1991 - 07-08-91 Regular Meeting - Laserfiche WebLink

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aoa~ 13 F~,e 908 3.4. Subcontracting. If the Contractor intends to procure any of the services to be provided thereunder by subcontract, the Contractor must secure the prior written approval of the SDA. All subcontract documents must reference this Contract, and all subcontractors must acknowledge that the SDA, the State, and the United States Department of Labor have all rights and powers as to the subcontractor that they have under this Contract and under law as to the contractor. At a minimum, subcontracts must contain terms equivalent to those found herein at paragraph 3.6, 3.7.2, 3.7.5, 3.7.6, 3.8, 3.9.1, and 3.11. It is expressly understood that the delegation of any responsibility to a subcontractor shall not diminish the responsibility of the Contractor to assure compliance with this Contract and that the Contractor is liable to the SDA for any costs of the subcontractor deemed unallowable. It is also expressly understood that the SDA is not responsible for the obligations of the Contractor to its subcontractor(s). 3.5. Budget Invoicing Payment and Closeout. 3.5.1. The Contractor shall be compensated for the services to be performed under this Contract by monthly reimbursement based on allowable expenditures actually made, except an advance of one twelfth of the Contract amount shall be made to the Contractor during the first month of the Contract period if requested by the Contractor. 3.5.2. The contractor shall submit budgets, invoices and reports as required by the SDA. 3.5.3. All costs incurred by the Contractor must be within budget amounts in the line item budget in the proposal, or in an approved amended budget. Administrative costs will be reimbursed at a rate not to exceed the approved percentage relative to program expenditures on a monthly basis. 3.5.4. Within fifteen calendar days after (a) completion of termination of this contract or (b) the expenditure of a maximum amount of funds provided hereunder, whichever comes first, the contractor shall submit to the SDA a signed closeout statement containing such information as required by the SDA. The Contractor releases the SDA from any obligation to pay any claim for costs incurred under this contract that is not submitted with the closeout statement. Within the fiftaAn calendar day closeout period, the Contractor will reimburse to the SDA any funds in excess of allowable amounts in any budget line item. NOTE: For Private non-Profit agencies rebates/refunds from prepaid expenses shall be applied to ongoing program expenditures. 3.5.5. The filing of a petition in bankruptcy or insolvency by or against the Contractor or the filing of any foreclosure action, eviction proceeding or litigation that could threaten the ability of the contractor or its subcontractor (a) to perform the duties hereunder shall be reported immediately to the SDA and may be cause for suspension of payments or conditional continuation of funding, including conditional designation of an alternate administering agency for the Contractor. 3.5.6. The Contractor shall not assign or transfer any interest in this contract without the prior written approval of the SDA. -3-