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X. Minority Business Enterprise Requirements <br /> It is the policy of the Department of Transportation that minority business enterprises, as defined in 49 <br /> CFR Part 23, shall have the maximum opportunity to participate in the performance of contracts <br /> financed in whole or in part with Federal funds under this agreement. Consequently, the MBE <br /> requirements of 49 CFR Part 23 apply to this agreement. <br /> The recipient or its contractor agrees to ensure that minority business enterprises as defined in 49 CFR <br /> Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts <br /> financed in whole or in part with Federal funds provided under this agreement. In this regard, all <br /> recipients or contractors shall take all necessary and reasonable steps in accordance with 49 CFR Part 23 <br /> to ensure that 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, color, national <br /> origin, or sex in the award and performance of DOT-assisted contracts. <br /> XI. Requirements <br /> A. It is mutually agreed and promised that the applicant shall follow the State and Federal requirements <br /> and guidelines set forth in the State of Hawaii Project Procedures Manual as amended. All project <br /> expenditure records are to be retained for at least three years after the date of the final expenditure <br /> report. <br /> XII. Authorization to Proceed <br /> A. It is mutually agreed between the STATE and the APPLICANT that this AGREEMENT OF <br /> UNDERSTANDING AND COMPLIANCE shall become effective upon the STATE'S agreement <br /> and authorization to proceed as set forth in PART II (2) of this application. <br />