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SPECIAL TERMS AND CONDITIONS <br /> INTERAGENCY AGREEMENT <br /> STATE FUNDS <br /> Disallowed Costs <br /> The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own organization <br /> or that of its subcontractors. <br /> Line Item Transfers <br /> The total amount of transfers of funds between line item budget categories shall not exceed ten percent <br /> (10%) of the total budget. If the cumulative amount of these transfers exceeds or is expected to exceed <br /> ten percent, the total budget shall be subject to justification and negotiation of a contracts amendment by <br /> the Contractor and COMMERCE. <br /> Ineligible Costs <br /> Only eligible project-related costs will be reimbursed. Ineligible costs include, but are not necessarily <br /> limited to: capital expenses, such as land acquisition or construction costs; purchase of machinery; <br /> hosting expenses, such as meals, lodging, or transportation incurred by persons other than staff and <br /> volunteers working directly on the project; lobbying or political influencing; and other costs which are not <br /> directly related to the project. <br /> 6. INSURANCE <br /> Each party certifies that it is self-insured under the State's or local government self-insurance liability <br /> program, and shall be responsible for losses for which it is found liable. <br /> 7. SUBCONTRACTOR DATA COLLECTION <br /> Contractor will submit reports, in a form and format to be provided by Commerce and at intervals as agreed <br /> by the parties, regarding work under this Agreement performed by subcontrai;tors and the portion of funds <br /> expended for work performed by subcontractors, including but not necessarily limited to minority-owned, <br /> woman-owned, and veteran-owned business subcontractors. "Subcontractors" shall mean subcontractors <br /> of any tier. <br /> 8. ORDER OF PRECEDENCE <br /> In the event of an inconsistency in this Contract, the inconsistency shall be resolved by giving precedence <br /> in the following order: <br /> • Applicable federal and state of Washington statutes and regulations <br /> • Special Terms and Conditions <br /> • General Terms and Conditions <br /> • Attachment A—Scope of Work <br /> • Attachment B— Budget <br /> State of Washington Interagency Agreement Updated August 2019 <br /> Department of Commerce Page 2 <br />