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COOPERTIVE AGREEMENT NO. 1-2447 <br />EXHIBIT B <br />REQUIRED FEDERAL CLAUSES <br />DEFINITIONS <br />The Orange County Transportation Authority, (hereinafter referred to as "AUTHORITY") <br />., (hereinafter referred to as "CITY"). <br />The following provisions apply to all purchases regardless of its value: <br />ARTICLE 1. FEDERAL CHANGES <br />CITY shall at all times comply with all applicable FTA regulations, policies, procedures <br />and directives, including without limitation those listed directly or by reference in the agreement <br />between the AUTHORITY and FTA, as they may be amended or promulgated from time to time <br />during this Agreement. CITY's failure to comply shall constitute a material breach of contract. <br />ARTICLE 2. NO FEDERAL GOVERNMENT OBLIGATION TO THIRD PARTIES <br />AUTHORITY and CITY acknowledge and agree that, notwithstanding any concurrence <br />by the Federal Government in or approval of the solicitation or award of the underlying <br />Agreement, absent the express written consent by the Federal Government, the Federal <br />Government is not a party to this Agreement and shall not be subject to any obligations or <br />liabilities to the AUTHORITY, CITY, or any other party (whether or not a party to this Agreement) <br />pertaining to any matter resulting from the underlying Agreement. CITY agrees to include these <br />requirements in all of its subcontracts. <br />ARTICLE 3. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS AND <br />RELATED ACTS <br />A. CITY acknowledges that the provisions of the Program Fraud Civil Remedies Act of <br />1986, as amended, 31 U.S.C. §§3801 et seq. and U.S. DOT regulations, "Program Fraud Civil <br />Remedies," 49 C.F.R. Part 31, apply to its actions pertaining to this project. Accordingly, by <br />signing this Agreement, CITY certifies or affirms the truthfulness and accuracy of any statement it <br />has made, it makes, it may make, or causes to be made, pertaining to the underlying Agreement <br />of the FTA assisted project for which this Agreement's work is being performed. CITY also <br />acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, <br />statement, submission, or certification, the Federal Government reserves the right to impose <br />penalties of the Program Fraud Civil Remedies Act of 1986 on the CITY to the extent the Federal <br />Government deems appropriate. <br />B. CITY also acknowledges that if it makes, or causes to be made, a false, fictitious, or <br />fraudulent claim, statement, submission, or certification to the Federal Government under an <br />Orange County Transportation Authority 1 <br />Revised: 05/10/2010 25K-1 9