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Federal Transit Administration Clauses
<br /> 40. NOTIFICATION OF LEGAL MATTERS
<br /> Each Third-Party Participant must include an equivalent provision in its subagreements at every tier,for
<br /> any agreement that is a "covered transaction" according to 2 C.F.R. §§ 180.220 and 1200.220.
<br /> 1) The types of legal matters that require notification include, but are not limited to, a major
<br /> dispute, breach, default, litigation, or naming the Federal Government as a party to litigation or
<br /> a legal disagreement in any forum for any reason.
<br /> 2) Matters that may affect the Federal Government include, but are not limited to,the Federal
<br /> Government's interests in the Award,the accompanying Underlying Agreement, and any
<br /> Amendments thereto, or the Federal Government's administration or enforcement of federal
<br /> laws, regulations, and requirements.
<br /> 3) Additional Notice to U.S. DOT Inspector General.The Recipient must promptly notify the U.S.
<br /> DOT Inspector General in addition to the FTA Chief Counsel or Regional Counsel for the Region
<br /> in which the Recipient is located, if the Recipient has knowledge of potential fraud, waste, or
<br /> abuse occurring on a Project receiving assistance from FTA. The notification provision applies if a
<br /> person has or may have submitted a false claim under the False Claims Act, 31 U.S.C. § 3729, et
<br /> seq., or has or may have committed a criminal or civil violation of law pertaining to such matters
<br /> as fraud, conflict of interest, bid rigging, misappropriation or embezzlement, bribery, gratuity, or
<br /> similar misconduct involving federal assistance.This responsibility occurs whether the Project is
<br /> subject to this Agreement or another agreement between the Recipient and FTA, or an
<br /> agreement involving a principal, officer, employee, agent, or Third Party Participant of the
<br /> Recipient. It also applies to subcontractors at any tier. Knowledge, as used in this paragraph,
<br /> includes, but is not limited to, knowledge of a criminal or civil investigation by a Federal, state,
<br /> or local law enforcement or other investigative agency, a criminal indictment or civil complaint,
<br /> or probable cause that could support a criminal indictment, or any other credible information in
<br /> the possession of the Recipient. In this paragraph, "promptly" means to refer information
<br /> without delay and without change. This notification provision applies to all divisions of the
<br /> Recipient, including divisions tasked with law enforcement or investigatory functions.
<br /> 4) Federal Interest in Recovery.The Federal Government retains the right to a proportionate share
<br /> of any proceeds recovered from any third party, based on the percentage of the federal share
<br /> for the Underlying Agreement. Notwithstanding the preceding sentence,the Recipient may
<br /> return all liquidated damages it receives to its Award Budget for its Underlying Agreement
<br /> rather than return the federal share of those liquidated damages to the Federal Government,
<br /> provided that the Recipient receives FTA's prior written concurrence.
<br /> 5) Enforcement. The Recipient must pursue its legal rights and remedies available under any third
<br /> party agreement or any federal, state, or local law or regulation.
<br /> Contractor agrees to notify the City of Everett immediately if it becomes involved in a current or
<br /> prospective legal matter that may affect the federal government, which includes, but is not limited to,
<br /> FTA's interests in the award,the accompanying underlying agreement, and any Amendments thereto,
<br /> or the FTA's administration or enforcement of federal laws, regulations, and requirements. The types of
<br /> legal matters that require notification include, but are not limited to, a major dispute, breach, default,
<br /> litigation, or where the FTA may be named as a party to litigation or a legal disagreement in any forum
<br /> for any reason.
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