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CONTRACT 3218 Grant Agreement0 -1 U.S Department of Transportation Federal Aviation Administration July 30, 2003 Mary Strenn City Manager City of E1 Segundo 350 Main Street El Segundo, CA 90245 -0989 Dear Ms. Strenn: Western - Pacific Region Airports Division Los Angeles International Airport Project No. AIP 3 -06- 0139 -25 Grant Offer P.O. Box 92007 Los Angeles, CA 90009 l The Los Angeles International Airport, Fiscal Year 2003 Airport Improvement Program No. 3 -06- 0139 -25, Contract DTFA08 -03 -C -21651 has been approved. Enclosed are five original copies of the grant offer, under which the United States commits itself to participate in an allowable cost of the project not to exceed $1,000,000.00. Your acceptance of the grant offer will obligate the city of E1 Segundo (sponsor) to accomplish the described development. An official of the sponsor shall accept the offer on or before the date specified in paragraph 6, page 2 of the grant offer by signing the enclosed instruments in the space provided. The date of the execution of the grant offer should be the same as, or later than, the date of the resolution. The certificate of sponsor's attorney shall be the same as, or later than, the date of execution. When the documents are fully executed, certified, attested, and appropriate seals impressed, please return the four original copies of the grant agreement to this office and keep one original copy for your files. Sincerely, Ruben C. Cabalbag Supervisor, Standards Section Enclosures r 3218 , r--11, PJ U.S. Department of Transportation Federal Aviation Administration TO: City of El Segundo (herein called the "Sponsor ") GRANT AGREEMENT Part I - Offer Date of Offer July 30, 2003 Los Angeles International Airport /Planning Area Project No. 3 -06- 0139 -25 Contract No. DTFA08 -03 -C -21527 FROM: The United States of America (acting through the Federal Aviation Administration, herein called the "FAA ") WHEREAS, the Sponsor has submitted to the FAA Project Application dated June 19, 2003 for a grant of Federal funds for a project at or associated with the Los Angeles International Airport/Planning Area which Project Application, as approved by the FAA, is hereby incorporated herein and made part hereof; and WHEREAS, the FAA has approved a project for the Airport or Planning Area (herein called the "Project ") consisting of the following: Noise mitigation measures for residences within 75 DNL in the city of El Segundo (approximately 33 units). all as more particularly described in the Project Application. Page 1 of 4 Pages 3218 . NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of Title 49, United States Code, as amended, herein called the "Act," and in consideration of (a) the Sponsor's adoption and ratification of the representations and assurances contained in said Project Application and its acceptance of this Offer as hereinafter provided, and (b) the benefits to accrue to the United States and the public from the accomplishment of the Project and compliance with the assurances and conditions as herein provided, THE FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES to pay, as the United States share of the allowable costs incurred in accomplishing the Project, 80 percent of those eligible project costs. The Offer is made on and subject to the following terms and conditions: Conditions The maximum obligation of the United States payable under this offer shall be $1,000,000.00. For the purposes of any future grant amendments which may increase the foregoing maximum obligation of the United States under the provisions of Section 47108(b) of the Act, the following amounts are being specified for this purpose: $ 0.00 for planning $ 1,000,000.00 for airport development or noise program implementation. The allowable costs of the project shall not include any costs determined by the FAA to be ineligible for consideration as to allowability under the Act. Payment of the United States share of the allowable project costs will be made pursuant to and in accordance with the provisions of such regulations and procedures as the Secretary shall prescribe. Final determination of the United States share will be based upon the final audit of the total amount of allowable project costs and settlement will be made for any upward or downward adjustments to the Federal share of costs. 4. The Sponsor shall carry out and complete the Project without undue delays and in accordance with the terms hereof, and such regulations and procedures as the Secretary shall prescribe, and agrees to comply with the assurances which were made part of the project application. 5. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the sponsor. 6. This offer shall expire and the United States shall not be obligated to pay any part of the costs of the project unless this offer has been accepted by the sponsor on or before August 29, 2003 or such subsequent date as may be prescribed in writing by the FAA. 7. The Sponsor shall take all steps, including litigation if necessary, to recover Federal funds spent fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in any other manner in any project upon which Federal funds have been expended. For the purposes of this grant agreement, the term "Federal funds" means funds however used or disbursed by the Sponsor that were originally paid pursuant to this or any other Federal grant agreement. It shall obtain the approval of the Secretary as to any determination of the amount of the Federal share of such funds. It shall return the recovered Federal share, including funds recovered by settlement, order or judgment, to the Secretary. It shall furnish to the Secretary, upon request, all documents and records pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such Federal share shall be approved in advance by the Secretary. The United States shall not be responsible or liable for damage to property or injury to persons which may arise from, or be incident to, compliance with this grant agreement. 9. Buy American Requirement. Unless otherwise approved by the FAA, it will not acquire or permit any contractor or subcontractor to acquire any steel or manufactured products produced outside the United States, to be used for any project for airport development or noise compatibility for which funds are provided under this grant. The sponsor will include in every contract a provision implementing this special condition. Page 2 of 4 Pages r 10. It is understood and agreed by and between the parties hereto that this Grant Offer is made and accepted based on estimates for the described airport development or noise program implementation; and the parties hereby covenant and agree that within 210 days from the date of acceptance of this Grant Offer, the Sponsor shall receive bids for the approved project contained within the grant description. 11. No payment shall be made under the terms of this grant agreement for work accomplished on privately owned land until the sponsor submits the agreement with the owner of the property required by Assurance 5d of the Part V Assurances and such agreement is determined to be satisfactory. As a minimum, the agreement with the private owner must contain the following provisions: 11.1. The property owner shall subject the construction work on the project to such inspection and approval during the construction or installation of the noise compatibility measures and after completion of the measures as may reasonably be requested by the Secretary or the sponsor. 11.2. The property owner shall assume the responsibility for maintenance and operation of the items installed, purchased or constructed under this grant agreement. Neither the FAA nor the sponsor bears any responsibility for the maintenance and operation of these items. 11.3. If Federal funds for the noise compatibility measures are transferred by the sponsor to the owner of the private property, or the owner's agent, the property owner shall agree to maintain and make available to the Secretary or the sponsor, upon reasonable request, records disclosing the amount of funds received and the disposition of those funds. 11.4. The property owner's right to sue the owner of Los Angeles International Airport for adverse noise impact will be abrogated if the property owner deliberately or willfully acts to reduce or destroy the effectiveness of the noise compatibility measures during the useful life of such measures. This obligation shall remain in effect throughout the useful life of the noise compatibility measures, but not to exceed twenty (20) years from the date of the sponsor's acceptance of Federal aid for the project. 12. The Sponsor agrees to request cash drawdowns on the letter of credit only when actually needed for its disbursements and to timely reporting of such disbursements as required. It is understood that failure to adhere to this provision may cause the letter of credit to be revoked. 13. It is mutually understood and agreed that if, during the life of the project, the FAA determines that the maximum grant obligation of the United States exceeds the expected needs of the Sponsor by $25,000.00 or five percent (5 %), whichever is greater, the maximum obligation of the United States can be unilaterally reduced by letter from the FAA advising of the budget change. Conversely, if there is an overrun in the total actual eligible and allowable project costs, FAA may increase the maximum grant obligation of the United States to cover the amount of the overrun not to exceed the statutory percent limitation and will advise the Sponsor by letter of the increase. It is further understood and agreed that if, during the life of the project, the FAA determines that a change in the grant description is advantageous and in the best interests of the United States, the change in grant description will be unilaterally amended by letter from the FAA. Upon issuance of the aforementioned letter, either the grant obligation of the United States is adjusted to the amount specified or the grant description is amended to the description specified. 14. The attached Assurances is incorporated hereto with the Grant Offer and is made a part hereof Page 3 of 4 Pages I ' 3218• ' The Sponsor's acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall be evidenced by execution of this instrument by the Sponsor, as hereinafter provided, and this Offer and Acceptance shall comprise a Grant Agreement, as provided by the Act, constituting the contractual obligations and rights of the United States and the Sponsor with respect to the accomplishment of the Project and compliance with the assurances and conditions as provided herein. Such Grant Agreement shall become effective upon the Sponsor's acceptance of this Offer. UNITED STATES OF AMERICA FEDERAL AVIATION ADMINISTRATION Ruben C. Cabalbag Supervisor, Standards Section Part II - Acceptance The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties, covenants, and agreements contained in the Project Application and incorporated materials referred to in the foregoing Offer and does hereby accept this Offer and by such acceptance agrees to comply with all of the terms and conditions in this Offer and in the Project Application. Executed this (SEAL) 19th day of August, 2003. By: Title: Attest: Title: Cathy Domann. Deputy City Clerk itv of El Segundo JfName of Sponsor) (Signature of Sponsor's Designated Official Representative) Mike Gordon (Typed Name of Sponsor's Designated Official Representative) Mayor (Typed Title of Sponsor's Designated Official Representative) t j CERTIFICATE OF SPONSOR'S ATTORNEY V acting as Attorney for the Sponsor do hereby certify: That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the laws of the State of California. Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor and Sponsor's official representative has been duly authorized and that the execution thereof is in all respects due and proper in accordance with the laws of the said State and the Act. In addition, for grants involving projects to be carried out on property not owned by the Sponsor, there are no legal impediments that will prevent full performance by the Sponsor. Further, it is my opinion that the said Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof. Dated at � this day of r° (Signature of Spo (or's Attorney) Page 4 of 4 Pages 31 i Li ASSURANCES Non - Airport Sponsors Undertaking Noise Compatibility Program Projects A. General. 1. These assurances shall be complied with in the performance of grant agreements for noise compatibility projects undertaken by sponsors who are not proprietors of the airport which is the subject of the noise compatibility program. 2. These assurances are required to be submitted as part of the project application by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. Sponsors are units of local government in the areas around the airport which is the subject of the noise compatibility program. 3. Upon acceptance of the grant offer by the sponsor, these assurances are incorporated in and become part of the grant agreement. B. Duration. The terms, conditions, and assurances, of the grant agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired or throughout the useful life of the items installed under the project, but in any event not to exceed twenty (20) years from the date of the acceptance of a grant offer of Federal funds for the project. However, there shall be no time limit on the duration of the terms, conditions, and assurances with respect to real property acquired with Federal funds. Furthermore, the duration of the Civil Rights assurance shall be as specified in the assurance. C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that: General Federal Requirements. It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines and requirements as they relate to the application, acceptance, and use of Federal funds for this project including but not limited to the following: Federal Legislation. a. Title 49, U.S.C., subtitle VII, as amended. b. Davis -Bacon Act - 40 U.S.C. 276(a). et seq. C. Federal Fair Labor Standards Act - 29 U.S.C. 201 et seq. d. Hatch Act - 5 U.S.C. 1501, et seq. e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 - 42 U.S.C. 4601, et seq. f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C. 470(f). g. Archeological and Historic Preservation Act of 1974 - 469 through 469c. h. Native American Grave Repatriation Act - 25 U.S.C. Section 3001, et seo. i. Clean Air Act, P.L. 90 -148, as amended. j. Coastal Zone Management Act, P.L. 93 -205, as amended. k. Flood Disaster Protection Act of 1973 - Section 102(a) -42 U.S.C. 4012a. I. Title 49, U.S.C., Section 303, (formerly known as Section 4(f)). M. Rehabilitation Act of 1973 - 29 U.S.C. 794. n. Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d -4. o. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et seq. Nonairport Sponsor Assurances 3218•,. P. American Indian Religious Freedom Act, P.L. 95 -341, q Architectural Barriers Act of 1968 - U.S.C. 4151, et seq. r. Power plant and Industrial Fuel Use Act of 1978 - Section 403 - 42 U.S.C. 8373. S. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et seq. t. Copeland Antikickback Act -18 U.S.C. 874. U. National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et seq. V. Wild and Scenic Rivers Act, P.L. 90 -542, as amended. W. Single Audit Act of 1984 - 31 U.S.C. 7501, et seq. X. Drug -Free Workplace Act of 1988 - 41 U.S.C. 702 through 706. Executive Orders Executive Order 11246 - Equal Employment Opportunity Executive Order 11990 - Protection of Wetlands Executive Order 11998 — Flood Plain Management Executive Order 12372 - Intergovernmental Review of Federal Programs. Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New Building Construction Executive Order 12898 - Environmental Justice Federal Regulations a. 14 CFR Part 13 - Investigative and Enforcement Procedures. b. 14 CFR Part 16 - Rules of Practice For Federally Assisted Airport Enforcement Proceedings. C. 14 CFR Part 150 - Airport noise compatibility planning. d. 29 CFR Part 1 - Procedures for predetermination of wage rates. e. 29 CFR Part 3 - Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States. f. 29 CFR Part 5 - Labor standards provisions applicable to contracts covering federally financed and assisted construction. g. 41 CFR Part 60 - Office of Federal contract compliance programs, equal employment opportunity, Department of Labor (Federal and federally- assisted contracting requirements). h. 49 CFR Part 18 - Uniform administrative requirements for grants and cooperative agreements to state and local governments. i. 49 CFR Part 20 - New restrictions on lobbying. j. 49 CFR Part 21 - Nondiscrimination in federally- assisted programs of the Department of Transportation - effectuation of Title VI to the Civil Rights Act of 1964. k. 49 CFR Part 24 - Uniform relocation assistance and real property acquisition regulation for Federal and federally assisted programs. I. 49 CFR Part 26 — Participation By Disadvantaged Business Enterprises in Department of Transportation Programs. M. 49 CFR Part 27 - Non - Discrimination on the basis of handicap in programs and activities receiving or benefitting from Federal financial assistance. Nonairport Sponsor Assurances 321$.. .. n. 49 CFR Part 29 — Government wide debarment and suspension (non - procurement) and government wide requirements for drug - free workplace (grants). o. 49 CFR Part 30 - Denial of public work contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors. P. 49 CFR Part 41 - Seismic safety of Federal and federally assisted or regulated new building construction. Office of Management and Budget Circulars a. A -87 - Cost Principles Applicable to Grants and Contracts with State and Local Governments. b. A -133 - Audits of States, Local Governments, and Non - Profit Organizations. Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in the grant agreement. 2. Responsibility and Authority of the Sponsor. It has legal authority to apply for the grant, and to finance and carry out the proposed project; that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. 3. Sponsor Fund Availability. a. It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. b. It has sufficient funds available to ensure operation and maintenance of items funded under the grant agreement which it will own or control. 4. Good Title. For projects to be carried out on the property of the sponsor, it holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will give assurance to the Secretary that good title will be obtained. 5. Preserving Rights and Powers. a. It will not enter into any transaction, or take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in the grant agreement without the written approval of the Secretary, and will act to acquire, extinguish, or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary. b. It will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property, for which it holds good title and upon which Federal funds have been expended, for the duration of the terms, conditions, and Nonairport Sponsor Assurances 3218., assurances in the grant agreement, without approval by the Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of the grant agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and making binding upon the transferee, all of the terms, conditions and assurances contained in this grant agreement. C. For all noise compatibility projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that governmental unit. Except as otherwise specified by the Secretary, that agreement shall obligate that governmental unit to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility project. That agreement and changes thereto must be approved in advance by the Secretary. d. For noise compatibility projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. 6. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport. 7. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near which the project may be located. 8. Accounting System, Audit, and Record keeping Requirements. a. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records should be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which the grant was given or used, it shall file a certified copy of such audit with the Comptroller General no later than six (6) months following the close of the fiscal year for which the audit was conducted. Nonairport Sponsor Assurances 3218 . Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects funded under the grant agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, in accordance with the Davis -Bacon Act, as amended (40 U.S.C. 276a- 276a -5), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. 10. Veteran's Preference. It shall include, in all contracts for work on any project funded under the grant agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in administrative, executive, and supervisory positions), preference shall be given to veterans of the Vietnam era and disabled veterans as defined in Section 47117 of Title 49, United States Code. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. 11. Conformity to Plans and Specifications. It will execute the project subject to plans, specifications, and schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this grant agreement, and, upon approval by the Secretary, shall be incorporated into this grant agreement. Any modifications to the approved plans, specifications, and schedules shall also be subject to approval by the Secretary and incorporation into the grant agreement. 12. Construction Inspection and Approval. It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms with the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary. 13. Operation and Maintenance. It will suitably operate and maintain noise program implementation items that it owns or controls upon which Federal funds have been expended. 14. Hazard Prevention. It will protect such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) by preventing the establishment or creation of future airport hazards on property owned or controlled by it or over which it has land use jurisdiction. 15. Compatible Land Use. It will take appropriate action, including the adoption of zoning laws, to the extent reasonable, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, it will not cause or permit any change in land use, within its jurisdiction that will reduce the compatibility, with respect to the airport, of the noise compatibility measures upon which Federal funds have been expended. Nonairport Sponsor Assurances 3218. 16. Reports and Inspections. It will submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request. It will also make records and documents relating to the project, and continued compliance with the terms, conditions, and assurances of the grant agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request. 17. Civil Rights. It will comply with such rules as are promulgated, to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap, be excluded from participating in any activity conducted with or benefiting from funds received from this grant. This assurance obligates the sponsor for the period during which Federal financial assistance is extended to the program, except where Federal financial assistance is to provide, or is in the form of personal property or real property interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor or any transferee for the longer of the following periods: (a) the period during which the property is used for a purpose for which Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits or (b) the period during which the sponsor retains ownership or possession of the property. 18. Engineering and Design Services. It will award each contract or subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, surveying, mapping, or related services with respect to the project in the same manner as a contract for architectural and engineering services as negotiated under Title IX of the Federal Property and Administrative Services Act of 1949 or an equivalent qualifications -based requirement prescribed for or by the sponsor. 19. Foreign Market Restrictions. It will not allow funds provided under this grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. 20. Disposal of Land. a. For land purchased under a grant for airport noise compatibility purposes, it will dispose of the land, when the land is no longer needed for such purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of such disposition which is proportionate to the United States' share of acquisition of such land will, at the discretion of the Secretary, 1) be paid to the Secretary for deposit in the Trust Fund, or 2) be reinvested in an approved noise compatibility project as prescribed by the Secretary. b. Disposition of such land under (a) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport. 21. Relocation and Real Property Acquisition. (1) It will be guided in acquiring real property, to the greatest extent practicable under State law, by the land Nonairport Sponsor Assurances 6 32 18 acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse property owners for necessary expenses as specified in Subpart B. (2) It will provide a relocation assistance program offering the services described in Subpart C and fair and reasonable relocation payments and assistance to displaced persons as required in Subparts D and E of 49 CFR Part 24. (3) It will make available within a reasonable period of time prior to displacement comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24. 22. Disadvantaged Business Enterprises. The recipient shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any DOT - assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT - assisted contracts. The recipient's DBE program, as required by 49 CFR Part 26, and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under Part 26, and may, in appropriate cases refer the matter for enforcement under 18 U.S.C. 1001 and /or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801). Nonairport Sponsor Assurances