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2017-133
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forward to the Division acopy of any contemplated contract prior to contract execution. The Division shall <br />review the unexecuted contract and provide comments, if any, to the Sub -Recipient within three (3) <br />business days. Consistent with 2 C.F.R. §200.324, the Division will review the unexecuted contract for <br />compliance with the procurement standards outlined in 2 C.F.R. §§200.318 through 200.326 as well as <br />Appendix 0 to 2 C.F.R. Part 200. Consistent with 2 C.F.R. §200.318(k), the Division will not substitute its <br />judgment for that of the Sub -Recipient. While. the Sub -Recipient does not need the approval of the <br />Division in order to execute a subcontract, this review may allow the Division to identify deficiencies in the <br />terms and conditions of the subcontract as well as deficiencies in the procurement process that led to the <br />subcontract. The Division's review and comments shall not constitute an approval of the subcontract. <br />Regardless of the Division's review, the Sub -Recipient remains bound by all applicable laws, regulations, <br />and agreement terms. If during its review the Division identifies any deficiencies, then the Division shall <br />communicate those deficiencies to the Sub -Recipient as quickly as possible within the three (3) business <br />day window outlined above. If the Sub -Recipient executes a subcontract after receiving a communication <br />from the Division that the subcontract is non-compliant, then the Division may: <br />(1) Terminate this Agreement in accordance with the provisions outlined in <br />paragraph 19 below; and, <br />(2) Refuse to reimburse the Sub -Recipient for any costs associated with that <br />subcontract. <br />F. The Sub -Recipient agrees to include in the subcontract that (i) the subcontractor is <br />bound by the terms of this Agreement, (ii) the subcontractor is bound by all applicable state and federal <br />laws and regulations, and (iii) the subcontractor shall hold the Division and Sub -Recipient harmless <br />against all claims of whatever nature arising out of the subcontractor's performance of work under this_ <br />Agreement, to the extent allowed and required by law. <br />G. As required by 2 C.F.R. §200.318(c)(1), the Sub -Recipient shall "maintain written <br />standards of conduct covering conflicts of interest and governing the actions of its employees engaged in <br />the selection, award and administration of contracts." <br />H. As required by 2 C.F.R. §200.319(a), the Sub -Recipient shall conduct any <br />procurement under this agreement "in a manner providing full and open competition." Accordingly, the <br />Sub -Recipient shall not: <br />(1) Place unreasonable requirements on firms in order for them to qualify to do <br />business; <br />companies; <br />(2) Require unnecessary experience or excessive bonding; <br />(3) Use noncompetitive pricing practices between firms or between affiliated <br />(4) Execute noncompetitive contracts to consultants that are on retainer contracts; <br />(5) Authorize, condone, or ignore organizational conflicts of interest; <br />9 <br />
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