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HomeMy WebLinkAboutContract 29109 Contract No. 582-4-55825 TCEQ FEDERALLY FUNDED GRANT AGREEMENT CITY SECRETARY,,,? CONTRACT NO. IL THIS AGREEMENT is by and between the Texas Commission on Environmental Quality(hereinafter called TCEQ) and the City of Fort Worth (hereinafter called PERFORMING PARTY). TCEQ and PERFORMING PARTY, in consideration of the mutual covenants hereinafter set forth, agree as follows: ARTICLE 1. WORK I.I. PERFORMING PARTY shall complete all Work as specified or indicated in the Contract Documents. The Work is generally described as follows: Air Pollution Control Services performed within the jurisdiction of the City of Fort Worth Air Pollution Control Program, as more fully described in the Scope of Work, which is attached hereto and incorporated for all purposes. 1.2. Statutory authority for this grant is for performing the work in the Current Appropriations Act; TEX WATER CODE §§ 5.229 AND 7.351- 7.358; and TEX HEALTH AND SAFETY CODE §§ 382.033 AND 382.111-382.115. ARTICLE 2. CONTRACT TIMES 2.1. This Agreement shall commence on the effective date of this contract and shall terminate on August 31,2005. However,certain reporting requirements of this contract shall survive the termination of this contract. This Agreement shall immediately terminate at the end of any state fiscal year for which the Texas Legislature, the U.S. Congress, and/or the US Environmental Agency (hereinafter referred to as the "EPA") fails to appropriate or the and/or to provide the funds necessary to perform pursuant to this Agreement. J NC, ARTICLE 3. CONTRACT AMOUNT Fye irHj m"Z. 3.1. TCEQ and PERFORMING PARTY agree that the maximum amount to be paid by TCEQ for completion of the Work shall not exceed Two Hundred Six Thousand, Nine Hundred Thirty Dollars and no cents ($206,934.00) unless the parties amend this amount in accordance with the 582-4-55825 1 08-20-03A�18 : 32 4CVD Contract Documents. The amount mentioned above will be divided up for a two year period (S 103,467.00 for each fiscal year). Upon receipt of funds from the EPA for a second year, the TCEQ will continue this contract for the period of September 1, 2004 through August 31, 2005. 3.2. (The term"Local Air Program"is defined as the eligible local air pollution program conducted by PERFORMING PARTY under Section 382.0622,Texas Health and Safety Code. The combined federal and state share of the funding for the PERFORMING PARTY's Local Air Program(including the state funds under this Agreement)shall not exceed 67%(sixty-seven percent)of the PERFORMING PARTY's total cost for the program. The PERFORMING PARTY must provide matching funds such that the combined federal share,derived from the Section 105 pass-through funding,and the state share, derived from the current Appropriations Act(Rider 7),shall not exceed 67%,or the total amount of this contract will be reduced proportionately so that this condition is met.) ARTICLE 4. PAYMENT PROCEDURES 4.1. PERFORMING PARTY shall submit Applications forPayment in accordance with the General Conditions and Scope of Work (in the document titled"Fixed Reimbursement.") ARTICLE 5. FUNDING 5.1. Availability of Funds.The parties agree that this Agreement and all claims,suits,or obligations arising under or related to this Agreement are subject to and limited to the availability of funds appropriated by the Texas Legislature for the purposes of this Agreement or for the respective claim, suit, or obligation, as applicable. 5.2. Source of Funds and Legal Authority. (This Agreement is funded through the Performance Partnership Grant (PPG) pass-through funds from the U.S. EPA to TCEQ through the Current Appropriations Act; TEX WATER CODE §§ 5.229 AND 7.351- 7.358; and TEX HEALTH AND SAFETY CODE §§ 382.033 AND 382.111-382.115. The PERFORMING PARTY certifies that it has authority to perform the work contracted for by authority granted in the Fort Worth City Code,Chapter 12.5,Article II,Fort Worth Environmental Protection and Compliance Ordinance. This Agreement is subject to the Uniform Grant and Contract Management Act,Texas Government Code,Section 783.001 et seq., and the Uniform Grant Management Standards for State Agencies, and the Bulletins of the Office Management and Budget (OMB)-87.) 5.3. PERFORMING PARTY agrees to place the above notices relating to availability of funds,the source of funds and legal authority in all subgrants and subcontracts. 582-4-55825 2 ARTICLE 6. PERFORMING PARTY'S REPRESENTATIONS In order to induce TCEQ to enter into this Agreement PERFORMING PARTY makes the following representations: 6.1. PERFORMING PARTY has examined and carefully studied the Contract Documents. 6.2. PERFORMING PARTY is familiar with and understands all federal, state and local Laws and Regulations that may affect cost, progress, performance or furnishing of the Work. 6.3. PERFORMING PARTY is aware of the general nature of work to be performed by TCEQ and others that relates to the Work as indicated in the Contract Documents. 6.4. PERFORMING PARTY has correlated the information known to PERFORMING PARTY, reports and drawings identified in the Contract Documents and all additional examinations, investigations, explorations, tests, studies and data with Contract Documents. 6.5. PERFORMING PARTY has given TCEQ written notice of all conflicts, errors, ambiguities or discrepancies that PERFORMING PARTY has discovered in the Contract Documents and the written resolution thereof by TCEQ is acceptable to PERFORMING PARTY,and the Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 6.6. PERFORMING PARTY agrees that it is not a vendor and that this contract is not subject to the prompt payment act. ARTICLE 7. CONTRACT DOCUMENTS The Contract Documents which comprise the entire Agreement between TCEQ and PERFORMING PARTY concerning the Work consist of the following: 7.1. The TCEQ Form: Federally Funded Grant Agreement. 7.2. The General Conditions of the TCEQ Federally Funded Grant Agreement. 7.3. Scope of Work. A. Statement of Services B. Deliverables C. Fixed Prices 582-4-55825 3 7.5. Other Documents. EXHIBITS A. Exhibit A-1: Funding Application Package B. Exhibit A-2: EPA QA/R-2 (March 2001) C. Exhibit A-3: EPA QA/R-5 (March 2001) D. Exhibit A-4: Quarterly Report Checklist E. Exhibit A-5: EPA QA/G-6 Guidance for Preparing Standard Operating Procedures (March 2001) F. Exhibit A-6: EPA QA/G-7 Guidance on Technical Audits and Related Assessments for Environmental Data Operations (January 2000) FORMS G. Form B-1: HUB/MWBE Progress Assessment Report H. Form B-2: TCEQ STATE PURCHASE VOUCHER I. Form B-3: TCEQ Invoice J. Form B-4: Financial Status Report K. Form B-5: Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Lower Tier L. Form B-6 Summary of Subcontracting Opportunities M. Form B-7 Allowable Expenditure Guidelines 7.6 The following which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto: Quarterly Work Plans, all Written Amendments, and other documents amending, modifying or supplementing the Contract Documents pursuant to the General Conditions. 7.7 There are no Contract Documents other than those listed above in this Article. The Contract Documents may be amended, modified or supplemented only as provided in the General Conditions. 7.8. The following which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto: All Written Amendments and other documents amending, modifying or supplementing the Contract Documents pursuant to the General Conditions. ARTICLE 8. MISCELLANEOUS 8.1. Terms used in this Agreement which are defined in Article 1 of the General Conditions will have the meanings indicated in the General Conditions. 582-4-55825 4 8.2. Notwithstanding any provisions relating to assignment in the Uniform Commercial Code, no delegation by a party hereto of any duties or obligations nor assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and, specifically but without limitation, monies that may become due and monies that are due may not be assigned without such consent(except to an extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents, This Agreement is not transferable or otherwise assignable by the PERFORMING PARTY without the written consent of the TCEQ and any attempted transfer without such consent is void. 8.3. TCEQ and PERFORMING PARTY each binds itself, its partners, successors, assigns and representatives to the other party hereto, its partners,successors,assigns and representatives in respect to all covenants, agreements and obligations contained in the Contract Documents. 11 8.4 The parties hereby agree that this Agreement does not waive the State's sovereign immunity relating to suit, liability, and the payment of damages. The parties further agree that all claims, suits or obligations arising under or related to this Agreement are subject to and limited to the availability of funds appropriated by the Texas Legislature for that respective claim, suit, or obligation. 8.5. Any provision of the Contract Documents held to be void or unenforceable under any Laws or Regulations shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon TCEQ and PERFORMING PARTY, who agree that Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 8.6. The PERFORMING PARTY acknowledges and agrees that because this Agreement has been executed, and will be administered in Travis County, Texas, that in this sense, the Agreement is to be performed in said County. The PERFORMING PARTY acknowledges and agrees that any permissible cause of action involving this Agreement will arise solely in Travis County. If a legal action related to this claim is permissible and there are two (2) or more counties of proper venue under the rules of mandatory, general, or permissive venue, and one such county is Travis County, the PERFORMING PARTY hereby agrees to venue in Travis County. This provision does not waive TCEQ's sovereign immunity. 8.7. Any notice issued pursuant to these Contract Documents shall be addressed to the respective party at the addresses set out below, or at such other address as they have theretofore specified by written notice. Such notices shall be sent by certified mail, return receipt requested, or shall be delivered in hand and a receipt provided therefor. Any notice or other written communication shall be considered delivered five (5) days after the date postmarked, provided it is sent in accordance with this Article. 582-4-55825 5 ADDRESSES FOR NOTICE: TCEQ: PERFORMING PARTY: Edward Michel, MC-165 T.C. Michael (Printed Name) (Contract Manager) (Printed Name) (Project Manager) Monitoring Operations Division Air Quality Program Texas Commission on Environmental Quality City of Fort Worth P. O. Box 13087 5000 MLK Freeway Austin, Texas 78711-3087 Fort Worth, TX 76119 (Address) (Address) IN WITNESS WHEREOF,TCEQ and PERFORMING PARTY have signed three(3)originals of this Agreement. One counterpart has been delivered to PERFORMING PARTY and two counterparts have been delivered to TCEQ. This Agreement will be effective on September 1,2003,which is the Effective Date of the Agreement. Texas Commission o En ntal City of Fort Worth Quality Signature: Signature: ^/ Printed Name: John F. Steib, Jr. Printed Name: U 68Y WA-- 5 n) Title: Deputy Director, Office of Compliance Title: A, 5 sT. L-7-q /r IE}y k66R , and Enforcement Date: f Date: ` 582-4-55825 6 APPROVED AS TO FORM & LEGALITY: By Signature Iuu' - Title: Asst. City Attorney ATTEST: By Signature -✓ Printed Name: G ria Pearson Title: City Secretary Date: S � 1-)--1 C)3 M & C aa '2 GENERAL CONDITIONS OF THE TCEQ FEDERALLY FUNDED GRANT AGREEMENT ARTICLE 1. DEFINITIONS Wherever used in these General Conditions or in the other Contract Documents the following terms have the meanings indicated which are applicable to both the singular and plural thereof- ].1. hereof:1.1. Accrued expenditures - means the charges incurred by the PERFORMING PARTY during a given period requiring the provision of funds for: (1)goods and other tangible property received; (2) services performed by employees,and(3) other amounts becoming owed under programs for which no current services or performance is required, such as annuities, insurance claims, and other benefit payments. 1.2. Accrued income - means the'-sum of: (1) earnings during a given period from services performed by the PERFORMING PARTY and goods and other tangible property deliverable to purchasers, and (2) amounts becoming owed to the,,PERFORMING PARTY for which no current services or performance is required by the PERFORMING PARTY. 1.3. Acquisition cost - of an item of purchased equipment means the net invoice unit price of the property including the cost of modifications,attachments, accessories, or auxiliary apparatus necessary to make that property usable for the purpose for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, shall be included or excluded from the unit acquisition cost in accordance with the PERFORMING PARTY's regular accounting practices. 1.4. Addenda- written or graphic instruments issued prior to the execution of the Contract which clarify, correct or change the Proposal Requirements or the Contract Documents. 1.5. Administrative requirements -mean those matters common to grants in general, such as financial management, kinds and frequency of reports, and retention of records. These are distinguished from "programmatic" requirements,which concern matters that can be treated only on a program-by-program or grant-by-grant basis, such as kinds of activities that can be supported by grants under a particular program. 1.6. Agreement-refers to the form "TCEQ Federally Funded Grant Agreement" which contains the salient terms of the contract between TCEQ and the PERFORMING PARTY and covers the Work to be performed; also includes any additional Contract Documents which may be attached to the Agreement and made a part thereof as provided therein. 1.7. Assessment - The evaluation process used to measure the performance or effectiveness of a system and its elements, including audit, performance evaluation, management systems review, peer review, inspection, or surveillance. 1.8 Audit- A systematic and independent examination to determine whether activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives. 582-4-55825 7 1.9 Awarding agency- means the TCEQ.. 1.10. Bonds - Bid, Performance and Payment bonds and other instruments of security. 1.11. Cash contributions - means the PERFORMING PARTY's cash outlay, including the outlay of money contributed to the PERFORMING PARTY or subgrantee by other public agencies and institutions, and private legislation, federal funds received from other assistance Agreement may be considered as PERFORMING PARTY or subgrantee cash contributions. 1.12. Common rule - means the Uniform Grant Management Standards which were promulgated by the Texas Governor's Office of Budget and Planning pursuant to the Uniform Grant Conditions and Management Act, Tex. Gov't Code Chapter 783. 1.13. Contract - means (except as used in the definitions for"grant" and "subgrant" in this section and except where qualified by"federal") a procurement contract under a grant or subgrant, and means a procurement subcontract under a contract. 1.14. Contract Documents - asset forth in the Agreement. 1.15. Contract Price- the moneys payable by TCEQ to PERFORMING PARTY for completion of the Work in accordance with the Contract Documents as stated in the Agreement(subject to the provisions of these General Conditions). 1.16. Contract Times- the number of days or dates stated in the Agreement to complete the Work so that it is ready for final payment. 1.17. Cost sharing or matching- means the value of the third party in-kind contributions and the portion of the costs of a State assisted project or program not borne by the State. 1.18. Cost-type contract - means a contractor subcontract under a grant in which the PERFORMING PARTY or subcontractor is paid on the basis of the costs it incurs, with or without a fee. 1.19. Defective - an adjective which when modifying the word Work refers to Work that is unsatisfactory, faulty or deficient, in that it does not conform to the Contract Documents, or does not meet the requirements of any inspection, reference standard, test on approval referred to in the Contract Documents, or has been damaged prior to final payment. 1.20. Effective Date of the Agreement - the date indicated in the Agreement on which it becomes effective, but if no such date is indicated it means the date on which the Agreement is signed and delivered by the last of the two parties to sign and deliver. 1.21. Equipment- means tangible,nonexpendable,personal property having a useful life of more than one year and an acquisition cost of$1,000 or more per unit. A PERFORMING PARTY may use its own definition of equipment provided that such definition would at least include all equipment defined above. 582-4-55825 8 "Equipment"definition pertaining to acquisition cost of$1,000 or more per unit as modified to subject state funds to the state definition or minimum cost for capitalized equipment. A state awarding agency will advise a PERFORMING PARTY of the rules for capitalizing equipment purchased from state funds and ultimate disposition thereof. 1.22. Expenditure report - means (1) for nonconstruction grants the "Financial Status Report"(or other equivalent report); and(2) for construction grants, the SF-271 "Outlay Report and Request for Reimbursement" (or other equivalent report). 1.23. Final Completion - the Work is completed in the judgment of TCEQ. 1.24. General Conditions - refers to the"General Conditions of the TCEQ Federally Funded Grant Agreement." 1.25. Government - means a State agency or local government. 1.26. Grant- means an award of financial assistance, including cooperative Agreement, in the form of money, or property in lieu of money, by the State to an eligible PERFORMING PARTY. The term does not include technical assistance which provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations. Also, the term does not include assistance, such as a fellowship or other lump sum award, which the PERFORMING PARTY is not required to account for. 1.27. Grantee- means the government to which a grant is awarded and which is accountable for the use of the funds provided. The grantee is the entire legal entity even if only a particular component of the entity is designated in the grant award document. Also means the PERFORMING PARTY. 1.28. HUB- Historically Underutilized Business as defined by Texas law. The State Purchasing and General Services Act defines a historically underutilized business as an entity with its principal place of business in Texas in which fifty-one percent (51%)or more of the corporation's stock(or other equitable securities) or partnership's assets and interest are owned by one or more economically disadvantaged persons,who have a proportionate interest and actively participate in the corporation or partnership control, operation, and management. If the business is a sole proprietorship, the socially disadvantaged person must completely own, operate and control the business. Economically disadvantaged persons include members of certain groups including Black Americans, Hispanic Americans, American Women, Asian Pacific Americans and Native Americans. 1.29. Inspection - An activity such as measuring, examining, testing, or gauging one or more characteristics of an entity and comparing the results with specified requirements in order to establish whether conformance is achieved for each characteristic. 1.30 Intellectual Property - 1) any and all inventions, discoveries, improvements, or creations for which copyright, trade secret, patent or other proprietary rights may be acquired, 2) any photographs, graphic designs, plans, drawings, specifications, computer programs, computer files, documentation, technical reports, operating manuals, or other copyrightable materials, and 3) any other work fixed in any tangible 582-4-55825 9 medium of expression which can be perceived, reproduced, or otherwise communicated for which copyright, trade secret, patent or other proprietary rights may be acquired. 1.31. Intellectual Property Rights -patent, trademarks, trade secret rights, confidential information rights or any other proprietary rights to which a person may be entitled or may actually possess. Intellectual Property Rights include all rights of ownership and original authorship throughout the world. 1.32. ISO/IEC- The International Organization for Standardization and the International Electrotechnical Commission. 1.33. Laws and Regulations; Laws or Regulations-any and all applicable laws, rules, regulations, ordinances, codes and orders of any and all governmental bodies,agencies,authorities and courts having jurisdiction. 1.34. Liens - liens, charges, security interests or encumbrances upon real property or personal property. 1.35. Local government - means a county, municipality, city, town, township, local public authority (including public and Indian housing agencies under the United States Housing Act of 1937, 42 U.S.C. §1437 et seq.) school district, special district, intrastate district, council of governments (whether or not incorporated as a nonprofit corporation under state law),any other regional or interstate government entity, or any agency of instrumentality of a local government. 1.36. Management Systems Review (MSR) - The qualitative assessment of a data collection operation and/or organization(s) to establish whether the prevailing quality management structure, policies, practices, and procedures are adequate for ensuring that the type and quality of data needed are obtained. 1.37. MBE/WBE(or MWBE) -Minority Business Enterprise/Women Business Enterprise within the meaning of the provisions relating to small and minority firms and women's business enterprise and labor surplus area firms in applicable federal regulations (40 CFR 31.36(e)), 1.38. Minor Change- a written document which provides for minor changes in the work in accordance with these General Conditions, but which does not involve a change in the Contract Price or the Contract Times. 1.39. Nonconformance - A deficiency in characteristic, documentation, or procedure that renders the quality or an item or activity unacceptable or indeterminate; non-fulfillment of a specified requirement. 1.40. Notice of Award- the written notice by TCEQ to an apparent successful Applicant stating that upon compliance by the apparent successful Applicant with the conditions precedent enumerated therein, within the time specified, TCEQ with sign and deliver the Agreement. 1.41. Obligations - means the amount of Work performed by the PERFORMING PARTY during a given period that may result in reimbursement by the TCEQ during the same or a future period. 582-4-55825 10 F 1.42. Outlay- (expenditures) mean charges made to the project or program. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of actual cash disbursement for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the amount of cash advances and payments made to PERFORMING PARTY and subgrantees. For reports prepared on an accrued expenditure basis, outlays are the sums of actual cash disbursements, the amount of indirect expense incurred,the value of in-kind contributions applied, and the new increase (or decrease) in the amounts owed by the PERFORMING PARTY for goods and other property received, for services performed by employees, contractors, subgrantees, subcontractors, and other payees , and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance claims, and other benefit payments. 1.43. Peer Review - A documented, critical review of work generally beyond the state of the art or characterized by the existence of potential uncertainty. The peer review is conducted by qualified individuals (or organizations) who are independent of those who performed the work but are equivalent in technical expertise (i.e., peers).to those who performed the original work. The peer review is conducted to ensure that activities are technically adequate, competently performed, properly documented, and satisfy established technical and quality requirements, The peer review is an in-depth assessment of the assumptions, methodology, acceptance criteria, and conclusions pertaining to specific work and of the documentation that supports them. Peer reviews provide an evaluation of a subject where quantitative methods of analysis or measures of success are unavailable or undefined, such as in research and development. 1.44. Percentage of completion method- refers to a system under which payments are made for Work according to the percentage of the completed Work, rather than to the PERFORMING PARTY's cost incurred. 1.45. Performance Evaluation - A type of audit in which quantitative data generated in a measurement system are obtained independently and compared with routinely obtained data to evaluate the proficiency of an analyst or laboratory. 1.46. Prior approval- means documentation evidencing consent prior to incurring specific cost. 1.47. Produced- participle or passive verb which when used in connection with the term Intellectual Property means conceived, developed, implemented, discovered, invented, first actually reduced to practice or otherwise produced. 1.48. Project- the total body of services rendered of which the Work to be provided under the Contract Documents may be the whole, or a part as indicated elsewhere in the Contract Documents. 1.49. Project Representative- the Project Representative of the TCEQ and the PERFORMING PARTY are designated in the Supplementary Conditions. 1.50. Quality Assurance Project Plan (QAPP) - A formal document describing in comprehensive detail the necessary quality assurance, quality control, and other technical activities that must be implemented to ensure that the results of the work performed will satisfy the stated performance criteria. 582-4-55825 11 F 1.51. Quality Control (QC) - The overall system of technical activities that measures the attributes and performance of a process, item, or service against defined standards to verify that they meet the stated requirements established by the customer; operational techniques and activities that are used to fulfill requirements for quality. 1.52. Quality Management Plan (QMP) - A formal document or manual, usually prepared once for an organization, that describes the quality system in terms of organizational structure, functional responsibilities of management and staff, lines of authority, and required interfaces for those planning, implementing, and assessing all activities conducted. 1.53. Quality System - A structured and documented management system (1) describing the policies, objectives, principles, organizational authority, responsibilities, accountability, and implementation plan of an organization for ensuring quality an its work processes, products (items), and services and (2) providing the framework for planning, implementing, and assessing work performed by the organization and for carrying out required quality assurance and quality control. 1.54. Real property- means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. 1.55. Share - when referring to the TCEQ's portion of real property, equipment or supplies, means the same percentage as the TCEQ's portion of the acquiring party's total costs under the grant to which the acquisition cost of the property was charged. Only costs are to be counted,not the value of third-party in- kind contributions. 1.56. Standards - refers to the Uniform Grant Management Standards. 1.57. State - means the State of Texas. 1.58. Subcontractor- an individual, firm, or corporation having a direct contract with PERFORMING PARTY or with any other Subcontractor for the performance of a part of the Work. 1.59. Subgrant - means an award of financial assistance in the form of money ,or property in lieu of money, made under a grant by the PERFORMING PARTY to an eligible subgrantee. The term includes financial assistance when provided by contractual legal Agreement,but does not include procurement purchases,nor does it include any form of assistance which is excluded from the definition of"grant." 1.60. Subgrantee - means the government or other legal entity to which a subgrant is awarded and which is accountable to the PERFORMING PARTY for the use of the funds provided. "Subgrantee" is synonymous with "subrecipient" and refers to any entity receiving grant or contract funds from or through a state agency. 1.61. Supplementary Conditions - synonymous with"Program Conditions," the part of the Contract Documents which amends or supplements these General Conditions. 582-4-55825 12 F 1.62. Supplies - means all tangible personal property other than "equipment" as defined in these General Conditions. 1.63. Surveillance - Continual or frequent monitoring and verification of the status of an entity and the analysis of records to ensure that specific requirements are being fulfilled. 1.64. Suspension - means, depending on the context,either(1) temporary withdrawal of the authority to obligate grant funds pending corrective action by the PERFORMING PARTY, or subgrantee or a decision to terminate the grant, or(2) an action taken by a TCEQ official in accordance with the Contract Documents, State or Federal law, or Regulations to immediately exclude a person from participating in grant transactions for a period,pending completion of an investigation and such legal or debarment proceedings as may ensue. 1.65. Technical Systems Audit (TSA) - a thorough, systematic, on-site qualitative audit of facilities, equipment, personnel, training procedures, record keeping, data validation, data management, and reporting aspects of a system. 1.66. Termination -means permanent withdrawal of the authority to obligate previously-awarded grant funds before that authority would otherwise expire. It also means the voluntary relinquishment of that authority by the PERFORMING PARTY or subgrantee. "Termination" does not include: (1) withdrawal of funds awarded on the basis of the PERFORMING PARTY's underestimate of the unobligated balance in a prior period; (2)withdrawal of the unobligated balance as of the expiration of a grant; (3)refusal to extend a grant or award additional funds to make a competing or noncompeting continuation, renewal, extension or supplemental award; or(4) voiding of a grant upon determination that the award was obtained fraudulently or was otherwise illegal or invalid from inception. 1.67. Terms of a grant or subgrant - mean all requirements of the grant or subgrant, whether contained in statutes, regulations, or the Contract Documents. 1.68. Third party in-kind contributions- mean property or services which benefit a state assisted project or program and which are contributed by third parties without charge to the PERFORMING PARTY,or a cost-type PERFORMING PARTY under the grant Agreement. 1.69. TCEQ- the Texas Commission on Environmental Quality. 1.70. Unliquidated obligations - for reports prepared on a cash basis mean the amount of obligations incurred by the PERFORMING PARTY that has not been paid. Reports prepared on an accrued expenditure basis represent the amount of obligations incurred by the PERFORMING PARTY for which an outlay has not been recorded. 1.71. Unobligated balance - means the portion of the funds authorized by the TCEQ that has not been obligated by the PERFORMING PARTY, and is determined by deducting the cumulative obligations from the cumulative funds authorized. 582-4-55825 13 1.72. Work - the entire completed services or the various separately identifiable parts thereof required to be furnished under the Contract Documents. Work includes and is the result of performing or furnishing labor, services, materials or equipment as required by the Contract Documents. 1.73. Work Plan - the Work Plan submitted by the Applicant as amended at the time of award and subsequently according to procedures set forth in these General Conditions. The Work Plan consists of written technical descriptions of, equipment, schedules, standards&workmanship as applied to the Work and certain administrative details applicable thereto. 1.74. Written Amendment- a document signed by PERFORMING PARTY and TCEQ which authorizes an addition, deletion or revision in the Work, or an adjustment in the Contract Price or the Contract Times, issued on or after the Effective Date of the Agreement. ARTICLE 2. PRELIMINARY MATTERS Commencement of Contract Tern: 2.1. The Contract Term will commence to run on the Effective Date of the Agreement. ARTICLE 3. CONTRACT DOCUMENTS: INTENT Intent 3.1. The Contract Documents comprise the entire Contract between TCEQ and PERFORMING PARTY concerning the Work. The Contract Documents are complementary; what is called for by one is as binding as if called for by all. The Contract Documents will be construed in accordance with the laws of the State of Texas. 3.2. It is the intent of the Contract Documents to describe a functionally complete project (or part thereof) to be constructed in accordance with the total Contract. Any Work, materials or equipment that may reasonably be inferred from the Contract Documents or from prevailing custom or trade usage as being required to produce the intended result will be furnished and performed whether or not specifically called for. When words or phrases which have a well-known technical or pollution cleanup industry or trade meaning are used to describe Work, materials or equipment, such words or phrases shall be interpreted in accordance with that meaning. 3.3. Whenever in the Contract Documents the terms "as ordered," "as directed,""as required," "as allowed," "as approved"or terms of like effect or import are used, or the adjectives "reasonable", "suitable," "acceptable,""proper" or"satisfactory"or adjectives of like effect or import are used to describe a requirement, direction, review or judgment of TCEQ as to the Work, it is intended that such requirement, direction, review or judgment will be solely to evaluate, in general, the completed Work for compliance with the requirements of and information in the Contract Documents and conformance with the design concept of the completed Project as a functioning whole as shown or indicated in the Contract Documents (unless there is a specific statement indicating otherwise).The use of any such term or adjective shall not be effective to assign to TCEQ any duty or authority to supervise or direct the furnishing or performance of the Work or any other provision of the Contract Documents. 582-4-55825 14 ARTICLE 4. PERFORMING PARTY'S RESPONSIBILITIES 4.1. The PERFORMING PARTY shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services and other work furnished by the PERFORMING PARTY under this Agreement. Supervision and Superintendence: 4.2. PERFORMING PARTY shall supervise, inspect and direct the Work competently and efficiently, devoting such attention thereto And applying such skills and expertise as may be necessary to perform the Work in accordance with the Contract Documents. PERFORMING PARTY shall be solely responsible for the means, methods, techniques, sequences and procedures of the Work. PERFORMING PARTY shall be responsible to see that the completed Work complies accurately with the Contract Documents. PERFORMING PARTY's Representative 4.3. The PERFORMING PARTY will identify in writing the person authorized to receive direction from the TCEQ, to manage the work being performed, and to act on behalf of the PERFORMING PARTY. 4.4. The PERFORMING PARTY agrees to make arrangements necessary to ensure that its authorized Representative, or someone to whom that person has delegated his or her authority, is available at all times for consultation with the TCEQ. Written notice of any such delegation shall be provided to the TCEQ. Personnel 4.5. PERFORMING PARTY shall provide competent, suitably qualified personnel to perform the Work as required by the Contract Documents. PERFORMING PARTY shall at all times maintain good discipline and order on the project. Employment Practices 4.6. The PERFORMING PARTY agrees that in the performance of this Contract, it will not discriminate against any employee or applicant because of race, religion, color, sex, age, or national origin and it will comply with Executive Order 11246, entitled "Equal Employment Opportunity,"as amended by Executive Order 11375, and as supplemented in Department of Labor Regulations (41 CFR Part 60). The PERFORMING PARTY assures that no person will, on the grounds of race, creed, color, disability, national origin, sex, political affiliation or beliefs, be excluded from, be denied the benefit of, or be subject to discrimination under any program or activity funded in whole or part under this Contract. Americans with Disabilities Act 4.7. The PERFORMING PARTY shall comply with all applicable requirements of the Americans with Disabilities Act of 1990,42 U.S.C. §12131 et seq., as well as state and federal statutes relating to nondiscrimination which include,but are not limited to,those listed in the Uniform Grant Management Standards. 582-4-55825 15 Materials & Equipment 4.8. Unless otherwise specified in the Contract Documents, PERFORMING PARTY shall furnish and assume full responsibility for all materials,equipment, labor, transportation, tools, appliances, fuel,power, light,heat, telephone, water, sanitary facilities, temporary facilities and all other facilities and incidentals necessary for the furnishing, performance, testing, start-up and completion of the Work. 4.9. All materials and equipment shall be of good quality and new, except as otherwise provided in the Contract Documents. All materials and equipment shall be applied, installed, connected, erected, used, cleaned and conditioned in accordance with instructions of the applicable Supplier, except as otherwise provided in the Contract Documents. Title to and Management of Equipment 4.10. Subject to the obligations and conditions set forth in this Contract, title to all equipment acquired under this Contract shall vest, upon acquisition or construction, in the PERFORMING PARTY. 4.11. The PERFORMING PARTY agrees to conduct physical property inventories, to maintain property records and necessary control procedures, and to provide adequate maintenance with respect to all equipment acquired under this Contract. 4.12. The PERFORMING PARTY may develop and use its own property management system which must conform with all applicable State and local laws, rules and regulations. If an adequate system for accounting for personal property owned by the PERFORMING PARTY or its subcontractor is not in place or currently in use, the Property Accounting System Manual issued by the State of Texas General Services Commission shall be used as a guide for establishing such a system. 4.13. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of property,who holds title, the acquisition date, and the cost of the property, percentage of federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. 4.14. A physical inventory of all equipment acquired or replaced under this Contract having an initial purchase price of One Thousand Dollars ($1,000) or more, shall be conducted no less frequently than once every two years and the results of such inventories reconciled with the appropriate property records. Property control procedures utilized by the PERFORMING PARTY shall include adequate safeguards to prevent loss, damage, or theft of the acquired property. Any loss, damage or theft shall be investigated. The PERFORMING PARTY agrees to develop and carry out a program of property maintenance as necessary to keep both originally acquired and any replaced property in good condition, and to utilize proper sales procedures to ensure the highest possible return, in the event such equipment is sold. 4.15. All equipment acquired or replaced under this Contract shall be used for the duration of its normally expected useful life to support the purposes of this Contract whether or not the original projects or programs continue to be supported by federal or state funds. 4.16. Subject to the provisions of this Article, if no longer needed for the support of the authorized projects or programs referred to in paragraph 4.15 of this Article, equipment acquired under this Contract, whether original or replacement, may be used in support of other activities currently or previously supported by the TCEQ or the Federal Government, or alternatively, may be made available for use on other projects or programs, providing such other use will not interfere with the work on those projects or 582-4-55825 16 programs for which such equipment was originally acquired. 4.17. The PERFORMING PARTY may for the purpose of replacing various equipment utilized under this Contract, either trade in or sell the equipment or property referred to in paragraph 4.10 and use the proceeds of such trade-in or sale to offset the cost of acquiring needed replacement property. 4.18. Items of equipment with a current per-unit fair market value of less than$1,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency. Methods used to determine per-unit fair market value must be documented, kept on file and made available to the awarding agency upon request. Items of equipment with a current per-unit market value of$1,000 or more may be retained or sold and the awarding agency shall have a right to an amount calculated by multiplying the current market value or proceeds from sale by the awarding agency's share of the equipment. Methods used to determine per-unit fair market value must be document&d,kept on file and made available to the awarding agency upon request. 4.19. If prior to the termination date of this Contract, the PERFORMING PARTY or its subcontractors or subgrantees determine that any equipment acquired with funds provided as a result of this Contract is no longer needed for support of the programs or projects referred to in paragraph 4.15, the TCEQ may require the PERFORMING PARTY to transfer title and possession to such equipment to the TCEQ or a third party named by the TCEQ. 4.20. The PERFORMING PARTY agrees that if a determination is made within six years of the initiation date of this contract that any equipment acquired with funds provided as a result of this Contract is no longer needed for support of the programs or projects referred to in paragraph 4.15, the TCEQ has a right to require the transfer of any equipment having a fair market, per unit value of more than one thousand dollars ($1,000) to the TCEQ or a third party named by the TCEQ. 4.21. The PERFORMING PARTY shall not grant or allow to a third party a security interest in any original or replacement equipment purchased or constructed with funds made available to PERFORMING PARTY under this Contract. 4.22. The PERFORMING PARTY agrees that, in the event any funds provided under this Contract are in turn awarded to any subcontractor for the purchase or acquisition of any equipment by such other party, the PERFORMING PARTY's contract with that subcontractor shall include the requirements set forth in these General Conditions. Substitutes and "or-Equal"Items: 4.23. Whenever an item of material or equipment is specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular Supplier, the specification or description is intended to establish the type, function and quality required. Unless the specification or description contains or is followed by words reading that no like, equivalent or"or-equal" item or no substitution is permitted, other items of material or equipment of other Suppliers may be accepted by TCEQ. 4.24. Substitute Methods or Procedures: If a specific means, method, technique, sequence or procedure is shown or indicated in and expressly required by the Contract Documents, PERFORMING PARTY may furnish or utilize a substitute means, method, technique, sequence or procedure acceptable to TCEQ. PERFORMING PARTY shall submit sufficient information to allow TCEQ, in TCEQ's sole discretion,to 582-4-55825 17 determine that the substitute proposed is equivalent to that expressly called for by the Contract Documents. Concerning Subcontractors, Suppliers and Others 4.25. All contractual expenditures using funds provided under this Agreement shall meet all procurement laws and regulations applicable to the PERFORMING PARTY and subcontractor and the Uniform Grant and Contract Management Act and the Uniform Grant Management Standards. Note that competitive bidding will generally be required for contracts other than interlocal and interagency contracts, which are under TEX.Gov.CODE, Chapter 791 et seq. Note also that the Common Rule of OMB Circular A-102, as adopted in the Uniform Grant Management Standards, precludes the use of the cost plus a percentage of cost method of contracting. 4.26. The PERFORMING PARTY shall forward any proposed subagreement for the performance of work required under this Contract's Scope of Work to TCEQ's Project Representative prior to execution of the subagreement. The TCEQ may, within twenty-one (21)days of receipt of the proposed subagreement,provide written notice (fax acceptable) to the PERFORMING PARTY questioning whether the subagreement is for a legitimate purpose relating to the satisfaction of this Agreement or has been procured in accordance with the minimum standards of the UGCMA. The PERFORMING PARTY shall not enter into a questioned subagreement until the TCEQ has withdrawn all questions raised in the notice. Neither the TCEQ's failure to question a subagreement nor its subsequent withdrawal of any questions raised regarding a subagreement shall in any way imply the TCEQ's approval of the subagreement's purpose or method of procurement of the subagreement. Further, the terms of this provision do not in any way restrict the TCEQ's rights under this Agreement to subsequently refuse reimbursement for expenses incurred pursuant to the subagreement. The PERFORMING PARTY may require a bid bond to protect the local and state interests by assuring that a bidder will, upon acceptance, execute all required contractual documents within the time period specified. 4.27. No employee, officer or agent of the PERFORMING PARTY shall participate in selection, or in the award or administration of a subagreement supported by this Contract if a conflict of interest, real or apparent, would be involved. Such a conflict arises when: 4.27.1. The employee, officer or agent, 4.27.2. Any member of his immediate family, 4.27.3. His or her partner, or 4.27.4. An organization which employs, or is about to employ any of the above, has financial or other interest in the subcontractor selected. The officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to Subcontracts. To the extent permitted by State or local law or regulations, such standards of conduct will provide for penalties, sanctions, or other disciplinary actions for violations of such standards by the PERFORMING PARTY officers, employees, or agents, or by contractors or their agents. See Uniform Grant Management Standards, Part III, Subpart C, Sec._.36(3). 4.28. The PERFORMING PARTY shall be responsible for the management and fiscal monitoring of all subcontractors and subgrantees. The PERFORMING PARTY shall monitor its subcontractors and subgrantees to ensure that the subcontractors and subgrantees are operating consistently with applicable laws and regulations, applicable contracting policies, and these Contract Documents. The PERFORMING PARTY shall ensure that all subcontractors and subgrantees comply with all recording keeping and access requirements set forth in these Contract Documents. The TCEQ reserves the right to perform an independent audit of all subcontractors and subgrantees, PERFORMING PARTY, subcontractors and 582-4-55825 18 subgrantees shall maintain detailed records,a quality system consistent with the TCEQ Quality Management Plan or the American National Standards Institute (ANSI)/the American Society for Quality (ASQ) E4-2 Quality Systems for Environmental Data and Technology Programs - Specification with Guidance for Use. The PERFORMING PARTY'S, subcontractors' and subgrantees' laboratories must have a quality system consistent with the International Organization for Standardization (ISO)and the International Electrotechnical Commission (IEC) Guide 25 General requirements for the competence of calibration and testing laboratories, or ISO/IEC Standard 17025 General requirements for the competence of testing and calibration laboratories, or the National Environmental Laboratory Accreditation (NELAC) current version of its constitution, bylaws, and standards. The TCEQ, Quality Assurance specialists, or any of their authorized representatives shall have access to all such work activities, monitors, records, documents and other evidence for the purpose of management systems review, inspection, audit, surveillance, peer review, excerpts, transcriptions and/or copying during normal business hours. The PERFORMING PARTY shall provide proper access and facilities for such assessments. 4.29. Funds provided by the TCEQ pursuant to this Agreement that are paid to the subcontractor shall be used by the subcontractor solely to satisfy the purposes of the Agreement. Procurements 4.30. All procurements by the PERFORMING PARTY of goods and/or services under this Agreement shall be conducted in a manner providing full and open competition in accordance with Subpart C, Sec._.36, Subsections (b) through (i) of Part III of UGMS. 4.31. PERFORMING PARTY shall perform a cost or price analysis in connection with all procurements in excess of$2,000 which are not competitively procured. A cost analysis will also be required when adequate price competition is lacking and for sole source procurements, unless the reasonableness of the price can be established on the basis of a catalog or market price. Failure to follow these requirements for providing the greatest possible competition in a procurement are grounds for disallowance of costs for reimbursement. 4.32. All subgrants awarded by the PERFORMING PARTY under this Agreement shall be in accordance with Chapter 2259 Texas Government Code and Part III Subpart C, Sec.—.37, Subsection (b) of UGMS. Historically Underutilized Businesses 4.33. PERFORMING PARTY agrees that qualified Historically Underutilized Businesses (HUBS) and minority business enterprises / women's business enterprises (MBE/WBEs)or (MWBEs) shall have the maximum practicable opportunity to participate in the performance of the Work required under this Contract through possible subcontracts to carry out portions of the Work and by way of goods and/or services procurement contracts that directly support the required Work. 4.34. PERFORMING PARTY will submit a completed HUB/MWBE PROGRESS ASSESSMENT REPORT(Form B-1) with each reimbursement request submitted. Ata minimum this report shall include the name of the HUB/MWBE, a description of the work, services or materials provided, the amount paid to the HUB/MWBE, and the name and telephone number of a contact person within the HUB/MWBE. 4.35. The PERFORMING PARTY shall conduct the following actions in connection with solicitations for subcontractors and for suppliers (vendors) of contract-required goods and/or services: 4.35.1. Place qualified small and minority business enterprises and women's business enterprises 582-4-55825 19 (MWBEs) on solicitation lists for subcontractors and vendors; 4.35.2. Assure that at least three (3) HUB/MWBEs are solicited whenever they are potential sources for subcontractor-performed work or vendor-provided goods and/or services; 4.35.3. Each solicitation shall include a copy of the specifications, adequate information about the plans, scope of work, and requirements of the work to be subcontracted or the goods and/or services to be procured, and shall provide sufficient time to allow all interested parties the opportunity to participate effectively; 4.35.4. Records of solicitations for subcontractor and/or vendor services, including the responses received from potential HUB/MWBE subcontractors and vendors, shall be maintained and reported to TCEQ using the forms provided in Form B-6; 4.35.5. Submit explanatory information in cases where bids were not solicited prior to obtaining the services of subcontractors or vendors, or where a HUB/MWBE was low bidder but the subcontract or procurement contract was awarded to a non HUB/MWBE; 4.35.6 Divide total subcontractor or vendor requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by such business enterprises; if sufficient subcontracting or goods and/or service provider opportunities are not available, PERFORMING PARTY shall submit explanatory information to TCEQ; 4.35.7. Establish delivery schedules, where requirements permit, which encourage participation by HUB/MWBEs; 4.35.8. Utilize the Texas General Services Commission (GSC) Centralized Master Bidders List (CMBL) and HUB Directory (<http://www.gsc.state.tx.us>) and the services and assistance of the Small Business Administration and the Minority Business Development Agency of the U.S. Department of Commerce (<http://www.doc.gov>) when searching for HUB/MWBE subcontractors and/or vendors; and 4.35.9. Require its subcontractors to take the actions listed above in 4.35 of this Article in all of its subcontracts that contemplate the letting of lower-tier subcontracts. 4.36. PERFORMING PARTY's failure to comply with this Article shall be grounds for termination for cause in accordance with the Article entitled, "Termination." Intellectual Property Requirements 4.37. Intellectual Property 4.37.1. Royalties and Patent Fees. PERFORMING PARTY shall pay all license fees and royalties and assume all costs incident to the use or possession in the performance of the Work or the incorporation in the Work of any Intellectual Property. 4.37.2. Disclosure of Intellectual Property Produced during the Work. PERFORMING PARTY shall promptly notify TCEQ and EPA of all Intellectual Property which PERFORMING PARTY or PERFORMING PARTY's employees, subcontractors, or subcontractor's employees may produce, 582-4-55825 20 either solely or jointly with others, during the course of the Work. In addition, PERFORMING PARTY shall promptly notify TCEQ of all Intellectual Property to which PERFORMING PARTY may acquire rights in connection with the performance of the Work. Any notification under this paragraph shall contain sufficient technical detail to convey a clear understanding of the Intellectual Property, and shall identify any publication, sale,public use,or impending publication. Promptly upon request, PERFORMING PARTY shall supply such additional information as TCEQ may request. 4.37.3. If PERFORMING PARTY fails to protect any Intellectual Property Rights in the Intellectual Property Rights in the Intellectual Property produced in the course of performing the Work,TCEQ shall have full authority to protect, assume and retain all Intellectual Property Rights in any and all such Intellectual Property. 4.37.4. PERFORMING PARTY agrees that PERFORMING PARTY, its agents, and its employees shall not in any manner.use, sell,distribute, disclose or otherwise communicate any portion of Intellectual property owned by or licensed to TCEQ, except in the course of performing the Work, unless PERFORMING'PARTY has independent Intellectual Property Rights to such Intellectual Property. 4.37.5. Grant of License. With respect to such Intellectual Property as is(i) incorporated in the Work (other than Intellectual Property for which TCEQ already possesses equal or greater Intellectual Property Rights by virtue of this Agreement or otherwise), (ii)produced by PERFORMING PARTY or PERFORMING PARTY's employees, subcontractors, or subcontractor's employees during the course of performing the Work, or(iii) specifically identified in the Supplemental Conditions as Intellectual Property to which Intellectual Property Rights are granted pursuant to this paragraph, PERFORMING PARTY hereby grants to TCEQ (i) a nonexclusive,perpetual, irrevocable, enterprise-wide license to reproduce, publish, or otherwise use such Intellectual Property and associated use documentation,and (ii) a nonexclusive, perpetual, irrevocable, enterprise-wide license to authorize others to reproduce, publish, or otherwise use such Intellectual Property for TCEQ's purposes. 4.37.6. Modification; Derivative Works. TCEQ shall have the right, in its own discretion, to independently modify any Intellectual Property to which license is granted herein for TCEQ's own purposes and use, through the services of its own employees or independent contractors. TCEQ shall own all Intellectual Property Rights to such modifications. PERFORMING PARTY shall not incorporate any such modifications into its Intellectual Property for distribution to third parties unless it first obtains a license from TCEQ. 4.37.7 PERFORMING PARTY shall comply with all Laws and Regulations relating to Intellectual Property. PERFORMING PARTY represents and warrants to TCEQ that PERFORMING PARTY will not infringe any Intellectual Property Right of any third party. PERFORMING PARTY further represents and warrants to TCEQ that in the course of performing the Work it will not use or possess any Intellectual Property owned by a third party without paying any required royalty or patent fees. PERFORMING PARTY warrants that it has full title in and ownership of the Intellectual Property and any enhancements,updates or other modifications, or that it has full power and authority to grant all licenses granted herein, and that such license use by the TCEQ will in no way constitute an infringement or other violation of any Intellectual Property right of any third party. The PERFORMING PARTY warrants that it shall have,throughout any applicable license term hereunder, free and clear title to, or the right to possess, use sell, transfer, assign, license,or sublicense, products that are licensed or provided hereunder to the TCEQ by PERFORMING PARTY. Except as permitted in the Contract Documents, PERFORMING PARTY shall not create 582-4-55825 21 F or permit the creation of any lien, encumbrance, or security interest in the Work or any part thereof, or any product licensed or provided hereunder to TCEQ for which title has not yet passed to TCEQ, without the prior written consent of TCEQ. PERFORMING PARTY represents and warrants to TCEQ that neither it nor any other company or individual performing the Work is under any obligation to assign or give to any third party any Intellectual Property rights granted or assigned to TCEQ, or reserved by TCEQ,pursuant to the Contract Documents. 4.37.8. To the fullest extent permitted by Laws and Regulations, PERFORMING PARTY shall indemnify and hold harmless TCEQ, and its officers, directors, employees and agents, as more fully specified in these General Conditions, from and against all fines, penalties, claims, damages, losses, demands,judgments, settlements,punitive damages, costs of suit, attorneys' fees and delays to the contractors, whether arising in tort or otherwise,and whether the parties are individually or jointly responsible from any damages, that arise out of, result form or relate to any infringement of property, contractual, or employment rights or Intellectual Property Rights incident to the use in the performance of the Work or resulting from the incorporation in the Work of any Intellectual Property. PERFORMING PARTY agree"s that it will make no settlement which prevents TCEQ from continuing use of the Intellectual Property without TCEQ's prior written approval. In all events,TCEQ shall have the right to participate in the defense of any such suit or proceeding through counsel of its own choosing. 4.37.9. Federal intellectual properly requirements. A nonexclusive, perpetual, irrevocable license to use, copy,publish, and modify any intellectual property to which rights are granted or assigned to TCEQ in this Contract are hereby also granted to, assigned to, or reserved by the Federal Government. To the extent consistent with the rights of third parties, the Federal Government shall also have the right to sell any intellectual property right it reserves or acquires through this Contract. Technology Access Clause 4.38. PERFORMING PARTY expressly acknowledges that state funds may not be expended in connection with the purchase of an automated information system unless the system meets certain statutory requirements under section 2157.005 of the Government Code, relating to accessibility by persons with visual impairments. Accordingly, the PERFORMING PARTY represents and warrants to TCEQ that the technology provided to TCEQ for purchase is capable, either by virtue of features included within the technology or because it is readily adaptable by use with other technology, of(1)providing equivalent access for effective use by both visual and nonvisual means; (2)presenting information, including prompts used for interactive communications, in formats intended for nonvisual use; and(3)being integrated into networks for obtaining, retrieving, and disseminating information used by individuals who are not blind or visually impaired. For purposes of this paragraph, the phrase "equivalent access"means a substantially similar ability to communicate with or make use of the technology, either directly by features incorporated within the technology or by other reasonable means such as assistive devices or services which would constitute reasonable accommodations under the Americans with Disabilities Act or similar state or federal laws. Examples of methods by which equivalent access may be provided include,but are not limited to,keyboard alternatives to mouse commands and other means of navigating graphical displays, and customizable display appearance. Subgrant Activities 4.39. All subgrants awarded by the PERFORMING PARTY under this Agreement will be awarded on the basis of competitive applications and proposals when feasible. The applications and proposals will be evaluated utilizing criteria including cost comparison,probable quality of goods or services and past performance. Upon request, PERFORMING PARTY must provide evidence to support the selection and award. 582-4-55825 22 4.40. Payments by PERFORMING PARTY to subgrantees will be solely for reimbursement of actual allowable costs utilizing the same standards and requirements as the reimbursement payments from TCEQ to PERFORMING PARTY set out in this Agreement. No subgrant will be made on a fixed-amount of cost reimbursement unless this method is specifically approved by the TCEQ based on supporting evidence of proposed subgrantee's actual costs. 4.41. All subgrant agreements must be in writing and must be approved by the TCEQ. The standards and requirements for reimbursements and standards for performance will be incorporated into the subgrant agreements as well as other provisions required by this Agreement. Permits 4.42. Unless otherwise provided in the Contract Documents,PERFORMING PARTY shall obtain and pay for all construction permits and licenses. PERFORMING PARTY shall pay all charges of utility owners for connections to the Work, and PERFORMING PARTY shall pay all charges of such utility owners for capital costs related thereto such as plant investment fees. Laws and Regulations 4.43. PERFORMING PARTY shall give all notices and comply with all Laws and Regulations applicable to furnishing and performance of the Work. Except where otherwise expressly required by applicable Laws and Regulations, TCEQ shall not be responsible for monitoring PERFORMING PARTY's compliance with any Laws or Regulations. 4.44. If PERFORMING PARTY performs any Work knowing or having reason to know that it is contrary to Laws or Regulations, PERFORMING PARTY shall bear all claims, costs, losses and damages caused by, arising out of or resulting therefrom. Uniform Grant and Contract Management Act 4.45. The provisions of Uniform Grant and Contract Management Act, TEX. Gov.CODE, Chapter 783 applies to this Agreement, all amendments thereto,and all subcontracts and subagreements. Compliance with the conditions and requirements contained therein is necessary for the satisfactory performance of the services and work required under this Agreement. Energy Efficiency Standards 4.46. The PERFORMING PARTY shall follow standards and policies on energy efficiency which are contained in the Texas State Energy Conservation Plan issued in compliance with federal requirements. Taxes 4.47. Where applicable PERFORMING PARTY shall pay all sales, consumer, use and other similar taxes required to be paid by PERFORMING PARTY in accordance with the Laws and Regulations in connection with the work required by this Agreement. 582-4-55825 23 Records, Documents, Data,Access, and Audit 4.48. The PERFORMING PARTY shall maintain books, records, documents, and other evidence reasonably pertinent to performance of the Work and requirements of the Contract Documents, including the Agreement or amendments thereto. All financial records shall be maintained in accordance with generally accepted accounting principles, the Uniform Grant Management Standards and these Contract Documents. The PERFORMING PARTY shall also maintain the financial information and data used in the preparation or support of any request for reimbursement(direct and indirect), price or profit analysis for this Agreement or any subagreement or subcontract and a copy of any cost information or analysis submitted to the TCEQ. The TCEQ,Texas State Auditor's Office, or any of their authorized representatives shall have access to all such books, records, documents and other evidence for the purpose of review, inspection, audit, excerpts, transcriptions and/or copying during normal business hours. The PERFORMING PARTY shall provide proper facilities for such access and inspection. The PERFORMING PARTY, subcontractors and subgrantees shall maintain a quality system consistent with the TCEQ Quality Management Plan or the American National Standards Institute (ANSI)/the American Society for Quality(ASQ) E4-2 Quality Systems for Environmental Data and Technology Programs - Specification with Guidance for Use. The PERFORMING PARTY'S, subcontractors' and subgrantees' laboratories must have a quality system consistent with the International Organization for Standardization (ISO)and the International Electrotechnical Commission(IEC) Guide 25 General requirements for the competence of calibration and testing laboratories, or ISO/IEC Standard 17025 General requirements for the competence of testing and calibration laboratories, or the National Environmental Laboratory Accreditation (NELAC) current version of its constitution,bylaws, and standards. The TCEQ, Quality Assurance specialists, or any of their authorized representatives shall have access to all such work activities, monitors, records,documents and other evidence for the purpose of management systems review, inspection, audit, surveillance, peer review, excerpts, transcriptions and/or copying during normal business hours. The PERFORMING PARTY shall provide proper access and facilities for such assessments. 4.49. The PERFORMING PARTY agrees that all record keeping, quality assurance requirements, and access requirements shall be applicable to all subcontracts and subagreements. 4.50. The PERFORMING PARTY agrees to the disclosure of all information and reports resulting from access to records and quality activities under this Agreement. 4.51. Records under paragraph 4.48 and 4.49 shall be maintained by the PERFORMING PARTY during performance of Work under this Agreement, and for three(3) years after final payments, final expenditure reports and all other pending matters are closed. If any litigation, claim, negotiation, audit, quality assurance assessment, cost recovery, or other action (including actions concerning costs of items to which an audit exception or nonconformance has been taken or identified) involving such records or corrective actions has been started before the expiration of the three year period, such records must be retained until completion of the action or resolution of all issues which arise from it, or until the end of the regular three year period, whichever is later. 4.52. Access to records or work activity is not limited to the required retention periods. The entities designated in paragraph 4.48 shall have access to records or work activity at any reasonable time for as long as the records or nonconformance identified pursuant to an assessment are maintained. 4.53. This right-of-access article applies to financial and quality records pertaining to this Agreement and all subagreements and amendments. In addition, this right of access article applies to all records and work activities pertaining to this Agreement and all subagreements and amendments: 582-4-55825 24 4.53.1. to the extent the records pertain reasonably to Agreement or subcontract performance; 4.53.2. if there is any indication that fraud, gross abuse, or corrupt practices may be involved; or 4.53.3. if the Agreement or subcontract is terminated for default or for convenience. 4.54. The Federal Government and its agencies will have the same rights of access to records as are granted to, assigned to, or reserved by the TCEQ under this Contract. Data and Publicity 4.55. All data and other information developed under this Agreement shall be furnished to the TCEQ and shall be public data and information except to the extent that it is exempted from public access by the Texas Public Information Act, TEx.Gov'T CODE § 552 ("Act"). Upon termination of this Agreement,all copies of data and information shall be furbished, at no charge to the TCEQ, upon request, to include data bases prepared using funds provided under this Agreement, and become the property of the TCEQ. Except as otherwise provided by these Contract Documents or the Act, the PERFORMING PARTY shall not provide data generated or otherwise obtained in the performance of its responsibilities under this Contract to any party other than the State of Texas and its authorized agents. 4.56. The PERFORMING PARTY agrees to notify and obtain the verbal approval of TCEQ prior to releasing any information to the news media regarding the activities being conducted under this Agreement. Safety and Protection 4.57. Where applicable, PERFORMING PARTY shall be responsible for requiring subcontractors and subgrantees to maintain and supervise all necessary safety precautions and programs in connection with the Work. PERFORMING PARTY shall take all necessary safety precautions. Independent Contractor 4.58. In performing any services hereunder, the PERFORMING PARTY is, and undertakes performance as, an independent contractor. Lobbying Activities 4.59. As set forth in these Contract Documents, and in accordance with the Uniform Grant Management Standards, and State law, PERFORMING PARTY shall not use funds provided under this Agreement to support political activity either directly or indirectly. This preclusion includes funds paid in reimbursement of direct or indirect costs. 4.59.1. If it is reasonably foreseeable that payments to the PERFORMING PARTY under this Contract will exceed $100,000, the PERFORMING PARTY shall comply with the following requirements. This Article applies regardless of whether the PERFORMING PARTY is a for-profit or not-for-profit entity, including a state or local governmental entity. 4.59.2. The PERFORMING PARTY shall comply with the requirements of the "Anti-Lobbying 582-4-55825 25 F Act" (Public Law 101-121, Section 319, 31 U.S.C. 1352) (hereinafter, "Act"), and with all applicable regulations, standards, orders, or requirements issued thereunder. Any violation of this provision by the PERFORMING PARTY constitutes grounds for termination of this Contract for default. 4.59.3. The PERFORMING PARTY shall forward to the TCEQ the Certification it is required to submit under Section 1352(b)(2)(C) of the Act, which requires the recipient of federal funds to certify that it is in compliance with the Act. It shall also forward to the TCEQ any disclosure forms it is required to submit under Section 1352(b)(2)(A)&(B) of the Act, which requires disclosure of lobbying activities paid for with non-federal funds. 4.59.4. PERFORMING PARTY shall require all of its subcontractors under subcontracts that will exceed $100,000: (1) as a condition of the subcontract, to furnish the PERFORMING PARTY with the Certification required under Section 1352(b)(2)(C) of the Act; and (2) to furnish the PERFORMING PARTY with-.any disclosure forms required under Section 1352(b)(2)(A)&(B) of the Act. PERFORMING PARTY shall promptly forward to the TCEQ any of the forms its subcontractors submit to it. Performance Reports 4.60. In accordance with the Uniform Grant Management Standards, the PERFORMING PARTY shall submit written progress reports documenting all activities during a quarter pursuant to the schedule of deliverables set forth in the Work Plan. In the absence of a schedule in Work Plan, the PERFORMING PARTY shall submit the reports not later than thirty (30) days after the close of each quarter. The reporting periods shall correspond to the State of Texas fiscal year(September-November; December-February, March- May; June-August). Accounting Systems 4.61. The PERFORMING PARTY shall have an accounting system which accounts for costs in accordance with generally accepted accounting standards or principles and complies with 40 CFR §31.20.and all applicable State law, regulations, and policies relating to accounting standards or principles. The PERFORMING PARTY must account for costs in a manner consistent with such standards or principles. This system shall provide for the identification, accumulation, and segregation of allowable and unallowable project costs among projects. Independent Financial Audit 4.62. The PERFORMING PARTY shall engage an independent financial auditor and conduct an annual audit of the PERFORMING PARTY'S financial statements in accordance with the Single Audit provisions of UGMS and 4.62.1 All terms used in connection with audits in this Agreement shall have the definitions and meanings assigned in the Single Audit Circular in UGMS. 4.62.2 Provisions of the Single Audit Circular in Part IV of UGMS shall apply to all non-state government entities expending the funds of this grant,whether they are recipients, receiving the funds directly from the TCEQ, or are subrecipients, receiving the funds from a pass-through entity (a 582-4-55825 26 recipient or another subrecipient). In addition, the PERFORMING PARTY shall require the independent auditor to supply all audit work papers substantiating the work performed, at the request of the TCEQ or its designee. Exceptions in Audit 4.62.3 TCEQ is required to take action on exceptions noted an audit of PERFORMING PARTY's financial records. Therefore, PERFORMING PARTY agrees to submit to TCEQ a copy of the report any audit conducted of the PERFORMING PARTY's financial records within 20 days of receipt of PERFORMING PARTY's receipt of an audit report. At the same time, PERFORMING PARTY will also provide a statement containing an explanation of the conditions giving rise to each exception in the audit report as well as a plan for correction of any significant deficiencies in PERFORMING PARTY's operations or contract performance. TCEQ may approve the statement or reject as insufficient. At the option of the TCEQ, the PERFORMING PARTY may revise and resubmit. If the statement is initially or subsequently rejected by the TCEQ with no further opportunity to revise, the TCEQ may suspend payments or may terminate the contract for cause and may undertake any other remedies or sanctions provided under this contract. Hazardous Substances, Waste Disposal and Manifests 4.63. PERFORMING PARTY, subcontractors and subgrantees must comply with all applicable Laws and Regulations. Conflict of Interest 4.64. PERFORMING PARTY shall notify TCEQ immediately upon discovery of any potential or actual conflict of interest. PERFORMING PARTY agrees that TCEQ has sole discretion to determine whether a conflict exists and that TCEQ may terminate the Agreement at any time, on the grounds of actual or apparent conflict of interest. See paragraph 4.27 of these General Conditions concerning conflicts of interest with subgrantees, subcontractors and others. 4.64.1. Notice of Conflict of Interest: The PERFORMING PARTY shall notify the TCEQ in writing of any actual, apparent, or potential conflict of interest regarding any individual performing or having access to information regarding the Work. As applicable,the notification shall include both organizational conflicts of interest and personal conflicts of interest. Any individual with a personal conflict of interest shall be disqualified from taking part in any way in the performance of any work that created the conflict of interest. Survival of Obligations: 4.65. All representations, indemnifications, warranties and guarantees made in, required by or given in accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract Documents, will survive final payment, completion and acceptance of the Work and termination or completion of the Agreement. Debarment: 4.66. On or prior to the effective date of this Contract, PERFORMING PARTY must submit a Certification Regarding Debarment, Suspension, and Other Responsibility Matters. This certification must be submitted on forms provided by the TCEQ. A copy of the Certification is attached hereto and 582-4-55825 27 incorporated in the Application for Federal Assistance. In accordance with Executive Order 12549 and 40 CFR Part 32, the PERFORMING PARTY shall not subcontract any part of the services under this Contract to an entity that has been debarred. The PERFORMING PARTY shall require each applicable subcontractor, as a condition of its subcontract, to sign a Lower Tier Certification Regarding Debarment, Suspension, and Other Responsibility Matters (Form B-5), as set forth in Appendix B to 40 CFR Part 32 - Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions. ARTICLE 5. TCEQ'S RESPONSIBILITIES 5.1. The Executive Director of the TCEQ will identify a person authorized to give direction to the PERFORMING PARTY, and act on behalf of the TCEQ. The person designated as the TCEQ Authorized Representative is identified on page 6 of this contract. 5.2. "Ihe Executive Director of the TCEQ hereby authorizes such identified person to further delegate his or her authority as necessary, including a delegation of authority to a TCEQ employee. 5.3. The Contract Documents and the Uniform Grant Management Standards contain provisions that provide for withholding of payment as well as suspension and termination of the Agreement by the TCEQ. 5.4. "Ihe TCEQ shall not supervise, direct or have control or authority over, nor be responsible for, PERFORMING PARTY's means, methods, techniques, sequences or procedures of performing the Work or the Safety precautions and programs incident thereto, or for any failure of PERFORMING PARTY to comply with Laws and Regulations applicable to the furnishing or performance of the Work. TCEQ will not be responsible for PERFORMING PARTY's failure to perform or furnish the Work in accordance with the Contract Documents. ARTICLE 6. CHANGES IN THE WORK 6.1. The Executive Director of the TCEQ, or his Project Representative may, at any time,by written notification to the PERFORMING PARTY, make changes to the scope of this Agreement or in the services or work to be performed. If such changes cause an increase or decrease in the PERFORMING PARTY's cost of, or time required for, performance of any services under this Agreement, whether or not changed by an order, an equitable adjustment shall be made and this Agreement shall be modified in writing accordingly. Any claim of the PERFORMING PARTY for adjustment under this clause must be asserted in writing within thirty(30)days after the date of receipt by the PERFORMING PARTY of the notification of change, unless the Executive Director of the TCEQ or his Project Representative grants a further period of time before the date of final payment under this Contract. 6.2. An Amendment(Major Change) will include one or more of the following: 6.2.1. an increase or decrease in the amount of compensation to the PERFORMING PARTY; 6.2.2. an extension or shortening of the term of the Agreement; 6.2.3. a significant change in the scope of the Agreement or the services to be performed; or 582-4-55825 28 6.2.4. any action that is beyond the authority of the Executive Director or the Project Representative of the TCEQ. 6.3, Implementation of a Major Change must be preceded by a formal written amendment to the Agreement. Requests for an Amendment must be in writing and be submitted to the NRCC Project Representative prior to initiating changes. The amendment must contain a description of the proposed change. The amendment must be signed by persons authorized to bind each party in contract. Any amendment that will exceed the contractual authority of the Executive Director of the TCEQ also requires the consent, at Agenda, of a majority of Commissioners of the TCEQ. 6.4. Any proposed change that is not a Major Change (Amendment) may qualify as a Minor Change. A Minor Change shall require the written agreement of both Project Representatives, but shall not require a formal amendment to the contract. A copy of the authorization must be retained in the appropriate file of both the PERFORMING PARTY and the TCEQ. Inclement Weather A deadline set forth in the schedule of deliverables may be extended by a period equivalent to the time lost because of inclement weather that precludes work towards the completion of that deliverable. The PERFORMING PARTY shall maintain, and make available at the TCEQ's request, daily records adequately supporting its claim that inclement weather precluded work towards the completion of a deliverable. The PERFORMING PARTY shall make best attempts to recoup time lost due to inclement weather. The PERFORMING PARTY shall notify the TCEQ in writing (fax acceptable) prior to the deliverable deadline of the deadline extension pursuant to this Article. Extensions of a deliverable deadline pursuant to this Article will constitute a minor change. No extension under this paragraph shall extend the terms of this Contract. The TCEQ reserves the right to reject, in good faith, within 30 days of receipt of the notification of the deadline extension, the PERFORMING PARTY'S claim that inclement weather precluded work towards the completion of a deliverable 6.5. If the PERFORMING PARTY requests a Minor Change and the Project Representative of the TCEQ does not approve the request as a Minor Change, then the change shall be deemed a Major Change and the PERFORMING PARTY may only obtain authorization to proceed in accordance with Section 6.3 of this Article. 6.6. PERFORMING PARTY is permitted to rebudget within the approved direct cost budget to meet any unanticipated requirements and may make limited program changes to the approved project. Certain types of these changes require the prior written approval of the TCEQ. Applicable cost principles set forth in 40 CFR Part 31.22 contain additional requirements for prior approval of certain types of costs and apply to all grants and subgrants. Prior approval shall be required as follows: 6.6.1. Any change resulting in the need for additional funding; 6.6.2. Cumulative transfers among direct cost categories, or, if applicable , among separately budgeted programs of projects and which exceed or are expected to exceed the total budget by ten percent (10%); 6.6.3. Transfers of funds allotted for training allowances. 6.6.4. Changes in key personnel in cases where specified in an application or grant award. 582-4-55825 29 6.6.5. Subcontracting those activities which are central to the purposes of the award 6.7. Any request shall be in writing to TCEQ and TCEQ shall promptly review and approve or disapprove the request in writing. If such changes requires federal prior approval,TCEQ shall obtain that approval before approving the request. Waiver 6.8. Unless authorized in accordance with these Contract Documents (relating to Changes), or in writing by the TCEQ, no waiver of any obligation of the PERFORMING PARTY, the authorized waiver by the TCEQ of such obligation shall not constitute a continuing waiver of the obligation. No waiver by the TCEQ Executive Director shall constitute a waiver of the TCEQ's subsequent right to demand and receive performance within a reasonable time to be specified by the TCEQ, in accordance with all provisions of this Contract. ARTICLE 7. PAYMENTS TO PERFORMING PARTY Payment based on Reimbursement of Actual Cost of Performance Allowable Costs 7.1 Payments from the TCEQ to the PERFORMING PARTY are for reimbursement of PERFORMING PARTY's actual allowable costs of PERFORMING PARTY's performance. Actual costs include reasonable and necessary direct and indirect costs. Allowable costs are those deemed allowable by the TCEQ in accordance with the requirements of this contract and the following which are hereby incorporated into this contract: 7.1.1. Uniform Grant Management Standards prepared and promulgated by the office of the Governor of Texas; 7.1.2. Rules and guidelines of the office of the Governor of Texas; 7.1.3. Applicable rules and policies of the TCEQ; 7.1.4. Applicable State law; 7.1.5. For funds received from a federal government source,applicable federal regulations and law. For example,40 CFR §31.3 (e.g., payments for expenses incurred, time and materials, or hourly rates), all payments where PERFORMING PARTY'S services have not been competitively procured, shall be based on allowable costs (refer to 40 CFR §31.22), and shall be based on a cost or price summary, and Title 48 CFR Part 31. Eligible costs are: 1) those costs authorized in this Agreement and; 2) for activities performed in compliance with the Agreement Payments by TCEQ 7.2 PERFORMING PARTY's must request payment by submitting one copy of an itemized invoice in a 582-4-55825 30 format provided by the TCEQ (Form B-3), a properly completed TCEQ PURCHASE VOUCHER(Form B-2), and such other forms as the TCEQ requires. PERFORMING PARTY must complete the entire Quarterly Report Checklist(Exhibit A-4). PERFORMING PARTY will also submit any supporting documentation required by TCEQ. TCEQ will review the submittal and approve or reject the request for payment. PERFORMING PARTY must make any revisions required by the TCEQ in order to gain approval. TCEQ is not obligated to make payment until the request for payment is approved by TCEQ. Fixed-Amount Cost Reimbursement 7.3. In accordance with Chapter 2259 Texas Government Code, all payments by TCEQ to PERFORMING PARTY are based on reimbursement of PERFORMING PARTY's actual costs incurred in performing the Work. If this contract utilizes a pre-determined fixed-amount of reimbursement, this amount is determined on the basis of an estimate of PERFORMING PARTY's actual costs of performing one or more of the following: 1) specified service(s) (tasks); or 2) specified service(s)(tasks)during a specified time period; or 3)providing specified good(s), or product. PERFORMING PARTY has provided the estimate of costs in its Funding Application Package (Exhibit A-1) for this grant. The TCEQ relies on the accuracy of that estimate to determine the fixed-amount of reimbursement. PERFORMING PARTY will provide supporting evidence to establish the accuracy of its estimate of actual costs. PERFORMING PARTY will monitor its actual costs of performance and provide TCEQ with a report annually to confirm that the original estimate of costs remains accurate. If in fact that estimate exceeds the actual costs of performance, TCEQ may recover the excess amount paid by 1) rejecting all or part of any reimbursement requests by PERFORMING PARTY and retaining amounts sufficient for repayment; or 2)by demanding and receiving repayment of the amount from PERFORMING PARTY. TCEQ may also use any other remedies and sanctions available under this contract. 7.4. The PERFORMING PARTY has submitted a cost analysis in its Funding Application budget estimate. The PERFORMING PARTY and the TCEQ acknowledge that this cost analysis is the basis upon which the fixed prices to be paid under this Agreement have been calculated. 7.5. Because certain Monitoring Operations Program activities may not be performed in a given month, the PERFORMING PARTY shall perform a quarterly review of the Monitoring Operations Program activities it actually performs or expects to actually perform during that quarter. In this review, the PERFORMING PARTY shall determine whether the nearest practicable estimate of its actual cost of providing those services for that quarter is within the constraints established elsewhere in this Agreement, and in particular whether the nearest practicable estimate is greater than the cumulative fixed monthly fee for Monitoring Operations Program activities. 7.6. The PERFORMING PARTY shall make its review and determination available to the TCEQ upon request. The TCEQ may perform an independent review(in accordance with Article 4.50 (Record Documents, Data,Records Access and Audit) of the General Conditions and make its own independent determination, or may make its own independent determination based upon the PERFORMING PARTY's review. Contractual Costs 7.7. PERFORMING PARTY's contractual costs must comply with allowable costs requirements. PERFORMING PARTIES which are governmental entities must engage in contractor selection on a competitive basis in accordance with their established policies. If PERFORMING PARTY has no competitive procurement policy or is a private entity,PERFORMING PARTY must generally select contractors by evaluation and comparison of price, quality of goods or services and past performance. 582-4-55825 31 Comparison of Performing Party's Costs 7.8. In accordance with Section 2259.203 Texas Government Code, the TCEQ is required to perform a comparison of costs reimbursed under this Agreement. PERFORMING PARTY will provide a report to verify that its costs of performance are reasonably comparable to prices generally charged for similar goods or services. Indirect Cost Rate 7.9. The indirect cost rate for this Agreement is that rate determined by either: 1) the Federal Cognizant Agency or; 2)the State Coordinating Agency or; 3) the 10%rate described in UGMS at Part II Attachment E, Paragraph E2d. The rate in effect on the effective date of this Agreement must remain in effect for the entire period of this Agreement Duplication of Effort Prohibited, 7.10. In addition to the funds provided to PERFORMING PARTY under this Grant Agreement, the TCEQ may provide funds to PERFORMING PARTY under a separate Grant Agreement so that funds of two or more grants are be provided to a single activity of the PERFORMING PARTY. PERFORMING PARTY must monitor all activities to ensure that the grant funds complement one another and do not result in double payments for the same activity. Payment Request Procedures 7.11. All requests for reimbursement under this Contract shall be submitted in accordance with the requirements set forth in this Article. 7.12. On a quarterly basis, within 30 days after the end of a quarter, the PERFORMING PARTY shall submit one copy of a properly completed STATE OF TEXAS PURCHASE VOUCHER(Form B-2) (Comptroller of Public Accounts Form 73-170), an itemized invoice provided by the TCEQ (Form B-3), and a Quarterly Report Checklist incorporated herein as Exhibit A-4, in order to obtain payment for tasks completed under this Agreement. The PERFORMING PARTY shall complete a quarterly HUB/MWBE PROGRESS ASSESSMENT REPORT, incorporated herein as Form B-1,and submit this Report with each quarterly invoice and voucher. Completed vouchers, invoices, and reports shall be mailed or delivered to the following address: Atm: Mr. Roy Hartmann TCEQ Monitoring Operations Division, MC-165 P.O. Box 13087 Austin, TX 78711-3087 7.13. The TCEQ Project Representative will review the purchase vouchers, invoices, and Quarterly Report Checklists for requests for payment for services performed as identified above in Section A (Statement of Work)and Section B (Deliverables) and will notify the PERFORMING PARTY that the requests are acceptable or will provide an explanation of why the requests or the work identified in the requests are unacceptable. If the requests do not satisfactorily demonstrate the accomplishment of the required tasks, the TCEQ Project Representative will not authorize payment on the accompanying voucher and invoice until such time as deficiencies have been corrected. 582-4-55825 32 7.14. TCEQ is not obligated to make payment until the request for reimbursement is approved by TCEQ. Further, the TCEQ reserves the right to suspend payment for any incomplete, inconsistent or incorrect services or reports as required by this Contract until the PERFORMING PARTY satisfactorily completes, revises, or corrects such'services or reports. 7.15. The TCEQ will not issue any payment of an approved reimbursement request from the PERFORMING PARTY until the TCEQ receives from the EPA funds specifically awarded for activities provided by the PERFORMING PARTY under this Agreement. 7.16. Failure on the part of the PERFORMING PARTY to comply with the conditions set forth in this Agreement may be grounds for termination of this Contract for cause,and revocation of any unexpended funds. 7.17. Nothing in this Article shall be construed to prevent the TCEQ or the PERFORMING PARTY from exercising any of its rights under this [agreement including but not limited to those relating to Termination and Remedies. 7.18. TCEQ is not obligated to~make payment until the request for reimbursement is approved by TCEQ. TCEQ may reject payment requests not submitted in accordance with these Contract Documents. TCEQ may reject payment requests submitted less than thirty (30)days after the close of each quarter, or prior to TCEQ's acceptance of the deliverables due in the quarter for which the payment request applies. TCEQ shall have thirty(30) days after receipt to review and determine the acceptability of a deliverable. If TCEQ has neither accepted nor rejected a deliverable within thirty (30) days of receiving it, PERFORMING PARTY shall be entitled to submit a payment request as if that deliverable had been accepted, BUT IN NO CASE SHALL TCEQ BE DEEMED TO HAVE ACCEPTED THE DELIVERABLE. TCEQ reserves the right to suspend payment for any incomplete, inconsistent or incorrect services or reports as required by this Contract until the PERFORMING PARTY satisfactorily completes, revises,or corrects such services or reports, whether or not the deliverable is rejected within thirty days. Closeout 7.19. When it is determined that all applicable administrative activities and all required work have been completed, the TCEQ shall close out the award. Within 60 days after the expiration or termination of the contract, the Performing Party must submit all financial, performance,and other reports as required. These reports may include, but are not limited to: 7.19.1. All performance or progress reports required by this Agreement. 7.19.2. Financial Status Report (Form B-4) 7.19.3. Final request for payment. (Including Forms B-1,B-2, B-3) 7.19.4. Invention disclosure (if applicable). 7.19.5. State-owned property report (if applicable). 7.20. In accordance with the Uniform Grant Management Standards , the PERFORMING PARTY must submit an inventory of all state-owned property (as distinct from property acquired with grant funds) for which it is accountable and request disposition instructions from the TCEQ of property no longer needed. 7.21. Within 90 days of receipt of the reports set forth above, the TCEQ will make upward or downward adjustments to the allowable costs. The TCEQ agency will make prompt payment to the PERFORMING PARTY for allowable reimbursable costs. Closeout of the grant does not affect: 582-4-55825 33 7.21.1. The TCEQ's right to disallow costs and recover funds on the basis of a later audit, quality assurance assessment, or other review; 7.21.2. The PERFORMING PARTY'S obligation to return any funds due as a result of later refunds, corrections, or other transactions; 7.21.3. Records retention as required herein; 7.21.4. Property management requirements set forth herein; and 7.21.5. Audit, including quality assurance assessment, requirements set forth herein. 7.22. The PERFORMING PARTY must immediately refund to the TCEQ any balance of unobligated (unencumbered) cash advanced that is not authorized to be retained for use on other grant. 7.23. Any funds paid to a Performing Party in excess of the amount to which the Performing Party is finally determined to be entitled under the terms of the award constitute a debt to the TCEQ. If not paid within a reasonable period after demand, the TCEQ may reduce the debt by: 7.23.1. Making an administrative offset against other requests for reimbursement; 7.23.2. Withholding advance payments otherwise due to the PERFORMING PARTY, or 7.23.3. other action permitted by law. 7.24. Except where otherwise provided by statutes or regulations, the TCEQ will charge interest on an overdue debt in accordance with the Uniform Grant Management Standards. The date from which interest is computed is not extended by litigation or the filing of any form of appeal. 7.25. Upon satisfactory completion of the work performed hereunder, acceptance of such work by the TCEQ Project Representative, and prior to final payment under this Contract for such work, or prior to settlement upon termination of this Contract and as a condition thereto, the PERFORMING PARTY shall execute and deliver to the TCEQ a release of all claims for payment of any funds due and payable by the TCEQ pursuant to the terms of this Contract. Such release shall be conditioned upon payment of all fund amounts due and payable to PERFORMING PARTY under this Contract, and limited to only those claims which reasonably could have been foreseen at the time the release is executed. PERFORMING PARTY reserves the right to identify claims to be excluded thereby. 7.26. The PERFORMING PARTY shall provide to the TCEQ documentation showing all tasks that have been completed by the PERFORMING PARTY. The PERFORMING PARTY agrees that the determination of satisfactory completion of any and all work or other services performed or furnished under this Contract will be based on the judgment of the staff of the TCEQ,which judgment will be exercised in a reasonable manner and in good faith. 7.27. Final Payment under this Contract or settlement upon termination shall not constitute a waiver of the TCEQ's claims against the PERFORMING PARTY. The TCEQ may refuse to reimburse expenditures for which the PERFORMING PARTY submits a voucher more than 60 days after the termination date of this Contract. Cost Provisions Applying Solely to Regional Planning Commissions and Councils of Government 7.28. The provisions of this Paragraph and Subparagraphs apply solely to Performing Parties, Subgrantees and other Recipients of the funds under this Grant Agreement defined as a "Regional Planning Commission" as defined in Chapter 391 of the Texas Local Government Code, which includes, among others, a Council of Government. In the event of conflict with other provisions of the Contract Documents, the provisions of this 582-4-55825 34 Article prevail. 7.28.1. PERFORMING PARTY will comply with all requirements and rules to be adopted by the Office of the Governor of Texas pursuant to Section 391.009 Texas Local Government Code relating to the operation and oversight of Regional Planning Commissions. These rules are due for adoption on or about January 1, 2000. If those rules conflict with provisions of the Contract Documents, the rules will prevail. 7.28.2. PERFORMING PARTY will comply with the requirement of Chapter 391 Texas Local Government Code by adopting competitive procurement methods equivalent to Chapter 252 Texas Local Government Code for the purchase of all goods and services. PERFORMING PARTY will notify the TCEQ upon adoption of these methods. 7.28.3. PERFORMING PARTY will comply with all other requirements of Chapter 391 Texas Local Government Code with special attention to the following restrictions on the use of funds provided under this contract: 7.28.3.1. Contracts with or employment of lobbyists 7.28.3.2. Lobbying activities by employees 7.28.3.3. Auto allowance of members of the governing body 7.28.3.4. Travel reimbursements at the state rate 7.28.3.5. Alcoholic beverages and entertainment 7.28.3.6. Classification salary schedules and appropriate exempt positions. ARTICLE 8. TERMINATION 8.1. This Agreement shall terminate upon full performance of all requirements contained herein, unless extended in writing. 8.2. This Agreement may be terminated in whole or in part by the TCEQ in the event of a material failure to comply with the contract terms, in accordance with the Uniform Grant Management Standards: Provided that no such termination may be effected unless the other party is given 8.2.1. not less than ten (10)days written notice(delivered by certified mail, return receipt requested) of intent to terminate, and 8.2.2. an opportunity for consultation with the terminating party prior to termination. 8.3. This Agreement may be terminated in whole or in part in writing by the TCEQ for its convenience, in accordance with the Uniform Grant Management Standards: Provided that the PERFORMING PARTY is given not less than ten (10) days written notice (delivered by certified mail, return receipt requested) of intent to terminate. Circumstances in which the TCEQ may terminate for convenience include, but are not limited to, the Texas Legislature's withdrawal of appropriations for this project. 8.4. If the TCEQ terminates the Contract for a material failure to comply with the Contract terms under Section 8.2 or the TCEQ terminates the Contract for convenience under Section 8.3, an adjustment in the contract amount shall be made in accordance with the Uniform Grant Management Standards. 582-4-55825 35 8.5. Upon receipt of a termination action pursuant to Sections 8.2 or 8.3 above, the PERFORMING PARTY shall: 8.5.1 promptly discontinue all services affected (unless the notice directs otherwise), and 8.5.2 deliver or otherwise make available to the TCEQ all data, drawings, specifications, reports, estimates, summaries, and such other information and materials as may have been accumulated by the PERFORMING PARTY in performing this Contract, whether completed or in the process. 8.6. If, after termination for failure of the PERFORMING PARTY to fulfill contractual obligations, it is determined that the PERFORMING PARTY had not so failed, the termination shall be deemed to have been effected for the convenience of the TCEQ. 8.7. If any delay or failure of performance is caused by a force majeure event as described in the force majeure Article of this Contract, the TCEQ may in its sole discretion terminate this Contract in whole or part pursuant to this Article. Force Majeure 8.8. A force majeure event shall be defined to include decrees of or restraints by a governmental instrumentality, acts of God (except that rain, wind, flood or other natural phenomena normally expected for the locality shall not be construed as an act of God), work stoppages due to labor disputes or strikes, fires, explosions, epidemics, riots, war, rebellion, and sabotage. 8.9. Provided this Contract has not been terminated, and subject to the conditions below, if a delay or failure of performance by either party results from the occurrence of a force majeure event, the delay shall be excused and the time fixed for completion of the work extended by a period equivalent to the time lost because of the event if, and to the extent that: 8.9.1. the delay or failure was beyond the control of the party affected and not due to its fault or negligence; and 8.9.2. the delay or failure was not extended because of the affected party's failure to use all diligence to overcome the obstacle or to resume performance immediately after the obstacle was overcome. 8.10. No time extension shall be granted under this Article unless the party seeking relief has notified the other in writing within a reasonable time after commencement of the event, of the anticipated length and cause of the delay, the measures taken or to be taken to minimize the delay, and the timetable by which the PERFORMING PARTY intends to implement these measures. The party seeking relief shall also give written notice of the ending of the event within a reasonable time after the event has ended. 8.11. The TCEQ shall be responsible for costs related to a force majeure event only if they are incurred by the PERFORMING PARTY after the prior written request by the TCEQ Project Representative, to incur such costs in connection with any force majeure event. Neither the TCEQ nor the PERFORMING PARTY shall have, and both hereby waive, any claim whatever for any damages resulting from delays caused by force majeure events. ARTICLE 9.MISCELLANEOUS 582-4-55825 36 Computation: of Times: 9.1. When any period of time is referred to in the Contract Documents by days, it will be computed to exclude the first and include the last day of such period. If the last day of any such period falls on a Saturday or Sunday or on a federal holiday, such day will be omitted from the computation. 9.2. A calendar day of twenty-four(24) hours measured from midnight to the next midnight will constitute a day. Notice of Claim: 9.3. Should TCEQ or PERFORMING PARTY suffer injury or damage to person or property because of any error, omission or act of the other party or of any of the other party's employees or agents or others for whose acts the other party is legally liable, claim will be made in writing to the other party within a reasonable time of the first observance,of such injury or damage.The provisions of this paragraph shall not be construed as a substitute for or a waiver of the provisions of any applicable statute of limitations or repose or sovereign immunity. Professional Fees and Court Costs Included: 9.4. Whenever reference is made to "claims, costs, losses, and damages," it shall include in each case,but not be limited to, all fees and charges of TCEQ, architects,attorneys and other professionals and all court or other dispute resolution costs. Acknowledgment of Financial Support 9.5. The PERFORMING PARTY shall acknowledge the financial support of the TCEQ and the U.S. EPA whenever work funded, in whole or part,by this Contract is publicized or reported in news media or publications. All reports and other documents completed as a part of this Contract, other than documents prepared exclusively for internal use within the TCEQ, shall carry the following notation on the front cover or title page: PREPARED IN COOPERATION WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND U.S. ENVIRONMENTAL PROTECTION AGENCY The preparation of this report was financed through grants from the U.S. Environmental Protection Agency through the Texas Commission on Environmental Quality. ARTICLE 10. INSURANCE,LIABILITY AND INDEMNIFICATION 10.1 To the extent permitted by law, the PERFORMING PARTY agrees to indemnify and hold harmless the TCEQ and all of its employees and officers against and from any and all liability, loss, or damage arising out of the performance of this Agreement. To the extent that any activity conducted by PERFORMING PARTY with funds provided under this Agreement entails significant risk of loss or injury to individuals and third parties or their property, the PERFORMING PARTY will secure and maintain insurance sufficient to protect PERFORMING PARTY and the TCEQ, and its employees and officers against claims arising from the 582-4-55825 37 E conduct of such activities. 10.2 In all subcontracts and subgrants, PERFORMING PARTY shall require its subcontractors and subgrantees to obtain and maintain, at their own expense, insurance as will protect the subcontractor, the PERFORMING PARTY and the TCEQ, its employees, and its officers from all such claims arising from the performance by the PERFORMING PARTY's subcontractors or subcontractors' employees resulting from the functions and services required under this Contract, including workers compensation in accordance with Texas statutory requirements. 10.3. PERFORMING PARTY will purchase and maintain Directors and Officers insurance or equivalent insurance coverage or other financial assurance sufficient to protect the interests of the state in the event of an actionable actor or omission by a director or officer of the PERFORMING PARTY. ARTICLE 11. STANDARDS FOR PERFORMING PARTY'S PERFORMANCE 11.1 In accordance with Chapter 2259 Texas Government Code, the TCEQ is required to monitor PERFORMING PARTY's performance under this contract. Therefore, PERFORMING PARTY agrees that the following are appropriate standards for PERFORMING PARTY's performance during the contract: 11.1.1. Timeliness of Work. Standard: Work is provided on schedule. 11.1.2. Quality of Work. Standard: PERFORMING PARTY's Work conforms to the requirements of the contract and is technically accurate. 11.1.3. Subcontract Activities. Standard: PERFORMING PARTY's subcontract and subgrant activities comply with all TCEQ contract requirements regarding subcontracts especially competitive procurement methods for goods and services, use of required subcontract provisions, and monitoring performance of subcontractors and subgrantees. 11.1.4. Administrative and Financial Operations. Standard: PERFORMING PARTY's administrative and financial operations comply with all obligations in law and in the contract especially record-keeping, reimbursement requests,audits, allowable costs, and restricted expenditures. Performance Measures 11.2. TCEQ will monitor PERFORMING PARTY 's performance and evaluate the level of compliance with the standards using the TCEQ Contractor Evaluation form. Contract Monitoring and Evaluation Report 11.3. In accordance with Chapter 2259 Texas Government Code, TCEQ will monitor and evaluate PERFORMING PARTY's performance utilizing the performance standards and performance measures set out in this contract. TCEQ will prepare a cumulative written report of the evaluation upon termination or expiration of the contract and also as frequently as determined appropriate by the TCEQ. 11.3.1. Within 30 days of receipt of each of the FY-2003 and FY-2004 End-of-Year Assessments, the PERFORMING PARTY shall provide information to the TCEQ concerning action(s) that will be taken to correct any deficiencies noted in the End-of-Year Assessment report. This response will include a description of the nature and extent of each deficiencies' impact on data quality, the specific corrective 582-4-55825 38 actions taken or planned to address the deficiencies, actions taken or planned to prevent recurrence, a schedule to bring any deficiencies in the ambient air monitoring program up to TCEQ standards, the means to be used to document completion of each action, and it will identify resources to accomplish the necessary corrections. 11.3.2. Within 90 days after receipt of TCEQ comments or as recommended by the TCEQ, the PERFORMING PARTY shall correct deficiencies and report to the TCEQ any deficiencies that cannot be corrected within the allocated time-frame. If the deficiencies are not corrected to the satisfaction of the TCEQ, in addition to other rights the TCEQ may have against the PERFORMING PARTY, it may result in the TCEQ withholding payment to the PERFORMING PARTY for future monitoring activities and/or in the PERFORMING PARTY becoming ineligible for future funding. Resolution Process for Disallowed/Questioned Costs: 11.3.3. The PERFORMING PART`1F_has the right to dispute any such determination by the TCEQ, utilizing the process identified in Article 12, below. Schedule of Remedies available to the TCEQ 11. 4. In accordance with Chapter 2259 Texas Government Code, the following Schedule of Remedies applies to this contract in the event of substandard performance or other failure to conform to the requirements of the contract or applicable law. 11.4.1. Reject substandard performance and request corrections without charge to the TCEQ. 11.4.2. Issue notice of substandard performance or other non-conforming act or omission. 11.4.3. Request and receive return of any over payments or inappropriate payments. 11.4.4. Reject reimbursement request and suspend payment pending accepted revision of substandard performance or non-conformity. 11.4.5. Suspend all or part of the Work and/or payments pending accepted revision of substandard performance or non-conformity. 11.4.6. Reject reimbursement request and withhold all or partial payments. Funds may be retained by the TCEQ for recovery of administrative costs or returned to funding source as authorized by agreements with the funding source and by state or federal law. 11.4.7. Terminate the contract, demand and receive: return of all equipment purchased of contract funds, return of all unexpended funds, and repayment of expended funds. Sanctions for Substandard Performance 11.5. If the TCEQ evaluation finds PERFORMING PARTY's performance to be substandard, TCEQ may provide its written evaluation report to other governmental entities at any time. TCEQ may also provide its written evaluation report to the public as authorized by law. 582-4-55825 39 Cumulative Remedies 11.6. TCEQ may avail itself of any remedy or sanction provided in this contract or in law to recover any losses rising from or caused by the PERFORMING PARTY's substandard performance or any non- conformity with the contract or the law. The remedies and sanctions available to TCEQ in this contract shall not limit the remedies available to the TCEQ under law. 11.7. The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder to the parties hereto, and, in particular but without limitation, the Schedule of Remedies, obligations imposed upon PERFORMING PARTY by these General Conditions,and all other rights and remedies available to TCEQ thereunder, are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available, by Laws or Regulations, by special warranty or guarantee or by other provisions of the Contract Documents, and the provisions of this paragraph will be as effective as if repeated specifically in the Contract Documents in connection with each pat-ticular duty, obligation, right and remedy to which they apply. ARTICLE 12. DISPUTE RESOLUTION Alternative Dispute Resolution 12.1 The dispute resolution process provided for in Chapter 2260 of the Texas Government Code and applicable rules of the TCEQ must be used by the Contractor to attempt to resolve all disputes arising under this contract. 582-4-55825 40 F FEDERAL CONDITIONS FOR GRANTS AND SUBGRANTS ARTICLE 1. FEDERAL REQUIREMENTS This Contract is funded in part with federal grant money. The following conditions apply to this Contract in addition to all other contract terms. All applicable requirements of TCEQ's federal grants and 40 CFR Parts 30 through 35 are incorporated herein by reference (TCEQ will provide copies of applicable federal grants or regulations upon request). The term "PERFORMING PARTY"as used in these Federal Conditions means either PERFORMING PARTY or CONTRACTOR, as applicable. ARTICLE 2. FEDERAL INTELLECTUAL PROPERTY REQUIREMENTS A nonexclusive,perpetual, irrevocable license to use, copy,publish, and modify any intellectual property to which rights are granted or assigned to TCEQ in this Contract are hereby also granted to, assigned to, or reserved by the Federal Government. To the extent consistent with the rights of third parties, the Federal Government shall also have the right to sell any intellectual property right it reserves or acquires through this Contract. ARTICLE 3. ACKNOWLEDGMENT OF FINANCIAL SUPPORT The PERFORMING PARTY shall acknowledge the financial support of the TCEQ and the U.S. EPA whenever work funded, in whole or part,by this Contract is publicized or reported in news media or publications. All reports and other documents completed as a part of this Contract, other than documents prepared exclusively for internal use within the TCEQ, shall carry the following notation on the front cover or title page: PREPARED IN COOPERATION WITH THE TEXAS COMMISSION ONENVIRONMENTAL QUALITY AND U.S. ENVIRONMENTAL PROTECTION AGENCY The preparation of this report was financed through grants from the U.S. Environmental Protection Agency through the Texas Commission on Environmental Quality. If the funding source is a U.S. agency other than U.S. EPA, the name of the appropriate federal agency should be substituted. ARTICLE 4. ACCOUNTING SYSTEMS AND PROPERTY MANAGEMENT SYSTEMS 1. PERFORMING PARTY shall have an accounting system which accounts for costs in accordance with generally accepted accounting standards or principles and complies with 40 CFR §31.20. This system shall provide for the identification, accumulation, and segregation of allowable and unallowable project costs among projects. 2. PERFORMING PARTY shall have a property management system that complies with the standard of and requirements in 40 CFR §§ 31.32 through 31.33. ARTICLE 5. RECORD DOCUMENTS, DATA, RECORDS,ACCESS, AND AUDIT The Federal Government and its agencies will have the same rights of access to records as are granted to, assigned to, or reserved by the TCEQ under this Contract. 582-4-55825 41 ARTICLE 6. DEBARMENT On or prior to the effective date of this Contract, PERFORMING PARTY must submit a Certification Regarding Debarment, Suspension, and Other Responsibility Matters. PERFORMING PARTY must also submit a Certification Regarding Debarment, Suspension, and Other Responsibility Matters/Lower Tier for each subcontractor it employs to conduct the Work. These certifications must be submitted on forms provided by the TCEQ. ARTICLE 7. MINORITY BUSINESS ENTERPRISES/WOMEN'S BUSINESS ENTERPRISES (MBE/WBEs) 1. PERFORMING PARTY shall take steps to encourage participation by minority business enterprises and women's business enterprises in the performance of this Contract. 2. If the General Conditions of this Contract do not contain a requirement that PERFORMING PARTY submit information regarding its subcontracts with Historically Underutilized Businesses (HUBS) as defined by Texas law, then PERFORMING PARTY shall comply with the MBE/WBE requirements imposed on TCEQ in the federal grant or grants funding this Contract, and submit information regarding its subcontracts with MBE/WBEs on forms provided by the TCEQ. State agencies subject to State of Texas procurement law regarding HUBS need not submit MBE/WBE subcontracting information to the TCEQ. 582-4-55825 42 SCOPE OF WORK A. STATEMENT OF SERVICES The PERFORMING PARTY shall perform the tasks described in this Scope of Work as well as comply with all deadlines as they are more fully set out in this Scope of Work. 1. Grants The PERFORMING PARTY shall fully comply with and complete all requirements and output objectives under any U.S. Environmental Protection Agency (EPA) grant agreements from which it receives funds for the period of this Agreement. This task shall apply,but not be limited, to grants awarded under Section 105 of the Federal Clean Air Act. 2. Administrative Regulations The PERFORMING PARTY shall provide adequate recordkeeping and reporting to ensure conformance to the financial, property, and procurement regulations. Guidelines or criteria for accomplishment: Treasury Circular 1075, Chapters 1000 and 2000; OMB Circular A-102, A-133, and A-87; 40 CFR 31; 40 CFR 35. The TCEQ or the EPA, as appropriate, may update any or all of the exhibits referred to in this Agreement. The PERFORMING PARTY shall implement updated editions of any such updated exhibits within 30 days of receipt. 2.1. Funding Application Package Within 30 days of receipt of funding allocation notification and current Funding Application Package, incorporated herein as Exhibit A-1, the PERFORMING PARTY shall submit to the TCEQ its FY- 2004 and 2005 funding application. The application shall include the following: 2.1.1 Grant funds requested in the application shall in no event exceed the amount referred to in the funding allocation notification. Submittal of an application in an amount greater than the PERFORMING PARTY's funding allocation shall result in the TCEQ's immediate rejection of such application and the PERFORMING PARTY shall reapply in conformance with the allocation notification amount. 2.1.2 (The term "Local Air Program" is defined as the eligible local air pollution program conducted by PERFORMING PARTY under Section 382.0622, Texas Health and Safety Code. The combined federal and state share of the funding for the PERFORMING PARTY's Local Air Program (including the state funds under this Agreement) shall not exceed 67% (sixty-seven percent) of the PERFORMING PARTY's total cost for the program. The PERFORMING PARTY must provide matching funds such that the combined federal share, derived from the Section 105 pass-through funding, and the state share, derived from the current Appropriations Act (Rider 7), shall not exceed 67%, or the total amount of this contract will be reduced proportionately so that this condition is met.) 582-4-55825 43 2.1.3 The PERFORMING PARTY must ensure that all required federal certifications as appears in the Funding Application Package, Exhibit A-1, are completely filled out and signed as necessary. 2.1.4 The PERFORMING PARTY must ensure that all required federal inventory provisions are addressed in the Funding Application Package, Exhibit A-1. (See Section 2.5 below.) 2.1.5 The budget is effective for the term of this contract. The PERFORMING PARTY may move funds between budget categories up to a maximum of 10% of the total contract amount. Any changes beyond 10% may be made only with the consent of the TCEQ. 2.2 Requests for Payment On a quarterly basis, the PERFORMING PARTY shall submit requests for payment to TCEQ in accordance with Article 7'of the General Conditions. 2.3 Requests for Rebudget Approval As needed, the PERFORMING PARTY shall submit to the TCEQ a request for rebudget approval according to the requirements described in 40 CFR 31.30 (e) (iii) or (d) (1-3). Within 30 days of request,the TCEQ will provide comments or approve request. 2.4 Purchase of Property Items Prior to purchase, the PERFORMING PARTY shall submit a request and a justification to the TCEQ for approval to purchase property items with a unit acquisition cost of$1,000 or more, if purchased with funds provided by contracts and/or matching funds with the TCEQ. 2.5 Physical Inventory Processing Pursuant to 40 CFR 31.32, the PERFORMING PARTY shall be solely responsible for physical inventory processing as follows: 2.5.1 The PERFORMING PARTY shall perform an annual physical inventory of total property purchased with funds provided by contracts with the TCEQ. 2.5.2 The PERFORMING PARTY shall submit a report to the TCEQ of any unresolved shortages and unprogrammed losses exceeding$1,000 purchased with funds provided by contracts with the TCEQ. 2.5.3 On an ongoing basis and as needed, the PERFORMING PARTY shall request disposition of non-expendable personal property purchased with funds provided by contracts with the TCEQ. 2.5.4 On an ongoing basis, the PERFORMING PARTY shall maintain property records as required. 582-4-55825 44 2.6 Financial Status Report By September 30 of each fiscal year, the PERFORMING PARTY shall submit a final Financial Status Report (FSR) for this contract, in accordance with EPA fiscal guidance 40 CFR 31.41. With the final FSR, the PERFORMING PARTY shall submit a list of property purchased wholly or partially with funds from this contract and having a unit acquisition cost of$1,000 or more. The FSR shall satisfy state financial reporting requirements for this contract. The requirements of this section shall survive the termination of this Agreement. 2.7 End-of-Year Assessment Within 90 days after on-site reviews as described in 2.7.1 and 2.7.2 below, the TCEQ will submit to the EPA the End-of-Year Assessment report on the activities of the PERFORMING PARTY and its progress in meeting contract requirements. The report will include quality assurance findings and recommended solutions to any,quality assurance problems noted. A copy of the report will be provided to the PERFORMING PARTY. The requirements regarding the End-of-Year Assessment shall survive the termination of this Agreement. The End-of-Year Assessment process shall be conducted as follows: 2.7.1 FY2003 End-of-Year Assessment(covering 9/1/02 through 8/31/03)and FY2004 End-of-Year Assessment(covering 9/1/03 through 8/31/04) If the TCEQ identifies deficiencies in the ambient air monitoring program upon its FY-03 End-of Year Assessment required by previous agreement, or upon its FY04 End-of-Year Assessment, the PERFORMING PARTY shall, within 90 days after receipt of TCEQ comments or as recommended by the TCEQ, correct any similar deficiencies in the Work performed under this contract and report to the TCEQ any deficiencies that cannot be corrected within the allocated time-frame. If the deficiencies are not corrected to the satisfaction of the TCEQ, in addition to other rights the TCEQ may have against the PERFORMING PARTY, it may result in the TCEQ withholding payment to the PERFORMING PARTY for future monitoring activities and/or in the PERFORMING PARTY becoming ineligible for future funding. 2.7.2 FY-2003 End-of-Year Assessment (covering 9/1/02 through 8/31/2003) FY-2004 End-of-Year Assessment (covering 9/1/03 through 8/31/2004) a. By August 1 of each fiscal year, the TCEQ will provide an End-of-Year Questionnaire to be completed by the PERFORMING PARTY. The response to the questionnaire will be used as part of the on-site assessment of program activities and the ambient air monitoring program audit. b. By September 1 of each fiscal year, the TCEQ will provide a schedule for the End-of-Year Assessment. C. By September 1 of each fiscal year, or within thirty days of receipt, whichever is later, the PERFORMING PARTY shall provide a written response to the End-of-Year Questionnaire to the TCEQ. d. By November 30 of each fiscal year, the TCEQ will complete the on-site program review and the audit of the air monitoring program. Both on-site reviews 582-4-55825 45 F will include, but are not limited to, discussions of new and preliminary findings as well as any associated recommendations. 2.7.3 Within 30 days of receipt of each of the FY-2003 and FY-2004 End-of-Year Assessments, the PERFORMING PARTY shall provide information to the TCEQ concerning action(s) that will be taken to correct any deficiencies noted in the End-of-Year Assessment report. This response will include a description of the nature and extent of each deficiencies' impact on data quality, the specific corrective actions taken or planned to address the deficiencies, actions taken or planned to prevent recurrence, a schedule to bring any deficiencies in the ambient air monitoring program up to TCEQ standards, the means to be used to document completion of each action, and it will identify resources to accomplish the necessary corrections. 2.7.4 Within 90 days after receipt of TCEQ comments or as recommended by the TCEQ, the PERFORMING PARTY shall correct deficiencies and report to the TCEQ any deficiencies that cannot be corrected within the allocated time-frame. If the deficiencies are not corrected to the satisfaction of the TCEQ, in addition to other rights the TCEQ may have against the PERFORMING PARTY, it may result in the TCEQ withholding payment to the PERFORMING PARTY for future monitoring activities and/or in the PERFORMING PARTY becoming ineligible for future funding. 3. Quality Assurance Plans A complete task under this section shall include all of the requirements listed below. In order to receive the payment set out in the Scope of Work(Fixed Prices), the PERFORMING PARTY must fulfill all of the following subsections. Guidelines or criteria for accomplishment: Sec.319, CAA; 40 CFR,Parts 50, 51, 53, and 58; EPA QA/R2; EPA QA/R5; EPA QA G4; EPA QA/G-6; EPA QA/G-7; EPA QA/G9. 3.1 Quality Management Plan By March 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its revised/updated Quality Management Plan or a certification that no changes were made. The Quality Management Plan must adhere to EPA QA/R2 guidance incorporated herein as Exhibit A-2. Failure to have an approved plan may result in withholding of all Section 105 Contract funding until the plan is submitted and approved by the TCEQ. 3.2 Quality Assurance Project Plan By August 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its revised/updated Quality Assurance Project Plan associated with this Scope of Work or a certification that no changes were made, or sign onto the TCEQ NAMS/SLAMSBORDER QAPP. The Quality Assurance Project Plan must adhere to EPA QA/R5 guidance incorporated herein as Exhibit A-3, and requirements must be at least as stringent as those described in the TCEQ NAMS/SLAMS Network and U.S./Border Support Activities Quality Assurance Project Plan. Failure to have an approved plan may result in withholding of all Section 105 Contract funding until the plan is submitted and approved by the TCEQ. 4. Monitoring Operations Program The PERFORMING PARTY shall provide support of the Texas Ambient Air Monitoring network objectives 582-4-55825 46 for FY-2004 and FY2005 by operating and submitting data for air pollution monitoring sites. The PERFORMING PARTY shall ensure that the monitoring sites are operated in compliance with applicable regulations. The PERFORMING PARTY shall implement and conduct a Monitoring Operations Program as required by the following: 4.1 Maintenance and Repair of Equipment The PERFORMING PARTY shall be responsible for all the maintenance and/or all the repair of any of its equipment at these sites. 4.2 Training The PERFORMING PARTY shall ensure that its staff is adequately trained and qualified in order to perform designated tasks.`Representatives for the PERFORMING PARTY are expected to attend TCEQ provided training, workshops, and/or other activities designed to increase technical capabilities required to support this Agreement. It shall be the responsibility of the PERFORMING PARTY to identify and obtain any necessary safety training. The PERFORMING PARTY shall provide a quarterly report to the TCEQ pursuant to Article 7 of the General Conditions of this Agreement of attendance by staff of training, workshops, and/or other activities designed to increase technical capabilities of the PERFORMING PARTY,s personnel. The report shall include any safety training that the PERFORMING PARTY's personnel attended. This report shall be discussed during the End- of-Year Assessment. 4.3 Quality Assurance/Quality Control Assessments 4.3.1 On a quarterly basis, the PERFORMING PARTY shall perform performance evaluations for accuracy on at least 25% of the NAMS/SLAMS designated monitors. All NAMS/SLAMS monitors will be assessed at least once a year. If the data quality objectives are not met, the PERFORMING PARTY must produce in writing an assignable cause for not meeting this specification, the specific corrective actions taken or planned to address the nonconformance, actions taken or planned to prevent recurrence, the timetable for completing each action, and the means to be used to document completion of each action. The TCEQ reserves the right to reject the affected data sets and payment may be withheld if 75% data return per quarter is not accomplished. 4.3.2 On an ongoing basis, the TCEQ reserves the right to assess, which includes performance evaluation, inspection, surveillance, peer review, or audit monitors operated by the PERFORMING PARTY. Such assessments are expected to be announced and access to the monitors and the associated measurement data are expected to be coordinated with the PERFORMING PARTY's staff. At least one assessment per year should be expected. More frequent assessments may occur if significant or persistent data quality issues occur. 4.4 Air Quality Data (AQD) Reporting The PERFORMING PARTY shall submit to the TCEQ all air quality data (including any required metals analysis) in a mutually agreed upon format for the preceding quarter for all monitors as designated by the TCEQ, including NAMS, and SLAMS. To satisfy federal requirements, these data shall be submitted within 45 days after the end of the federal calendar quarter. All air quality data 582-4-55825 47 submittals shall be accompanied by the precision and accuracy reports for ambient monitors as designated by the TCEQ, including all NAMS, and SLAMS,which describe the quality of the data submitted. 4.4.1 Because the federally mandated time-frames do not coincide with the contract period, the data submittal required in Section 4.4(Air Quality Data Reporting) may be evaluated by the TCEQ after payment has been made to the PERFORMING PARTY or after the contract period has expired for monitoring services. Any deficiency related to the quality and/or timeliness of the data submittal report will be documented and reported by the TCEQ to the PERFORMING PARTY. If the deficiencies are not corrected to the satisfaction of the TCEQ, it may result in the TCEQ withholding payment to the PERFORMING PARTY for future monitoring activities and/or in the PERFORMING PARTY becoming ineligible for future funding. 4.5 Notice of Special Purpose Monitoring At least 30 days before monitoring begins or as soon as is practicable, the PERFORMING PARTY shall provide written notification to the TCEQ monitoring program and the TCEQ regional office of any special purpose monitoring to be performed. This notification shall include a summary report describing special purpose monitoring to be conducted. If the monitoring is anticipated to continue for a period greater than 90 days,quarterly accuracy audits and biweekly precision checks, in the case of continuous monitoring, shall be performed. 4.6 Reporting of Special Purpose Monitoring Data With quarterly data, the PERFORMING PARTY shall submit data to the TCEQ in a mutually agreed upon format for special purpose monitoring conducted. A summary report of monitoring results will be submitted within 45 days after completion of monitoring. 4.7 NAMS/SLAMS Network Review If the PERFORMING PARTY makes any changes to its local network during a quarter, the Performing Party shall provide a status report of its local network to evaluate the adequacy of the existing network to meet the state and federal monitoring objectives. Guidelines or criteria for accomplishment: 40 CFR, Part 58. The network review process shall be conducted as follows: 4.7.1 By May 1 of each fiscal year, the TCEQ will provide a draft of any proposed revisions to the PERFORMING PARTY for review, evaluation, and any additional proposals for NAMS/SLAMS network. 4.7.2 By May 14 of each fiscal year, the PERFORMING PARTY shall submit a review and evaluation document, including recommendations for network changes to the TCEQ. 4.7.3 By June 1 of each fiscal year, the TCEQ will submit a modified NAMS/SLAMS review and evaluation document to the EPA. A copy of the final document will be provided to the Performing Party. 4.7.4 On an ongoing basis, TCEQ will notify the PERFORMING PARTY of EPA- approved changes to NAMS/SLAMS network. 582-4-55825 48 B. DELIVERABLES The PERFORMING PARTY shall provide the appropriate TCEQ office with the reports required below to provide the information on Tasks listed in the Scope of Work(Statement of Services) of this Agreement: 1. Administrative Regulations The requirements regarding the End-of-Year Assessment and the following reports shall survive the termination of this Agreement. a. By September 30 of each fiscal year, the PERFORMING PARTY shall submit a final Financial Status Report(FSR) for this contract, as prescribed under section 2.6 in Scope of Work(Statement of Services)of this Agreement. b. By September I of each fiscal year, or 30 days after receipt, whichever is later, the PERFORMING PARTY shall provide a written response to the End-of-Year Questionnaire to the TCEQ, as prescribed under section 2.7.2 in Scope of Work(Statement of Services) of this Agreement. c. Within 30 days of receipt of each of the FY-2003 and FY2004 End-of-Year Assessments, the PERFORMING PARTY shall provide to the TCEQ information concerning action(s) that will be taken to correct any deficiencies noted in the End-of-Year Assessment report, as prescribed under sections 2.7.3 and 2.7.4 in Scope of Work (Statement of Services) of this Agreement. d. Within 30 days of receipt at PERFORMING PARTIES OFFICE a copy of the annual independent single audit required by OMB Circular A-133 shall be provided by the PERFORMING PARTY to the TCEQ Project Manager. e. All other deliverables required under this contract. 2. Quality Assurance Plans a. By March 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its revised/updated Quality Management Plan or a certification that no changes were made, as prescribed under section 3.1 in Scope of Work(Statement of Services) of this Agreement. b. By August 1 of each fiscal year, the PERFORMING PARTY shall submit to the TCEQ its revised/updated Quality Assurance Project Plan associated with this Scope of Work or a certification that no changes were made, as prescribed under section 3.2 in Scope of Work (Statement of Services) of this Agreement. 582-4-55825 49 3. Monitoring Operations Program The requirements of this section shall survive the termination of the Agreement. a. The PERFORMING PARTY shall submit a Quarterly Report Checklist incorporated herein as Exhibit A-4, pursuant to Article 7 of the General Conditions and Form B-1 with every invoice. The Checklist, along with the required STATE OF TEXAS PURCHASE VOUCHER(Comptroller of Public Accounts Form 737170) and an invoice, will serve as a request for payment of services by certifying that the PERFORMING PARTY is supporting the Texas Ambient Air Monitoring network as prescribed under section 4 in Scope of Work (Statement of Services) of this Agreement. b. Within 45 days after the end of the federal calendar quarter, the PERFORMING PARTY shall submit to the TCEQ all air quality data(including metals analysis) in a correct AIRS format for the preceding quarter for all monitors as designated by the TCEQ, including NAMS, SLAMS, as prescribed under section 4.4 in Scope of Work(Statement of Services) of this Agreement. c. At least 30 days before monitoring begins or as soon as is practicable, the PERFORMING PARTY shall provide written notification to the TCEQ monitoring program and the TCEQ regional office of any special purpose monitoring to be performed, as prescribed under section 4.5 in Scope of Work(Statement of Services) of this Agreement. d. With quarterly data, the PERFORMING PARTY shall submit data to the TCEQ in the correct AIRS format for special purpose monitoring conducted. A summary report of monitoring results will be submitted after completion of monitoring, as prescribed under section 4.6 in Scope of Work(Statement of Services) of this Agreement. e. The PERFORMING PARTY shall provide a status report of its local network, as changes occur in the network, to the TCEQ, to evaluate the adequacy of the existing network to meet the state and federal monitoring objectives, as prescribed under section 4.7 in Scope of Work (Statement of Services) of this Agreement. 582-4-55825 50 C. FIXED REIMBURSEMENT The PERFORMING PARTY shall be paid on a basis provided in the chart below for the completion of the tasks as described in Scope of Work(Deliverables). (The total amount shown below will be for each fiscal year.) Estimated Unit Total Cost Item Quantity Cost Reimbursement Prepare Quality Management Plan according to EPA QA/R-2 (Exhibit A-2). one 8,756.00/yr $8,756.00 Prepare Quality Assurance Project Plan according to EPA QA/R5 (Exhibit A-3) one 8,756.00/yr $8,756.00 Monitoring Activities 12 mos $7,162.91/mo $85,955.00 Total $103,467.00 The parties agree that: 1) PERFORMING PARTY's costs for the activities listed above have been reviewed and may be estimated at the fixed amount reflected for unit cost reimbursement. 2) The estimates of its costs listed above are the nearest practicable estimates of its actual costs for the listed activities. 582-4-55825 51 THE FOLLOWING EXHIBITS AND FORMS ARE SEPARATE ATTACHMENTS A-1 (Funding Application Package) A-2 (EPA QA/R-2) - Requirements for Quality Management Plans A-3 (EPA QA/R-5) - Requirements for Quality Assurance Project Plans A-5 (EPA QA/G-6) - Guidance for Preparing Standard Operating Procedures A-6 (EPA QA/G-7) - Guidance on Technical Audits and Related for Environmental Data Operations B-7 (Form B-7) - Allowable Expenditure Guidelines 582-4-55825 52 Exhibit A-4 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval QUARTER DATES TO Sections A - C are all part of this Checklist. A. Administrative Regulations A-1. Have you reviewed your procurement systems for compliance with 40 CFR 35 according to the Procurement System Certification form (EPA form 5700-48) in your Financial Application Package? Yes. The certification was submitted on No. This is not our year to do this. A-2. Have you purchased any property items with a unit acquisition cost of$1,000 or more? Yes. The request to purchase the property item(s) was approved by the TCEQ on No. We have not made any such purchases. A-3. Are you maintaining property records (performing physical inventory) as required? Yes. They are available in our office. No. Please explain. A-4. Is the quarterly HUB/MWBE Progress Assessment Reports required in the General Conditions, Article 4.33 (Minority Business Enterprises/Women's Business Enterprises) attached to this reimbursement request? Yes. No. Please explain. A-5. What is the date of your most recent independent audit report(required by OMB A-133). Was this report submitted to the TCEQ Project Representative? Yes. Submitted on No. Please explain. 582-4-55825 53 F FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-6. Have you provided written response to the FY-2003 End-of-Year Review questionnaire by the deadline of September 30, 2003 or within 30 days after receipt of the questionnaire? Yes. It was submitted on No. Please explain. NA. Due in the 1st quarter of the contract only. A-7. Within 30 days of receipt of your FY-2003 End-of-Year Review evaluation did you provide information concerning actions to be taken to correct any deficiencies found during the End-of- Year Review? _ Yes. No. Please explain. N/A. We had no deficiencies. NIA. Not due this quarter. A-8. Have the deficiencies been corrected? Yes. No. We are still within the 90-day window. No. There are deficiencies that cannot be corrected within the allotted time-frame. An explanation is attached. N/A. A-9. Have you performed a physical inventory of total property purchased with funds provided by contracts with the TCEQ by the deadline of August 31, 2004? Yes. The report is available in our office. No. Please explain. NA. Due in the 4th quarter of the contract only. A-10. Have you reported any unresolved shortages and unprogrammed losses exceeding $1,000 by the deadline of August 31, 2004? Yes. The report was made on No. We have none to report. NA. Due in the 4th quarter of the contract only. 582-4-55825 54 4 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-11. Is the final Financial Status Report for this contract, along with a list of property costing $1,000 or more and purchased with contract funds, attached to this reimbursement request and being submitted no later than the deadline of September 30, 2004? Yes. _ No. Please explain. NA. Due in the 4th quarter of the contract only. A-12. Have you submitted your funding application for FY-2004 within 30 days of receipt of funding allocation notification and current Funding Application Package? Yes. It was submitted on No. Projected submittal date: NA. Due in the 4th quarter of the contract only. A-13 You are required to provide matching funds of not less than 33% for the Section 105 Contract, part of which can be funds from the State Compliance Contract. Funding allocated for Title V activities in the State Compliance Contract cannot be used as match. You must demonstrate that funds provided to your program under the Section 105 Contract do not cause failure of the match requirements under the State Compliance Contract, which requires that no more than 67% of total funding for this program comes from state and federal sources. Please list the breakdown for your FY-2004 air program: State Compliance Contract $ % Section 105 Contract $ % Other 105 Funds* $ % City/County Funds $ % Total $ 100% * In order to accurately calculate your match under the terms of the State Compliance Contract and the Section 105 Contract, you must include any additional 105 funding you have received directly from the EPA that is not processed through the TCEQ. 582-4-55825 55 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval B. Quality Assurance Planning B-1. Have you submitted a revised/updated Quality Management Plan or certification of no changes by the deadline of March 1, 2004? Yes. The report was submitted on ^_ No. Please explain. NA. Not due this quarter. B-2. Have you submitted the Quality Assurance Project Plan or certification of no changes by the deadline of August 1, 2004? _ Yes. It was submitted on _ No. Please explain. NA. Not due this quarter. 582-4-55825 56 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C. Monitoring Operations Program C-1. Have there been any changes to your Scope of Work as outlined in Attachment A (Statement of Services to be Performed)? Yes. No. C-2. Did your monitoring staff participate in any applicable training activities during this reporting period? Yes. Please list. No. C-3. Have you performed accuracy audits on at least 25% of the NAMS/SLAMS/PAMS designated monitors during this reporting period? Yes. The report for this will be submitted within 45 days of the end of the quarter. No. C-4. Have you collected air quality data during this quarter which you will submit to TCEQ in a mutually agreed upon format? Yes. The report will be submitted no later than No. C-5. Was precision and accuracy data collected to quality assure the air data? _Yes. The report will be submitted no later than No. C-6. Have you experienced any significant equipment failure or instrument malfunction? _Yes. Please explain. No. C-7. Has 30 days written notice been given prior to the start of any special purpose monitoring? Yes. Notice and a summary report submitted on No. N/A. We have no new SPMs. 582-4-55825 57 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C-8. Has reporting of Special Purpose Monitoring data been submitted in a mutually agreed upon format with quarterly data? _ Yes. _ No. Please explain. N/A. C-9. Has a summary report of Special Purpose Monitoring results been submitted in a mutually agreed upon format upon completion of monitoring? _ Yes. Report was submitted on No. Please explain. N/A. C-10. Have you submitted a review and evaluation document, including recommendations for network changes, for the NAMS/SLAMS Network Review by the deadline of May 1? Yes. Submitted on for quarter. No. CAL Have you submitted the required quarterly status report for evaluating adequacy of the existing network to meet state and federal standards? Yes. _ No. Please explain. NA C-12. If any changes were made to your local monitoring network during a quarter, have you determined whether the nearest practicable estimate of your actual cost(including your required match of 33%) for Monitoring Operations Program activities is less than or equal to the cumulative fixed monthly fee? _ Yes. No. 582-4-55825 58 FY-2004 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval Sections A - C are all part of this Checklist. Authorized Signatory of Performing Party Date Printed Name of Signatory 582-4-55825 59 Exhibit A� FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval QUARTER DATES TO Sections A - C are all part of this Checklist. A. Administrative Regulations A-1. Have you reviewed your procurement systems for compliance with 40 CFR 35 according to the Procurement System Certification form (EPA form 5700-48) in your Financial Application Package? _ Yes. The certification was submitted on No. This is not our year to do this. A-2. Have you purchased any property items with a unit acquisition cost of$1,000 or more? Yes. The request to purchase the property item(s) was approved by the TCEQ on No. We have not made any such purchases. A-3. Are you maintaining property records (performing physical inventory) as required? Yes. They are available in our office. No. Please explain. A-4. Is the quarterly HUB/MWBE Progress Assessment Reports required in the General Conditions, Article 4.33 (Minority Business Enterprises/Women's Business Enterprises) attached to this reimbursement request? _ Yes. _ No. Please explain. A-5. What is the date of your most recent independent audit report (required by OMB A-133). Was this report submitted to the TCEQ Project Representative? _ Yes. Submitted on No. Please explain. 582-4-55825 60 FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-6. Have you provided written response to the FY-2004 End-of-Year Review questionnaire by the deadline of September 30, 2004 or within 30 days after receipt of the questionnaire? _ Yes. It was submitted on _ No. Please explain. NA. Due in the 1st quarter of the contract only. A-7. Within 30 days of receipt of your FY-2004 End-of-Year Review evaluation did you provide information concerning actions to be taken to correct any deficiencies found during the End-of- Year Review? _ Yes. _ No. Please explain. N/A. We had no deficiencies. N/A. Not due this quarter. A-8. Have the deficiencies been corrected? _ Yes. _ No. We are still within the 90-day window. _ No. There are deficiencies that cannot be corrected within the allotted time-frame. An explanation is attached. N/A. A-9. Have you performed a physical inventory of total property purchased with funds provided by contracts with the TCEQ by the deadline of August 31, 2005? _ Yes. The report is available in our office. No. Please explain. NA. Due in the 4th quarter of the contract only. A-10. Have you reported any unresolved shortages and unprogrammed losses exceeding $1,000 by the deadline of August 31, 2005? _ Yes. The report was made on No. We have none to report. NA. Due in the 4th quarter of the contract only. 582-4-55825 61 FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval A-11. Is the final Financial Status Report for this contract, along with a list of property costing $1,000 or more and purchased with contract funds, attached to this reimbursement request and being submitted no later than the deadline of September 30, 2005? _ Yes. _ No. Please explain. NA. Due in the 4th quarter of the contract only. A-12. Have you submitted your funding application for FY-2005 within 30 days of receipt of funding allocation notification and current Funding Application Package? _ Yes. It was submitted on _ No. Projected submittal date: NA. Due in the 4th quarter of the contract only. A-13 You are required to provide matching funds of not less than 33% for the Section 105 Contract, part of which can be funds from the State Compliance Contract. Funding allocated for Title V activities in the State Compliance Contract cannot be used as match. You must demonstrate that funds provided to your program under the Section 105 Contract do not cause failure of the match requirements under the State Compliance Contract, which requires that no more than 67% of total funding for this program comes from state and federal sources. Please list the breakdown for your FY-2005 air program: State Compliance Contract $ % Section 105 Contract $ % Other 105 Funds* $ % City/County Funds $ % Total $ 100% * In order to accurately calculate your match under the terms of the State Compliance Contract and the Section 105 Contract, you must include any additional 105 funding you have received directly from the EPA that is not processed through the TCEQ. 582-4-55825 62 FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval B. Quality Assurance Planning B-1. Have you submitted a revised/updated Quality Management Plan or certification of no changes by the deadline of March 1, 2005? Yes. The report was submitted on No. Please explain. NA. Not due this quarter. B-2. Have you submitted the Quality Assurance Project Plan or certification of no changes by the deadline of August 1, 2005? Yes. It was submitted on No. Please explain. NA. Not due this quarter. 582-4-55825 63 FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C. Monitoring Operations Program C-1. Have there been any changes to your Scope of Work as outlined in Attachment A (Statement of Services to be Performed)? Yes. No. C-2. Did your monitoring staff participate in any applicable training activities during this reporting period? Yes. Please list. No. C-3. Have you performed accuracy audits on at least 25% of the NAMS/SLAMS/PAMS designated monitors during this reporting period? _ Yes. The report for this will be submitted within 45 days of the end of the quarter. No. C-4. Have you collected air quality data during this quarter which you will submit to TCEQ in a mutually agreed upon format? _ Yes. The report will be submitted no later than No. C-5. Was precision and accuracy data collected to quality assure the air data? _Yes. The report will be submitted no later than No. C-6. Have you experienced any significant equipment failure or instrument malfunction? _Yes. Please explain. No. C-7. Has 30 days written notice been given prior to the start of any special purpose monitoring? Yes. Notice and a summary report submitted on _ No. N/A. We have no new SPMs. 582-4-55825 64 FY-2005 SECTION 105 CONTRACT QUARTERLY REPORT Check List for Reimbursement Request Approval C-8. Has reporting of Special Purpose Monitoring data been submitted in a mutually agreed upon format with quarterly data? _ Yes. No. Please explain. N/A. C-9. Has a summary report of Special Purpose Monitoring results been submitted in a mutually agreed upon format upon completion of monitoring? Yes. Report was submitted on No. Please explain. N/A. C-10. Have you submitted a review and evaluation document, including recommendations for network changes, for the NAMS/SLAMS Network Review by the deadline of May 1? _ Yes. Submitted on for quarter. No. C-11. Have you submitted the required quarterly status report for evaluating adequacy of the existing network to meet state and federal standards? Yes. _ No. Please explain. NA C-12. If any changes were made to your local monitoring network during a quarter, have you determined whether the nearest practicable estimate of your actual cost(including your required match of 33%) for Monitoring Operations Program activities is less than or equal to the cumulative fixed monthly fee? Yes. No. 582-4-55825 65