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STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION 525-010-40 LOCAL AGENCY PROGRAM AGREEMENT PRODUCTION SUPPORT01 /11 -Page 8 (a) If the Department determines that the performance of the Agency is not satisfactory , the Department shall notify the Agency of the deficiency in writing with a requirement that the deficiency be corrected within thirty ( 30 ) days of such notice . Such notice shall provide reasonable specificity to the Agency of the deficiency that requires correction . If the deficiency is not corrected within such time period , the Department may either ( 1 ) immediately terminate the Agreement as set forth in paragraph 8 . (b ) below , or (2) take whatever action is deemed appropriate by the Department to correct the deficiency . In the event the Department chooses to take action and not terminate the Agreement , the Agency shall , upon demand , promptly reimburse the Department for any and all costs and expenses incurred by the Department in correcting the deficiency . (b) If the Department terminates the Agreement , the Department shall notify the Agency of such termination in writing , with instructions to the effective date of termination or specify the stage of work at which the Agreement is to be terminated . (c) If the Agreement is terminated before the project is completed , the Agency shall be paid only for the percentage of the project satisfactorily performed for which costs can be substantiated . Such payment , however, shall not exceed the equivalent percentage of the contract price . All work in progress will become the property of the Department and will be turned over promptly by the Agency . 8 . 02 Action Subsequent to Notice-of-Termination or Suspension : Upon receipt of any final termination or suspension notice under this paragraph , the Agency shall proceed promptly to carry out the actions required therein which may include any or all of the following : (a ) necessary action to terminate or suspend , as the case may be , project activities and contracts and such other action as may be required or desirable to keep to a minimum the costs upon the basis of which the financing is to be computed ; ( b) furnish a statement of the project activities and contracts and other undertakings the cost of which are otherwise includable as project costs . The termination or suspension shall be carried out in conformity with the latest schedule , plan , and cost as approved by the Department or upon the basis of terms and conditions imposed by the Department upon the failure of the Agency to furnish the schedule , plan , and estimate within a reasonable time . The closing out of federal financial participation in the project shall not constitute a waiver of any claim which the Department may otherwise have arising out of this Agreement . 9 . 00 Contracts of Agency : 9 . 01 Third Party Agreements : Except as otherwise authorized in writing by the Department , the Agency shall not execute any contract or obligate itself in any manner requiring the disbursement of Department funds , including consultant or construction contracts or amendments thereto , with any third party with respect to the project without the written approval of the Department . Failure to obtain such approval shall be sufficient cause for nonpayment by the Department. The Department specifically reserves unto itself the right to review the qualifications of any consultant or contractor and to approve or disapprove the employment of the same . 9 . 02 Compliance with Consultants' Competitive Negotiation Act : It is understood and agreed by the parties hereto that participation by the Department in a project with the Agency , where said project involves a consultant contract for engineering , architecture or surveying services , is contingent on the Agency' s complying in full with provisions of Section 287 . 055 , Florida Statutes , Consultants ' Competitive Negotiation Act . At the discretion of the Department, the Agency will involve the Department in the consultant selection process for all projects . In all cases , the Agency' s attorney shall certify to the Department that selection has been accomplished in compliance with the Consultants' Competitive Negotiation Act. 10 . 00 Disadvantaged Business Enterprise ( DBE ) Policy and Obligation : It is the policy of the Department that DBE ' s , as defined in 49 C . F . R . Part 26 , as amended , shall have the opportunity to participate in the performance of contracts financed in whole or in part with Department funds under this Agreement. The DBE requirements of applicable federal and state laws and regulations apply to this Agreement . The Agency and its contractors agree to ensure that DBE ' s have the opportunity to participate in the performance of this Agreement . In this regard , all recipients and contractors shall take all necessary and reasonable steps in accordance with applicable federal and state laws and regulations to ensure that the DBE ' s have the opportunity to compete for and perform contracts . The Agency and its contractors and subcontractors shall not discriminate on the basis of race , color, national origin or sex in the award and performance of contracts , entered pursuant to this Agreement . Furthermore , the Agency agrees that :