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• DRAFT VII Federal Financial assistance Agreement Assurance ( §26.13) 9/5/00 The City of San Leandro will sign the following assurance, applicable to all FHWA - assisted contracts and their administration as part of the program supplement agreement for each project: The City of San Leandro shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any FHWA assisted contract or in the administration of its DBE Program or the requirements of 49 CFR Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of FHWA- assisted contracts. The recipient's DBE Program, as required by 49 CFR Part 26 and as approved by FHWA, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the City of San Leandro of its failure to cam out its approved program. the DOT may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). VIII DBE Financial Institutions It is the policy of the City of San Leandro to investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to use these institutions, and to encourage prime contractors on FHWA - assisted contracts to make use of these institutions. Information on the availability of such institutions can be obtained from the DBE Liaison Officer. Caltrans' Business Enterprise Program may offer assistance to the DBE Liaison Officer. IX Directory ( §26.31) The City of San Leandro will refer interested persons to the DBE directory available from Caltrans' Business Enterprise Program website at www.dot.ca.gov/hq/bep. X Required Contract Clauses (§ §26.13. 26.29) Contract Assurance • We will ensure that the following clause is placed in every FHWA - assisted contract and subcontract: The contractor or subcontractor shall not discriminate on the basis of race. color, national origin. or sex in the performance of this contract. The contractor shall cam out applicable requirements of 49 CFR Part 26 in the award and administration of FHWA - assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the local agency recipient deems appropriate. Page 3of9