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funds provided under this agreement. In this regard, all recipients or contractors shall <br /> take all necessary and reasonable steps in accordance with 49 CFR Part 23 to ensure that <br /> minority business enterprises have the maximum opportunity to compete for and perform <br /> contracts. Recipients and their contractors shall not discriminate on the basis of race, <br /> color, national origin, or 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 <br /> Federal requirements and guidelines set forth in the State of Hawaii Project <br /> Procedures Manual as amended. All project expenditure records are to be retained for <br /> at least three years after the date of the final expenditure report. <br /> <br /> XII. Authorization to Proceed <br /> A. It is mutually agreed between the STATE and the APPLICANT that this <br /> AGREEMENT OF UNDERSTANDING AND COMPLIANCE shall become <br /> effective upon the STATE'S agreement and authorization to proceed as set forth in <br /> PART II (2) of this application. <br /> <br />