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- :402 :[jLES ~hl~ REGULATPO~c=. .,. <br />r_rtified mail. return receipt requested) of <br />intent to terrilnate. and (2) an opportunity <br />Sar consultation with the terminattng party <br />.~ before termination. <br />(c) If the oc-ner terminates for default, an <br />equitable adjustment in the price provided <br />for !a thh agreement shall be made, but (1) <br />no amour shall be allowed for anticipated <br />profit on unperformed services or other <br />work, and /2) any payment due to the engi- <br />neer at the time of termination may be ad- <br />plated to the extent of any addlUonal costa <br />the owner pleura because of the engineer's <br />default. If the engineer terminates for de- <br />fault or !i the owner terminates for conven- <br />iencQ Lhe equitable adjustment shall in- <br />clude areasonable profit for services or <br />other wort performed. The equitable ad- <br />justment far say termination shall provide <br />fat payment to the engineer for services <br />rendered and expenses Incurred before the <br />terminatlotl, >a addition to termination set- <br />tlement ooata the engineer reasonably <br />incurs relating to commltmenta which had <br />become firm before the termination. <br />(d) IIpoa receipt of a termination action <br />under paragraphs la) or lb) above, the engi- <br />neer sha10 f1) promptly discontinue all aer- <br />vteea affected (unless the notice directs oth- <br />- erwlae), and (2) deliver or otherwise make <br />avaiLDle to the owner all data, drawings, <br />apeelfk;atiasu, reports, estimates, summar- <br />ies. and wch other information and materl- <br />ab ss the engineer may have accumulated <br />!n performing this agreement, whether com- <br />pleted or to process. <br />(e) IIpora termination under paragraphs <br />(a) or (b) above, Che owner may take over <br />the work and prosecute the same to comple- <br />tion by agreement with another party or <br />otherwise. Any work the owner takes over <br />for completionwill be completed at Lhe <br />owner's risk, and the owner will hold harm- <br />less the engineer from all claims and dam- <br />ages arfsiag out of improper use of the engi- <br />neeYs work- <br />(f) If, otter termination for failure of the <br />erltineer to fulllll contractual obligations, ft <br />1s determined that the engineer had not so <br />failed, the Lerminatlon shall be deemed to <br />have bees effected for the convenience of <br />the owner. In such event, adjuat.ment of the <br />price Drovided for 1n this agreement shall be <br />made as paragraph (c) of this clause pro- <br />vtdes. <br />6. An®Ir~ <br />Except as this agreement otherwise pro- <br />video, ill claims, counter-claims. disputes, <br />and other matters in question between the <br />owner and the etgineer arising out of or re- <br />lating Lo this agreement or the breach o1 it <br />a•QI be derided by arbitration tf the parties <br />hereto mutually agree, or in s court of com- <br />petent jurisdiction within the State >n <br />which the owner fa located. <br />T. PAY']¢1P2 <br />(a) Payment shall be made in accordance <br />with the payment schedule incorporated in <br />this agreement as soon sa practicable upon <br />submission of statements requesting pay- <br />ment by the engineer to the owner. If no <br />such payment schedule is incorporated in <br />this agreement, the payment provisions of <br />Dangraph (b) of this clause shall apply. <br />(b) The engineer may request monthly <br />progress payments and the owner shall <br />make them ss soon as practicable upon sub• <br />mission of statements requesting payment <br />by Lhe engineer to the owner. When ouch <br />progress payments are made, the owTler may <br />withhold up to ten l10) percent of the vou- <br />chered amount untll astlsfactory completion <br />by Lhe engineer -of work and services within <br />s atop called for under this agreement. <br />When the owner determines that the work <br />under this agreement or any specified task <br />hereunder 1a aubstantlally complete and <br />that the amount of retained percentages is <br />m excess of the amount considered by him <br />to be adequate for his protection, he shall <br />release to the engineer such excess amount. <br />(c) No payment request made under para- <br />graph (s) or (b) of this clause srlall exceed <br />the estimated amount and value of the work <br />and services performed by the engineer <br />under this agreement. The engineer shall <br />Drepare the estimates of work performed <br />and shall supplement them with such sup- <br />porting dal g, the owner may require. - <br />(d) IIpon aatlsfactory completion of the <br />work performed under this agreement, sa a <br />condition precedent to final payment under <br />this agreement or to settlement upon termi- <br />nation of Lhe agreement, the engineer shall <br />execute and deliver to the owner a release <br />of all claims against the owner arising under <br />or by virtue of this agreement, other than <br />such c)aima, if anY. as may be apeeifically <br />exempted by the engineer from the oper- <br />ation of the release in stated amounts to be <br />set forth therein. <br />•. PAOJLCS DESIGN <br />(a) >n the performance of this agreemeht, <br />the engineer shall, to the extent practicable, <br />provide for maximum use of structures, ma- <br />chines, products, materials, construction <br />methods, and equipment which are readily <br />avallable through competitive procurement, <br />or through standard or proven production <br />techniques, methods, and processes, ConsLst- <br />ent.with 40 CFR 35.938-3 and 35.938-13 in <br />effect on the date of execution of this agree- <br />ment, except to the extent to which innova- <br />tive technology may be used under !0 CFIi <br />35.908 in effect on the date of execution of <br />this agreement. <br />(b) The engineer shall not, !n the perform- <br />ance of the work under this agreement, pro- <br />duce s design or specification which would <br />require the use of structures, machines, <br />products, materials, construction methods, <br />equipment, or processes which the engineer <br />knows to be available only from a sole <br />source, unless the engineer has adequately <br />justified the use of a sole source !n writing. <br />(c) The engineer shall not, in the perform- <br />ance of the work under this agreement, pro- <br />duce a design or specification which would <br />be restrictive in violation of sec. ZO!(aX8) of <br />the Clean Water Act. This statute requires <br />that no specification for bids or statement <br />of work shall be written in such a manner as <br />to contain proprietary, exclusionary, or ais- <br />criralnatory requirements other than those <br />based upon ,performance, unless such re- <br />quirements ere necessary to test or demon- <br />strate aspecific thing, or to provide for nec- <br />e~'y interchanBeablllty of parts and <br />equipment, or at least two brand names or <br />trade names of comparable quality or utility <br />are listed and are followed by the words "or <br />equal." Wlth regard to materials, if s single <br />material is specified, the engineer moat be <br />Prepared to substantiate the basis for the <br />selection of the material <br />(d) The engineer shall report to the owner <br />any sole-source or restrictive design or specl- <br />fieation giving the reason or reasons why it <br />fa necessary to restrict the design oz apeclfi- <br />cation. <br />(e) The engineer shall not knowingly <br />specify or approve the performance of work <br />at a f.eiifty which >a to violation of dean air <br />or water standards and which is listed by <br />Lhe Director of the EPA Office of Federal <br />Activities under !0 t:F'Fi Part 15. <br />f. AIIDrI; ACCTSS TO RECORDS <br />la) The engineer shall maintain books, <br />records, documents, and other evidence di- <br />rectly pertinent t0 performance on EPA <br />grant work undez this agreement in accord- <br />ance with generally accepted accounting <br />Principles and practices consistently ap- <br />plied, and 40 CFR 30.805, 30.SOS; and 35.935- <br />7 in effect on the date of execution of this <br />agreement. • The engineer shall also main- <br />tain the firlanclal information and data used <br />by the engineer in the preparation or sup- <br />port of the coat submission required under <br />40 CFR 35.937-8(b) to effect on the date of <br />execution of this agreement and a copy of <br />the cost summary submitted to the owner. <br />The II.S. Environmental Protection Agency, <br />the Comptroller Creneral of the United <br />States, the II.S. Department of Labor, <br />owner, and [the State water pollution con- <br />trol agencyl or any of their duly authorized <br />representattvea shall have access t0 such <br />books, records, documents, and other evi- <br />dence for inspection, audit, and copying. <br />The engineer will provide proper facilities <br />for such accev and 11upectlon. <br />(b) The engineer agrees to include para- <br />graphs (a) through (e) of thi4 clause in all <br />his contracts and all tier subcontracts di- <br />rectly related to project performance that <br />are in excess of 110,000. <br />(c) Audits conducted under Chia provision <br />shall be in accordance with generally ac- <br />cepted auditing standards and established <br />procedures and guidelines of the reviewing <br />or audit agencyges). <br /><d) The engineer agrees to the disclosure <br />of all information and reports resulting <br />from access to records under paragraphs (a) <br />and (b) of this clause, to any of the agencies <br />referred to in paragraph (a), provided that <br />the engineer fa afforded the opportunity for <br />an audit exit conference and an opportunity <br />to comment and submit any aupporth2g doc- <br />umentation on the pertinent portions of the <br />draft audit report and that the final audit <br />report will include written comments of rea- <br />sonable length, !f any, of the engineer. <br />(e) The engineer shall maintain and make <br />available records under paragraphs <a) and <br />(b) of this clause durltlg performance on <br />EPA grant work under this agreement and <br />untll 3 years from the date of final EPA <br />grant payment for the project. In addition, <br />Lhose records which relate Lo any "Dispute" <br />appeal under an EPA grant agreement, to <br />litigation, .to the settlement o1 claims aria. <br />mg out of such performance, or to costa or <br />items to which an audit exceptior. has been <br />taken, shall be maintained and made availa- <br />ble until 3 years after the date of resolution <br />of such appeal, litigation, claim, or excep- <br />tion. <br />10. PRICE ALDDCTIOIr TOR DZTLCrrvy COST OR <br />PRICING DATA <br />(This clause is apyf(cablt ~ the amount q1 <br />th{s a0r'eeTnt•nt tscetds t100,000.) <br />(s> If the owner or EPA determines that <br />aIL9 Drice, including profit, negotiated in <br />connection with this agreement or any cost <br />reimbursable under this agreement was in- <br />creased by any significant soma because the <br />engineer or any subcontractor furnished in- <br />complete ~oz inaccurate cost. or pricing data <br />!'EDERAL REGISTER, VOL q, !!O, jig-WEDNESDAY, SEy'TEA{t3ER 27, }yn <br />