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7. A participant in a covered transaction may rely upon a certification of a <br /> prospective participant in a lower tier covered transaction that it is not <br /> proposed for debarment under 48 CFR Part 9, subpart 9.4, debarred, <br /> suspended, ineligible, or voluntarily excluded from the covered transaction, <br /> unless it knows that the certification ~s erroneous. A participant may decide <br /> the method and frequency by which it determines the eligibility of its <br /> principals. Each participant may, but is not required to, check the List of <br /> Parties Excluded from Federal Procurement and Non-procurement List. <br /> 8. Nothing contained in the foregoing shall be construed to require establishment of a system of <br /> records in order to render in good faith the certification required by this clause. The <br /> knowledge and information of a participant is not required to exceed that which is normally <br /> possessed by a prudent person in the ordinary course of business dealings. <br /> 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a <br /> covered. transaction knowingly enters into a lower tier covered transaction with a person who <br /> is proposed for debarment under 48 CFR Part 9, subpart 9.4, suspended, debarred, ineligible, <br /> or voluntarily excluded from participation in this transaction, in addition to other remedies <br /> available to the Federal government, 4he department or agency with which this transaction <br /> originated may pursue available remedies, including suspension and/or debarment. <br /> IX. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary <br /> Exclusion - <br /> Lower Tier Covered Transactions <br /> 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it <br /> -nor its principals is presently debarred, suspended, proposed for debarment, declared <br /> ineligible, or voluntarily excluded from participation in this transaction by any Federal <br /> department or agency. <br /> 2. Where the prospective lower tier participant is unable to certify to any of the statements in this <br /> certification, such prospective participants shall attach an explanation to this proposal. <br /> <br /> X. Minority Business Enterprise Requirements <br /> It is the policy of the Department of Transportation that minority business enterprises, as defined <br /> in 49 CFR Part 23, shall have the maximum oppominity to participate in the performance of <br /> contracts financed in whole or in part with Federal funds under this agreement. Consequently, the <br /> MBE requirements of 49 CFR Part 23 apply to this agreement. <br /> The recipient or its contractor agrees to ensure that minority business enterprises <br /> as defined in 49 CFR Part 23 have the maximum opportunity to participate in the <br /> performance of contracts and subcontracts financed in whole or in part with <br /> Federal funds provided under this agreement. In this regard, all recipients or <br /> contractors shall take all necessary and reasonable steps in accordance with 49 <br /> CFR Part 23 to ensure that minority business enterprises have the maximum <br /> opportunity to compete for and perform contracts. Recipients and their <br /> contractors shall not discriminate on the basis of race, color, national origin, or <br /> sex in the award and performance ofDOT-assisted contracts. <br /> XI. Requirements <br /> A. It is mutually agreed and promised that the applicant shall follow the State and Federal <br /> requirements and guidelines set forth in the State of Hawaii Project Procedures Mamial as <br /> amended. All project expenditure records are to be retained for at least three years after the <br /> date of the final expenditure report. <br /> <br />