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<br />information: Justification for the use of negotiation in lieu of, <br />advertising, contractor selection, and the basis for the cost or <br />price negotiated. <br /> <br />(i) A system for contract administration shall be maintained to <br />assure subcontractor conformance with terms, conditions, and <br />specifications of the subcontract or order, and to assure adequate <br />and timely followup of all purchases. <br /> <br />c. The recipient shall include, in addition to provisions to define a <br />sound and complete agreement, the following provision in all subcontracts': <br /> <br />(1) Subcontracts shall contain such contractual provisions or <br />conditions which will allow for administrative, contractual, or <br />legal remedies in instances where subcontractors violate or breach <br />contract terms, and provide for such sanctions and penalties as <br />may be appropriate. <br /> <br />(2) All subcontracts in excess of $10,000 shall contain suitable <br />provisions for termination by the recipient including the manner by <br />which it will be effected and the basis for settlement. In addition, <br />such subcontracts shall describe conditions under which the contract <br />may be terminated for default as well as conditions where the contract <br />may be terminated because of circumstances beyond the control of the <br />subcontractor. <br /> <br />(3) All subcontracts awarded by recipients and their subcontrac- <br />tors having a value of more than $10,000 shall contain a provision <br />requiring compl iance with Execut ive Order 11246, ent itled, "Equal <br />Employment Opportunity," as amended by Execut ive Order 11375, and <br />as supplemented in Department of Labor regulations (41 CFR Part 60). <br /> <br />(4) In all negotiated subcontracts (except those of $10,000 or <br />less) awarded by recipient, the recipient shall include a provision <br />that the Federal agency, the Comptroller General of the United States, <br />or any of their duly authorized representatives shall have access to <br />any books, documents, papers, and records of the subcontractor which <br />are directly pertinent to a specific program for the purpose of <br />making audit, examination, excerpts, and transcriptions. <br /> <br />(5) Subcontracts in excess of $100,000 shall contain a provision <br />which requires the subcontracts to agree to comply with all applicable <br />standards, orders, or regulations issued pursuant to the Clean Air <br />Act of 1970. Violations shall be reported to the Federal agency and <br />the Regional Office of the Environmental Protection Agency. <br /> <br />13 <br /> <br />~ <br /> <br />~ <br />