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C. As required by 2 C.F.R. §200.318(i), the Sub -Recipient shall "maintain oversight to <br />ensure that contractors perform in accordance with the terms, conditions, and specifications of their <br />contracts or purchase orders." In order to demonstrate compliance with this requirement, the Sub - <br />Recipient shall document, in its quarterly report to the Division, the progress of any and all subcontractors <br />performing work under this Agreement. <br />D. Except for procurements by micro -purchases pursuant to 2 C.F.R. §200.320(a) or <br />procurements by small purchase procedures pursuant to -2 C.F.R. §200.320(b), if the Sub -Recipient <br />chooses to subcontract any of the work required under this Agreement, then the Sub -Recipient shall <br />forward to the Division a copy 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 II 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 />subcontract. <br />(2) Refuse to reimburse the Sub -Recipient for any costs associated with that <br />E. 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 />F. 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 />0 <br />