, as to any areas of operation which are
deemed appropriate and proper and the decision of City shall be binding and final in
regards thereto.
The advisory, management, and supervisory services to be furnished by the
Company will include, but not be limited to:
a. Overall management and operation of the Transit System and policy
recommendations;
b. Management continuity;
c. Management and supervision of personnel development and training, and
recruitment and employment as necessary;
d. Monitoring and evaluation of all operations, systems, and procedures;
e. Assist in budgeting, including preparation of an annual budget for the
Transit System;
£ Safety, loss prevention, and insurance;
g. Schedules, transportation, and routing;
h. Customer relations and promotion;
i. Assist in the preparation and administration of state and federal grants;
j. Administration of service contracts;
k. Employee relations;
1. Selection and training of all non-maintenance transit employees; and
m. Assist in the preparation of agenda items and back-up information for all
governing board meetings.
n. Transitional services with the current service provider.
In addition, Client may, from time to time, request McDonald to perform specific
transportation related studies or projections which are beyond the responsibilities set
forth above.
Page 2
IV. OBLIGATIONS OF COMPANY
The Company shall in a satisfactory and proper manner perform services under
this Agreement in an efficient manner and undertake and complete the services, and
substantially as described in City's Application for Federal funding, which is incorporated
herein by reference, filed with and approved by the U. S. Government, and in accordance
with the terms and conditions of this Agreement, including:
A. Providing transportation within the designated operating limits during the
hours of 6:00 a.m. to 9:00 p.m., Monday through Friday and Saturdays from 9:00 a.m. to
6:00 p.m. except on holidays as described in the most current system map and ride guide.
B. Charging a fee to each passenger in such amount as determined by the City
Council.
C. Providing transportation services within the city limits to the general public
on fixed routes, as outlined in the most current system map and ride guide hereof as may
be determined and revised from time to time by the City Council.
D. Providing transportation services within the city limits to the disabled
population on a door-to-door demand response system.
E. Company shall maintain an on-time performance standard of no earlier and
no later than 5 minutes from the scheduled time of arrival. Current standard is as
follows: 95%+ exceptional, 90% - 95% satisfactory, 85% - 90% needs improvement,
below 85% unsatisfactory. Company will be required to document and submit on-time
performance. Submission will be included with the monthly invoice.
F. Company shall establish, operate, and maintain an account system for these
services that will allow for a tracing of funds and a review of the financial status of the
Transit System and will permit authorized officials for the City to review Company
books at any time.
G. Company shall comply with all federal statutes and regulations promulgated
thereunder applicable to the Company and the operation of the Transit System.
H. Company shall comply with all provisions of the current annual contract and
future contracts between the City and Texas Department of Transportation.
I. Company shall reduce to writing all of its rules, regulations and policies, such
as drug testing, training procedures, grievance policies, and compliance with the
Americans with Disabilities Act, and file a copy with the City Manager or authorized
representative along with any amendments, additions, or revisions whenever adopted.
J. Company shall not enter into any contracts that would encumber the City
funds for a period that would extend beyond the term of this Agreement.
Page 3
K. Company shall promptly pay all bills when submitted unless there is a
discrepancy in a bill; any errors or discrepancies in bills shall be promptly reported to the
Assistant City Manager of Finance or their authorized representative for further direction.
L. Company shall appoint a resident operations manager (the "Operations
Manager") who will supervise and manage the day-to-day operations of the Transit
System and who will be available to meet with the Public Transportation Manager and
other City officials when requested. The initial and subsequent appointment of the
Operations Manager will be with the advice and consent of the City.
M. Company shall submit to the City copies of year-end audited financial
statements in accordance with the provisions hereof. It shall also submit to the City an
annual report to include year-end statistics of the number of riders, by route and ridership
category, final financial data and other quantitative data enumerating milestones and
accomplishments. The information in these reports should be as of September 30, each
year, and should be submitted to the City no later than November 15, of the
corresponding year.
N. Company shall anticipate and be actively involved in all Transit System
public hearings as required by the American with Disabilities Act and provide ridership
input for system and route changes, at such times as required by law.
O. On-time performance documentations shall be submitted to the Public
Transportation Manager along with the request for re-imbursement. The City will
provide the format in which this information is to be submitted.
P. Company shall submit to the City copies of each accident report, the Police
accident report, Company accident report and indication of drug policy action taken as
soon as possible after the accident. A review of accidents will be conducted quarterly
with the assistance of the City's Risk Manager.
Q. Company shall submit evidence of compliance with various federal and state
regulations pursuant to City's request.
R. Company shall comply with all items listed in the Scope of Service in the
Request for Proposals.
S. Company shall:
Comply with the Privacy Act of 1974, 5 U.S.C. § 552a and regulations
thereunder (the "Privacy Act"), when performance under this
Agreement involves the design, development, or operation of any
system of records on individuals to be operated by the Company, its
third party contractors, sub-grantees, sub-recipients, or their employees
to accomplish a Government function;
Page 4
Notify the City when the Company or any of its third party contractors,
sub-grantees, sub-recipients, or their employees anticipates operating a
system of records on behalf of the Government in providing services
under this Agreement, if such system contains information about
individuals retrievable by the individual's name or other identifier
assigned to the individual. A system of records subject to the Privacy
Act may not be used in the performance of this Agreement until the
necessary and applicable approval and publication requirements have
been met. The Company, its third party contractors, sub-grantees, sub-
recipients, and their employees agree to correct, maintain, disseminate,
and use such records in accordance with the terms of the Privacy Act,
and to comply with all applicable terms of the Privacy ACt;
Include in every solicitation and in every third party contract, sub-
grant, and sub-agreement when the performance of work under that
proposed third party contract, sub-grant, or sub-agreement may involve
the design, development, or operation of a system of records on
individuals to be operated under that third party contract, sub-grant, or
sub-agreement to accomplish a government function, a Privacy Act
notification informing the third party contractor, sub-grantee, or sub-
recipient that it will be required to design, develop, or operate a system
of records on individuals to accomplish a government function subject
to the Privacy Act, and that a violation of the Privacy Act may involve
the imposition of criminal penalties; and
Include the text of Subsections 125.c (1) through 125.c (4) of Part II of
the City's Agreement with the Government, in all third party contracts,
sub-grants, and sub-agreements under which work for this Agreement
is performed or which is awarded pursuant to this Agreement or which
may involve the design, development, or operation of such a system of
records on behalf of the Government.
T. The Company shall comply with the following regulations: UMTA
regulations, "Control of Drug Use in Mass Transportation Operations," 49 C.F.R. Part
653; Department of Transportation regulations, "Drug-Free Workplace Requirements
(Grants)," 49 C.F.R. Part 29, Subpart F; and Department of Transportation regulations,
"Procedures for Transportation Workplace Drug Testing Programs," 49 C.F.R. Part 40,
and "Qualification of Drivers," 49 C.F.R. Part 391, Subpart h.
U. Company shall obtain from its third party contractors, sub-grantees, and sub-
recipients certifications required by Department of Transportation regulations,
"Government-wide Debarment and Suspension (Non-procurement)," 49 C.F.R. Part 29,
and otherwise comply with the requirements of those regulations.
Page 5
V. Company acknowledges that if it makes a false, fictitious, or fraudulent
claim, statement, submission, or certification to the Government in connection with this
Project, the Government reserves the right to pursue the procedures and impose on the
Company the penalties of 18 U.S.C. § 1001, 31 U.S.C. § § 231 and 3801 et seq., and/or 49
U.S.C. app. § 1607(h), and may be deemed by the Government to be appropriate. The
terms of Department of Transportation regulations, "Program Fraud Civil Remedies," 49
CF.R. Part 31, are applicable to this Agreement.
V. TERM OF AGREEMENT
The term of this Agreement shall commence as of the effective date of this
Agreement and shall continue through September 30, 2004. This Agreement may be
renewed on an annual basis by written agreement &the parties for a maximum of three
years.
VL COMPENSATION
A. For the satisfactory performance of the management and operation services
under this Agreement the City shall pay the Company a fixed sum of $438,208.00 for the
first fiscal year of October 1, 2002 through September 30, 2003 and a fixed sum of
$425,032.00 for the second fiscal year of October 1, 2003 through September 30, 2004.
Should the parties extend this Agreement for three additional years the fixed sums shall
be $438,856.00 for October 1, 2004 through September 30, 2005, $456,282.00 for
October 1, 2005 though September 30, 2006 and $474,698.00 for October 1, 2006
through September 30, 2007. The fixed sums set forth in this section are for those fixed
costs described in the "CITY OF DENTON-TRANSIT BUDGET (FIXED COSTS)-
TRANSPORTATION MANAGEMENT SERVICES" attached hereto and made a part
here&by reference as Exhibit "A' (the "Fixed Sums"). Payment of the Fixed Sums shall
be made in accordance with Section VI.C. below.
B. In addition to the Fixed Sums the City shall reimburse the Company, as
provided in Section VI.C. below, for its variable direct costs, without mark up, for those
variable costs set forth in the "CITY OF DENTON-TRANSIT BUDGET (VARIABLE
COSTS)-TRANSPORTATION MANAGEMENT SERVICES" attached hereto and
made a part hereof by reference as Exhibit "B" (the "Direct Variable Sums"). The Direct
Variable Sums shall not exceed the amounts set forth in Exhibit "B" unless the City
approves such increases in writing in advance or the City increases the scope of the
Transportation Services as provided below. It is anticipated that these requested
increases will be addressed through an annual budget process where the Company will
prepare a proposed budget for City approval. It is recognized that the Direct Variable
Sums are based on the Transit System's current scope of schedules and routings and that
an increase in the schedules and routings may require an increase in the Direct Variable
Sums. In the event of an increase in the schedules and routings requiring additional
Page 6
drivers or other personnel the maximum Direct Variable Costs will be increased
accordingly based on the direct costs for adding such personnel.
C. The Fixed Sums shall be paid in twelve equal monthly payments with the
first payment being due and payable in November, 2002 within 15 days after the City
receives an invoice for such monthly payment. All subsequent monthly payments shall
be due and payable for each month thereafter within 15 days of the City's receipt of an
invoice for such monthly payment. All invoices shall be submitted to the Public
Transportation Manager no later than the 10th day of each month. On the same monthly
invoice the Company shall include the amount of Direct Variable Costs incurred up to the
date of the invoice (the "Monthly Direct Variable Costs"). The City shall pay the
Monthly Direct Variable Costs within 15 days of the City's receipt of the invoice, unless
payment is delayed because Company cannot justify that the Monthly Direct Variable
Costs, or any portion thereof, is based on its actual direct cost, without markup. Once
such justification is provided, the City shall promptly make the payment.
D. Company shall make each request for payment in accordance with the
provisions herein and all requests for payment shall be submitted to the Public
Transportation Manager.
E. It is expressly understood and agreed that (i) the funds payable under this
Agreement are subject to receipt of monies fxom the State of Texas and the FTA. Should
the funds be curtailed, or should the City be required to curtail its funding, City shall have
the right to terminate this Agreement immediately without penalty. In no event under the
terms of this Agreement will the total compensation to be paid exceed the amount of the
City's FTA and State grants, as outlined in. the City's contracts with the State and the
FTA.
F. It is expressly understood that this Agreement in no way obligates the
General Fund or any other monies or credits of the City of Denton.
G. The City shall not be obligated or liable under this Agreement to any party
other than the Company for payment of any monies or provision of any goods or services.
VIII. VEHICLES~ VEItICLE MAINTENANCE, AND OFFICE SPACE
The City shall provide all vehicles and maintenance of vehicles that are necessary
for the operation of the Transit System.
The City shall provide office space for the Company's Operation Manager and
necessary support staff and suitable space or areas for the Company's drivers and
dispatchers. The office space shall include utilities and telephones at the City's expense.
Initially such office and areas will be located in the trailer adjacent to the fleet service
area at the City's Service Center on Texas SWeet in the City of Denton, Texas.
Page 7
VIII. EVALUATION
The Company shall participate in an implementation and maintenance system
whereby its services can be continuously monitored. The Company shall make available
its financial records for review by the City at the City's discretion~ In addition, the
Company shall provide the City copies of the following data and reports:
A. All external or internal audits. Company shall submit a copy of the annual
independent audit to City within ten (10) days of receipt.
B. All external or internal evaluation reports.
C. Company shall submit quarterly financial statements to City in Januaryl
April, July, and September. Each statement shall include expenses and income for the
preceding quarter and shall identify the number of participants in each transportation
program the Company operates. Company shall submit such statements not later than the
fifteenth day of the month following the end of each quarter.
IX. DIRECTORS' MEETINGS
During the term of this Agreement, the Company shall cause to be delivered to the
City copies of all notices of meetings of its Board of Directors, setting forth the time and
place thereof. Such notice shall be delivered to the City in a timely manner to give
adequate notice, and shall include an agenda and a brief description of the matters to be
discussed. Company shall afford City representatives access to all Board of Directors'
meetings pertaining to Company operations under this agreement.
Minutes of all meetings, pertaining to company operations under this agreement, of
the Company's governing body shall be submitted to the City within ten (10) working
days of approval.
X. SUSPENSION OR TERMINATION
The City may suspend or terminate this Agreement and payments to the Company,
in whole or part, for cause. Cause shall include but not be limited to the following:
A. Company's improper, misuse, or inept use of funds;
B. Company's failure to comply with the terms and conditions of this
Agreement;
C. Company's submission of data or reports that are incorrect or incomplete in
any material respect;
Page 8
D. Appointment of a trustee, receiver or liquidator for all or a substantial part of
the Company's property, or institution of bankruptcy, reorganization, rearrangement of or
liquidation proceedings by or against the Company; or
E. If for any reason the carrying out of this Agreement is rendered impossible or
infeasible.
In case of suspension, the City shall advise the Company, in writing, as to
conditions precedent to the resumption of funding and specify a reasonable data for
compliance.
In case of termination, the Company shall remit to the City any unexpended City
funds. Acceptance of these funds shall not constitute a waiver of any claim the City may
otherwise have arising out of this Agreement.
XI. EQUAL OPPORTUNITY
A. Company shall submit for City approval a written plan for compliance with
the Equal Employment and Affirmative Action Federal provisions, within one hundred
twenty (120) days of the effective date of this Agreement.
B. Company shall comply with all applicable equal employment opportunity and
affirmative action laws or regulations.
C. Company shall furnish all information and reports requested by the City, and
will permit access to its books, records, and accounts for purposes of investigation to
ascertain compliance with local, state and Federal rules and regulations.
D. In the event of the Company's non-compliance with the Federal non-
discrimination requirements, the Agreement may be cancelled, terminated, or suspended
in whole or in part, and the Company may be barred fi.om further contracts with the City.
XH. INDEMNIFICATION AND INSURANCE
A. COMPANY SHALL INDEMNIFY AND HOLD HARMLESS THE
CITY PROM ANY AND ALL CLAIMS AND SUITS ARISING OUT OF THE
ACTIVITIES OP THE COMPANY~ ITS EMPLOYEES~ OR CONTRACTORS
AND SAVE AND HOLD THE CITY HARMLESS FROM ALL LIABILITY~
INCLUDING COSTS, EXPENSES AND ATTORNEYS FEES~ FOR OR ON
ACCOUNT OI*, ANY CLAIMS, AUDIT EXCEPTIONS, SUITS, OR DAMAGES
OF ANY CHARACTER WHATSOEVER RESULTING IN WHOLE OR IN PART
FROM THE PERFORMANCE OR OMISSION OF ANY ACT OF ANY
EMPLOYEE, AGENT, REPRESENTIVE OR CONTRACTOR OF THE
COMPANY, WHETHER OR NOT SUCH CLAIM, SUIT OR LIABILITY ARISES
OUT OF ~ NEGLIGENT ACT OR OMISSION OF THE CITY.
P~e9
B. Without limiting any of the other obligations or liabilities of the Company,
the Company shall provide and maintain throughout the term of this Agreement, the
minimum insurance coverage as indicated hereinafter. Upon the effective date of this
Agreement, Company shall file with the City's Purchasing Department satisfactory
certificates of insurance. Company shall not commence any work under this
Agreement until it has fully complied with this Article by providing the required
certificates of insurance.
C. All insurance policies proposed or obtained in satisfaction of these
requirements shall comply with the following general specifications, and shall be
maintained in compliance with these general specifications throughout the duration of the
Contract, or longer, if so noted:
1. Each policy shall be issued by a company authorized to do business in the
State of Texas with an A.M. Best Company rating of at least A.
2. Any deductibles or self-insured retentions shall be declared in the bid
proposal. If requested by the City, the insurer shall reduce or eliminate such
deductibles or self-insured retentions with respect to the City, its officials,
agents, employees and volunteers; or, the contractor shall procure a bond
guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
3. Liability policies shall be endorsed to provide the following:
a. Name as additional insured the City of Denton, its Officials, Agents,
Employees and volunteers.
b. Such insurance is primary to any other insurance available to the
additional insured with respect to claims covered under the policy and
that this insurance applies separately to each insured against whom
claim is made or suit is brought. The inclusion of more than one
insured shall not operate to increase the insurer's limit of liability.
4. All policies shall be endorsed to read:
"SAID POLICY SHALL NOT BE CANCELLED, NONRENEWED OR
MATERIALLY CHANGE WITHOUT 30 DAYS ADVANCED
WRITTEN NOTICE BEING GIVEN TO THE OWNER (CITY)
EXCEPT WHEN THE POLICY IS BEING CANCELLED FOR
NONPAYMENT OF PREMIUM IN WHICH CASE 10 DAYS
ADVANCE WRITTEN NOTICE IS REQUIRED".
Page 10
5. Should any of the required insurance be provided under a claims-made
form, Company shall maintain such coverage continuously throughout the
term of this contract and, without lapse, for a period of three years beyond the
contract expiration, such that occurrences arising during the contract term
which give rise to claims made after expiration of the contract shall be
covered.
6. Should any of the required insurance be provided under a form of
coverage that includes a general annual aggregate limit providing for claims
investigation or legal defense costs to be included in the general annual
aggregate limit, the Company shall either double the occurrence limits or
obtain Owners and Contractors Protective Liability Insurance.
7. Should any required insurance lapse during the term of this Agreement,
requests for payments originating after such lapse shall not be processed until
the City receives satisfactory evidence of reinstated coverage as required by
this contract, effective as of the lapse date. If insurance is not reinstated, City
may, at its sole option, terminate this agreement effective on the date of the
lapse.
D. All insurance policies proposed or obtained in satisfaction of this
Agreement shall additionally comply with the following specifications, and shall be
maintained in compliance with these additional specifications throughout the term of this
Agreement or any extension thereof:
1. General Liability insurance with combined single limits of not less than
$1,000,000 shall be provided and maintained by the Contractor. The policy
shall be written on an occurrence basis either in a single policy or in a
combination of underlying and umbrella or excess policies.
If the Commercial General Liability form (ISO Form CG 0001 current
edition) is used:
Coverage A shall include premises, operations, products, and
completed operations, independent contractors, contractual liability
covering this contract and broad form property damage coverage.
· Coverage B shall include personal injury.
· Coverage C, medical payments, is not required.
If the Comprehensive General Liability form (ISO Form GL 0002 Current
Edition and ISO Form GL 0404) is used, it shall include at least:
Bodily injury and Property Damage Liability for premises,
operations, products and completed operations, independent
P~ell
contractors and property damage resulting from explosion, collapse
or underground (XCU) exposures.
Broad form contractual liability (preferably by endorsement)
covering this contract, personal injury liability and broad form
property damage liability.
2. Company shall provide Commercial Automobile Liability insurance with
Combined Single Limits (CSL) of not less than $1,000,000 either in a single
policy or in a combination of basic and umbrella or excess policies. The policy
will include bodily injury and property damage liability arising out of the
operation, maintenance and use of all automobiles and mobile equipment used in
conjunction with this contract.
Satisfaction of the above requirement shall be in the form of a policy endorsement
for:
any auto, or
all owned, hired and non-owned autos.
3. Company shall purchase and maintain Worker's Compensation insurance
which, in addition to meeting the minimum statutory requirements for issuance of
such insurance, has Employer's Liability limits of at least $100,000 for each
accident, $100,000 per each employee, and a $500,000 policy limit for
occupational disease. The City need not be named as an "Additional Insured" but
the insurer shall agree to waive all rights of subrogation against the City, its
officials, agents, employees and volunteers for any work performed for the City
by the Named Insured. For building or construction projects, the Contractor shall
comply with the provisions of Attachment 1 in accordance with §406.096 of the
Texas Labor Code and rule 28TAC 110.110 of the Texas Worker's Compensation
Commission (TWCC).
4. Professional liability insurance with limits not less than $1,000,000 per claim
with respect to negligent acts, errors or omissions in connection with professional
services is required under this Agreement.
5. Other insurance may be required on an individual basis for extra hazardous
contracts and specific service agreements. If such additional insurance is required
for a specific contract, that requirement will be described in the "Specific
Conditions" of the contract specifications.
6. The Company shall file copies of all insurance policies with the City's Risk
Manager and the Texas Department of Transportation and will not cancel any of
the policies without the City's written approval.
Page 12
7. All policies shall contain an agreement on the part of the insurer waiving the
right to subrogation.
8. The insurance certificates furnished shall name the City as an additional
insured.
XIII, CONFLICT OF INTEREST
A. The Company covenants that neither it nor any member of its governing body
presently has any interest, direct or indirect, which would conflict in any manner or
degree with the performance of services required to be performed under this Agreement.
The Company further covenants that in the performance of this Agreement, no person
having such interest shall be employed or appointed as a member of its governing body.
B. The Company further covenants that no member of its governing body or its
staff, subcontractors or employees shall possess any interest in or use his position for a
purpose that is or gives the appearance of being motivated by desire for private gain for
himself, or others, particularly those with which he has family, business, or other ties.
C. No officer, member, or employee of the City and no member of its governing
body who exercises any function or responsibilities in the review or approval of the
undertaking or carrying out of this Agreement shall (1) participate in any decision
relating to the Agreement which affects his personal interest or the interest in any
corporation, partnership, or association in which he has direct or indirect interest; or (2)
have any interest, direct or indirect, in this Agreement or the proceeds thereo£
XIV. NEPOTISM
Company shall not employ in any paid capacity any person who is a member of the
immediate family of any person who is currently employed by Company, or is a member
of Company's governing board. The term "members of immediate family" includes:
wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew,
niece, step-parent, step-child, half-brother and half-sister.
XV. SPECIAL CONDITIONS
A. Company agrees to undertake, carry out, and complete the Project consistent
with the terms and conditions determined by the Secretary of Labor to be fair and
equitable to protect the interests of employees affected by the Project and meet
requirements of Section 13(c) of Federal Transit Act, as amended, 49 U.S.C. App.
Section 1609(c), and Department of Labor (DOL) guidelines set forth in 29 C.F.R. Part
215. These terms and conditions are identified in the letter of certification from DOL to
FTA whose date is set forth in the Notification of Grant Approval to the City. The
Company agrees to carry out the Grant in compliance with the conditions stated in that
P~el3
DOL letter. That letter and any documents cited in the letter are incorporated herein by
reference and made part of this Grant.
B. Company agrees to comply with the requirements of Section 8 of the Federal
Transit Act, as amended, 49 U.S.C. App. Section 1607, and any implementing
regulations that may be issued thereunder.
C. Company agrees that it will utilize its administrative process to solicit and
consider public comment prior to raising fares or implementing a major reduction of
service.
D. Company agrees that the Federal Government and the City may, at least
annually and more fi-equently in its discretion, either conduct or require the Company to
have independently conducted, reviews and audits as the Government may deem
appropriate pursuant to the provisions of Section 9(g) of the Federal Transit Act, as
amended, 49 U.S.C. App. Section 1607a(g), and any regulations or guidelines that may
be issued by the Government.
E. Company agrees and assures that the rates charged elderly and handicapped
persons during non-peak hours for transportation utilizing or involving the facilities and
equipment financed pursuant to this Agreement will not exceed one-half of the rates
generally applicable to other persons at peak hours, whether the operation of such
facilities and equipment is by the Company or is by another entity under lease or
otherwise. The Company agrees and assures that it will give the rate required herein to
any person presenting a Medicare card duly issued to that person pursuant to Title 1I or
Title XVIII of the Social Security Act.
F. Company agrees to comply with applicable Buy America statutory and
regulatory provisions. The Company may, without prior approval, procure an associated
capital maintenance item eligible under Section 9(j) of the Federal Transit Act, 49 U.S.C.
App. Section 1607a(j), by contract directly with the original manufacturer or supplier of
the item to be replaced, provided that the Company first certifies in writing to the
Government that: (1) such manufacturer or supplier is the only source of such item; and
(2) the price of such item is no higher than the price paid for such item by like customers.
G. Company shall implement a project management plan, as approved by the
Federal Government, in accordance with the requirements of Section 23 of the Federal
Transit Act, as amended, 49 U.S.C. App. Section 1619, and any implementing
regulations that may be there-under.
XVI. ADDITIONAL COVENANTS OF COMPANY
A. Definitions. As used in this section:
1. Agreement means any Grant Agreement or Cooperative Agreement.
Page 14
2. Application means the signed and dated proposal as may be amended
for Federal financial assistance for the Project, together with all explanatory, supporting,
and supplementary documents heretofore filed with and accepted and approved by the
Government (UMTA) by or on behalf of the Company.
3. Approval, Authorization, Concurrence, Waiver means a conscious
written act by an authorized official of the UMTA and City granting permission to the
Company to perform or omit an action pursuant to this Agreement, which action may not
be performed or omitted without such permission. An approval, authorization,
concurrence, or waiver permitting the performance or omission of a specific action shall
not constitute permission to perform or omit other similar actions unless such permission
is clearly stated. Oral permission or interpretations have no legal force or effect.
4. UMTA Directive includes the most recent circulars, notices, and orders
that present information about UMTA programs, application processing procedures, and
guidance for administering approved Projects; there are also Department of
Transportation directives that may be applicable to the Project.
5. Government means the United States of America, or its cognizant
Company, the Department of Transportation (DOT), or its operating administration, the
Urban Mass Transportation Administration (UMTA), used herein interchangeably.
6. Mass Transportation includes public transportation and means
transportation by bus, rail or other conveyance, either publicly or privately owned, that
provides general or special transportation service (but not including school bus, charter or
sightseeing service) to the public on a regular and continuing basis.
7. Project means the task or set of tasks provided for in the Project Budget
which the Company undertakes to perform pursuant to this Agreement.
8. Project or Program Budget means the most recently dated statement,
approved by the Government, of the estimated total cost of the Project or Program, the
items to be deducted from such total in order to calculate the estimated net Project cost,
the maximum amount of Federal assistance for which the Company, through the City, is
currently eligible, the specific items (including contingencies and relocation) for which
the total may be spent, and the estimated cost of each of such items.
9. Secretary_ means Secretary of the Department of Transportation or his
or her duly authorized designee.
10. UMTA means the Urban Mass Transportation Administration of the U.S.
Department of Transportation.
11. City means City of Denton, Texas.
Page 15
B. In the performance of its obligations pursuant to this Agreement, the
Company agrees to comply with all applicable provisions of Federal, State, and local
laws, regulations, and UMTA directives. The Company understands and agrees that
Federal laws, regulations, policies, and related administrative practices in force and made
applicable to this Agreement on the date of execution may be modified from time to time,
and that the most recent of such provisions will govern administration of this Agreement
at any pa~icular time, except if there is sufficient evidence in the Agreement of a
contrary intent. Such contrary intent might be evidenced by express language in any
amendments to the Agreement. Likewise, new Federal laws, regulations, policies and
administrative practices may be established after the date of execution and thereafter be
applied to this Agreement. As may be necessary to achieve compliance with these
requirements, the Company shall include notice of such requirements in all third party
contracts, sub-grants, and other sub-assistance agreements financed with Government
(UMTA) assistance. All limits or standards set forth in this Agreement to be observed in
the performance of the Project are minimum requirements. If there is a conflict between
Federal and State or local requirements, the Company shall inform the City and the
Government (UMTA) in order that an appropriate resolution may be arranged.
C. Company shall submit to the City such data, reports, records, contracts, and
other documents relating to the Project as the City may, during the course of the Project
and for three years thereafter, require. The Company shall retain intact, for three years
following Project close-out, all Project documents, financial records, and supporting
documents and make these records available to the City as the City may require.
D. Company shall immediately notify the City of any change in law, conditions,
or any other event that may significantly affect its ability to perform the Project in
accordance with the terms of this Agreement. In addition, the Company shall
immediately notify the City of any decision pertaining to the Company's conduct of
litigation that may affect the City's interests in the Project or the City's administration or
enforcement of applicable Federal laws or regulations. Before the Company may join the
City as a named party to litigation, for any reason, the Company agrees to first inform the
City; this proviso applies to any type of litigation whatsoever, in any forum.
E. Absent the express, written consent of the Government or the City and
notwithstanding any concurrence by the Government in or approval of the award of any
contract or subcontract or the solicitation thereof, neither the Government nor the City
shall be subject to any obligations or liabilities by contractors of the City or their
subcontractors or any other person not a party to this Agreement in connection with the
performance of this Project.
F. Company shall prepare and maintain a Project Budget. A copy of the said
budget shall be submitted to the City by March 1 of each year. The Company shall carry
out the Project and shall incur obligations against and make disbursements of Project
funds only in conformity with the latest approved budget for the Project. The Project
Budget may be revised, from time to time, to the extent permitted by and in conformance
with the requirements of the Government.
Page 16
G. Company shall establish and maintain either a separate set of accounts or
accounts, within the framework of an established and approved accounting system, for
the Project in a manner consistent with 49 C.F.R. § 18.20, or OMB Circular A-110, as
amended, as may be applicable.
H. Consistent with the provisions of 49 C.F.R. § 18.21, or OMB Circular A-110,
as amended, as may be applicable, the Company shall record in the Project Account, and
deposit in a bank or trust company all Project payments it receives from the City pursuant
to this Agreement and all other funds provided for, accruing to, or otherwise received on
account of the Project, (Project Funds). A separate bank account may be required when
drawdowns are made by letter of credit. The Company is encouraged to use banks that
are owned at least 50 percent by minority group members.
I. Expenditures made by the Company shall be reimbursable as allowable costs
to the extent that they meet all the requirements set forth below. They must:
1. Conform with the Project Description and the Project Budget and all
other terms of the Agreement;
2. Be necessary in order to accomplish the Project;
3. Be reasonable in amount for the goods or services purchased;
4. Be actual net costs to the Company (i.e., the price paid minus any
refunds, rebates, or other items of value received by the Company that have the effect of
reducing the cost actually incurred, excluding Program Income);
5. Be incurred (and be for work performed) after the date of this
Agreement, unless specific authorization from the Government (UMTA) or the City to
the contrary is received;
6. Unless permitted otherwise by Federal statute or regulation, conform
with Federal guidelines or regulations and Federal cost principles as set forth in the
standards of OMB Circular A-122, Revised, "Cost Principles for Nonprofit
Organizations," and the standards of 48 C.F.R. Part 31 are applicable;
7. Be satisfactorily documented; and
8. Be treated uniformly and consistently under accounting principles and
procedures approved and prescribed by the Government or City for the Company; and
those approved or prescribed by the Company for its contractors.
J. All costs charged to the Project, including any approved services contributed
by the Company or others, shall be supported by properly executed payrolls, time
records, invoices, contracts, or vouchers evidencing in detail the nature and propriety of
Page 17
the charges. The Company shall also maintain accurate records of all Project Funds
derived from the implementation of the Project.
K. Any check or order drawn by the Company with respect to any item that is or
will be chargeable against the Project Account will be drawn only in accordance with a
properly signed voucher then on file in the office of the Company stating in proper detail
the purpose for which such check or order is drawn. All checks, payrolls, invoices,
contracts, vouchers, orders, or other accounting documents pertaining in whole or in part
to the Project shall be clearly identified, readily accessible, and, to the extent feasible,
kept separate and apart from all other such documents.
L. The Company shall permit the Secretary and the Comptroller General of the
United States, or any of their duly authorized representatives to inspect all work,
materials, payrolls, and other data and records with regard to the Project, and to audit the
books, records, and accounts of the Company and its contractors with regard to the
Project. In the case of contracts awarded under other than competitive bidding
procedures as defined by the Secretary of Transportation, the Company shall require
those contractors to permit the Secretary of Transportation and the Comptroller General
of the United States, or any of their duly authorized representatives to inspect all work,
materials, payrolls, and other data and records with regard to the Project, and to audit the
books, re-cords, and accounts pertaining to such contracts with regard to the Project. If
the City is found to be responsible for meeting the audit requirements of 49 C.F.R. §
18.26 and OMB Circular A-128 or any revision or supplement thereto, the Company
shall comply with these requests. The Company is responsible for obtaining any audits
required by the Government (UMTA). Closeout of the Project will not alter the
Company's audit responsibilities.
1. The Company shall report its cash disbursements and balances in a
timely manner as requked by the City or Government.
2. The Company shall provide for effective control and accountability for
all Project funds consistent with Federal requirements and procedures for use of the letter
of credit.
3. The Company shall impose on its sub-recipients all applicable
requirements of Subsections 105.b. (1) (a), (b), and (c) of Part II of this Agreement.
M. Neither the Company nor any sub-recipient may use Federal assistance funds
for publicity or propaganda purposes designed to support or defeat legislation pending
before Congress.
N. Company agrees that:
1. Any interest earned by the Company on Federal funds must be remitted
to the Government, except as provided by the Intergovernmental Cooperation Act, 31
U.S.C. § 6503(a), orthe Indian Self-Determination Act, 23 U.S.C. § 450.
Page 18
2. Upon notice by the Government (UMTA) to the City of specific
amounts due the Government, the Company shall promptly remit any excess payment of
amounts or disallowed costs to the Government (UMTA), including any interest due
thereon.
O. The Company recognizes that the Government (LrMTA) reserves the right to
de-obligate unspent Federal funds prior to Project dose-out, if such occurs, City may
terminate this Agreement without penalty.
P. Company agrees that, upon written notice, the City may suspend or terminate
all or part of the financial assistance provided herein if the Company is, or has been, in
violation of the terms of this Agreement, or if the Government or the City determines that
the purposes of the statute under which the Project is authorized would not be adequately
served by continuation of Federal financial assistance for the Project. Any failure to
make reasonable progress or other violation of the Agreement that significantly
endangers substantial performance of the Project shall be deemed to be a breach of this
Agreement. If the Company's failure either to make adequate progress or to make
reasonable use of the Project real property, facilities, or equipment, or to honor the terms
of this Agreement is determined by the City to be willful or unreasonable, the City
reserves the right to require the Company to refund to the City the entire amount of
Project funds provided by the City or any lesser amount as may be determined by the
City.
Q. Within 30 days of the termination of this Agreement, the Company shall
submit a final Financial Status Report (Standard Form 269), a certification or summary of
Project expenses, and third party audit reports, as applicable. Company agrees that either
the Government (UMTA) or a Company designated by the Government (UMTA) will
perform a final audit of the Project to determine the allowability of costs incurred to
determine settlement of the Federal assistance for the Project in accordance with Part I of
this Agreement. If City has made payments to the Company in excess of the total amount
of the Federal assistance due, the Company shall promptly remit to the City that excess
and interest as may be required by Subsections 105.b. and 105.e. of Part II of the City's
Agreement with the Government. Project closeout occurs when the City notifies the
Company and forwards the final Federal assistance payment or when the Company's
remittance of the proper refund has been acknowledged by the City. Project closeout
shall not invalidate any continuing obligations imposed on the Company by this
Agreement or by the City's final notification or acknowledgment.
R. The following conditions are applicable to real property, equipment, and
supplies financed under this Agreement:
1. The Company agrees to observe the property management standards set
forth in 49 C.F.R. §§ 18.31, 18.32, and 18.33, or OMB Circular A-Il0, Attachment N, as
appropriate, as now or hereafter amended, and any guidelines or regulations that the
Government may issue. Exceptions to the requirements of 49 C.F.R. §§ 18.31, 18.32,
Page 19
and 18.33, and to OMB Circular A-110, Attachment N must be specifically approved by
the City. The City resewes the right to require the Company to transfer title to any
equipment financed with Federal assistance made available by this Agreement as set forth
in 49 C.F.R. § 18.32(g) or OMB Circular A-110, Attachment N, as may be appropriate.
The City also reserves the right to direct the disposition of real property or equipment
financed with Federal assistance funds made available under this Agreement, as set forth
in 49 C.F.R. §§ 18.31 and 18.32 or OMB Circular A-Il0, Attachment N, as may be
applicable.
2. The Company agrees to maintain the Project real property, equipment,
and supplies in good operating order, and in accordance with any guidelines, directives,
or regulations that UMTA may issue. If, during the period, any Project real estate,
equipment, or supplies are not used in mass transportation service, whether by planned
withdrawal, misuse or casualty loss, the Company shall immediately notify the City.
Unless otherwise approved, the Company shall remit to the City a proponionai amount of
the fair market value, if any, of the real property, equipment, or supplies whose aggregate
value exceeds $5,000, which value shall be determined on the basis of the ratio of the
Federal assistance awarded by the Government to the actual cost of the Project. The
following guidelines shall be followed in determining the fair market value. Unless
otherwise approved in writing by UMTA, the fak market value of equipment and
supplies will be the value of that property at the time immediately before the reason
occurred that prompted the decision to withdraw that property from transit use. For
example, in the event of loss of or damage to the property by casualty or fire, the fair
market value of the property will be calculated immediately before the loss or damage,
irrespective of the extent of insurance coverage. In the case of equipment and supplies,
fair market value shall be based on straight line depreciation of the equipment and
supplies, based on the industry standard for useful life, irrespective of the reason for
withdrawal of that property from transit use. In the case of real property, the fair market
value shall be determined by competent appraisal based on an appropriate date as
determined by the Government consistent with the standards of 49 C.F.R. Part 24. The
City, however, reserves the right to require another method of valuation to be used if the
Government (UMTA) finds that special ckcumstances so requke to assure the protection
of the Federal investment. In unusual circumstances, the Company may request that
another reasonable method of determining fair market value be used, including but not
limited to accelerated depredation, comparable sales, or established market values. In
determining whether to approve an alternate method, the City may consider any action
taken, omission made or unfortunate occurrence suffered by the Company with respect to
the preservation or conservation of the value of the real property, equipment, or supplies
that, for any reason, have been withdrawn fi-om service.
3. The Company further agrees that the Project real propemy, equipment,
and supplies shall be used for the provision of mass transportation service within the area
and in the manner set forth in the Project Description. Should the Company
unreason-ably delay in or refrain fi-om using Project real estate or equipment, in the
manner set forth in the Project Description, the City reserves the right to require the
Company to return the entire amount of the Federal assistance expended on that real
Page 20
estate or equipment. The Company shall keep satisfactory records with regard to the use
of the real property, equipment, and supplies, and submit to the City upon request such
information as may be required to assure compliance with this Section and shall
immediately notify the City in all cases in which Project real property, equipment, or
supplies are used in a manner substantially different from what is set forth in the Project
Description. The City reserves the right to require the Company to restore Project real
property, equipment, or supplies or pay for damage to Project real property, equipment,
or supplies as a result of abuse or misuse of such property with the Company's knowledge
and consent.
S. Company may not execute any transfer of title, lease, lien, pledge, mortgage,
encumbrance, contract, grant anticipation note, alienation, or other obligation that in any
way affects the Federal interest in any Project real property or equipment, nor may the
Company obligate itself, in any other manner, to any third party with respect to Project
real property or equipment, unless such transfer of title, lease, lien, pledge, mortgage,
encumbrance, contract, grant anticipation note, alienation, or other obligation is expressly
authorized in writing by the City and Government (UMTA); nor may the Company, by
any act or omission, adversely affect the Federal interest or impair the Company's
continuing control over the use of Project real property or equipment.
T. Civil Rights
1. Equal Employment Opportunity - The following requirements are
applicable to the Project:
(a) In connection with Project implementation, the Company may not
discriminate against any employee or applicant for employment because of race, color,
age, creed, sex, or national origin. The Company shall take affirmative action to ensure
that applicants are employed, and that employees are treated during employment,
with-out regard to their race, color, religion, sex, age, or national origin. Such action
shall include, but not be limited to, the following: employment, upgrading, demotion or
transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or
other forms of compensation; and selection for training, including apprenticeship. The
Company shall insert the foregoing provision (modified only to show the particular
contractual relationship) in all of its contracts in connection with the development or
operation of the Project, except contracts for standard commercial supplies or raw
materials and construction contracts, and shall require all such contractors to insert a
similar provision in all subcontracts, except subcontracts for standard commercial
supplies or raw materials.
(b) If, as a condition of assistance, the Company has submitted, and the
City has approved, an equal employment oppommity program that the Company agrees
to carry out, such program is incorporated into this Agreement by reference. Such
program shall be treated as a contractual obligation; and failure to carry out the terms of
that equal employment opportunity program shall be treated as a violation of this
Agreement. Upon notification to the Company of its failure to carry out the approved
Page 21
program, the Government or the City will impose such remedies as it may deem
appropriate, which remedies may include termination of financial assistance as set forth
in Section 106 of Part II of the City's Agreement with the Government or other measures
that may affect the ability of the Company to obtain future financial assistance under the
Urban Mass Transportation Act of 1964, as amended, or title 23, United States Code
(Highways).
2. Small, Minority and Women's Business Enterprise. The following
provisions are applicable to the Project:
(a) The Company shall be responsible for meeting the requirements
regarding participation by minority business enterprises (DBE) in Department of
Transportation programs set forth at 49 C.F.R. Part 23. Pursuant to the requirements of
49 C.F.R. § 23.43, the following clauses must be inserted in each third party contract:
(i) POLICY. IT IS THE POLICY OF THE DEPARTMENT OF
TRANSPORTATION THAT MINORITY BUSINESS ENTERPRISES, AS
DEFINED IN 49 C.F.R. PART 23, SHALL HAVE THE MAXIMUM
OPPORTUNITY TO PARTICIPATE IN THE PERFORMANCE OF
CONTRACTS FINANCED IN WHOLE OR IN PART WITH FEDERAL
FUNDS UNDER THIS AGREEMENT. CONSEQUENTLY, THE DBE
REQUIRE-MENTS OF 49 C.F.R. PART 23 APPLY TO THIS
AGREEMENT.
(ii) DBE OBLIGATION. THE COMPANY AND ITS
CONTRACTORS AGREE TO ENSURE THAT MINORITY BUSINESS
ENTERPRISES AS DEFINED IN 49 C.F.R. PART 23 HAVE THE
MAXIMUM OPPORTUNITY TO PARTICIPATE IN THE
PERFORMANCE OF CONTRACTS AND SUBCONTRACTS FINANCED
1N WHOLE OR IN PART WITH FEDERAL FUNDS PROVIDED UNDER
THIS AGREEMENT. IN THIS REGARD ALL AGENCIES AND
CONTRACTORS SHALL TAKE ALL NECESSARY AND
REASON-ABLE STEPS IN ACCORDANCE WITH 49 C.F.R. PART 23 TO
ENSURE THAT MINORITY BUSINESS ENTERPRISES HAVE THE
MAXIMUM OPPORTUNITY TO COM-PETE FOR AND PERFORM
CONTRACTS. COMPANY AND ITS CONTRACTORS SHALL NOT
DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL
ORIGIN OR SEX IN THE AWARD AND PERFORMANCE OF
CONTRACTS ASSISTED BY THE DEPARTMENT OF
TRANSPORTATION.
(b) The Company shall advise each sub-recipient, contractor, and
subcontractor that failure to carry out the requirements set forth in 49 C.F.R. § 23.43(a)
shall constitute a breach of contract and, after the notification of the Department of
Transportation, may result in termination of the Agreement or contract by the Company
or such remedy as the Company deems appropriate.
Page 22
(c) The Company shall take action concerning lessees as follows:
(i) The Company shall not exclude DBEs from participation in
business opportunities by entering into long-term, exclusive agreements with non-DBEs
for the operation of major transportation related activities for the provision of goods and
services to the facility or to the public on the facility.
(ii) If the Company is required to submit affirmative action
programs under 49 C.F.R. § 23.41(a)(2) or 49 C.F.R. § 23.41(a)(3) and has business
opportunities for lessees, it shall submit for approval to the Department of Transportation
with its programs overall goals for the paxticipation as lessees of finns owned and
controlled by DBEs. These goals shall be for a specified period of time and shall be
based on the factors listed in 49 C.F.R. § 23.45 (g)(5). The Company shall review these
goals at least annually, and whenever they expire, analyzing projected versus actual DBE
participation during the period covered by the review and any changes in factual
circumstances affecting the selection of goals. Following each review, the Company
shall submit new overall goals to the Department of Transportation for approval. If
Company fails to meet its goals for DBE lessees, it shall demonstrate to the City and the
Government in writing that it made reasonable efforts to meet the goals.
(iii) Except as provided in this section, the Company is required
to include lessees in affirmative action programs. Lessees themselves are not subject to
the requirements of this Part, except for the requirement under 49 C.F.R. § 23.7 that
lessees avoid discrimination against DBEs.
3. Title VI Civil Rights ACt of 1964. The Company shall comply and
shall assure the compliance by contractors and subcontractors under this Project with all
requirements of Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d; Department
of Transportation regulations, "Nondiscrimination in Federally-Assisted Programs of the
Department of Transportation -- Effectuation of Title VI of the Civil Rights ACt," 49
C.F.R. Part 21; and the Assurance by the Company pursuant thereto.
4. Nondiscrimination on the Basis of Handicap. The Company shall
ensure that all fixed facility construction or alteration and all new equipment included in
the Project shall comply with Department of Transportation regulations,
"Nondiscrimination on the Basis of Handicap in Programs and Activities, Receiving or
Benefiting from Federal Financial Assistance," 49 C.F.R. Part 27, and UMTA
regulations, "Transportation for Elderly and Handicapped Persons," 49 C.F.R. Part 609,
and any amendments thereto that may be issued.
5. Competition in Procurement. The Company agrees to comply with the
Procurement Standards requirements set forth at 49 C.F.R. § 18.36 or OMB Circular A-
ll0, Attachment O, as may be applicable; and with any supplementary directives or
regulations including UMTA Circular 4220.1B; and any revisions thereof, as may be
applicable. IJMTA reserves the right to review the Company's technical specifications
Page 23
and requirements, where such review is necessary for proper Project administration. The
Company further agrees that, notwithstanding the requirements of Section 121 of Part II
of the City's Agreement with the Government, no Federal funds shall be used to support
procurements utilizing exclusionary or discriminatory specifications.
6. Force Account. The City and Government (UMTA) reserves the right to
determine the extent of its participation in force account costs.
7. Settlement of Third Party Contract Disputes or Breaches. The U.S.
Government has a vested interest in the settlement of any dispute, default, or breach
involving any federally-assisted third party contract. Company agrees that the
Government retains the right to a proportionate share, based on the percentage of the
Federal share committed to the Project, of any proceeds derived from any third party
recovery. Therefore the Company shall avail itself of all legal rights available under any
third party con-tract. The Company shall notify the City and Government of any current
or prospective litigation or major disputed claim pertaining to any third party contract.
The City and Government reserves the right to concur in any compromise or settlement
of any claim by the Company involving any third party contract. If the third party
contract contains a liquidated damages provision, any liquidated damages recovered shall
be credited to the Project account involved unless the Government permits otherwise. In
the event the Company wishes to join the Government as a named party to litigation, for
any reason, the Company agrees to inform the City Government before doing so; this
proviso applies to any type of litigation whatsoever, in any forum.
8. Ethics. The Company shall maintain a written code or standards of
conduct that shall govern the performance of its officers, employees, board members, or
agents engaged in the award and administration of contracts supported by Federal funds.
Such code or standards shall provide that no employee, officer, board member, or agent
of the Company may participate in the selection, award, or administration of a contract
supported by Federal funds if a conflict of interest, real or apparent, would be involved.
Such a conflict would arise when any of the parties set forth below has a financial or
other interest in the firm selected for award:
(i) The employee, officer, board member, or agent;
(ii) Any member of his or her immediate family;
(iii) His or her partner; or
(iv) An organization that employs, or is about to employ, any of the
above.
The code or standards shall also provide that the Company's officers, employees,
board members, or agents may neither solicit nor accept gratuities, favors or anything of
monetary value from present or potential contractors or sub-recipients. The Company
may set minimum rules where the financial interest is not substantial or the gift is an
Page 24
unsolicited item of nominal intrinsic value. As permitted by State or local law or
regulations, such code or standards shall provide for penalties, sanctions, or other
disciplinary actions for violations by the Company's officers, employees, board members,
or agents, or by contractors or sub-recipients or their agents.
9. Interest of Members of or Delegates to Congress. No member of or
delegate to the Congress of the United States shall be admitted to any share or part of this
Project or to any benefit therefrom.
U. CONSTRUCTION CONTRACTS
The following provisions are applicable to federally assisted construction
contracts:
1. Nondiscrimination. Pursuant to the regulations of the Secretary of
Labor at 41 C.F.R. §§ 60-1.4(b)(1) and 60-1.4(c):
(a) The Company hereby agrees that it will incorporate or cause to be
incorporated into any contract for construction work, or modification thereof, as defined
in the regulations of the Secretary of Labor at 41 C.F.R. Chapter 60, that is paid for in
whole or in part with funds obtained from the Federal Government or borrowed on the
credit of the Federal Government pursuant to a grant, cooperative agreement, contract,
loan, insurance, or guarantee, or under-taken pursuant to a Federal program involving the
grant, cooperative agreement, contract, loan, insurance, or guarantee, the following equal
opportunity clause:
DLrRING THE PERFORMANCE OF THIS CONTRACT, THE
CONTRACTOR AGREES AS FOLLOWS:
(i) THE CONTRACTOR WILL NOT DISCRIMINATE AGAINST
ANY EMPLOY-EE OR APPLICANT FOR EMPLOYMENT BECAUSE OF
RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. THE
CONTRACTOR WILL TAKE AFFIRMATIVE ACTION TO ENSURE
THAT APPLICANTS ARE EMPLOYED, AND THAT EMPLOYEES ARE
TREATED DURING EMPLOYMENT WITHOUT REGARD TO THEIR
RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. SUCH
ACTION SHALL INCLUDE, BUT NOT BE LIMITED TO THE
FOLLOWING: EMPLOYMENT, UPGRADING, DEMOTION, OR
TRANSFER; RECRUITMENT OR RECRUITMENT ADVERTISING;
LAYOFF OR TERMINATION; RATES OF PAY OR OTHER FORMS OF
COMPENSATION; AND SELECTION FOR TRAINING, INCLUDING
APPRENTICESHIP. THE CONTRACTOR AGREES TO POST IN
CONSPICUOUS PLACES, AVAILABLE TO EMPLOYEES AND
APPLICANTS FOR EMPLOYMENT, NOTICES TO BE PROVIDED
SETTING FORTH THE PROVISIONS OF THIS NONDISCRIMINATION
CLAUSE.
Page 25
(ii) THE CONTRACTOR WILL, IN ALL SOLICITATIONS OR
ADVERTISEMENTS FOR EMPLOYEES PLACED BY OR ON BEHALF
OF THE CONTRACTOR, STATE THAT ALL QUALIFIED APPLICANTS
WILL RECEIVE CONSIDERATION FOR EMPLOYMENT WITHOUT
REGARD TO RACE, COLOR, RELIGION, SEX, OR NATIONAL
ORIGIN.
(iii) THE CONTRACTOR WILL SEND TO EACH LABOR UNION
OR REPRESENTATIVE OF WORKERS WITH WHICH IT HAS A
COLLECTIVE BARGAINING AGREEMENT OR OTHER CONTRACT
OR UNDERSTANDING, A NOTICE TO BE PROVIDED ADVISING THE
LABOR UNION OR WORKERS' REPRESENTATIVE OF THE
CONTRACTOR'S COMMITMENTS UNDER SECTION 202 OF
EXECUTIVE ORDER 11246 OF SEPTEDBER 24, 1965, AND SHALL
POST COPIES OF THE NOTICE IN CONSPICUOUS PLACES
AVAILABLE TO EMPLOYEES AND APPLICANTS FOR
EMPLOYMENT.
(iv) THE CONTRACTOR WILL COMPLY WITH ALL
PROVISIONS OF EXECUTIVE ORDER 11246 OF SEPTEDBER 24, 1965,
AND OF THE RULES, REGULATIONS, AND RELEVANT ORDERS OF
THE SECRETARY OF LABOR.
(v) THE CONTRACTOR WILL FURNISH ALL INFORMATION
AND REPORTS REQUIRED BY EXECUTIVE ORDER 11246 OF
SEPTEDBER 24, 1965, AND BY THE RULES, REGULATIONS, AND
ORDERS OF THE SECRETARY OF LABOR, OR PURSUANT
THERETO, AND WILL PERMIT ACCESS TO ITS BOOKS, RECORDS
AND ACCOUNTS BY THE SECRETARY OF LABOR AND UMTA FOR
PURPOSES OF INVESTIGATION TO ASCERTAIN COMPLIANCE
WITH SUCH RULES, REGULATIONS, AND ORDERS.
(vi) IN THE EVENT OF THE CONTRACTOR'S
NONCOMPLIANCE WITH THE NONDISCRIMINATION CLAUSES OF
THIS AGREEMENT OR WITH ANY OF SUCH RULES, REGULATIONS,
OR ORDERS, THIS AGREEMENT MAY BE CANCELLED,
TERMINATED, OR SUSPENDED IN WHOLE OR IN PART AND THE
CONTRACTOR MAY BE DECLARED INELIGIBLE FOR FURTHER
FEDERAL OR FEDERALLY ASSISTED CONTRACTS IN
ACCORDANCE WITH PROCEDURES AUTHORIZED IN EXECUTIVE
ORDER 11246 OF SEPTEDBER 24, 1965, AND SUCH OTHER
SANCTIONS MAY BE IMPOSED AND REMEDIES 1NVOKED AS
PROVIDED IN EXECUTIVE ORDER 11246 OF SEPTEDBER 24, 1965,
OR BY RULE, REGULATION, OR ORDER OF THE SECRETARY OF
LABOR, OR AS OTHERWISE PROVIDED BY LAW.
Page 26
(vii) THE CONTRACTOR WILL INCLUDE THE PROVISIONS OF
PARAGRAPHS (a) THROUGH (g) OF THIS SUBSECTION IN EVERY
SUBCONTRACT OR PURCHASE ORDER UNLESS EXEMPTED BY
RULES, REGULATIONS, OR ORDERS OF THE SECRETARY OF
LABOR ISSUED PURSUANT TO SECTION 204 OF EXECUTIVE
ORDER 11246 OF SEPTEDBER 24, 1965, SO THAT SUCH PROVISIONS
SHALL BE BINDING UPON EACH SUBCONTRACTOR OR VENDOR.
THE CONTRACTOR WILL TAKE SUCH ACTION WITH RESPECT TO
ANY SUBCONTRACT OR PURCHASE ORDER AS THE SECRETARY
OF LABOR OR UMTA MAY DIRECT AS A MEANS OF ENFORCING
SUCH PROVISIONS, INCLUDING SANCTIONS FOR
NONCOMPLIANCE; PROVIDED, HOWEVER, THAT IF A
CONTRACTOR BECOMES INVOLVED IN, OR IS THREATENED
WITH, LITIGATION WITH A SUBCONTRACTOR OR VENDOR AS A
RESULT OF SUCH DIRECTION, THE CONTRACTOR MAY REQUEST
THE UNITED STATES TO ENTER INTO SUCH LITIGATION TO
PROTECT THE INTERESTS OF THE UNITED STATES.
(b) The Company shall assure that each nonexempt prime contractor
and subcontractor shall include in each nonexempt contract the requirements of
Subsection 115. a. (1) (a) through (g) of Part II of this Agreement.
(c) The Company further agrees that it will be bound by this equal
opportunity clause with respect to its own employment practices when it participates in
federally assisted construction work; provided that if the Company so participating is a
State or local government, this equal opportunity clause does not apply to any Company,
instrumentality or subdivision of such government that does not participate in work under
the Agreement.
(d) The Company agrees that it will assist and cooperate actively with
UMTA and the Secretary of Labor in obtaining the compliance of contractors and
subcontractors with the equal opportunity clause and the rules, regulations, and relevant
orders of the Secretary of Labor; that it will provide UMTA and the Secretary of Labor
such information as they may require for the supervision of such compliance; and that it
will otherwise assist UMTA in discharging its primary responsibility for securing
compliance.
(e) The Company further agrees that it will refrain from entering into
any contract or contract modification subject to Executive Order 11246 of September 24,
1965, as amended, with any contractor that is debarred from or has not demonstrated
eligibility for Government contracts and federally assisted construction contracts
pursuant to the Executive Order; and will carry out such sanctions and penalties for
violation of the equal opportunity clause as may be imposed upon contractors and
subcontractors by UMTA or the Secretary of Labor pursuant to Part II, Subpart D of the
Executive Order. In addition, the Company agrees that if it fails or refuses to comply
Page 27
with these undertakings, UMTA may take any or all of the following actions: Cancel,
terminate, or suspend in whole or in part this Agreement; refrain from extending any
further assistance to the Company under the program with respect to which the failure or
refusal occurred until satisfactory assurance of future compliance has been received from
such Company; and refer the case to the Department of Justice for appropriate legal
proceedings.
2. Specifications. The Company hereby agrees that it will incorporate or
cause to be incorporated the specifications set forth below into all Federal or federally
assisted construction contracts, or modifications thereof, in excess of $I0,000 to be
performed in geographical areas designated by the Director, Office of Federal Contract
Compliance Programs of the Department of Labor pursuant to the regulations of the
Secretary of Labor at 41 C.F.R. § 60-4.3 and in construction subcontracts in excess of
$10,000 necessary in whole or in part to the performance of non-construction Federal
contracts and subcontracts covered under Executive Order 11246:
STANDARD FEDERAL EQUAL
CONSTRUCTION CONTRACT
ORDER 11246):
EMPLOYMENT
SPECIFICATIONS
OPPORTUNITY
(EXECUTIVE
(1) AS USED 1N THESE SPECIFICATIONS:
(a) "COVERED AREA" MEANS THE GEOGRAPHICAL
AREA DESCRIBED IN THE SOLICITATION FROM WHICH THIS
CONTRACT RESULTED;
(b) "DIRECTOR" MEANS DIRECTOR, OFFICE OF
FEDERAL CONTRACT COMPLIANCE PROGRAMS, UNITED STATES
DEPARTMENT OF LABOR, OR ANY PERSON TO WHOM THE
DIRECTOR DELEGATES AUTHORITY;
(c) "EMPLOYER IDENTIFICATION NUDBER" MEANS THE
FEDERAL SOCIAL SECURITY NUDBER USED ON THE EMPLOYER'S
QUARTERLY FEDERAL TAX RETURN, U.S. TREASURY
DEPARTMENT FORM 941;
(d) "MINORITY" INCLUDES:
(i) BLACK (ALL PERSONS HAVING ORIGINS IN
ANY OF THE BLACK AFRICAN RACIAL GROUPS NOT OF HISPAmC
ORIGIN);
(ii) HISPANIC (ALL PERSONS OF MEXICAN,
PUERTO RICAN, CUBAN, CENTRAL OR SOUTH AMERICAN OR
OTHER SPANISH CULTURE OR ORIGIN, REGARDLESS OF RACE);
Page 28
(iii) ASIAN AND PACIFIC ISLANDER (ALL PERSONS
HAVING ORIGINS IN ANY OF THE ORIGINAL PEOPLES OF THE FAR
EAST, SOUTHEAST ASIA, THE INDIAN SUBCONTINENT, OR THE
PACIFIC ISLANDS); AND
(iv) AMERICAN INDIAN OR ALASKAN NATIVE
(ALL PERSONS HAVING ORIGINS IN ANY OF THE ORIGINAL
PEOPLES OF NORTH AMERICA AND MAINTAINING IDENTIFIABLE
TRIBAL AFFILIATIONS THROUGH MEMBERSHIP AND
PARTICIPATION OR COMMUNITY IDENTIFICATION).
(2) WHENEVER THE CONTRACTOR, OR ANY
SUBCONTRACTOR AT ANY TIER, SUBCONTRACTS A PORTION OF
THE WORK INVOLVING ANY CONSTRUCTION TRADE, IT SHALL
PHYSICALLY INCLUDE IN EACH SUBCONTRACT IN EXCESS OF
$10,000 THE PROVISIONS OF THESE SPECIFICATIONS AND THE
NOTICE WHICH CONTAINS THE APPLICABLE GOALS FOR
MINORITY AND FEMALE PARTICIPATION AND WHICH IS SET
FORTH IN THE SOLICITATIONS FROM WHICH THIS CONTRACT
RESULTED.
(3) IF THE CONTRACTOR IS PARTICIPATING (PURSUANT TO
41 C.F.R. § 60-4.5) IN A HOMETOWN PLAN APPROVED BY THE U.S.
DEPARTMENT OF LABOR IN THE COVERED AREA, EITHER
INDIVIDUALLY OR THROUGH AN ASSOCIATION, ITS
AFFIRMATIVE ACTION OBLIGATIONS ON ALL WORK IN THE
PLAN AREA (INCLUDING GOALS AND TIMETABLES) SHALL BE IN
ACCORDANCE WITH THAT PLAN FOR THOSE TRADES WI-IICH
HAVE UNIONS PARTICIPATING IN THE PLAN. CONTRACTORS
MUST BE ABLE TO DEMONSTRATE THEIR PARTICIPATION IN AND
COMPLIANCE WITH THE PROVISIONS OF ANY SUCH HOMETOWN
PLAN. EACH CONTRACTOR OR SUBCONTRACTOR
PARTICIPATING IN AN APPROVED PLAN IS INDIVIDUALLY
REQUIRED TO COMPLY WITH ITS OBLIGATIONS UNDER THE EEO
CLAUSE, AND TO MAKE A GOOD FAITH EFFORT TO ACHI~VE
EACH GOAL UNDER THE PLAN IN EACH TRADE IN WHICH IT HAS
EMPLOYEES. THE OVERALL GOOD FAITH PERFORMANCE BY
OTHER CONTRACTORS OR SUBCONTRACTORS TOWARD A GOAL
IN AN APPROVED PLAN DOES NOT EXCUSE ANY COVERED
CONTRACTOR'S OR SUBCONTRACTOR'S FAILURE TO MAKE
GOOD FAITH EFFORTS TO ACH]EVE THE PLAN GOALS AND
TIMETABLES.
(4) THE CONTRACTOR SHALL IMPLEMENT THE SPECIFIC
AFFIRMATIVE ACTION STANDARDS PROVIDED IN PARAGRAPHS
(7) (a) THROUGH (p) OF THESE SPECIFICATIONS. THE GOALS SET
Page 29
FORTH IN THE SOLICITATION FROM WHICH THIS CONTRACT
RESULTED ARE EXPRESSED AS PERCENTAGES OF THE TOTAL
HOURS OF EMPLOYMENT AND TRAINING OF MINORITY AND
FEMALE UTILIZATION THE CONTRACTOR SHOULD REASONABLY
BE ABLE TO ACHI~.VE IN EACH CONSTRUCTION TRADE IN WHICH
IT HAS EMPLOYEES IN THE COVERED AREA. COVERED
CONSTRUCTION CONTRACTORS PERFORMING CONSTRUCTION
WORK IN GEOGRAPHICAL AREAS WHERE THEY DO NOT HAVE A
FEDERAL OR FEDERALLY ASSISTED CONSTRUCTION CONTRACT
SHALL APPLY THE MINORITY AND FEMALE GOALS
ESTABLISHED FOR THE GEOGRAPHICAL AREA WHERE THE
WORK IS BEING PERFORMED. GOALS ARE PUBLISHED
PERIODICALLY IN THE FEDERAL REGISTER IN NOTICE FORM,
AND SUCH NOTICES MAY BE OBTAINED FROM ANY OFFICE OF
FEDERAL CONTRACT COMPLIANCE PROGRAMS OFFICE OR FROM
FEDERAL PROCUREMENT CONTRACTING OFFICERS. THE
CONTRACTOR IS EXPECTED TO MAKE SUBSTANTIALLY
UNIFORM PROGRESS TOWARD ITS GOAL IN EACH CRAFT
DURING THE PERIOD SPECIFIED.
(5) NEITHER THE PROVISIONS OF ANY COLLECTIVE
BARGAINING AGREEMENT, NOR THE FAILURE BY A UNION WITH
WHOM THE CONTRACTOR HAS A COLLECTIVE BARGAINING
AGREEMENT, TO REFER EITHER MINORITIES OR WOMEN SHALL
EXCUSE THE CONTRACTOR'S OBLIGATIONS I. FNDER THESE
SPECIFICATIONS, EXECUTIVE ORDER 11246, OR THE
REGULATIONS PROMULGATED PURSUANT THERETO.
(6) IN ORDER FOR THE NONWORKING TRAINING HOURS OF
APPRENTICES AND TRAINEES TO BE COUNTED 1N MEETING THE
GOALS, SUCH APPRENTICES AND TRAINEES MUST BE EMPLOYED
BY THE CONTRACTOR DURING THE TRAINING PERIOD, AND THE
CON-TRACTOR MUST HAVE MADE A COMMITMENT TO EMPLOY
THE APPRENTICES AND TRAINEES AT THE COMPLETION OF
THEIR TRAINING, SUBIECT TO THE AVAILABILITY OF
EMPLOYMENT OPPORTUNITIES. TRAINEES MUST BE TRAINED
PURSUANT TO TRAINING PROGRAMS APPROVED BY THE U.S.
DEPARTMENT OF LABOR.
(7) THE CONTRACTOR SHALL TAKE SPECIFIC AFFIRMATIVE
ACTIONS TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY. THE
EVALUATION OF THE CONTRACTOR'S COMPLIANCE WITH THESE
SPECIFICATIONS SHALL BE BASED UPON ITS EFFORT TO
ACHIEVE MAXIMUM RESULTS FROM ITS ACTIONS. THE
CONTRACTOR SHALL DOCUMENT THESE EFFORTS FULLY, AND
Page 30
SHALL IMPLEMENT AFFIRMATIVE ACTION STEPS AT LEAST AS
EXTENSIVE AS THE FOLLOWING:
(a) ENSURE AND MAINTAIN A WORKING
ENVIRONMENT FREE OF HARASSMENT, INTIMIDATION, AND
COERCION AT ALL SITES, AND IN ALL FACILITIES AT WHICH THE
CON-TRACTOR'S EMPLOYEES ARE ASSIGNED TO WORK. THE
CONTRACTOR, WHERE POSSIBLE, WILL ASSIGN TWO OR MORE
WOMEN TO EACH CONSTRUCTION PROJECT. THE CONTRACTOR
SHALL SPECIFICALLY ENSURE THAT ALL FOREMEN,
SUPERINTENDENTS, AND OTHER ON-SITE SUPERVISORY
PERSONNEL ARE AWARE OF AND CARRY OUT THE
CONTRACTOR'S OBLIGATION TO MAINTAIN SUCH A WORKING
ENVIRONMENT, WITH SPECIFIC ATTENTION TO MINORITY OR
FEMALE INDIVIDUALS WORKING AT SUCH SITES OR IN SUCH
FACILITIES.
(b) ESTABLISH AND MAINTAIN A CURRENT LIST OF
MINORITY AND FEMALE RECRUITMENT SOURCES, PROVIDE
WRITTEN NOTICE TO MINORITY AND FEMALE RECRUITMENT
SOURCES AND TO COMMUNITY ORGANIZATIONS WHEN THE
CONTRACTOR OR ITS UNIONS HAVE EMPLOYMENT
OPPORTUNITIES AVAILABLE, AND MAINTAIN A RECORD OF THE
ORGANIZATIONS' RESPONSES.
(e) MAINTAIN A CURRENT FILE OF THE NAMES,
ADDRESSES AND TELEPHONE NUDBERS OF EACH MINORITY
AND FEMALE OFF-THE-STREET APPLICANT AND MINORITY OR
FEMALE REFERRAL FROM A UNION, A RECRUITMENT SOURCE
OR COMMUNITY ORGANIZATION AND OF WHAT ACTION WAS
TAKEN WITH RESPECT TO EACH SUCH INDIVIDUAL. IF SUCH
INDIVIDUAL WAS SENT TO THE UNION HIRING HALL FOR
REFERRAL AND WAS NOT REFERRED BACK TO THE
CONTRACTOR BY THE UNION OR, IF REFERRED, NOT EMPLOYED
BY THE CONTRACTOR, THIS SHALL BE DOCUMENTED IN THE
FILE WITH THE REASON THEREFOR, ALONG WITH WHATEVER
ADDITIONAL ACTIONS THE CONTRACTOR MAY HAVE TAKEN.
(d) PROVIDE IMMEDIATE WRITTEN NOTIFICATION TO
THE DIRECTOR WHEN THE UNION OR UNIONS WITH WHICH THE
CONTRACTOR HAS A COLLECTIVE BARGAEN1NG AGREEMENT
HAS NOT REFERRED TO THE CONTRACTOR A MINORITY PERSON
OR WOMAN SENT BY THE CONTRACTOR, OR WHEN THE
CONTRACTOR HAS OTHER INFORMATION THAT THE UNION
REFERRAL PROCESS HAS IMPEDED THE CONTRACTOR'S EFFORTS
TO MEET ITS OBLIGATIONS.
Page 31
(e) DEVELOP ON-THE-JOB TRAINING OPPORTUNITIES
AND/OR PARTI-CIPATE 1N TRAINING PROGRAMS FOR THE AREA
WHICH EXPRESSLY INCLUDE MRqORITIES AND WOMEN,
INCLUDING UPGRADING PROGRAMS AND APPRENTICESHIP AND
TRAINEE PROGRAMS RELEVANT TO THE CONTRACTOR'S
EMPLOYMENT NEEDS, ESPECIALLY THOSE PROGRAMS FUNDED
OR APPROVED BY THE DEPARTMENT OF LABOR. THE
CONTRACTOR SHALL PROVIDE NOTICE OF THESE PRO-GRAMS
TO THE SOURCES COMPILED UNDER (7)(b) ABOVE.
(f) DISSEMINATE THE CONTRACTOR'S EEO POLICY BY
PROVIDING NOTICE OF THE POLICY TO UNIONS AND TRAINING
PROGRAMS AND REQUESTING THEIR COOPERATION IN
ASSISTING THE CONTRACTOR IN MEETING ITS EEO
OBLIGATIONS; BY INCLUDING IT IN ANY POLICY MANUAL AND
COLLECTIVE BARGAINING AGREEMENT; BY PUBLICIZING IT IN
THE COMPANY NEWSPAPER, ANNUAL REPORT, ETC.; BY
SPECIFIC REVIEW OF THE POLICY WITH ALL MANAGEMENT
PERSONNEL AND WITH ALL MINORITY AND FEMALE
EMPLOYEES AT LEAST ONCE A YEAR; AND BY POSTING THE
COMPANY EEO POLICY ON BULLETIN BOARDS ACCESSIBLE TO
ALL EMPLOYEES AT EACH LOCATION WHERE CONSTRUCTION
WORK IS PERFORMED.
(g) REVIEW, AT LEAST ANNUALLY, THE COMPANY'S
EEO POLICY AND AFFIRMATIVE ACTION OBLIGATIONS UNDER
THESE SPECIFICATIONS WITH ALL EMPLOYEES HAVING
RESPONSIBILITY FOR HIRING, AS SIGNMENT, LAYOFF,
TERMINATION OR OTHER EMPLOYMENT DECISIONS INCLUDING
SPECIFIC REVIEW OF THESE ITEMS WITH ON-SITE SUPERVISORY
PERSONNEL SUCH AS SUPERINTENDENTS, GENERAL FOREMAN,
ETC., PRIOR TO THE INITIATION OF CONSTRUCTION WORK AT
ANY JOB SITE. A WRITTEN RECORD SHALL BE MADE AND
MAINTAINED IDENTIFYING THE TIME AND PLACE OF THESE
MEETINGS, PERSONS ATTENDING, SUBJECT MATTER DISCUSSED,
AND DISPOSITION OF THE SUBJECT MATTER.
(h) DISSEMINATE THE CONTRACTOR'S EEO POLICY
EXTERNALLY BY INCLUDING IT IN ANY ADVERTISING IN THE
NEWS MEDIA, SPECIFICALLY INCLUDING MINORITY AND
FEMALE NEWS MEDIA, AND PROVIDING WRITTEN NOTIFICATION
TO AND DISCUSSING THE CONTRACTOR'S EEO POLICY WITH
OTHER CONTRACTORS AND SUBCONTRACTORS WITH WHOM
THE CONTRACTOR DOES OR ANTICIPATES DOING BUSINESS.
Page 32
(i) DIRECT RECRUITMENT EFFORTS, BOTH ORAL AND
WRITTEN, TO MINORITY, FEMALE AND COMMUNITY
ORGANIZATIONS, TO SCHOOLS WITH MINORITY AND FEMALE
STUDENTS AND TO MINORITY AND FEMALE RECRUIT-MENT AND
TRAINING ORGANIZATIONS SERVING THE CONTRACTOR'S
RECRUITMENT AREA AND EMPLOYMENT NEEDS. NOT LATER
THAN ONE MONTH PRIOR TO THE DATE FOR THE ACCEPTANCE
OF APPLICATIONS FOR APPRENTICESHIP OR OTHER TRAINING
BY ANY RECRUITMENT SOURCE, THE CONTRACTOR SHALL SEND
WRITTEN NOTICE TO ORGANIZATIONS SUCH AS THE ABOVE,
DESCRIBING THE OPENINGS, SCREENING PROCEDURES, AND
TESTS TO BE USED 1N THE SELECTION PROCESS.
(j) ENCOURAGE PRESENT MINORITY AND FEMALE
EMPLOYEES TO RECRUIT OTHER MINORITY PERSONS AND
WOMEN AND, WHERE REASONABLE, PROVIDE AFTER SCHOOL,
SUMMER AND VACATION EMPLOYMENT TO MINORITY AND
FEMALE YOUTH, BOTH ON THE SITE AND IN OTHER AREAS OF
THE CONTRACTOR'S WORK FORCE.
(k) VALDATE ALL TESTS AND OTHER SELECTION
REQUIREMENTS WHERE THERE IS AN OBLIGATION TO DO SO
UNDER 41 C.F.R. PART 60-3.
(1) CONDUCT, AT LEAST ANNUALLY, AN INVENTORY
AND EVALUATION AT LEAST OF ALL MINORITY AND FEMALE
PERSONNEL FOR PROMOTIONAL OPPORTUNITIES AND
ENCOURAGE THESE EMPLOYEES TO SEEK OR TO PREPARE FOR,
THROUGH APPROPRIATE TRAINING, ETC., SUCH OPPORTUNITIES.
(m) ENSURE THAT SENIORITY PRACTICES, JOB
CLASSIFICATIONS, WORK ASSIGNMENTS AND OTHER
PERSONNEL PRACTICES DO NOT HAVE A DISCRIMINATORY
EFFECT BY CONTINUALLY MONITORING ALL PERSONNEL AND
EMPLOYMENT RELATED ACTIVITIES TO ENSURE THAT THE EEO
POLICY AND THE CONTRACTOR'S OBLIGATIONS UNDER THESE
SPECIFICATIONS ARE BEING CARRIED OUT.
(n) ENSURE THAT ALL FACILITIES AND COMPANY
ACTIVITIES ARE NONSEGREGATED EXCEPT THAT SEPARATE OR
SINGLE-USER TOILET AND NECESSARY CHANGING FACILITIES
SHALL BE PROVIDED TO ASSURE PRIVACY BETWEEN SEXES.
(o) DOCUMENT AND MAINTAIN A RECORD OF ALL
SOLICITATIONS OF OFFERS FOR SUBCONTRACTS FROM
MINORITY AND FEMALE CONSTRUCTION CONTRACTORS AND
Page 33
SUPPLIERS, INCLUDING CIRCULATION OF SOLICITATIONS TO
MINORITY AND FEMALE CONTRACTOR ASSOCIATIONS AND
OTHER BUSINESS ASSOCIATIONS.
(p) CONDUCT A REVIEW, AT LEAST ANNUALLY, OF
ALL SUPERVISORS' ADHERENCE TO AND PERFORMANCE UNDER
THE CONTRACTOR'S EEO POLICIES AND AFFIRMATIVE ACTION
OBLIGATIONS.
(8) CONTRACTORS ARE ENCOURAGED TO PARTICIPATE IN
VOLUNTARY ASSOCIATIONS THAT ASSIST IN FULFILLING ONE
OR MORE OF THEIR AFFIRMATIVE ACTION OBLIGATIONS SET
FORTH IN PARAGRAPHS (7) (a) THROUGH (p). THE EFFORTS OF A
CONTRACTOR ASSOCIATION, JOINT CONTRACTOR UNION,
CONTRACTOR COMMUNITY, OR OTHER SIMILAR GROUP OF
WHICH THE CONTRACTOR IS A MEMBER AND PARTICIPANT,
MAY BE ASSERTED AS FULFILLING ANY ONE OR MORE OF ITS
OBLIGATIONS UNDER PARAGRAPHS (7) (a) THROUGH (p) OF
THESE SPECIFICATIONS, PROVIDED THAT THE CONTRACTOR
ACTIVELY PARTICIPATES IN THE GROUP, MAKES EVERY EFFORT
TO ASSURE THAT THE GROUP HAS A POSITIVE IMPACT ON THE
EMPLOYMENT OF MINORITIES AND WOMEN IN THE INDUSTRY,
ENSURES THAT THE CONCRETE BENEFITS OF THE PROGRAM ARE
REFLECTED IN THE CONTRACTOR'S 1VflNORITY AND FEMALE
WORK FORCE PARTICIPATION, MAKES A GOOD FAITH EFFORT TO
MEET ITS INDIVIDUAL GOALS AND TIMETABLES, AND CAN
PROVIDE ACCESS TO DOCUMENTATION THAT DEMONSTRATES
THE EFFECTIVENESS OF ACTIONS TAKEN ON BEHALF OF THE
CONTRACTOR. THE OBLIGATION TO COMPLY, HOWEVER, IS THE
CONTRACTOR'S AND FAILURE OF SUCH A GROUP TO FULFILL AN
OBLIGATION SHALL NOT BE A DEFENSE FOR THE
CONTRACTOR'S NONCOMPLIANCE.
(9) A SINGLE GOAL FOR MINORITIES AND A SEPARATE
SINGLE GOAL FOR WOMEN HAVE BEEN ESTABLISHED. THE
CONTRACTOR, HOWEVER, IS REQUIRED TO PROVIDE EQUAL
EMPLOYMENT OPPORTUNITY AND TO TAKE AFFIRMATIVE
ACTION FOR ALL MINORITY GROUPS, BOTH MALE AND FEMALE,
AND ALL WOMEN, BOTH MINORITY AND NON-MINORITY.
CONSEQUENTLY, THE CONTRACTOR MAY BE IN VIOLATION OF
THE EXECUTIVE ORDER IF A PARTICULAR GROUP IS EMPLOYED
IN A SUBSTANTIALLY DISPARATE MANNER (EVEN THOUGH THE
CONTRACTOR HAS ACHIEVED ITS GOAL FOR WOMEN
GENERALLY, THE CONTRACTOR MAY BE IN VIOLATION OF THE
EXECUTIVE ORDER IF A SPECIFIC MINORITY GROUP OF WOMEN
IS UNDERUTILIZED).
Page 34
(10) THE CONTRACTOR SHALL NOT USE THE GOALS AND
TIMETABLES OR AFFIRMATIVE ACTION STANDARDS TO
DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE,
COLOR, RELIGION, SEX, OR NATIONAL ORIGIN.
(11) THE CONTRACTOR SHALL NOT ENTER INTO ANY
SUBCONTRACT WITH ANY PERSON OR FIRM DEBARRED FROM
GOVERNMENT CONTRACTS PURSUANT TO EXECUTIVE ORDER
11246.
(12) THE CONTRACTOR SHALL CARRY OUT SUCH
SANCTIONS AND PENAL-TIES FOR VIOLATION OF THESE
SPECIFICATIONS AND OF THE EQUAL OPPORTUNITY CLAUSE,
INCLUDING SUSPENSION, TERMINATION AND CANCELLATION
OF EXISTING SUBCONTRACTS AS MAY BE IMPOSED OR ORDERED
PURSUANT TO EXECUTIVE ORDER 11246, AS AMENDED, AND ITS
IMPLEMENTING REGULATIONS, BY THE OFFICE OF FEDERAL
CONTRACT COMPLIANCE PROGRAMS. ANY CONTRACTOR WHO
FAILS TO CARRY OUT SUCH SANCTIONS AND PENALTIES SHALL
BE IN VIOLATION OF THESE SPECIFICATIONS AND EXECUTIVE
ORDER ! 1246, AS AMENDED.
(13) THE CONTRACTOR, IN FULFILLING ITS OBLIGATIONS
UNDER THESE SPECIFICATIONS, SHALL IMPLEMENT SPECIFIC
AFFIRMATIVE ACTION STEPS, AT LEAST AS EXTENSIVE AS
THOSE STANDARDS PRESCRIBED IN PARAGRAPH (7) OF THESE
SPECIFICATIONS, SO AS TO ACHIEVE MAXIMUM RESULTS FROM
ITS EFFORTS TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY. IF
THE CONTRACTOR FAILS TO COMPLY WITH THE REQUIREMENTS
OF THE EXECUTIVE ORDER, THE IMPLEMENTING REGULATIONS,
OR THESE SPECIFICATIONS, THE DIRECTOR SHALL PROCEED IN
ACCORDANCE WITH 41 C.F.R. § 60-4.8.
(14) THE CONTRACTOR SHALL DESIGNATE A RESPONSIBLE
OFFICIAL TO MONITOR ALL EMPLOYMENT RELATED ACTIVITY
TO ENSURE THAT THE COMPANY EEO POLICY IS BEING CARRIED
OUT, TO SUBMIT REPORTS RELATING TO THE PROVISIONS
HEREOF AS MAY BE REQUIRED BY THE GOVERNMENT AND TO
KEEP RECORDS. RECORDS SHALL AT LEAST INCLUDE FOR EACH
EMPLOYEE THE NAME, AD-DRESS, TELEPHONE NUDBERS,
CONSTRUCTION TRADE, UNION AFFILIATION IF ANY, EMPLOYEE
IDENTIFICATION NUDBER WHEN ASSIGNED, SOCIAL SECURITY
NUDBER, RACE, SEX, STATUS (E.G., MECHANIC, APPRENTICE
TRAINEE, HELPER, OR LABORER), DATES OF CHANGES IN
STATUS, HOURS WORKED PER WEEK IN THE ENDICATED TRADE,
Page 35
RATE OF PAY, AND LOCATIONS AT WHICH THE WORK WAS
PERFORMED. RECORDS SHALL BE MAINTAINED IN AN EASILY
UNDERSTANDABLE AND RETRIEVABLE FORM; HOWEVER, TO
TIlE EXTENT THAT EXISTING RECORDS SATISFY THIS
REQUIREMENT, CONTRACTORS SHALL NOT BE REQUIRED TO
MAINTAIN SEPARATE RECORDS.
(15) NOTHING HEREIN PROVIDED SHALL BE CONSTRUED AS
A LIMITATION UPON THE APPLICATION OF OTHER LAWS THAT
ESTABLISH DIFFERENT STANDARDS OF COMPLIANCE OR UPON
THE APPLICATION OF REQUIREMENTS FOR THE HIRING OF
LOCAL OR OTHER AREA RESIDENTS (E.G., THOSE UNDER THE
PUBLIC WORKS EMPLOYMENT ACT OF 1977 AND THE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM).
3. Notice. The Company hereby agrees that it will ensure that the notice set
forth below shall be included in, and shall be a part of, all solicitations for offers and bids
on all Federal and federally assisted construction contracts or subcontracts in excess of
$10,000 to be performed in geographical areas designated by the Director, Office of
Federal Contract Compliance Programs of the Department of Labor at 41 C.F.R. § 60-
4.2:
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO
ENSURE
EQUAL EMPLOYMENT OPPORTUNITY (EXECUTIVE ORDER 11246):
(1) THE OFFEROR'S OR BIDDER'S ATTENTION IS CALLED TO
THE "EQUAL OPPORTUNITY CLAUSE" AND THE "STANDARD
FEDERAL EQUAL EMPLOYMENT SPECIFICATIONS" SET FORTH
(2) (a) THE GOALS AND THE TIMETABLES FOR
MINORITY AND FEMALE PARTICIPATION, EXPRESSED IN
PERCENTAGE TERMS FOR THE CONTRACTOR'S AGGREGATE
WORK FORCE IN EACH TRADE ON ALL CONSTRUCTION WORK IN
THE COVERED AREA, ARE AS FOLLOWS:
TIMETABLES GOALS FOR MINORITY GOALS FOR FEMALE
PARTICIPATION 1N EACH PARTICIPATION IN
TRADE EACH TRADE
INSERT GOALS FOR EACH INSERT GOALS FOR
YEAR EACH YEAR
Page 36
(b) THESE GOALS ARE APPLICABLE TO ALL THE
CONTRACTOR'S CONSTRUCTION WORK (WHETHER OR NOT IT IS
FEDERAL OR FEDERALLY ASSISTED) PERFORMED IN TI-IE
COVERED AREA. IF THE CONTRACTOR PERFORMS
CONSTRUCTION WORK IN A GEOGRAPHICAL AREA LOCATED
OUTSIDE OF THE COVERED AREA, IT SHALL APPLY THE GOALS
ESTABLISHED FOR SUCH GEOGRAPHICAL AREA WHERE THE
WORK IS ACTUALLY PERFORMED. WITH REGARD TO THIS
SECOND AREA, THE CONTRACTOR ALSO IS SUBJECT TO THE
GOALS FOR BOTH ITS FEDERALLY INVOLVED AND
NONFEDERALLY INVOLVED CONSTRUCTION.
(c) THE CONTRACTOR'S COMPLIANCE WITH THE
EXECUTIVE ORDER AND THE REGULATIONS AT 41 C.F.R. PART
60-4 SHALL BE BASED ON ITS IMPLEMENTATION OF THE EQUAL
OPPORTUNITY CLAUSE, SPECIFIC AFFIRMATIVE ACTION
OBLIGATIONS REQUIRED BY THE SPECIFICATIONS SET FORTH AT
41 C.F.R. § 60-4.3(a), AND ITS EFFORTS TO MEET THE GOALS. THE
HOURS OF MINORITY AND FEMALE EMPLOYMENT AND
TRAINING MUST BE SUBSTANTIALLY UNIFORM THROUGHOUT
THE LENGTH OF THE CONTRACT, AND IN EACH TRADE, AND THE
CONTRACTOR SHALL MAKE A GOOD FAITH EFFORT TO EMPLOY
MINORITJES AND WOMEN EVENLY ON EACH OF ITS PROJECTS.
THE TRANSFER OF MINORITY OR FEMALE EMPLOYEES OR
TRAINEES FROM CONTRACTOR TO CONTRACTOR OR FROM
PROJECT TO PROJECT FOR THE SOLE PURPOSE OF MEETING THE
CONTRACTOR'S GOALS SHALL BE A VIOLATION OF THE
CON-TRACT, THE EXECUTIVE ORDER, AND THE REGULATIONS IN
AT C.F.R. PART 60-4. COMPLIANCE WITH THE GOALS WILL BE
MEASURED AGAINST THE TOTAL WORK HOURS PERFORMED.
(3) THE CONTRACTOR SHALL PROVIDE WRITTEN
NOTIFICATION TO THE DIRECTOR OF THE OFFICE OF FEDERAL
CONTRACT COMPLIANCE PROGRAMS WITHIN 10 WORKING DAYS
OF AWARD OF ANY CONSTRUCTION SUBCONTRACT IN EXCESS
OF $10,000 AT ANY TIER FOR CONSTRUCTION WORK UNDER THE
CONTRACT RESULTING FROM THIS SOLICITATION. THE
NOTIFICATION SHALL LIST THE NAME, ADDRESS AND
TELEPHONE NUDBER OF THE SUBCONTRACTOR; EMPLOYER
IDENTIFICATION NUDBER OF THE SUBCONTRACTOR;
ESTIMATED DOLLAR AMOUNT OF THE SUBCONTRACT;
ESTIMATED STARTING AND COMPLETION DATES OF THE
SUBCONTRACT; AND THE GEOGRAPHICAL AREA IN WHICH THE
SUBCONTRACT IS TO BE PERFORMED.
Page 37
(4) AS USED IN THIS NOTICE, AND IN THE CONTRACT
RESULTING FROM THIS SOLICITATION, THE "COVERED AREA" IS
(INSERT DESCRIPTION OF THE GEOGRAPHICAL AREAS WHERE
THE CONTRACT IS TO BE PERFORMED, GIVING THE STATE,
COUNTY AND CITY, IF ANY).
4. Accommodations for the Physically Handicapped. UMTA assist-ed
construction, designs, and alterations shall be undertaken in accordance with and meet the
requirements of the provisions of General Services Administration (GSA) regulations set
forth at 41 C.F.R. Subpart 101-19.6, unless an exception is granted in writing by UMTA
or a waiver is granted in writing by GSA.
5. Contract Security. The Company shall follow the requirements of 49
C.F.R. § 18.36(h) or OMB Circular A-110, Attachment B, as applicable, and Federal
(UMTA) guidelines with regard to bid guarantees and bonding requirements.
6. Signs. The Company shall cause to be erected at the site of construction,
and maintained during construction, signs satisfactory to the Department of
Transportation identifying the Project and indicating that the Government is participating
in the development of the Project.
7. Safety Standards. Pursuant to section 107 of the Con-tract Work Hours
and Safety Standards Act and Department of Labor regulations set forth at 29 C.F.R. §
1926, no laborer or mechanic working on a construction contract shall be required to
work in surroundings or under working conditions that are unsanitary, hazardous, or
dangerous to his or her health and safety as deter-mined under construction and health
standards promulgated by the Secretary of Labor.
8. Liquidated Damages. The Company shall include in all con-tracts for
construction a clause providing for liquidated damages, where appropriate. Liquidated
damages clauses are appropriate if the parties may reasonably expect to suffer damages
(increased costs on the Project involved) from the late completion of the construction and
the extent or amount of such damages would be difficult or impossible to determine. The
assessment for damages shall be at a specific rate per day for each day of overrun in
contract time; and the rate must ho ai~iJiCql in the third party contract. Any liquidated
damages recovered shall be ct~dtt~ed t6 the Project account involved unless the
Government permits otherwise.
V. Pursuant to regulations set forth at 29 C.F.R. Part 5, the following provisions
shall be incorporated in each construction contract of $25,000 let by the Company in
carrying out the Project.
1. IVIINIlVIUM WAGES.
(a) ALL LABORERS AND MECHANICS EMPLOYED OR
WORK1NG UPON THE SITE OF THE WORK (OR UNDER THE
Page 38
UNITED STATES HOUSING ACT OF 1937 OR UNDER THE HOUSING
ACT OF 1949 IN THE CONSTRUCTION OR DEVELOPMENT OF THE
PROJECT), WILL BE PAID UNCONDITIONALLY AND NOT LESS
OFTEN THAN ONCE A WEEK, AND WITHOUT SUBSEQUENT
DEDUCTION OR REBATE ON ANY ACCOUNT (EXCEPT SUCH
PAYROLL DEDUCTIONS AS ARE PERMITTED BY REGULATIONS
ISSUED BY THE SECRETARY OF LABOR UNDER THE COPELAND
ACT, 29 C.F.R. PART 3), THE FULL AMOUNT OF WAGES AND BONA
FIDE FRINGE BENEFITS (OR CASH EQUIVALENTS THEREOF) DUE
AT THE TIME OF PAYMENT COMPUTED AT RATES NOT LESS
THAN THOSE CONTAINED IN THE WAGE DETERMINATION OF
THE SECRE-TARY OF LABOR WHICH IS ATTACHED HERETO AND
MADE A PART HEREOF, REGARDLESS OF ANY CONTRACTUAL
RELATION-SHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN
THE CONTRACTOR AND SUCH LABORERS AND MECHANICS.
CONTRIBUTIONS MADE OR COSTS REASONABLY ANTICIPATED
FOR BONA FIDE FRINGE BENEFITS UNDER SECTION l(b) (2) OF
THE DAVIS-BACON ACT ON BEHALF OF LABORERS OR
MECHANICS ARE CONSIDERED WAGES PAID TO SUCH LABORERS
OR MECHANICS, SUBJECT TO THE PROVISIONS OF 29 C.F.R. §
5.5(a)(1)(iv); ALSO, REGULAR CONTRIBUTIONS MADE OR COSTS
INCURRED FOR MORE THAN A WEEKLY PERIOD (BUT NOT LESS
OFTEN THAN QUARTERLy) UNDER PLANS, FUNDS, OR
PROGRAMS THAT COVER THE PARTICULAR WEEKLY PERIOD,
ARE DEEMED TO BE CONSTRUCTIVELY MADE OR INCURRED
DURING SUCH WEEKLY PERIOD. SUCH LABORERS AND
MECHANICS SHALL BE PAID THE APPROPRIATE WAGE RATE AND
FRINGE BENEFITS ON THE WAGE DETERMINATION FOR THE
CLASSIFICATION OF WORK ACTUALLY PERFORM-ED, WITHOUT
REGARD TO SKILL, EXCEPT AS PROVIDED AT 29 C.F.R. § 5.5(a)(4),
LABORERS OR MECHANICS PERFORMING WORK IN MORE THAN
ONE CLASSIFICATION MAY BE COMPENSATED AT THE RATE
SPECIFIED FOR EACH CLASSIFICATION FOR THE TIME ACTUALLY
WORKED THEREIN: PROVIDED, THAT THE EMPLOYER'S PAYROLL
RECORDS ACCURATELY SET FORTH THE TIME SPENT IN EACH
CLASSIFICATION IN WI-HCH WORK IS PERFORMED. THE WAGE
DETERMINATION (INCLUDING ANY ADDITIONAL
CLASSIFICATION AND WAGE RATES CONFORMED UNDER 29
C.F.R. § 5.5(a) (1) (ii) AND THE DAVIS-BACON POSTER (WH-1321)
SHALL BE POSTED AT ALL TIMES BY THE CONTRACTOR AND ITS
SUBCONTRACTORS AT THE SITE OF THE WORK IN A PROMINENT
AND ACCESSIBLE PLACE WHERE IT CAN BE EASILY SEEN BY THE
WORKERS.
(b) 1. THE CONTRACTING OFFICER SHALL REQUIRE
THAT ANY CLASS OF LABORERS OR MECHANICS THAT IS NOT
Page 39
LISTED IN THE WAGE DETERMINATION AND THAT IS TO BE
EMPLOYED UNDER THE CONTRACT SHALL BE CLASSIFIED IN
CONFORMANCE WITH THE WAGE DETERMINATION. THE
CONTRACTING OFFICER SHALL APPROVE AN ADDITIONAL
CLASSIFICATION AND WAGE RATE AND FRINGE BENEFITS
TI-IEREFOR ONLY WHEN THE FOLLOWING CRITERIA HAVE BEEN
MET:
a. THE WORK TO BE PERFORMED BY TH]E
CLASSIFICATION REQUEST-ED IS NOT PERFORMED BY A
CLASSIFICATION IN THE WAGE DETERMINATION; AND
b. THE CLASSIFICATION IS UTILIZED IN
THE AREA BY THE CONSTRUCTION INDUSTRY; AND
c. THE PROPOSED WAGE RATE, INCLUDING
ANY BONA FIDE FRINGE BENEFITS, BEARS A REASONABLE
RELATIONSHIP TO THE WAGE RATES CONTAINED IN THE
WAGE DETERMINATION.
2. IF THE CONTRACTOR AND THE LABORERS AND
MECHANICS TO BE EMPLOYED IN THE CLASSIFICATION (IF
KNOWN), OR THEIR REPRESENTATIVES, AND THE CONTRACTING
OFFICER AGREE ON THE CLASSIFICATION AND WAGE RATE
(INCLUDING THE AMOUNT DESIGNATED FOR FRINGE BENEFITS
WHERE APPROPRIATE), A REPORT OF THE ACTION TAKEN SHALL
BE SENT BY THE CONTRACTING OFFICER TO THE
ADMINISTRATOR OF THE WAGE AND HOUR DIVISION,
EMPLOYMENT STANDARDS ADMINISTRATION, U.S.
DEPARTMENT OF LABOR, WASHINGTON, D.C. 20210. THE
ADMINISTRATOR, OR AN AUTHORIZED REPRESENTATIVE, WILL
APPROVE, MODIFY, OR DISAPPROVE EVERY ADDITION-AL
CLASSIFICATION ACTION WITHIN 30 DAYS OF RECEIPT AND SO
ADVISE THE CONTRACTING OFFICER OR WILL NOTIFY THE
CONTRACTING OFFICER WITHIN THE 30-DAY PERIOD THAT
ADDITIONAL TIME IS NECESSARY.
3. IN THE EVENT THE CONTRACTOR, LABORERS
OR MECHANICS TO BE EMPLOYED IN THE CLASSIFICATION OR
THEIR REPRESENTATIVES, AND THE CONTRACTING OFFICER DO
NOT AGREE ON THE PROPOSED CLASSIFICATION AND WAGE
RATE (INCLUDING THE AMOUNT DESIGNATED FOR FRINGE
BENEFITS, WHERE APPROPRIATE), THE CONTRACTING OFFICER
SHALL REFER THE QUESTIONS INCLUDING THE VIEWS OF ALL
INTERESTED PARTIES AND THE RECOMMENDATION OF THE
CONTRACTING OFFICER, TO THE ADMINISTRATOR FOR
Page 40
DETERMINATION. THE ADMINISTRATOR, OR AN AUTHORIZED
REPRESENTATIVE, WILL ISSUE A DETERMINATION WITHIN 30
DAYS OF RECEIPT AND SO ADVISE THE CONTRACTING OFFICER
OR WILL NOTIFY THE CONTRACTING OFFICER WITH-IN THE 30-
DAY PERIOD THAT ADDITIONAL TIME IS NECESSARY.
4. THE WAGE RATE (INCLUDING FRINGE
BENEFITS WHERE APPROPRIATE) DETERMINED PURSUANT TO 29
C.F.R. § 5.5(a) (i) (1) (B) OR 29 C.F.R. § 5.5(a) (i) (1) (C), SHALL BE
PAID TO ALL WORKERS PERFORMING WORK IN TI-IE
CLASSIFICATION UNDER THIS CONTRACT FROM THE FIRST DAY
ON WHICH WORK IS PERFORMED IN THE CLASSIFICATION.
(¢) WHENEVER THE MINIMUM WAGE RATE
PRESCRIBED IN THE CONTRACT FOR A CLASS OF LABORERS OR
MECHANICS INCLUDES A FRINGE BENEFIT WHICH IS NOT
EXPRESSED AS AN HOURLY RATE, THE CONTRACTOR SHALL
EITHER PAY THE BENEFIT AS STATED IN THE WAGE
DETERMINATION OR SHALL PAY ANOTHER BONA FIDE FRINGE
BENEFIT OR AN HOURLY CASH EQUIVALENT THEREOF.
(d) IF THE CONTRACTOR DOES NOT MAKE
PAYMENTS TO A TRUSTEE OR OTHER THIRD PERSON, THE
CONTRACTOR MAY CONSIDER AS PART OF THE WAGES OF ANY
LABORER OR MECHANIC THE AMOUNT OF ANY COSTS
REASONABLY ANTICIPATED IN PROVIDING BONA FIDE FRINGE
BENEFITS UNDER A PLAN OR PROGRAM, PROVIDED, THAT THE
SECRETARY OF LABOR HAS FOUND, UPON THE WRITTEN
REQUEST OF THE CONTRACTOR, THAT THE APPLICABLE
STANDARDS OF THE DAVIS-BACON ACT HAVE BEEN MET. THE
SECRETARY OF LABOR MAY REQUIRE THE CONTRACTOR TO SET
ASIDE IN A SEPARATE ACCOUNT ASSETS FOR THE MEETING OF
OBLIGATIONS UNDER THE PLAN OR PROGRAM.
2. WITHHOLDING. UMTA SHALL UPON ITS OWN ACTION
OR UPON WRITTEN REQUEST OF AN AUTHORIZED
REPRESENTATIVE OF THE DEPARTMENT OF LABOR WITHHOLD
OR CAUSE TO BE WITHHELD FROM THE CONTRACTOR, UNDER
THIS AGREEMENT OR ANY OTHER FEDERAL CONTRACT WITH
THE SAME COMPANY OR ANY OTHER FEDERALLY-ASSISTED
CONTRACT SUBJECT TO DAVIS-BACON PREVAILING WAGE
REQUIREMENTS, WHICH IS WITHHELD BY THE SAME PRIME
CONTRACTOR, SO MUCH OF THE ACCRUED PAYMENTS OR
ADVANCES AS MAY BE CONSIDERED NECESSARY TO PAY
LABORERS AND MECHANICS, INCLUDING APPRENTICES,
TRAINEES, AND HELPERS, EMPLOYED BY THE CONTRACTOR OR
Page 41
ANY SUBCONTRACTOR THE FULL AMOUNT OF WAGES
REQUIRED BY THE CONTRACT. IN THE EVENT OF FAILURE TO
PAY ANY LABORER OR MECHANIC, INCLUDING ANY
APPRENTICE, TRAINEE, OR HELPER, EMPLOYED OR WORKING ON
THE SITE OF THE WORK (OR UNDER THE UNITED STATES
HOUSING ACT OF 1937 OR UNDER THE HOUSING ACT OF 1949 IN
THE CONSTRUCTION OR DEVELOPMENT OF THE PROJECT), ALL
OR PART OF THE WAGES REQUIRED BY THE CONTRACT, UMTA
MAY, AFTER WRITTEN NOTICE TO THE CONTRACTOR, SPONSOR,
. APPLICANT, OR OWNER, TAKE SUCH ACTION AS MAY BE
NECESSARY TO CAUSE THE SUSPENSION OF ANY FURTHER
PAYMENT, ADVANCE, OR GUARANTEE OF FUNDS UNT1L SUCH
VIOLATIONS HAVE CEASED.
3. PAYROLLS AND BASIC RECORDS. (a) PAYROLLS AND
BASIC RECORDS RELATING THERETO SHALL BE MAINTAINED BY
THE CONTRACTOR DURING THE COURSE OF THE WORK AND
PRESERVED FOR A PERIOD OF THREE YEARS THERE-AFTER FOR
ALL LABORERS AND MECHANICS WORKING AT THE SITE OF THE
WORK (OR UNDER THE UNITED STATES HOUSING ACT OF 1937,
OR UNDER THE HOUSING ACT OF 1949, IN THE CONSTRUCTION
OR DEVELOPMENT OF THE PROJECT). SUCH RECORDS SHALL
CONTAIN THE NAME, ADDRESS, AND SOCIAL SECURITY NUDBER
OF EACH SUCH WORKER, HIS OR HER CORRECT
CLASSIPICATION, HOURLY RATES OF WAGES PAID (INCLUDING
RATES OF CONTRIBUTIONS OR COSTS ANTICIPATED FOR BONA
FIDE FRINGE BENEFITS OR CASH EQUIVALENTS THEREOF OF
THE TYPES DESCRIBED IN SECTION l(b) (2) (B) OF THE DAVIS-
BACON ACT), DAILY AND WEEKLY NUDBER OF HOURS WORKED,
DEDUCTIONS MADE AND ACTUAL WAGES PAID. WHENEVER
THE SECRETARY OF LABOR HAS FOUND UNDER 29 C.F.R. § 5.5(a)
(1) (iv) THAT THE WAGES OF ANY LABORER OR MECHANIC
INCLUDE THE AMOUNT OF ANY COSTS REASONABLY
ANTICIPATED IN PROVIDING BENEFITS UNDER A PLAN OR
PROGRAM DESCRIBED IN SECTION l(b) (2) (B) OF THE DAVIS-
BACON ACT, THE CONTRACTOR SHALL MAINTAIN RECORDS
WHICH SHOW THAT THE COMMITMENT TO PROVIDE SUCH
BENEFITS IS ENFORCE-ABLE, THAT THE PLAN OR PROGRAM IS
FINANCIALLY RESPONSIBLE, AND THAT THE PLAN OR PROGRAM
HAS BEEN COMMUNICATED IN WRITING TO THE LABORERS OR
MECHANICS AFFECTED, AND RECORDS WHICH SHOW THE COSTS
ANTICIPATED OR THE ACTUAL COSTS INCURRED IN PROVIDING
SUCH BENEFITS. CONTRACTORS EMPLOYING APPRENTICES OR
TRAINEES UNDER APPROVED PROGRAMS SHALL MAINTAIN
WRITTEN EVIDENCE OF THE REGISTRATION OF APPRENTICESHIP
PROGRAMS AND CERTIFICATION OF TRAINEE PROGRAMS, THE
Page 42
REGISTRATION OF THE APPRENTICES AND TRAINEES, AND THE
RATIOS AND WAGE RATES PRESCRIBED IN THE APPLICABLE
PRO-GRAMS.
(b) 1. THE CONTRACTOR SHALL SUBMIT WEEKLY
FOR EACH WEEK 1N WHICH ANY CONTRACT WORK IS
PERFORMED A COPY OF ALL PAYROLLS TO UMTA IF UMTA IS A
PARTY TO THE CONTRACT; BUT IF UMTA IS NOT SUCH A PARTY,
THE CONTRACTOR WILL SUBMIT THE PAYROLLS TO THE
APPLICANT, SPONSOR, OR OWNER, AS THE CASE MAY BE, FOR
TRANSMISSION TO UMTA. THE PAYROLLS SUBMITTED SHALL
SET OUT ACCURATELY AND COMPLETELY ALL OF THE
INFORMATION REQUIRED TO BE MAINTAINED UNDER 29 C.F.R. §
5.5(a) (3) (i). THIS INFORMATION MAY BE SUBMITTED IN ANY
FORM DESIRED. OPTIONAL FORM WH-347 IS AVAILABLE FOR
THIS PURPOSE AND MAY BE PURCHASED FROM THE
SUPERINTENDENT OF DOCUMENTS (FEDERAL STOCK NO. 029-
005-00014-1), U.S. GOVERNMENT PRINTING OFFICE, WASHINGTON,
D.C. 20402. THE PRIME CONTRACTOR IS RESPONSIBLE FOR THE
SUBMISSION OF COPIES OF PAYROLLS BY ALL
SUBCONTRACTORS.
2. EACH PAYROLL SUBMITTED SHALL BE
ACCOMPANIED BY A "STATEMENT OF COMPLIANCE," SIGNED BY
THE CONTRACTOR OR SUBCONTRACTOR OR HIS OR HER AGENT
WHO PAYS OR SUPERVISES THE PAYMENT OF THE PERSONS
EMPLOYED UNDER THE CONTRACT AND SHALL CERTIFY THE
FOLLOWING:
(a) THAT THE PAYROLL FOR THE PAYROLL
PERIOD CONTAINS THE INFORMATION REQUIRED TO BE
MAINTAINED UNDER 29 C.F.R. § 5.5 (a) (3) (i) AND THAT SUCH
INFORMATION IS CORRECT AND COMPLETE;
(b) THAT EACH LABORER OR MECHANIC
(INCLUDING EACH HELPER, APPRENTICE, AND TRAINEE)
EMPLOYED ON THE CONTRACT DURING THE PAYROLL PERIOD
HAS BEEN PAID THE FULL WEEKLY WAGES EARNED, WITHOUT
REBATE, EITHER DIRECTLY OR INDIRECTLY, AND THAT NO
DEDUCTIONS HAVE BEEN MADE EITHER DIRECTLY OR
INDIRECTLY FROM THE FULL WAGES EARNED, OTHER THAN
PERMISSIBLE DEDUCTIONS AS SET FORTH AT 29 C.F.R. PART 3;
(c) THAT EACH LABORER OR MECHANIC
HAS BEEN PAID NOT LESS THAN THE APPLICABLE WAGE RATES
AND FRINGE BENEFITS OR CASH EQUIVALENTS FOR THE
Page 43
CLASSIFICATION OF WORK PER-FORMED, AS SPECIFIED IN THE
APPLICABLE WAGE DETERMINATION INCORPORATED INTO THE
CON-TRACT.
3. THE WEEKLY SUBMISSION OF A PROPERLY
EXECUTED CERTIFICATION SET FORTH ON THE REVERSE SIDE
OF OPTIONAL FORM WH-347 SHALL SATISFY THE REQUIREMENT
FOR SUBMISSION OF THE "STATEMENT OF COMPLIANCE"
REQUIRED BY 29 C.F.R. § 5.5(a) (3) (ii) (B).
4. THE FALSIFICATION OF ANY OF THE ABOVE
CERTIFICATIONS MAY SUBJECT THE CONTRACTOR OR
SUBCONTRACTOR TO CIVIL OR CRIMINAL PROSECUTION UNDER
18 U.S.C. § 1001 AND 31 U.S.C. § 231.
(c) THE CONTRACTOR OR SUBCONTRACTOR SHALL
MAKE THE RECORDS REQUIRED UNDER 29 C.F.R. § 5.5(a) (3) (i)
AVAILABLE FOR INSPECTION, COPYING, OR TRANSCRIPTION BY
AUTHORIZED REPRESENTATIVES OF UMTA OR THE
DEPARTMENT OF LABOR, AND SHALL PERMIT SUCH
REPRESENTATIVES TO INTERVIEW EMPLOYEES DURING
WORKING HOURS ON THE JOB. IF THE CONTRACTOR OR
SUBCONTRACTOR FAILS TO SUBMIT THE REQUIRED RECORDS
OR MAKE THEM AVAILABLE, UMTA MAY, AFTER WRITTEN
NOTICE TO THE CONTRACTOR, SPONSOR, APPLICANT, OR
OWNER, TAKE SUCH ACTION AS MAY BE NECESSARY TO CAUSE
THE SUSPENSION OF ANY FURTHER PAYMENT, ADVANCE, OR
GUARANTEE OF FUNDS. FURTHER-MORE, FAILURE TO SUBMIT
THE REQUIRED RECORDS UPON REQUEST OR MAKE SUCH
RECORDS AVAILABLE MAY BE GROUNDS FOR DEBARMENT
ACTION PURSUANT TO 29 C.F.R. § 5.12.
4. APPRENTICES AND TRAINEES.
(a) APPRENTICES. APPRENTICES WILL BE
PERMITTED TO WORK AT LESS THAN THE PREDETERMINED
RATE FOR THE WORK THEY PERFORMED WHEN THEY ARE
EMPLOYED PURSUANT TO AND ENDIVIDUALLY REGISTERED IN A
BONA FIDE APPRENTICESHIP PROGRAM REGISTERED WITH THE
U.S. DEPARTMENT OF LABOR, EMPLOYMENT AND TRAINING
ADMINISTRATION, BUREAU OF APPRENTICESHIP AND TRAINING,
OR WITH A STATE APPRENTICESHIP COMPANY RECOGNIZED BY
THE BUREAU, OR IF A PERSON IS EMPLOYED IN HIS OR HER
FIRST 90 DAYS OF PROBATIONARY EMPLOYMENT AS AN
APPRENTICE IN SUCH AN APPRENTICESHIP PROGRAM, WHO IS
NOT INDIVIDUALLY REGISTERED IN THE PROGRAM, BUT WHO
Page 44
HAS BEEN CERTIFIED BY THE BUREAU OF APPRENTICESHIP AND
TRAINING OR A STATE APPRENTICESHIP COMPANY (WHERE
APPROPRIATE) TO BE ELIGIBLE FOR PROBATIONARY
EMPLOYMENT AS AN APPRENTICE. THE ALLOWABLE RATIO OF
APPRENTICES TO JOURNEYMEN ON THE JOB SITE IN ANY CRAFT
CLASSIFICATION SHALL NOT BE GREATER THAN THE RATIO
PERMITTED TO THE CONTRACTOR AS TO THE ENTIRE WORK
FORCE UNDER THE REGISTERED PROGRAM. ANY WORKER
LISTED ON A PAYROLL AT AN APPRENTICE WAGE RATE, WHO IS
NOT REGISTERED OR OTHERWISE EMPLOYED AS STATED
ABOVE, SHALL BE PAID NOT LESS THAN THE APPLICABLE WAGE
ON THE WAGE DETERMINATION FOR THE CLASSIFICATION OF
WORK ACTUALLY PER-FORMED. IN ADDITION, ANY APPRENTICE
PERFORMING WORK ON THE JOB SITE IN EXCESS OF THE RATIO
PERMITTED UNDER THE REGISTERED PROGRAM SHALL BE PAID
NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE
DETERMINATION FOR THE WORK ACTUALLY PERFORMED.
WHERE A CONTRACTOR IS PERFORMING CONSTRUCTION ON A
PROJECT IN A LOCALITY OTHER THAN THAT IN WHICH ITS
PROGRAM IS REGISTERED, THE RATIOS AND WAGE RATES
(EXPRESSED 1N PERCENTAGES OF THE JOURNEYMAN'S HOURLY
RATE) SPECIFIED IN THE CONTRACTOR'S OR SUBCONTRACTOR'S
REGISTERED PROGRAM SHALL BE OBSERVED. EVERY
APPRENTICE MUST BE PAID AT NOT LESS THAN THE RATE
SPECIFIED IN THE REGISTERED PROGRAM FOR THE
APPRENTICE'S LEVEL OF PROGRESS, EXPRESSED AS A
PERCENT-AGE OF THE JOURNEYMAN HOURLY RATE SPECIFIED
IN THE APPLICABLE WAGE DETERMINATION. APPRENTICES
SHALL BE PAID FRINGE BENEFITS IN ACCORDANCE WITH THE
PROVISIONS OF THE APPRENTICESHIP PROGRAM. IF THE
APPRENTICESI-I]? PROGRAM DOES NOT SPECIFY FRINGE
BENEFITS, APPRENTICES MUST BE PAID THE FULL AMOUNT OF
FRINGE BENEFITS LISTED ON THE WAGE DETERMINATION FOR
THE APPLICABLE CLASSIFICATION. IF THE ADMINISTRATOR
DETERMINES THAT A DIFFERENT PRACTICE PREVAILS FOR THE
APPLICABLE APPRENTICE CLASSIFICATION, FRINGE BENEFITS
SHALL BE PAID IN ACCORDANCE WITH THAT DETERMINATION.
IN THE EVENT THE BUREAU OF APPRENTICESHIP AND TRAINING,
OR A STATE APPRENTICESI-m~' COMPANY RECOGNIZED BY THE
BUREAU, WITI-IDRAWS APPROVAL OF AN APPRENTICESHIP
PROGRAM, THE CON-TRACTOR WILL NO LONGER BE PERMITTED
TO UTILIZE APPRENTICES AT LESS THAN THE APPLICABLE
PREDETERMINED RATE FOR THE WORK PERFORMED UNTIL AN
ACCEPTABLE PROGRAM IS APPROVED.
Page 45
(b) TRAINEES. EXCEPT AS PROVIDED IN 29 C.F.R. §
5.16, TRAINEES WILL NOT BE PERMITTED TO WORK AT LESS
THAN THE PREDETERMINED RATE FOR THE WORK PERFORMED
UNLESS THEY ARE EMPLOYED PURSUANT TO AND
INDIVIDUALLY REGISTERED IN A PROGRAM WHICH HAS
RECEIVED PRIOR APPROVAL, EVIDENCED BY FORMAL
CERTIFICATION BY THE U. S. DEPARTMENT OF LABOR,
EMPLOYMENT AND TRAINING ADMINISTRATION. THE RATIO OF
TRA1NEES TO JOURNEYMEN ON THE JOB SITE SHALL NOT BE
GREATER THAN PERMITTED UNDER THE PLAN APPROVED BY
THE EMPLOYMENT AND TRAINING ADMINISTRATION. EVERY
TRAINEE MUST BE PAID AT NOT LESS THAN THE RATE SPECIFIED
IN THE APPROVED PROGRAM FOR THE TRAINEE'S LEVEL OF
PROGRESS, EXPRESSED AS A PERCENT-AGE OF THE
JOURNEYMAN HOURLY RATE SPECIFIED IN THE APPLICABLE
WAGE DETERMINATION. TRAINEES SHALL BE PAID FRINGE
BENEFITS IN ACCORDANCE WITH THE PROVISIONS OF THE
TRAINEE PROGRAM. IF THE TRAINEE PROGRAM DOES NOT
MENTION FRINGE BENEFITS, TRAINEES SHALL BE PAID THE
FULL AMOUNT OF FRINGE BENEFITS LISTED ON THE WAGE
DETERMINATION UNLESS THE ADMINISTRATOR OF THE WAGE
AND HOUR DIVISION DETERMINES THAT THERE IS AN
APPRENTICESHIP PROGRAM ASSOCIATED WITH THE
CORRESPONDING JOURNEYMAN WAGE RATE ON THE WAGE
DETERMINATION, THAT PROVIDES FOR LESS THAN FULL FRINGE
BENEFITS FOR APPRENTICES. ANY EMPLOYEE LISTED ON THE
PAYROLL AT A TRAINEE RATE WHO IS NOT REGISTERED AND
PARTICIPATING IN A TRAINING PLAN APPROVED BY THE
EMPLOYMENT AND TRAINING ADMINISTRATION SHALL BE PAID
NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE
DETERMINATION FOR THE CLASSIFICATION OF WORK
ACTUALLY PERFORMED. IN ADDITION, ANY TRAINEE
PERFORMING WORK ON THE JOB SITE IN EXCESS OF THE RATIO
PERMITTED UNDER THE REGISTERED PROGRAM SHALL BE PAID
NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE
DETERMINATION FOR THE WORK ACTUALLY PERFORMED. IN
THE EVENT THE EMPLOYMENT AND TRAINING
ADMINISTRATION WITHDRAWS APPROVAL OF A TRAINING
PROGRAM, THE CONTRACTOR WILL NO LONGER BE PERMITTED
TO UTILIZE TRAINEES AT LESS THAN THE APPLICABLE
PREDETERMINED RATE FOR THE WORK PER-FORMED UNTIL AN
ACCEPTABLE PROGRAM IS APPROVED.
(c) EQUAL EMPLOYMENT OPPORTUNITY. THE
UTILIZATION OF APPRENTICES, TRAINEES, AND JOURNEYMEN
UNDER 29 C.F.R. PART 5 SHALL BE IN CONFORMITY WITH THE
Page 46
EQUAL EMPLOYMENT OPPORTUNITY REQUIREMENTS OF
EXECUTIVE ORDER 11246, AS AMENDED, AND 29 C.F.R. PART 30.
5. COMPLIANCE WITH COPELAND ACT REQUIREMENTS.
THE CON-TRACTOR SHALL COMPLY WITH THE REQUIREMENTS
OF 29 C.F.R. PART 3, WHICH ARE INCORPORATED HEREIN BY
REFERENCE.
6. CONTRACT TERMINATION: DEBARMENT. A BREACH
OF THE CON-TRACT CLAUSES IN 29 C.F.R. § 5.5 MAY BE GROUNDS
FOR TERMINATION OF THE CONTRACT, AND FOR DEBARMENT
AS A CONTRACTOR AND A SUBCONTRACTOR AS PROVIDED IN 29
C.F.R. § 5.12.
7. COMPLIANCE WITH DAVIS-BACON AND RELATED ACT
REQUIREMENTS. ALL RULINGS AND INTERPRETATIONS OF THE
DAVIS-BACON AND RELATED ACTS CONTAINED IN 29 C.F.R.
PARTS 1, 3, AND 5 ARE INCORPORATED HEREIN BY REFERENCE.
8. DISPUTES CONCERNING LABOR STANDARDS.
DISPUTES ARISING OUT OF THE LABOR STANDARDS PROVISIONS
OF THIS CONTRACT SHALL NOT BE SUBJECT TO THE GENERAL
DISPUTES CLAUSE OF THIS CONTRACT. SUCH DISPUTES SHALL
BE RESOLVED IN ACCORDANCE WITH THE PROCEDURES OF THE
DEPARTMENT OF LABOR SET FORTH IN 29 C.F.R. PARTS 5, 6, AND
7. DISPUTES WITHIN THE MEANING OF THIS CLAUSE INCLUDE
DISPUTES BETWEEN THE CONTRACTOR (OR ANY OF ITS
SUBCONTRACTORS) AND THE CONTRACTING COMPANY, THE U.
S. DEPARTMENT OF LABOR, OR THE EMPLOYEES OR THEIR
REPRESENTATIVES.
9. (a) CERTIFICATION OF ELIGIBILITY. BY ENTERING
INTO THIS AGREEMENT OR A THIRD PARTY CONTRACT
FINANCED UNDER THIS AGREEMENT, THE CONTRACTOR
CERTIFIES THAT NEITHER IT (NOR HE NOR SHE) NOR ANY
PERSON OR FIRM THAT HAS AN INTEREST IN THE
CON-TRACTOR'S FIRM IS A PERSON OR FIRM INELIGIBLE TO BE
AWARDED GOVERNMENT CONTRACTS BY VIRTUE OF SECTION 3
(a) OF THE DAVIS-BACON ACT OR 29 C.F.R. § 5.12(a) (1).
(b) NO PART OF THIS CONTRACT SHALL BE
SUBCONTRACT-ED TO ANY PERSON OR FIRM INELIGIBLE FOR
AWARD OF A GOVERNMENT CONTRACT BY VIRTUE OF SECTION
3(a) OF THE DAVIS-BACON ACT OR 29 C.F.R. § 5.12(a) (1).
Page 47
(C) THE PENALTY FOR MAKING FALSE STATEMENTS
IS PRESCRIBED IN THE U.S. CRIMINAL CODE, 18 U.S.C. § 1001.
10. OVERTIME REQUIREMENTS. NO CONTRACTOR OR
SUBCONTRACTOR CONTRACTING FOR ANY PART OF THE
CONTRACT WORK WHICH MAY REQUIRE OR INVOLVE THE
EMPLOYMENT OF LABORERS OR MECHANICS SHALL REQUIRE
OR PERMIT ANY SUCH LABORER OR MECHANIC IN ANY WORK
WEEK IN WHICH HE OR SHE IS EMPLOYED ON SUCH WORK TO
WORK IN EXCESS OF FORTY HOURS IN SUCH WORK WEEK
UNLESS SUCH LABORER OR MECHANIC RECEIVES
COMPENSATION AT A RATE NOT LESS THAN ONE AND ONE-HALF
TIMES THE BASIC RATE OF PAY FOR ALL HOURS WORKED IN
EXCESS OF FORTY HOURS IN SUCH WORK WEEK.
11. VIOLATION; LIABILITY FOR UNPAID WAGES;
LIQUIDATED DAMAGES. IN THE EVENT OF ANY VIOLATION OF
THE REQUIREMENTS OF 29 C.F.R. § 5.5(b) (1), THE CONTRACTOR
AND ANY SUBCONTRACTOR RESPONSIBLE THERE-FOR SHALL BE
LIABLE FOR THE UNPAID WAGES. IN ADDITION, SUCH
CONTRACTOR AND SUBCONTRACTOR SHALL BE LIABLE TO THE
UNITED STATES (IN THE CASE OF WORK DONE UNDER
CONTRACT FOR THE DISTRICT OF COLUMBIA OR A TERRITORY,
TO SUCH DISTRICT OR TO SUCH TERRITORY) FOR LIQUIDATED
DAMAGES. SUCH LIQUIDATED DAMAGES SHALL BE COMPUTED
WITH RESPECT TO EACH INDIVIDUAL LABORER OR MECHANIC,
INCLUDING WATCHMEN AND GUARDS, EMPLOYED IN
VIOLATION OF 29 C.F.R. § 5.5(b) (1) IN THE SUM OF $10 FOR EACH
CALENDAR DAY ON WHICH SUCH INDIVIDUAL WAS REQUIRED
OR PERMITTED TO WORK IN EXCESS OF THE STANDARD WORK
WEEK OF FORTY HOURS WITHOUT PAYMENT OF THE OVERTIME
WAGES REQUIRED BY 29 C.F.R. § 5.5(b) (1).
12. WITHHOLDING FOR UNPAID WAGES AND LIOUIDATED
DAMAGES. UMTA OR THE COMPANY SHALL UPON ITS OWN
ACTION OR UPON WRITTEN REQUEST OF AN AUTHORIZED
REPRESENTATIVE OF THE DEPARTMENT OF LABOR WITHHOLD
OR CAUSE TO BE WITHHELD, FROM ANY MONEYS PAYABLE ON
AC-COUNT OF WORK PERFORMED BY THE CONTRACTOR OR
SUBCONTRACTOR UNDER ANY SUCH CON-TRACT OR ANY
OTHER FEDERAL CONTRACT WITH THE SAME PRIME
CON-TRACTOR, OR ANY OTHER FEDERALLY-ASSISTED
CONTRACT SUBJECT TO THE CONTRACT WORK HOURS AND
SAFETY STANDARDS ACT, WHICH IS HELD BY THE SAME PRIME
CONTRACTOR, SUCH SUMS AS MAY BE DETERMINED TO BE
NECESSARY TO SATISFY ANY LIABILITIES OF SUCH
Page 48
CONTRACTOR OR SUBCONTRACTOR FOR UNPAID WAGES AND
LIQUIDATED DAMAGES AS PROVIDED IN THE CLAUSE SET
FORTH AT 29 C.F.R. § 5.5(b) (2).
13. SUBCONTRACTS. THE CONTRACTOR OR
SUBCONTRACTOR SHALL INSERT IN ANY SUBCONTRACTS THE
CLAUSES SET FORTH IN SUBSECTIONS 116.a.(1) THROUGH (12) OF
PART II OF THIS AGREEMENT AND ALSO A CLAUSE REQUIRING
THE SUBCONTRACTORS TO INCLUDE THESE CLAUSES IN ANY
LOWER TIER SUBCONTRACTS. THE PRIME CONTRACTOR SHALL
BE RESPONSIBLE FOR COMPLIANCE BY ANY SUBCONTRACTOR
OR LOWER TIER SUBCONTRACTOR WITH THE CLAUSES SET
FORTH IN SUBSECTIONS l16.a.(1) THROUGH 116.a.(12) OF PART II
OF THE CITY'S AGREEMENT WITH THE GOVERNMENT.
Non-construction Contracts. Pursuant to the regulations set forth at 29 C.F.R. Part
5, the following provisions shall be incorporated in all federally-assisted non-construction
contracts of $2,500 let by the Company in carrying out the Project:
NONCONSTRUCTION CONTRACTS. THE REQUIREMENTS OF
THE CLAUSES CONTAINED IN 29 C.F.R. § 5.5(b) OR SUBSECTIONS
l16.a.(10) THROUGH 116.a.(13) OF PART II OF THIS AGREEMENT
ARE APPLICABLE TO ANY CONTRACT SUBJECT TO THE
OVERTIME PROVISIONS OF THE CONTRACT WORK HOURS AND
SAFETY STANDARDS ACT AND NOT TO ANY OF THE OTHER
STATUTES CITED IN 29 C.F.R. § 5.1. THE CON-TRACTOR OR
SUBCONTRACTOR SHALL MAINTAIN PAYROLLS AND BASIC
PAYROLL RECORDS DURING THE COURSE OF THE WORK AND
SHALL PRESERVE THEM FOR A PERIOD OF THREE YEARS FROM
THE COMPLETION OF THE CONTRACT FOR ALL LABORERS AND
MECHANICS, INCLUDING GUARDS AND WATCHMEN, WORKING
ON THE CONTRACT. SUCH RECORDS SHALL CONTAIN THE NAME
AND ADDRESS OF EACH SUCH EMPLOYEE, SOCIAL SECURITY
NUDBER, CORRECT CLASSIFICATIONS, HOURLY RATES OF
WAGES PAID, DAILY AND WEEKLY NUDBER OF HOURS WORKED,
DEDUCTIONS MADE, AND ACTUAL WAGES PAID. THE RECORDS
TO BE MAINTAINED UNDER THIS CLAUSE SHALL BE MADE
AVAILABLE BY THE CONTRACTOR OR SUB-CONTRACTOR FOR
INSPECTION, COPYING, OR TRANSCRIPTION BY AUTHORIZED
REPRESENTATIVES OF UMTA, DOT, OR THE DEPARTMENT OF
LABOR, AND THE CONTRACTOR OR SUBCONTRACTOR WILL
PERMIT SUCH REPRESENTATIVES TO INTERVIEW EMPLOYEES
DURING WORKING HOURS ON THE JOB.
Page 49
W. Environmental, Resource, Energy Protection, and Conservation
Requirements.
1. The National Environmental Policy Act of 1969, as amended, 42
U.S.C. §§ 4321 et seq.; Section 14 of the Urban Mass Transportation Act of 1964, as
amended, 49 U.S.C. app. §§ 1601 et seq.; the Council on Environmental Quality
regulations, 40 C.F.R. Part 1500 et seq.; and the FHX~A/UMTA regulation,
"Environmental Impact and Related Procedures," 23 C.F.R. Part 771, as amended, are
applicable to the Project.
2. The Company shall comply with the provisions of the Clean Air Act, as
amended, 42 U.S.C. §§ 1857 et seq4 the Federal Water Pollution Control Act, as
amended, 33 U.S.C. §§ 1251 et seq.; and implementing regulations, in the facilities that
are involved in the Project for which Federal assistance is given. The Company shall
ensure that the facilities under ownership, lease or super-vision, whether directly or under
contract, that will be utilized in the accomplishment of the Project are not listed on the
Environ-mental Protection Company (EPA) List of Violating Facilities. Con-tracts,
subcontracts, and sub-grants of amounts in excess of $100,000 shall contain a pro-vision
requiring compliance with all applicable standards, orders, or requirements issued
pursuant to Federal statute or regulation. The Company and any third party contractor
thereof shall be responsible for reporting any violations to City and UMTA and to the
EPA Assistant Administrator for Enforcement. In addition, the Company shall notify
City and UMTA of the receipt of any communication from the Director of the EPA
Office of Federal Activities indicating that a facility to be utilized in the Project is under
consideration for listing by EPA.
3. No facilities or equipment shall be acquired, construct-ed, or improved
as a part of the Project unless the Company obtains satisfactory assurances that they are
(or will be) designed and equipped to limit air pollution as provided in accordance with
the following EPA regulations: "Control of Air Pollution from Motor Vehicles and Motor
Vehicle Engines," 40 C.F.R. Part 85; "Control of Air Pollution from New Motor Vehicles
and New Motor Vehicle Engines; Test Procedures for Light-Duty Vehicles and Light-
Duty Trucks and Selective Enforcement Auditing of New Light-Duty Vehicles, Light-
Duty Trucks and Heavy-Duty Engines," 40 C.F.R. Part 86; and "Fuel Economy of Motor
Vehicles," 40 C.F.R. Part 600; in accordance with applicable federally-approved State
Implementation Plan(s) (in particular, the Transportation Control Measures); and in
accordance with appropriate UMTA directives and all other applicable standards.
4. No publicly owned land from a park, recreation area, or wildlife or
waterfowl refuge of national, State, or local significance as determined by the Federal,
State, or local officials having jurisdiction thereof, or any land fxom an historic site of
national, State, or local significance may be used for the Project unless specific findings
required under 49 U.S.C. § 303 are made by the Department of Transportation.
Page 50
5. The Company shall assist the Government (UMTA) to comply with
section 106 of the National Historic Preservation Act involving historic and
archaeological preservation by:
(1) Consulting the State Historic Preservation Officer on the conduct
of investigations, in accordance with Advisory Council on Historic Preservation
regulations, "Protection of Historic and Cultural Properties," 36 C.F.R. Part 800, to
identify properties and resources listed in or eligible for inclusion in the National Register
of Historic Places that may be affected by the Project, and notifying the Government
(UMTA) of the existence of any such properties; and
(2) Complying with all Federal requirements to avoid or mitigate
adverse effects upon such properties.
6. The Company and its third party contractors shall comply with
mandatory standards and policies relating to energy efficiency that are contained in
applicable State energy conservation plans issued in compliance with the Energy Policy
and Conservation Act, 42 U.S.C. §§ 6321 et seq.
7. Should the proposed Project cause adverse environmental effects, the
Company shall take all reasonable steps to minimize such effects pursuant to 49 U.S.C.
app. § 1610, other applicable statutes, and the procedures set forth in 23 C.F.R. Part 771.
The Company shall undertake all environmental mitigation measures that may be
identified as commitments in applicable environmental documents (such as
environmental assessments, environmental impact statements, memoranda of agreements,
and statements required by 49 U.S.C. § 303) and with any conditions imposed by the
Government as part of a finding of no significant impact or a record of decision; all such
mitigation measures are incorporated in and made part of this Agreement by reference.
In the event that some or all mitigation measures are deferred, once such measures are
agreed upon by the Government, City and the Company, those mitigation methods
subsequently determined will be incorporated into this Agreement. Such mitigation
measures may not be modified or with-drawn without the express written approval of the
Government.
8. In carrying out the Project, the Company shall make all appropriate
efforts to foster the use of fly ash, substantially in compliance with EPA regulations
"Guideline for Federal Procurement of Cement and Concrete Containing Fly Ash," 40
C.F.R. Part 249. Should the Company make a determination that the use of fly ash is
inappropriate in a particular procurement of cement or concrete, the Company shall
provide UMTA a written justification to support that decision.
X. MISCELLANEOUS
1. Company shall comply with Department of Transportation regulations,
"Uniform Relocation and Real Property Acquisition Regulation for Federal and Federally
Assisted Programs," 49 C.F.R. Part 24.
Page 51
2. Company shall comply with the flood insurance purchase requirements
of section 102(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. § 4012(a), with
respect to any construction or acquisition Project.
3. Company shall comply with the bus testing requirements as set forth in
section 12(h) of the Urban Mass Transportation ACt of 1964, as amended, 49 U.S.C. app.
§ 1608(h), and any implementing regulations that may be issued thereunder.
4. Company shall comply with any regulations that may be issued to
implement section 12(j) of the Urban Mass Transportation Act, of 1964, as amended, 49
U.S.C. app. § 16080).
5. If any invention, improvement, or discovery of the Company or any of
its third party contractors is conceived or first actually reduced to practice in the course of
or under this Project, which invention, improvement, or discovery may be patentable
under the laws of the United States of America or any foreign country, the Company shall
immediately notify the Government (UMTA) and pro-vide a detailed report. The rights
and responsibilities of the Company, third party contractors, the City and the Government
with respect to such invention, improvement, or discovery will be determined in
accordance with applicable Federal laws, regulations, policies, and any waiver thereof.
6. Rights in Data.
a. The term "subject data" as used herein means recorded
information, whether or not copyrighted, that is delivered or specified to be delivered
under this Agreement. The term includes graphic or pictorial delineations in media such
as drawings or photographs; text in specifications or related performance or design-type
documents; machine forms such as punched cards, magnetic tape, or computer memory
printouts; and information retained in computer memory. Examples include, but are not
limited to: computer software, engineering drawings and associated lists, specifications,
standards, process sheets, manuals, technical reports, catalog item identifications, and
related information. The term does not include financial reports, cost analyses, and
similar information incidental to Project administration.
b. The following restrictions apply to all subject data first produced in the
performance of this Agreement:
(1) Except for its own internal use, the Company may not publish or
reproduce such data in whole or in part, or in any manner or form, nor may the Company
authorize others to do so, without the written consent of the City and the Government,
until such time as the Government may have either released or approved the release of
such data to the public; this restriction on publication, however, does not apply to
Agreements with academic institutions.
Page 52
(2) As authorized by 49 C.F.R. Part 18.34, the City and the
Government (UMTA) reserve a royalty-free, non-exclusive and irrevocable license to
reproduce, publish or otherwise use, and to authorize others to use, for Federal
Government purposes:
(a) Any work developed under a grant, cooperative agreement,
sub-grant, sub-agreement, or third party contract, irrespective of whether or not a
copyright has been obtained; and
(b) Any rights of copyright to which a Company, sub-recipient,
or a third party contractor purchases ownership with Federal assistance.
c. Company understands and agrees that, in addition to the rights set forth
in Subsection 119.b.(2) of Part II of this Agreement, UMTA may make available to any
UMTA recipient, sub-grantee, sub-recipient, third party contractor, or third party
subcontractor, either UMTA's license in the copyright to the "subject data" derived under
this Agreement or a copy of the "subject data" first produced under this Agreement.
d. The City and Company shall indemnify, save and hold harmless the
Government, its officers, agents, and employees acting within the scope of their official
duties against any liability, including costs and expenses, resulting from any willful or
intentional violation by the Company of proprietary rights, copyrights, or right of
privacy, arising out of the publication, translation, reproduction, delivery, use, or
disposition of any data furnished under this Agreement.
e. Nothing contained in this clause shall imply a license to the City or
Government under any patent or be construed as affecting the scope of any license or
other fight otherwise granted to the City or Government under any patent.
f. Subsections b., c. and d. of Part II of this Section are not applicable to
material furnished to the Company by the U. S. Government and incorporated in the work
furnished under the Agreement; provided that such incorporated material is identified by
the Company at the time of delivery of such work.
g. In the event that the Project, which is the subject of this Agreement, is
not completed, for any reason whatsoever, all data developed under that Project shall
become subject data as defined in Subsection 119.a. of Part II of the City's Agreement
with the Government- and shall be delivered as the Government may direct.
h. The requirements of Subsections a. through g. of this Section shall be
included in all third party contracts of the Company under this Project.
7. Privacy. Should the Company, or any or its third party contractors, sub-
grantees, sub-recipients or their employees administer any system of records on behalf of
the Federal Government, the Privacy Act of 1974, 5 U.S.C. § 552a (the Act), imposes
information restrictions on the party administering the system of records.
Page 53
a. For purposes of the Privacy Act, when the Agreement involves the
operation of a system of records on individuals to accomplish a Government function, the
Company and any third party contractors, sub-grantees, sub-recipients and their
employees involved therein are considered to be Government employees with respect to
the Government function. The requirements of the Act, including the civil and criminal
penalties for violations of the Act, apply to those individuals involved. Failure to comply
with the terms of the Act will make this Agreement subject to termination.
b. As used herein:
(1) "Operation of a system of records" means performance of any of
the activities associated with maintaining the system of records on behalf of the
Government including the collection, use and dissemination of records.
(2) "Record" means any item, collection, or grouping of information
about an individual that is maintained by the Company on behalf of the Government
including, but not limited to, his or her education, financial transactions, medical history,
and criminal or employment history and that contains his or her name, or the identifying
nuDBEr, symbol, or other identifying particular assigned to the individual, such as a
finger or voice print or a photograph.
(3) "System of records" on individuals means a group of any records
under the control of the Company on behalf of the Government from which information
is retrieved by the name of the individual or by some identifying nuDBEr, symbol or
other identify-ing particular assigned to the individual.
XV. GENERAL PROVISIONS
a. Bonus or Commission. The Company warrants that it has not paid, and
also agrees not to pay, any bonus or commission for the purpose of obtaining approval of
its application for the financial assistance hereunder.
b. State or Territorial Law. Except to the extent that a Federal statute or
regulation conflicts with State or territorial law, nothing in the Agreement shall require
the Company to observe or enforce compliance with any provision thereof, perform any
other act, or do any other thing in contravention of any applicable State or territorial law;
however, if any of the provisions of the Agreement violate any applicable State or
territorial law, or if compliance with the provisions of the Agreement would require the
Company to violate any applicable State territorial law, the Company shall at once notify
the Government (UMTA) in writing in order that appropriate arrangements may be made
by the Government and the Company to the end that the Company may proceed as soon
as possible with the Project.
c. Records. The Company will, for each local fiscal year ending on or
after July 1, 1978, conform to the reporting system and the uniform system of accounts
Page 54
and records to the extent required by section 15 of the Urban Mass Transportation Act of
1964, as amended, 49 U.S.C. app. § 1611, effective for each local fiscal year ending on or
after July 1, 1978, and applicable regulations "Uniform System of Accounts and Records
and Reporting System," set forth at 49 C.F.R. Part 630.
d. Severabilitv. If any provision of this Agreement is held invalid, the
remainder of this Agreement shall not be affected thereby if such remainder would then
continue to conform to the terms and requirements of applicable law.
1N WITNESS WHEREOF, the parties do he,.r~l;~iy affix their, signatl~res and enter
into this Agreement as of the effective date being/_~tday of :~.,/)/"/[ , 2002.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERB~O~Y ATTORNEY
ATTEST:
CITY OF DENTON, TEXAS
EULINE BROCK, MAYOR
MCDONALD 'I~P,_~dN S I T_.~ ~
By/ ,---/ ~ ~ ( //~
~O~E~T T. ~T
P~S~E~
Page 55
EXHIBIT "A"
City of Denton - Transit Budget (Fixed Costs)
Transportation Management Services
Cost Category Year 1 Year 2 Year 3 Year 4 Year 5
1. Management, Administrative, and $135,058 $180,473 $183,941 $190,379 $197,042
Supervisory Wages and Benefits: These costs
provide for the salary and connected tYinge
benefits of the dispatchers, supervisors, and
clerical employees associated with the provision
of transit services.
2. Office Supplies, Materials and Equipment: $4,800 $4,968 $5,142 $5,322 $5,508
This line item will pay for expenses associated
with the provision of needed office supplies for
the collective administrative functions for transit
operations.
3. Services: This line item will provide for $26,200 $27,117 $28,066 $29,048 $30,065
payroll service, internal audit functions, internal
legal assistance, marketing efforts to include
special campaigns outside those provided by the
City of Denton, and printing cost associated to
the management and operation of transit
services.
4. Insurance Premiums & Deductibles: Will $86,480 $90,804 $95,344 $100,111 $105,117
provide for the specified and required limits of
insurance pertaining to the operation and
management of the transit system. This will
include all premiums for General Liability,
Property Damage, auto Liability, Worker's
Compensation for administrative personnel and
Professional Error & Omissions coverage.
5. Leases and Rentals: Will pay for rented $1,200 $1,242 $1,285 $1,330 $1,377
items not provided for under the capital grant
program. Since it is assumed that most of the
computer hardware, sof~ware and supplementary
office equipment such as phones, copier, printer
and fax machine will be provided through the
normal capital grant process, we are placing a
limited amount of rental/lease expense into the
fixed fee for transit management and operation.
6. Other Fixed Expenses: Will include all $2,500 $2,588 $2,678 $2,772 $2,869
costs associated to providing travel and dues
membership of the Local Operations Manager.
7. One-Thne Start-Up Expenses: These costs $45,140 $0 $0 $0 $0
will pay for the transition expenses associated to
the start of the new contract. These will include
relocation assistance for the Local Operations
Manager, training assistance, and other ancillary
services associated to the transition of
contractors.
8. Management Fee: Covers the wages and $136,830 $117,840 $122,400 $127,320 $132,720
fringe benefits for the Local Operations
Manager, corporate support, company overhead
and profit.
Total Fixed Costs: $438,208 $425,032 $438,856 $456,282 $474,698
S:\Our Documea~t s~/~fisc~llaneous\02kLink Budget- Exhibit A.doe
EXHIBIT "B"
City of Denton - Transit Budget (Variable Costs)
Transportation Management Services
Variable Costs Year 1 Year 2 Year 3 Year 4 Year 5
1. Driver Wages & Benefits $425,755 $443,523 $447,403 $463,124 $479,395
2. Training $11,472 $12,793 $13,240 $13,704 $14,183
3. Uniforms $2,550 $2,846 $2,946 $3,049 $3,156
4. DOT Physicals and Drug Screens $2,550 $2,857 $2,857 $2,957 $3,060
5. Maintenance Services $5~)0 $518 $536 $554 $574
6. Miscellaneous Materials & Supplies $15,356 $16,052 $16,213 $16,780 $17,368
Total Variable Costs $458,183 $478,589 $483,195 $500,168 $517,736