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M The parties may agree to terminate this Agreement for their mutual convenience through <br />a written amendment of this Agreement. The amendment will state the effective date of the termination <br />and the procedures for proper closeout of the Agreement. <br />(d) In the event this Agreement is terminated, the Sub -Recipient will not incur new <br />obligations for the terminated portion of the Agreement after the Sub -Recipient has received the <br />notification of termination. <br />The Sub -Recipient will cancel as many outstanding obligations as possible. Costs incurred after receipt of <br />the termination notice will be disallowed. The Sub -Recipient shall not be relieved of liability to the Division <br />because of any breach of Agreement by the Sub -Recipient. The Division may, to the extent authorized by <br />law, withhold payments to the Sub -Recipient for the purpose of set-off until the exact amount of damages <br />due the Division from the Sub -Recipient is determined. <br />(13) PROCUREMENT <br />(a) The Sub -Recipient shall ensure that any procurement involving funds authorized by the <br />Agreement complies with all applicable federal and state laws and regulations, to include 2 C.F.R. <br />§§200.318 through 200.326 as well as Appendix II to 2 C.F.R. Part 200 (entitled "Contract Provisions for <br />Non -Federal Entity Contracts Under Federal Awards"). <br />(b) As required by 2 C.F.R. §200.318(1), the Sub -Recipient shall "maintain records sufficient <br />to detail the history of procurement. These records will include but are not necessarily limited to the <br />following: rationale for the method of procurement, selection of contract type, contractor selection or <br />rejection, and the basis for the contract price." <br />(c) As required by 2 C.F.R. §200.318(b), 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 solicitation (whether competitive or non-competitive) at least fifteen <br />(15) days prior to the publication or communication of the solicitation. The Division shall review the <br />solicitation and provide comments, if any, to the Sub -Recipient within seven (7) business days. <br />Consistent with 2 C.F.R. §200.324, the Division will review the solicitation for compliance with the <br />procurement standards outlined in 2 C.F.R. §§200.318 through 200.326 as well as Appendix II to 2 C.F.R. <br />Part 200. Consistent with 2 C.F.R. §200.318(k), the Division will not substitute its judgment for that of the <br />Sub -Recipient. While the Sub -Recipient does not need the approval of the Division in order to publish a <br />