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HomeMy WebLinkAboutResolution - 2002-R0313 - Contract Pertaining To Milk Sample Analyses - TX Dept. Of Health - 08_29_2002Resolution No. 2002-RO313 August 29, 2002 Item No. 43 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract (TDH Document No. 7560005906A 2003, Attachment No. 01) pertaining to milk sample analyses and any associated documents between the City of Lubbock and the Texas Department of Health, a copy of which contract is attached hereto and which shall be spread upon the minutes of this Council and as spread upon the minutes of this Council shall constitute and be a part hereof as if fully copied herein in detail. Passed by the City Council this 29th day o ATTEST: Rebecca Garza, City Secret APPROVED AS TO CONTENT: Tommy C m en, Health Director APPROVED AS TO FORM: IYAald G. Vandiver, First Assistant City Attorney DDres/TDH-Milk. con.. res August 1, 2002 CONTRACT FOR PUBLIC HEALTH SERVICES Resolution No. 2002—RO313 August 29, 2002 Item No. 43 TDH DOCUMENT NO. 7560005906A?.00'; Contract Issued by: TEXAS DEPARTMENT OF HEALTH TV - (RECEIVING AGENCY) 1100 WEST 497" STREET AUSTIN, TEXAS 78756-3199 Legal Authority to Contract: Chapters 12 and 121, Health and Safety Code. Venue: The provisions of this Contract shall be interpreted in accordance with Texas law. Venue for any court disputes shall be in Travis County, Texas. PERFORMING AGENCY NAME: LUBBOCK CITY HEALTH DEPARTMENT MAILING ADDRESS: PO BOX 2548 LUBBOCK TX 79457-0000 STREET ADDRESS: 1902 TEXAS AVENUE LUBBOCK TX 79457-0000 NAME OF AUTHORIZED CONTRACTING ENTITY: CITY OF LU13BOCK HEALTH DEPARTMENT (If different from PERFORMING AGENCY) PAYEE DATA (If not the same as PERFORMING AGENCY or AUTHORIZED CONTRACTING ENTITY; must be on file with the Texas State Comptroller's Office.): NAME: CITY OF LUB13OCK ADDRESS: PO BOX 2000 LU13BOCK TX 79408-2000 (City, State, Zip) State of Texas Vendor Identification No. (14 digits) PAYEE AGENCY Fiscal 17560005906001 Year Ending Month: December PAYEE BUSINESS INFORMATION FOR STATISTICAL REPORTING: Please check the categories that apply to your business. Small Business - A corporation, sole proprietorship, or other legal entity formed for the purpose of making a profit which is independently owned and operated and has fewer than 100 employees or has less than $1,000,000 in annual gross receipts. Historically Underutilized Business (HUB) - A corporation, sole proprietorship, or joint venture formed for the purpose of making a profit in which at least 51 % of all classes of the shares of stock or other equitable securities are owned by one or more persons who have been historically underutilized (socially disadvantaged) because of their identification as members of certain groups: Black American, Hispanic American, Asian Pacific American, Native American, and Women. The HUB must be certified by General Services Commission or another entity. For Profit Organization SUMMARY OF CONTRACT DOCUMENTATION: COVER PAGE 1 - Receiving and Performing Agency Data GENERAL PROVISIONS — 11/2001 COVER PAGE 2 - Details of Attachment(s) ATTACHMENT(S) COVER PAGE 3 - Authorized Signatures EXHIBITS, IF APPLICABLE Cover Page 1 DETAILS OF ATTACHMENTS Att/ TDH Term Financial Assistance - Direct Total Amount Amd Program Assistance (TDH Share) No. ID Begin End Source of Amount Funds* 01 M&D 09/01/02 08/31/03 State 0.00 0.00 0.00 TDH Document No.7560005906A2003 Totals $ 0.00 $ 0.00 $ 0.00 *Federal funds are indicated by a number from the Catalog of Federal Domestic Assistance (CFDA), if applicable. REFER TO BUDGET SECTION OF ANY ZERO AMOUNT ATTACHMENT FOR DETAILS. Cover Page 2 EXECUTED IN DUPLICATE ORIGINALS ON THE DATES SHOWN. - CITY OF LUBBOCK HEALTH DEPARTMENT Authorized Contracting Entity (type above if different from PERFORMING AGENCY) for and in behalf of: PERFORMING AGENCY NAME: LUBBOCK al Iz.I�D pl, Mayor (Name and Title) Date: August 29, 2002 RECOMMENDED: By: — ".-- /Z�� (PE OORMIN AGENCY Director, if different from person authorized to sign contract) TmW Cart, Health MrEr-tor RECEIVING AGENCY NAME: TEXAS DEPARTMENT OF HEALTH Q By: O. ° 140 (Signature of person authorized to sign contracts) Melanie A. Doyle, Director Grants Management Division (Name and Title) TDH Document No: 7560005906A2003 12MOvID A • •'; r•. Cover Page 3 GENRRAL PROWWSIONS FOR TEXAS DEPARTMENT OF HEALTH GRANT CONTRACTS (Fee -for -Service) GENERAL PROVISIONS 11/2001 Any alterration to this document constitutes a counter-offer and must be approved in writing by the Texas Department of Health. GENERAL PROVISIONS FOR TEXAS DEPARTMENT OF HEALTH GRANT CONTRACTS ARTICLE 1. Preamble PERFORMING AGENCY and RECEIVING AGENCY (the parties) agree to make and enter into this grant contract (contract), to faithfully perform the duties prescribed by this contract, and to uphold and abide by its terms and provisions. This contract consists of RECEIVING and PERFORMING AGENCY identifying data, Details of Attachment(s), authorized signatures, General Provisions, and Attachment(s) with detailed Scope(s) of Work, Special Provisions, budget(s), and exhibit(s) as applicable. This contract represents the complete and entire understanding and agreement of the parties. No prior agreement or understanding, oral or otherwise, of the parties or their agents will be valid or enforceable unless embodied in this contract. The person or persons signing and executing this contract on behalf of PERFORMING AGENCY, or representing themselves as signing and executing this contract on behalf of PERFORMING AGENCY, warrant and guarantee that he, she, or they have been duly authorized by PERFORMING AGENCY to execute this contract on behalf of PERFORMING AGENCY and to validly and legally bind PERFORMING AGENCY to all of its terms, performances, and provisions. PERFORMING AGENCY assures compliance with this contract, including these General Provisions unless otherwise specified in any Special Provisions of the Attachment(s) to this document. If these General Provisions are revised or replaced during the term of this contract and PERFORMING AGENCY does not consent to comply with the modified General Provisions, PERFORMING AGENCY may exercise its termination options in accordance with the General Provisions, Termination Article. ARTICLE 2. Term The time period of this contract shall be governed by the term(s) of the Attachment(s). No commitment of contract funds is permitted prior to the first day or subsequent to the last day of the term. The term may be extended or shortened by amendment(s). ARTICLE 3. Funding This contract is contingent upon the availability of funding for each Attachment for the term of the Attachment. PERFORMING AGENCY shall have no right of action against the State of Texas or RECEIVING AGENCY in the event that RECEIVING AGENCY is unable to fulfill its obligations under this contract as a result of lack of sufficient funding of RECEIVING AGENCY for any Attachment(s) to this contract. If funds become unavailable, provisions of the Termination Article will apply. ARTICLE 4. Amendments This contract may be amended only if the amendment is in writing and signed by individuals with authority to bind all parties. PERFORMING AGENCY shall not perform and RECEIVING AGENCY will not pay for the performance of different or additional services, work, or products except pursuant to an amendment of this contract that is (Fee -for -Service) GENERAL PROVISIONS Page 1 1112001 executed in compliance with this Article. RECEIVING AGENCY may not waive any term, covenant, or condition of this contract unless by amendment executed in compliance with this Article. PERFORMING AGENCY shall plan expenditures so that any necessary budget revisions or amendments are executed no later than ninety (90) days prior to the expiration of the Attachment term. PERFORMING AGENCY shall provide a written justification for any budget revisions and/or amendments. If a budget revision or amendment is requested during the last quarter of the Attachment term, the written justification shall include a reason for the delay. Revision or amendment requests may be granted at the discretion of RECEIVING AGENCY. ARTICLE 5. Applicable Laws and Standards This contract shall be interpreted under and in accordance with the laws of the State of Texas and enabling state rules. Where applicable, federal statutes and regulations, including federal grant requirements applicable to funding sources, shall apply to this contract. The principles in the Uniform Grant Management Standards (UGMS) as amended by revised federal circulars and incorporated in UGMS by the Governor's Budget and Planning Office shall be used as a guide in the pricing of fixed price arrangements where costs are used in determining the appropriate price. RECEIVING AGENCY must give prior approval for changes to contract Attachment(s) as specified by UGMS in Part III- "State Uniform Administrative Requirements for Grants and Cooperative Agreements," Subpart C- Post-Award Requirements, item _30-Changes and applicable federal Office of Management and Budget (OMB) circulars. RECEIVING AGENCY will provide copies of applicable OMB circulars, Code of Federal Regulations, and UGMS to PERFORMING AGENCY upon request. These documents are incorporated by reference as a condition of this contract. PERFORMING AGENCY shall not use funds granted under this contract to pay any person for influencing or attempting to influence an officer or employee of any agency, federal or state, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any contract or grant or the extension, continuation, renewal, amendment, or modification of any contract or grant (31 USC §1352, as amended, and UGMS). If at any time this contract exceeds $100,000 of federal funds, PERFORMING AGENCY shall file with RECEIVING AGENCY a declaration containing the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on behalf of PERFORMING AGENCY in connection with that contract or grant, a certification that none of the funds provided by RECEIVING AGENCY have been or will be used for payment to lobbyists, and disclosure of the names of any and all registered lobbyists with whom PERFORMING AGENCY has an agreement. PERFORMING AGENCY shall require any person who requests or receives a subgrant or subcontract to file the same declaration, certification, and disclosure with RECEIVING AGENCY. PERFORMING AGENCY shall file the declaration, certification, and disclosure at the time of application for the contract or grant; upon execution of a contract or grant unless PERFORMING AGENCY previously filed a declaration, certification, or disclosure form in connection with the award; and at the end of each calendar quarter in which there occurs any event that materially affects the accuracy of the information contained in any declaration, certification, or disclosure previously filed. RECEIVING AGENCY will supply the certification form to PERFORMING AGENCY upon request. PERFORMING AGENCY, if a corporation, certifies by execution of this contract that it is current and will remain current in its payment of franchise taxes to the State of Texas or that it is exempt from payment of franchise taxes under Texas law (Texas Tax Code, § § 171.001 et seq., as amended). A false statement regarding franchise tax status is a material breach of this contract. If franchise tax payments become delinquent during the Attachment term, payments under this contract will be withheld until PERFORMING AGENCY'S delinquent franchise tax is paid in full. (Fee -for -Service) GENERAL PROVISIONS Page 2 11/2001 ARTICLE 6. Debarment and Suspension PERFORMING AGENCY certifies by execution of this contract to the following: • It is notineligible for participation in federal or state assistance programs under Executive Order 12549, Debarment and Suspension, Feb.18, 1986, 51 Fed. Reg. 6370; • Neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency; • It has not knowingly failed to pay a single substantial debt or a number of outstanding debts to a federal or state agency; and, • It is not subject to an outstanding judgment in a suit against PERFORMING AGENCY for collection of the balance of a debt. Where PERFORMING AGENCY is unable to certify to any of the statements in this Article, PERFORMING AGENCY shall attach an explanation. If PERFORMING AGENCY'S status with respect to the items certified above changes during the contract term, PERFORMING AGENCY shall notify RECEIVING AGENCY, immediately. PERFORMING AGENCY shall not contract with a subrecipient nor procure goods or services from a subcontractor, at any tier, which is debarred or suspended or is otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549. ARTICLE 7. Assurances PERFORMING AGENCY shall establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest or personal gain. To the extent such provisions are applicable to PERFORMING AGENCY, PERFORMING AGENCY agrees to fully comply with the following: • Title VI of the Civil Rights Act of 1964, 42 USC §§2000d et seq., as amended (P.L. 88-352), which prohibits discrimination on the basis of race, color or national origin, and includes the provision for effective communication and equal access to programs, services and activities to persons with Limited English Proficiency; • Title IX of the Education Amendments of 1972, 20 USC §§1681-1683, and 1685-1686, as amended, which prohibits discrimination on the basis of sex; • Section 504 of the Rehabilitation Act of 1973, 29 USC §794(a), which prohibits discrimination on the basis of disabilities and the Americans with Disabilities Act of 1990, 42 USC § § 12101 et seq., including the provision for effective communication and equal access to programs, services and activities to persons with sensory and speech impairments; • The Age Discrimination Act of 1975, 42 USC §§6101-6107, as amended, which prohibits discrimination on the basis of age; • The Drug Abuse Office and Treatment Act of 1972, 21 USC § § 1101 et seq., as amended, relating to nondiscrimination on the basis of drug abuse; • The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, 42 USC §290dd (b)(1), as amended, relating to the nondiscrimination on the basis of alcohol abuse or alcoholism; • Public Health Service Act of 1912, §§523 and 527, 42 USC §290dd-2, as amended, relating to confidentiality of alcohol and drug abuse patient records; (Fee -for -Service) GENERAL PROVISIONS Page 3 11/2001 Title VIII of the Civil Rights Act of 1968, 42 USC §§3601 et seq., as amended, relating to nondiscrimination in the sale, rental or financing of housing; and, The requirements of any other nondiscrimination statute(s). Collectively, such requirements obligate RECEIVING AGENCY to provide services without discrimination on the basis of race, color, national origin, age, sex, or disability. PERFORMING AGENCY shall carry out the terms of this contract in a manner which will assist RECEIVING AGENCY in complying with such obligations to the fullest extent of PERFORMING AGENCY'S ability. PERFORMING AGENCY agrees to comply with all or part of the following, as applicable: A. Texas Labor Code, Chapter 21, which requires that certain employers not discriminate on the basis of race, color, disability, religion, sex, national origin, or age. B. Immigration Reform and Control Act of 1986, 8 USC § 1324a, as amended, regarding employment verification and retention of verification forms for any individual(s) hired on or after November 6, 1986, who will perform any labor or services under this contract. C. Pro -Children Act of 1994, 20 USC §§6081-6084, regarding the provision of a smoke -free workplace and promoting the non-use of all tobacco products. D. The National Research Service Award Act of 1971, 42 USC §§289a-1 et seq., as amended, and 6601 (P.L. 93-348 and P.L. 103-43), as amended, regarding the protection of human subjects involved in research, development, and related activities supported by any applicable award of federal assistance, as implemented by 45 CFR Part 46, Protection of Human Subjects. E. The Clinical Laboratory Improvement Amendments of 1988, 42 USC §263a, as amended, which establish federal requirements for the regulation and certification of clinical laboratories. F. The Occupational Safety and Health Administration Regulations on Blood Borne Pathogens, 29 CFR § 1910.1030, which set safety standards for those workers and facilities in the private sector who may handle blood bome pathogens, or Title 25 Texas Administrative Code (TAC), Chapter 96, which affects facilities in the public sector. G. Laboratory Animal Welfare Act of 1966, 7 USC §§2131 et seq. (P.L. 89-544), as amended, pertaining to the care, handling, and treatment of warm-blooded animals held for research, teaching, or other activities supported by this award of assistance. H. Article 9102, Texas Revised Civil Statutes, as amended, pertaining to standards which eliminate architectural barriers for persons with disabilities. I. Health and Safety Code § 165.004, relating to the promotion of breast-feeding by providing information that encourages breast-feeding to program participants who are pregnant women or mothers with infants. Promotional material may be requested from RECEIVING AGENCY by calling (512) 406-0744. Environmental standards pursuant to the following: (1) Institution of environmental qualitycontrol measures under the National Environmental Policy Act of 1969,42 USC §§4321-4347 and Executive Order 11514 (35 Fed. Reg. 4247), "Protection and Enhancement of Environmental Quality." (Fee for -Service) GENERAL PROVISIONS Page 4 11/2001 (2) Notification of violating facilities pursuant to Executive Order 11738 (40 CFR Part 32), "Providing for Administration of the Clean Air Act and Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans." (3) Protection of wetlands pursuant to Executive Order 11990, 42 Fed. Reg. 26961. (4) Evaluation of flood hazards in floodplains in accordance with Executive Order 11988, 42 Fed. Reg. 26951. (5) Assurance of project consistency with the approved State Management program developed under the Coastal Zone Management Act of 1972, 16 USC §§ 1451 et seq., as amended. (6) Conformity of federal actions to state clean air implementation plans under the Clean Air Act of 1955, as amended, 42 USC §§7401 et seq. (7) Protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, 42 USC §§300f-300j, as amended. (8) Protection of endangered species under the Endangered Species Act of 1973, 16 USC §§ 1531 et seq., as amended. K. Hatch Political Activity Act, 5 USC §§7321-26, which limits the political activity of employees whose principal employment activities are funded in whole or in part with federal funds. L. The Fair Labor Standards Act, 29 USC § §201 et seq., and the Intergovernmental Personnel Act of 1970, 42 USC §§4701 et seq., as applicable, concerning minimum wage and maximum hours. M. General Appropriations Act, Regular Session, 77th Legislature, 2001, Article, §9-6.13, page IX- 42, "Limitation on Grants to Units of Local Government." For the purpose of §9-6.13, "unit of local government" shall mean a council of governments, a regional planning commission, or a similar regional planning agency created under Chapter 391, Local Government Code; a Local Workforce Development Board; or an MHMR community center. N. Texas Government Code, Chapter 573, relating to nepotism. O. Texas Government Code, Chapter 552, relating to open records and public information. P. Texas Government Code, Chapter 551, relating to open meetings. Q. Texas Occupations Code, Chapter 1701, as amended, and all rules adopted by the Texas Commission on Law Enforcement Officer Standards and Education pursuant to Chapter 1701, as amended, relating to regulated law enforcement agencies. PERFORMING AGENCY shall ensure that the facilities under its ownership, lease or supervision which will be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and shall notify the Federal grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA (Executive Order 11738). PERFORMING AGENCY shall comply with the flood insurance purchase requirements of 102(a) of the Flood Disaster Protection Act of 1973, 42 USC §§4001-4003, as amended. Section 102(a) requires the purchase of flood insurance in communities where the insurance is, available as a condition for the receipt of any federal financial assistance for construction or acquisition proposed for use in any area that has been identified by the Secretary of the U.S. Department of Housing and Urban Development as an area having special flood hazards. As required by Texas Family Code, §231.006, a child support obligor who is more than thirty (30) days delinquent in paying child support and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least twenty-five percent (25%) is not eligible to receive (Fee for -Service) GENERAL PROVISIONS Page 5 11/2001 payments from state funds under a contract to provide property, materials, or services or receive a state -funded grant or loan. If applicable, PERFORMING AGENCY agrees to comply with these provisions, certifies that it is not ineligible to receive the payments specified in this contract, and acknowledges that this contract may be terminated and payment may be withheld if this certification is inaccurate. If PERFORMING AGENCY provides medical, dental, psychological or surgical treatment to a minor under this contract, either directly or through contracts with subrecipients, the treatment of a minor shall be provided only if consent to treatment is obtained pursuant to Chapter 32 of the Texas Family Code relating to consent to treatment of a child by a non -parent or child. If requirements of federal law relating to consent directly conflict with Chapter 32 of the Family Code, federal law shall supersede state law. If PERFORMING AGENCY provides immunizations, PERFORMING AGENCY shall comply with all immunization reporting guidelines and requirements set forth in the Health and Safety Code, Chapter 161, Subchapter A. This requirement shall also apply to subrecipients or subcontractors of PERFORMING AGENCY, if any. PERFORMING AGENCY shall comply with the requirements of the Texas Workers' Compensation Act, Labor Code, Chapters 401-406, and rules promulgated thereunder found at 28 Texas Administrative Code (TAC), Part 2, which cover compensation for employees' injuries. When incorporated into a contract, standard assurances contained in the application package, if any, become terms or conditions for receipt of RECEIVING AGENCY funds. PERFORMING AGENCY and its subrecipients shall maintain an appropriate contract administration system to ensure that all terms, conditions, and specifications are met. PERFORMING AGENCY shall comply with all federal tax laws and is solely responsible for filing all required state and federal tax forms. PERFORMING AGENCY shall comply with all applicable requirements of federal and state laws, executive orders, regulations and policies governing the activity described in the Attachment(s), and with the applicable standard conditions or assurances prescribed by UGMS in Part III, "State Uniform Administrative Requirements for Grants and Cooperative Agreements," Subpart B-Pre-Award Requirements, item —14-State Assurances. PERFORMING AGENCY assures it shall not transfer, assign or sell its interest in this contract without the written consent of RECEIVING AGENCY. ARTICLE 8. Child Abuse Reporting Requirements [PERFORMING AGENCY is required to comply with this article only as related to services provided under the following Attachments: Human Immunodeficiency Virus and Sexually Transmitted Diseases (all Attachments), Title X and Title XX (Family Planning), Primary Health Care, Title V Maternal and Child Health (Fee -for - service), and Bureau of Nutrition Services/Cards (WIC).] PERFORMING AGENCY and each of its subrecipients shall make a good faith effort to comply with child abuse reporting guidelines and requirements in Chapter 261 of the Texas Family Code relating to investigations of reports of child abuse and neglect. PERFORMING AGENCY and each of its subrecipients shall develop, implement and enforce a written policy that includes at a minimum the RECEIVING AGENCY'S Child Abuse Screening, Documenting, and Reporting Policy for Grant Services Contractors and train all staff on reporting requirements. PERFORMING AGENCY and its subrecipients shall use the Checklist for TDH Monitoring as required by RECEIVING AGENCY. (The policy and checklist are available at each of the above -referenced programs' websites.) (Fee -for -Service) GENERAL PROVISIONS Page 6 11/2001 ARTICLE 9. Intellectual Property Texas Health and Safety Code § 12.020(a), as amended, authorizes RECEIVING AGENCY to apply for, register, secure, hold, and protect a patent, copyright, trademark or other evidence of protection or exclusivity issued in or for intellectual property. "Intellectual property" consists of inventions; discoveries; improvements to any process, machine, manufacture, or composition of matter; products; technology; scientific information; trade secrets; computer software; literary works; musical works with any accompanying words; dramatic works with any accompanying music; pantomimes and choreographic works; pictorial, graphic, and sculptural works; motion pictures and other audiovisual works; sound recordings; architectural works; words, names, symbols, devices, slogans or any combination thereof which have been adopted and used by RECEIVING AGENCY to identify goods and/or services and distinguish them from those of others; and any other creative works if they may be protected by a patent, copyright, trademark, service mark, collective mark, or certification mark or other evidence of protection or exclusivity whether or not protection or exclusivity has been applied for or received. "Mark," for purposes of trademark and service mark, includes a word, name, symbol, device, slogan or any combination thereof which has been adopted and used by RECEIVING AGENCY to identify goods and/or services and distinguish them from those of others. Federal trademark law also provides for collective marks and certification marks. "Patent" protects any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement. "Work made for hire," a concept under copyright law, is a work prepared by an employee within the scope of his or her employment, or a work prepared by a subrecipient or subcontractor within the scope of his or her contract, or a work specially ordered or commissioned for use as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas, and the parties expressly agree in a written instrument signed by them that the work shall be considered a work made fof hire. The term "works," for purposes of federal copyright law, includes software; literary works; musical works with any accompanying words; dramatic works with any accompanying music; pantomimes and choreographic works; pictorial, graphic, and sculptural works; motion pictures and other audiovisual works, sound recordings and architectural works. All work performed that results in the production of original books, manuals, films, or other original material is the exclusive property of RECEIVING AGENCY. All rights, title, and interest in and to said property shall vest in RECEIVING AGENCY upon creation. All work performed shall be deemed to be a "work made for hire" for copyright purposes and made in the course of the services rendered pursuant to this contract. To the extent that title to any such work may not, by operation of law, vest in RECEIVING AGENCY or such work may not be considered a work made for hire, all rights, title and interest therein are hereby irrevocably assigned to RECEIVING AGENCY. RECEIVING AGENCY shall have the right to obtain and to hold in its own name any and all patents, copyrights, trademarks, service marks, certification marks, collective marks, registrations, or such other protection as may be appropriate to the subject matter, and any extensions and renewals thereof. PERFORMING AGENCY shall ensure all rights, titles, and interest in and to the intellectual property are secured to RECEIVING AGENCY from PERFORMING AGENCY and its subrecipients. PERFORMING AGENCY agrees to give RECEIVING AGENCY and agrees to require its subrecipients to give RECEIVING AGENCY, or any person designated by RECEIVING AGENCY, all assistance required to perfect the rights defined in this Article, without any charge or expense beyond those amounts payable to PERFORMING AGENCY for the services rendered under the contract. (Fee -for -Service) GENERAL PROVISIONS Page 7 11/2001 If federal funds are used to finance activities supported by the contract Attachment(s) that result in the production of original books, manuals, films, or other original material, the federal awarding agency reserves a royalty -free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for federal government purposes (1) the copyright in any work developed under a grant, subgrant, or contract under a grant or subgrant; and (2) any rights of copyright to which a PERFORMING AGENCY or its subrecipient purchases ownership with grant support. PERFORMING AGENCY shall place an acknowledgment of federal awarding agency grant support and a disclaimer, as appropriate, on any publication written or published with such support and, if feasible, on any publication reporting the results of or describing a grant -supported activity. An acknowledgment shall be to the effect that "This publication was made possible by grant number from (federal awarding agency)" or "The project described was supported by grant number from (federal awarding agency)" and "Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the (federal awarding agency)." In the event the terms of a federal grant award the copyright to PERFORMING AGENCY, RECEIVING AGENCY reserves a royalty -free, nonexclusive, worldwide and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for RECEIVING AGENCY, public health, and state governmental noncommercial purposes (1) the copyright, trade mark, service mark, and/or patent on an invention, discovery, or improvement to any process, machine, manufacture, or composition of matter; products; technology; scientific information; trade secrets; and computer software, in any work developed under a grant, subgrant, or contract under a grant or subgrant; and (2) any rights of copyright, service or trade marks or patents to which a grantee, subgrantee or a contractor purchases ownership with grant support. RECEIVING AGENCY may waive ownership of a copyright, mark, or patent to a university or college with statutory authority to hold a copyright, mark, or patent or to a subcontractor of the college or university that would have the right of ownership under rules or policies of the college or university as part of the consideration for a contract. If RECEIVING AGENCY waives ownership, RECEIVING AGENCY reserves a royalty -free, nonexclusive, worldwide and irrevocable license to reproduce, publish or otherwise use, and to authorize other to use, for RECEIVING AGENCY and state governmental non-commercial and public health purposes: (1) the copyright, trade mark, service mark, and patent in any intellectual property developed under a contract, grant, subgrant, or contract under a grant or subgrant; and (2) any rights of copyright, trade mark, service mark, and patent in any intellectual property for which a grantee, subgrantee or a contractor purchases ownership with grant support or with other funds from RECEIVING AGENCY. RECEIVING AGENCY may waive ownership of the copyright to accomplish the contract objectives dealing with public health through a qualified state college or university and enhance the recruiting benefits and prestige of the college or university. PERFORMING AGENCY may publish the results of the contract performance if those results are subject to copyright law at its expense with prior RECEIVING AGENCY review and approval. RECEIVING AGENCY will not withhold the approval unreasonably. If RECEIVING AGENCY withholds approval, PERFORMING AGENCY may still publish the results of the contract performance but shall not reference the Texas Department of Health in any manner. If RECEIVING AGENCY approves and owns the copyright, any publication should include "C (the year of publication), Texas Department of Health, All Rights Reserved." If PERFORMING AGENCY is the copyright holder, any publication shall include acknowledgment of the support received from RECEIVING AGENCY. At least six (6) copies of any such publication shall be provided to RECEIVING AGENCY. RECEIVING AGENCY reserves the right to require additional copies before or after the initial review. PERFORMING AGENCY and any subrecipient, as appropriate, shall comply with the standard patent rights clauses in 37 Code of Federal Regulations §401.14 or Federal Acquisition Regulations 52.227.11. (Fee -for -Service) GENERAL, PROVISIONS Page 8 11/2001 ARTICLE 10. Historically Underutilized Businesses RECEIVING AGENCY shall comply with Texas Government Code, Chapter 2161, and 1 TAC §§111.11- 111.24 et seq., whereby state agencies are required to make a good faith effort to assist historically underutilized businesses (HUBS) in receiving contract awards issued by the state to purchase "goods," which are defined as "supplies, materials, or equipment," services, or public works. If PERFORMING AGENCY subcontracts a portion of this contract, PERFORMING AGENCY agrees to make a good faith effort to subcontract with HUBs during the performance of its contract Attachment(s) with RECEIVING AGENCY and will report HUB subcontract activity on a quarterly basis to RECEIVING AGENCY. ARTICLE 11. Conflict of Interest PERFORMING AGENCY does not have nor shall it knowingly acquire any interest that would conflict in any manner with the performance of its obligations under this contract. Potential conflicts of interest include an existing business or personal relationship between PERFORMING AGENCY, its principal, or any affiliate or subrecipient with RECEIVING AGENCY, its board members, officers or employees, or any other entity or person involved in any way in any project that is the subject of this contract. ARTICLE 12. Certification of Software, Hardware, Firmware and Micro Code Products PERFORMING AGENCY certifies that any supplied or supported software, hardware, firmware, and micro code products used individually or together as a system to comply with RECEIVING AGENCY contract requirements shall operate "accurately" in the manner in which they were intended when given a "valid date" containing century, year, month, and day. For purposes of this Article, "supplied or supported software, hardware, firmware, and micro code products" does not include software supported by RECEIVING AGENCY or an agency of the federal government. PERFORMING AGENCY is responsible for installing and implementing any versions of any software provided by RECEIVING AGENCY or an agency of the federal government which is used in performance of this contract. For purposes of this Article, a) "accurately" is defined to include the following: 1) calculations shall be correctly performed using four -digit year processing; 2) functionality -on-line, batch including entry, inquiry, maintenance and updates shall support four -digit year processing; 3) interfaces and reports shall support four -digit year processing; 4) processing with a four -digit year shall occur without human intervention; 5) correct results in forward and backward date calculation spanning century boundaries shall be provided; 6) correct leap year calculations shall be performed; and 7) processing correct results in forward and backward date calculation spanning century boundaries shall occur; b) "date integrity" shall mean all manipulations of time -related data (dates, durations, days of week, etc.) shall produce desired results for all valid date values within the application domain; (Fee -for -Service) GENERAL PROVISIONS Page 9 11/2001 c) "explicit century" shall mean date elements in interfaces and data storage permit specifying century to eliminate date ambiguity; d) "extraordinary actions" shall be defined to mean any action outside the normal documented processing steps identified in the product's reference documentation; e) "general integrity" shall mean no value for current date shall cause interruptions in desired operation; f) "implicit century" shall mean for any data element without century, the correct century is unambiguous for all manipulations involving that document; g) "product" or "products" shall be defined to include, but is not limited to, any supplied or supported hardware, software, firmware and/or micro code; h) "valid date" shall contain a two -digit month, a two -digit day and a four -digit year. PERFORMING AGENCY and its subrecipient(s) shall obtain a warranty from any vendor/licensor from which it obtains product(s) that product(s) delivered and installed under the contract/license shall accurately process valid date data when used in accordance with the product documentation provided by the contractor/licensor and require no extraordinary actions on the part of PERFORMING AGENCY, its personnel, or its subrecipient(s). Products under the contract/license shall possess general integrity, date integrity, explicit and implicit century capabilities. If the contract/license requires that specific products shall perform as a system in accordance with the foregoing warranty, then the warranty shall apply to those listed products as a system. The duration of this warranty and the remedies available to PERFORMING AGENCY or its subrecipient(s) for breach of the warranty shall be defined in, and subject to, the terms and conditions of the contractor's standard commercial warranty or warranties contained in the contract/license; provided, that notwithstanding any provision to the contrary in such commercial warranty or warranties, the remedies available to PERFORMING AGENCY or its subrecipient(s) shall include repair or replacement of any supplied product if its noncompliance is discovered and made known to the contractor/licensor in writing within ninety (90) days after final acceptance. Nothing in the warranty shall be considered to limit any rights or remedies PERFORMING AGENCY or its subrecipient(s) may otherwise have under the contract/license. RECEIVING AGENCY will not hold PERFORMING AGENCY responsible if the information coming to PERFORMING AGENCY'S product/software from RECEIVING AGENCY is inaccurate or corrupt. ARTICLE 13. Standards for Financial and Programmatic Management PERFORMING AGENCY shall bill all third party payers for services provided under the Attachment(s) before submitting any request for payment to RECEIVING AGENCY. A third party payer is any person or entity who has the legal responsibility for paying all or part of the services provided, including, commercial health or liability insurance carriers, Medicaid, or other federal, state, local and private funding sources. Third party billing functions shall be provided by PERFORMING AGENCY at no cost to the client. PERFORMING AGENCY or its subrecipient shall become a Medicaid provider if performing approved Texas Medicaid services authorized by the Attachment(s). PERFORMING AGENCY, if designated a 501(c)(3) organization as defined in the Internal Revenue Service Code or a for -profit organization, and its governing board, shall bear full responsibility for the integrity of the fiscal and programmatic management of the organization. Such responsibility shall include: accountability for all funds and materials received from RECEIVING AGENCY; compliance with RECEIVING AGENCY rules, policies, procedures, and applicable federal and state laws and regulations; and correction of fiscal and program deficiencies identified through self -evaluation and RECEIVING AGENCY'S monitoring processes. Further, PERFORMING AGENCY'S goveming board shall ensure separation of powers, duties, and functions of board (Fee -for -Service) GENERAL PROVISIONS Page 10 11/2001 members and staff. Ignorance of any contract provisions or other requirements contained or referenced in this contract shall not constitute a defense or basis for waiving or appealing such provisions or requirements. ARTICLE 14. Bonding and Liability Insurance PERFORMING AGENCY is required to carry a fidelity bond or insurance coverage equal to the amount of funding provided under the contract Attachment(s) up to $100,000 that covers each employee of PERFORMING AGENCY handling funds under this contract, including person(s) authorizing payment of such funds. The fidelity bond or insurance shall provide for indemnification of losses occasioned by: 1) any fraudulent or dishonest act or acts committed by any of PERFORMING AGENCY'S employees, either individually or in concert with others, and/or 2) failure of PERFORMING AGENCY or any of its employees to perform faithfully his/her duties or to account properly for all monies and property received by virtue of his/her position or employment. PERFORMING AGENCY shall also maintain liability insurance coverage, referred to in Texas Government Code, Section 2259.102, as "director and officer liability coverage," where PERFORMING AGENCY is a legal entity that is required to have directors and/or officers. This provision applies to entities that are organized as non-profit corporations under the Texas Non -Profit Corporation Act; for -profit corporations organized under the Texas Business Corporations Act; and any other legal entity that is required under Texas law to have directors and/or officers. PERFORMING AGENCY shall maintain liability insurance coverage in an amount not less than the value of this contract Attachment and that is sufficient to protect the interests of RECEIVING AGENCY in the event an actionable act or omission by a director or officer of PERFORMING AGENCY damages RECEIVING AGENCY'S interests. ARTICLE 15. Terms and Conditions of Payment For services satisfactorily performed pursuant to this contract, RECEIVING AGENCY will pay PERFORMING AGENCY for allowable costs. Payments are contingent on a signed contract and will not exceed the total of each Attachment(s). PERFORMING AGENCY is entitled to payment only if the service, work, and/or product has been satisfactorily performed and authorized in accordance with this contract. PERFORMING AGENCY shall submit requests for payment on a State of Texas Purchase Voucher (TDH Form B-13) or any other form designated by RECEIVING AGENCY. PERFORMING AGENCY shall submit vouchers for payment monthly within thirty (30) days following the end of the month covered by the bill. PERFORMING AGENCY shall submit a payment request as a final close-out bill not later than ninety (90) days following the end of the applicable Attachment term(s). Requests submitted and postmarked more than ninety (90) days following the end of the applicable Attachment term will not be paid. (Additional information regarding reimbursement request deadline is available at www.tdh.state.tx.us/grants/hot topics.htm#Deadline.) PERFORMING AGENCY shall disburse program income, rebates, refunds, contract settlements, audit recoveries and interest earned on such funds before. requesting cash payments including advance payments from RECEIVING AGENCY. Funding from this contract shall not be used to supplant [i.e., use in place of funds dedicated, appropriated or expended for activities funded through the Attachment(s)] state or local funds, but PERFORMING AGENCY shall use the funds from this contract to increase state or local funds currently available for a particular activity. PERFORMING AGENCY shall make a good faith effort to maintain its current level of support. PERFORMING AGENCY may be required to submit documentation substantiating that a reduction in local funding, if any, resulted for reasons other than receipt or expected receipt of funding under the Attachment. RECEIVING AGENCY shall determine whether costs submitted by PERFORMING AGENCY are allowable and payable. If RECEIVING AGENCY has paid funds to PERFORMING AGENCY for unallowable or (Fee -for -Service) GENERAL PROVISIONS Page l 1 11/2001 ineligible costs, PERFORMING AGENCY shall return the funds to RECEIVING AGENCY within thirty (30) days of written notice. RECEIVING AGENCY may withhold all or part of any payments to PERFORMING AGENCY to offset payment for any ineligible expenditures that PERFORMING AGENCY has not paid to RECEIVING AGENCY, or if financial status report(s) required under the Reports Article are not submitted by the date(s) due. RECEIVING AGENCY may take repayment from funds available under any contract Attachment, active or expired, in amounts necessary to fulfill PERFORMING AGENCY repayment obligations. ARTICLE 16. Program Income PERFORMING AGENCY may, or if PERFORMING AGENCY is a local health department shall, develop a fee -for -service system and a schedule of fees for personal health services in accordance with the provisions of Health and Safety Code, § 12.031; the Texas Board of Health rules covering Fees for Clinical Health Services, 25 TAC § 1.91; and other applicable laws. No patient shall be denied a service due to inability to pay. All revenues directly generated by an Attachment(s) supported activity or earned only as a result of the Attachment(s) during the term of the Attachment(s) are considered program income. PERFORMING AGENCY shall identify and report this income utilizing the forms and frequencies specified in the Reports Article of these provisions, and in the Special Provisions of the Attachment(s). PERFORMING AGENCY shall use program income to provide additional client services. Any program income not used to provide additional client services shall be deducted from PERFORMING AGENCY'S total final billing to RECEIVING AGENCY at the end of the Attachment(s) term(s). RECEIVING AGENCY may base future funding levels, in part, upon PERFORMING AGENCY'S proficiency in identifying, billing, collecting, and reporting program income, and in utilizing it for the purposes and conditions of the applicable Attachment(s). ARTICLE 17. Contracts with Subrecipients PERFORMING AGENCY may enter into contracts with subrecipients unless restricted or otherwise prohibited in specific Attachment(s). Prior to entering into an agreement equaling $25,000 or twenty-five percent (25%) of an Attachment, whichever is greater, PERFORMING AGENCY shall obtain written approval from RECEIVING AGENCY. Contracts with subrecipients shall be in writing and include the following: • Name and address of all parties; • A detailed description of the services to be provided; • Measurable method and rate of payment and total amount of the contract; • Clearly defined and executable termination clause; • Beginning and ending dates which coincide with the dates of the applicable contract Attachment(s) or cover a term within the beginning and ending dates of the applicable contract Attachment(s); • Records retention requirements consistent with UGMS; • Access to inspect the work and the premises on which any of the work is performed, in accordance with the Inspections Article contained in this contract; and • All clauses required by state/federal statutes, executive orders, and their implementing regulations. (Fee -for -Service) GENERAL PROVISIONS Page 12 11/2001 PERFORMING AGENCY is responsible to RECEIVING AGENCY for the performance of any subrecipient. PERFORMING AGENCY shall monitor both financial and programmatic performance and maintain pertinent records that will be available for inspection by RECEIVING AGENCY. PERFORMING AGENCY shall ensure that: • Subrecipients are fully aware of the requirements imposed upon them by state/federal statutes and regulations; • Subrecipients comply with all financial management requirements as defined by RECEIVING AGENCY, UGMS and the applicable OMB circulars; • Subrecipients complete required audits; • An adequate tracking system is maintained to ensure timely receipt of any subrecipient's required audit reports and the resolution of any findings and questioned costs cited by these reports; and, that • RECEIVING AGENCY is immediately notified in .writing of alleged or actual misuse or misappropriation of contract funds by subrecipients. ARTICLE 18. Contracts for Procurement PERFORMING AGENCY may enter into contracts for procurement unless restricted or otherwise prohibited in specific Attachment(s). PERFORMING AGENCY agrees that it shall be responsible to RECEIVING AGENCY for the performance of any subcontracted activity. Contracts for procurement shall be in writing and contain the following provisions: • Administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate (contracts other than small purchases). • Termination for cause and for convenience by PERFORMING AGENCY including the manner by which it will be effected and the basis for settlement (all contracts in excess of $10,000). • Compliance with the Copeland "Anti -Kickback" Act (18 USC §874) as supplemented in Department of Labor regulations (29 CFR Part 3) (all contracts and subgrants for construction or repair). • Compliance with §§103 and 107 of the Contract Work Hours and Safety Standards Act (40 USC §§327- 330) as supplemented by Department of Labor regulations (29 CFR Part 5) (construction contracts awarded by grantees and subgrantees in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers). • Notice of RECEIVING AGENCY requirements and regulations pertaining to reporting. • Notice of RECEIVING AGENCY requirements and regulations pertaining to trademarks, service marks, copyrights, and patent rights with respect to any discovery or invention which arises or is developed in the course of or under such contract. • RECEIVING AGENCY requirements and regulations pertaining to copyrights and rights in data. • Access by RECEIVING AGENCY, the federal grantor agency, the Comptroller General of the United States, the State of Texas or any of their duly authorized representatives to any books, documents, papers, and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions. • Retention of all required records for the required retention period after RECEIVING AGENCY makes final payments and all other pending matters are closed. • Compliance with all applicable standards, orders, or requirements issued under §306 of the Clean Air Act (42 USC §7401), §508 of the Clean Water Act (33 USC §1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15) (contracts, subcontracts, and subgrants of amounts in excess of $100,000). (Fee -for -Service) GENERAL PROVISIONS Page 13 11/2001 • Mandatory standards and policies relating to efficiency which are contained in the state energy plan issued in compliance with the Energy Policy and Conservation Act (P. L. 94-163), 42 USC §§6201 et seq., as amended. ARTICLE 19. Reports PERFORMING AGENCY shall submit the financial, program, and progress reports required by RECEIVING AGENCY in the format agreed to by the parties. PERFORMING AGENCY shall provide RECEIVING AGENCY other reports RECEIVING AGENCY determines to be necessary to accomplish the objectives of this contract and to monitor compliance. If PERFORMING AGENCY is legally prohibited from providing such reports, it shall immediately notify RECEIVING AGENCY. ARTICLE 20. Inspections RECEIVING AGENCY and, when federal funds are involved, any authorized representative(s) of the federal government have the right, at all reasonable times, to inspect or otherwise evaluate the work (including reviews of client or patient records and discussions with staff) performed by PERFORMING AGENCY and its subrecipient(s), if any, and the premises on which the work is being performed. PERFORMING AGENCY and its subrecipient(s) shall participate in inspections and provide reasonable access, facilities, and assistance to the representatives. All inspections and evaluations will be conducted in such a manner as will not unduly interfere with the work. PERFORMING AGENCY (and any parent, affiliate or subsidiary organization, if such a relationship exists) and its subrecipient(s), if any, shall give RECEIVING AGENCY, the federal government, and the Texas State Auditor, or any of their duly authorized representatives, access to any pertinent books, documents, papers, and client or patient records, if � any, for the purpose of making audit, examination, excerpts, and transcripts of transactions related to contract Attachment(s). RECEIVING AGENCY will have the right to audit billings both before and after payment. Payment under Attachment(s) will not foreclose the right of RECEIVING AGENCY to recover excessive or illegal payments. Any deficiencies identified by RECEIVING AGENCY upon examination of PERFORMING AGENCY'S records will be conveyed in writing to PERFORMING AGENCY. PERFORMING AGENCY'S resolution of findings shall also be conveyed in writing to RECEIVING AGENCY within thirty (30) days of receipt of RECEIVING AGENCY'S findings. A RECEIVING AGENCY determination of either an inadequate or inappropriate resolution of the findings may result in sanctions which will remain in effect until RECEIVING AGENCY determines the deficiencies are properly remedied. ARTICLE 21. Records Retention PERFORMING AGENCY and its subrecipients or subcontractors shall retain medical records in accordance with 22 Texas Administrative Code (TAC), Part 9, § 165.1(b)(c) or other applicable statutes and regulations governing medical information. PERFORMING AGENCY shall retain and preserve all other records, including financial records; which are generated or collected by PERFORMING AGENCY or its subrecipients or subcontractors under the terms of this contract, for a period of four (4) years after the termination of the contract. If the contract is funded through Medicaid, the federal retention period, if more than four (4) years, shall apply. PERFORMING AGENCY and its subrecipients shall retain all records for a contract that is the subject of litigation or an audit until the litigation is ended or all questions pertaining to the audit are resolved. Legal requirements for PERFORMING AGENCY may extend beyond the retention schedules established herein. (Fee -for -Service) GENERAL PROVISIONS Page 14 11/2001 ARTICLE 22. Patient or Client Records Notwithstanding any other provision herein, if requested by RECEIVING AGENCY, PERFORMING AGENCY shall share all patient or client information with RECEIVING AGENCY when the contract involves patient or client care by PERFORMING AGENCY. RECEIVING AGENCY may require PERFORMING AGENCY, or any subrecipient, to transfer a client or patient record to another agency or to RECEIVING AGENCY if the transfer is necessary to protect either the confidentiality of the record or the health and welfare of the client or patient. In the event of termination or expiration of the Attachment(s), RECEIVING AGENCY may require the transfer of client or patient records as authorized by law upon written notice to PERFORMING AGENCY, either to another entity that agrees to continue the service or to RECEIVING AGENCY. At the end of the Attachment term, PERFORMING AGENCY shall give RECEIVING AGENCY access to the records or provide copies for audit, examination, evaluation, inspection, litigation, or other circumstances that may arise, to the extent authorized by law. PERFORMING AGENCY, or any subrecipient, shall not otherwise transfer through any means, including electronically, an identifiable client record, including a patient record, to another entity or person without written consent from the client or patient, or someone authorized to act on his or her behalf. Written consent shall be given on a form provided by RECEIVING AGENCY or as otherwise authorized by law, including the Texas Occupations Code, Chapter 159, as amended. ARTICLE 23. Confidentiality PERFORMING AGENCY shall have a system in effect to protect client or patient records and all other documents deemed confidential by law which are maintained in connection with the activities funded under this contract. PERFORMING AGENCY shall not disclose or transfer confidential client or patient information, including information required by the Reports Article, except in accordance with applicable law. If providing direct client care, services, or programs, PERFORMING AGENCY shall implement RECEIVING AGENCY'S policies based on the model HIV/AIDS (human immunodeficiency virus/acquired immunodeficiency syndrome) workplace guidelines, and PERFORMING AGENCY shall educate employees and clients concerning HIV and its related conditions, including AIDS, in accordance with the Health and Safety Code, §§85.112-114. ARTICLE 24. Hold Harmless PERFORMING AGENCY, as an independent contractor, agrees to hold RECEIVING AGENCY and/or the federal government harmless and to indemnify them from any and all liability, suits, claims, losses, damages and judgments, and to pay all costs, fees, and damages to the extent that such costs, fees, and damages arise from performance or nonperformance of PERFORMING AGENCY under this contract. ARTICLE 25. Sanctions RECEIVING AGENCY may impose sanctions for any breach of contract, and will monitor PERFORMING AGENCY for both programmatic and financial compliance. RECEIVING AGENCY may, at its own discretion, impose one or more sanctions for each item of noncompliance and will determine sanctions on a case -by -case basis. A state or federal statute, rule, regulation, or federal guideline will prevail over the provisions of this Article unless the statute, rule, regulation, or guideline can be read together with the provision(s) of this Article to give effect to both. (Fee -for -Service) GENERAL PROVISIONS Page 15 11/2001 RECEIVING AGENCY may: A. Terminate all or a part of the contract. Termination is the permanent withdrawal of PERFORMING AGENCY'S authority to obligate previously awarded funds before that authority would otherwise expire or the voluntary relinquishment by PERFORMING AGENCY of the authority to obligate previously awarded funds. PERFORMING AGENCY costs resulting from obligations incurred by PERFORMING AGENCY after termination of an award are not allowable unless expressly authorized by the notice of termination. Termination does not include: (1) withdrawal of funds awarded on the basis of PERFORMING AGENCY'S underestimate of the unobligated balance in a prior period; (2) withdrawal of the unobligated balance as of the expiration of a contract; (3) refusal to extend a contract or award additional funds, to make a competing or noncompeting continuation, renewal, extension, or supplemental award; or (4) voiding of a contract upon determination that the award was obtained fraudulently, or was otherwise illegal or invalid from inception; B. Suspend all or part of the contract. Suspension is, depending on the context, either (1) the temporary withdrawal of PERFORMING AGENCY'S authority to obligate funds pending corrective action by PERFORMING AGENCY or its subrecipient(s) or pending a decision to terminate or amend the contract, or (2) an action taken by a suspending official in accordance with agency regulations implementing Executive Order 12549 to immediately exclude a person from participating in contract transactions for a period, pending completion of an investigation and such legal or debarment proceedings as may ensue. PERFORMING AGENCY costs resulting from obligations incurred by PERFORMING AGENCY during a suspension are not allowable unless expressly authorized by the notice of suspension; C. Disallow (deny both use of funds and matching credit for) all or part of the activities or action not in'compliance; D. Temporarily withhold cash payments. Temporarily withholding cash payments means the temporary withholding of advances or reimbursements to PERFORMING AGENCY or its subrecipient(s) for proper charges or obligations incurred, pending resolution of issues of noncompliance with contract conditions or indebtedness to the United States or to the State of Texas; E. Permanently withhold cash payments. Permanent withholding of cash payment means that RECEIVING AGENCY retains funds billed by PERFORMING AGENCY or its subrecipient(s) for a) unallowable, undocumented, disputed, inaccurate, improper, or erroneous billings; b) failure to comply with contract provisions; or c) indebtedness to the United States or to the State of Texas; F. Deny contract renewal or future contract awards to a PERFORMING AGENCY; G. Delay contract execution with PERFORMING AGENCY while other imposed or proposed sanctions are pending resolution; H. Place PERFORMING AGENCY on probation. Probation means that PERFORMING AGENCY will be placed on accelerated monitoring for a period not to exceed six (6) months at which time items of noncompliance shall be resolved or substantial improvement shown by PERFORMING AGENCY; (Fee -for -Service) GENERAL PROVISIONS Page 16 11/2001 I. Conduct accelerated monitoring of PERFORMING AGENCY. Accelerated monitoring means more frequent or more extensive monitoring will be performed by RECEIVING AGENCY than would routinely be accomplished; J. Require PERFORMING AGENCY to obtain technical or managerial assistance; K. Disallow requests for payments by disapproving costs or fees submitted for payment or reimbursement by PERFORMING AGENCY; L. Establish additional prior approvals for expenditure of funds by PERFORMING AGENCY; M. Require additional, more detailed, financial and/or programmatic reports to be submitted by PERFORMING AGENCY; N. Demand repayment from PERFORMING AGENCY; O. Reduce the contract funding amount for failure to achieve or maintain the proposed level of service, to expend funds appropriately and at a rate which will make full use of the award, or to provide services as set out in the contract; and P. Impose other remedies provided by law. RECEIVING AGENCY will formally notify PERFORMING AGENCY in writing when a sanction is imposed (with the exception of accelerated monitoring, which may be unannounced), stating the nature of the sanction(s), the reasons for imposing them, the corrective actions which shall be taken before they will be removed and the time allowed for completing the corrective actions, and the method, if any, of requesting reconsideration of the sanctions imposed. PERFORMING AGENCY is required to file, within fifteen (15) days of receipt of notice, a written response to RECEIVING AGENCY'S program/division that sent the notice, acknowledging receipt of such notice and stating how PERFORMING AGENCY shall correct the noncompliance or demonstrating in writing that the findings on which the sanctions are based are either invalid or do not warrant the sanction(s). If RECEIVING AGENCY determines that a sanction is warranted, and unless the sanction is subject to review (see Sanction Review Article), RECEIVING AGENCY'S decision is final and PERFORMING AGENCY shall take corrective action. In an emergency, RECEIVING AGENCY may immediately terminate or suspend all or part of the contract, temporarily or permanently withhold cash payments, deny contract renewal or future contract awards, or delay contract execution by delivering written notice to PERFORMING AGENCY, by any verifiable method, stating the reason for the emergency action. An "emergency" is defined as the following: • PERFORMING AGENCY is noncompliant and the noncompliance has a direct adverse impact on the public or client health or safety. The direct adverse impact may be programmatic or financial, impacting health or safety by failing to provide services, providing inadequate services, providing unnecessary services, or utilizing resources so that the public or clients do not receive the benefits contemplated by the contract scope of work or performance measures; • PERFORMING AGENCY fails to achieve a performance measure; • PERFORMING AGENCY is paid or requesting payment for expenditures which are not in accordance with applicable federal or state laws and regulations or the provisions of the contract; or • PERFORMING AGENCY is expending funds inappropriately. (Fee -for -Service) GENERAL PROVISIONS Page 17 11/2001 Whether PERFORMING AGENCY'S conduct or inaction is an emergency will be determined by RECEIVING AGENCY on a case -by -case basis and will be based upon the egregious nature of the noncompliance or conduct. ARTICLE 26. Sanction Review PERFORMING AGENCY may request a review of the imposition of the following sanctions: termination of all or part of the contract, suspension of all or part of the contract, permanent withholding of cash payments, reduction of contract funding or other contract amendment resulting from noncompliance, and denial of contract renewal or future contract awards. PERFORMING AGENCY shall make the request for review in writing to RECEIVING AGENCY within fifteen (15) days from the date of notification by providing written notice of the dispute to the person who signed the notification. PERFORMING AGENCY'S notice shall contain the following: (1) a copy of the letter from RECEIVING AGENCY notifying PERFORMING AGENCY of the sanction; (2) a specific description of each act that is the basis for the dispute; (3) the grounds upon which PERFORMING AGENCY bases the complaint; (4) an identification of the issue or issues to be resolved; (5) a precise statement of the relevant facts; (6) any documentation in support of PERFORMING AGENCY'S position; and (7) a statement and authorities in support of PERFORMING AGENCY'S position. Evidence that PERFORMING AGENCY properly notified RECEIVING AGENCY consists of any of the following documents: (1) signature on delivery card; (2) confirmation of a facsimile to the correct telephone number; or (3) signed acknowledgment of delivery. RECEIVING AGENCY'S representative will schedule a meeting or a conference call to attempt to resolve the issues in dispute. If the dispute is resolved, any resolution will be in writing and will be signed by all parties. If the dispute is not resolved, RECEIVING AGENCY'S representative will notify PERFORMING AGENCY in writing. RECEIVING AGENCY will appoint a reviewer(s), who will review the information, who may permit or require additional information and who may grant, deny, or modify all relief requested in the written notice of dispute. The reviewer(s)'s decision will be in writing and will contain a discussion of the reason for the decision and the remedial action, if any. The reviewer(s) will send copies of the decision to all parties by any verifiable means. The decision of the reviewer(s) is final and is the final action of RECEIVING AGENCY for purposes of further proceedings. A state statute or rule or a federal statute, regulation or guideline will prevail over the provisions of this Article unless the statute, rule, regulation or guideline can be read together with the provision or provisions of this Article to give effect to both. ARTICLE 27. Dispute Resolution for Breach of Contract The dispute resolution process provided for in Chapter 2260 of Texas Government Code shall be used, as further described herein, by RECEIVING AGENCY and PERFORMING AGENCY to attempt to resolve any claim for breach of contract made by PERFORMING AGENCY. (This process is not applicable for governmental entities.) A. PERFORMING AGENCY'S claims for breach of this contract that the parties can not resolve in the ordinary course of business shall be submitted to the negotiation process provided in Chapter 2260, subchapter B, Texas Government Code. To initiate the process, PERFORMING AGENCY shall submit written notice, as required by subchapter B, to RECEIVING AGENCY'S Office of General Counsel. Said notice shall specifically state that the provisions of Chapter 2260, (Fee -for -Service) GENERAL PROVISIONS Page 18 11/2001 subchapter B, are being invoked. A copy of the notice shall also be given to all other representatives of RECEIVING AGENCY and PERFORMING AGENCY otherwise entitled to notice under the parties' contract. Compliance by PERFORMING AGENCY with subchapter B is a condition precedent to the filing of a contested case proceeding under Chapter 2260, subchapter C, Texas Government Code. B. The contested case process provided in Chapter 2260, subchapter C, Texas Government Code is PERFORMING AGENCY'S sole and exclusive process for seeking a remedy for any and all alleged breaches of contract by RECEIVING AGENCY if the parties are unable to resolve their disputes under subparagraph A. of this paragraph. C. Compliance with the contested case process provided in subchapter C is a condition precedent to seeking consent to sue from the Legislature under Chapter 107 of the Civil Practices and Remedies Code. Neither the execution of this contract by RECEIVING AGENCY nor any other conduct of any representative of RECEIVING AGENCY relating to the contract shall be considered a waiver of sovereign immunity to suit. The submission, processing and resolution of PERFORMING AGENCY'S claim is to be governed by the published rules adopted by RECEIVING AGENCY pursuant to Chapter 2260, as currently effective, hereafter enacted or subsequently amended. These rules are to be found at25 TAC Chapter 1, when available. Neither the occurrence of an event nor the pendency of a claim constitute grounds for the suspension of performance by PERFORMING AGENCY, in whole or in part. ARTICLE 28. Termination Each Attachment shall terminate upon the expiration date of the Attachment unless extended by written amendment in accordance with the Amendments Article. Prior to completion of the contract term, all or a part of this contract may be terminated with or without cause as set out below. A. Termination without cause. (1) Either party may terminate this contract with at least ninety (90) days prior written notice to the other party. (2) The parties may terminate this contract by mutual agreement. (3) Either party may terminate this contract with at least thirty (30) days prior written notice to the other party in the event state and/or federal funding for this contract is terminated, limited, suspended, or withdrawn. (4) RECEIVING AGENCY may terminate this contract when, in the sole determination of RECEIVING AGENCY, termination is in the best interest of the State of Texas. B. Termination for cause. (1) Either party may terminate for material breach of contract with at least thirty (30) days written notice to the other party. (2) RECEIVING AGENCY may terminate this contract, in whole or in part, for breach of contract or for any other conduct that jeopardizes the contract objectives, by giving at least thirty (30) days written notice to PERFORMING AGENCY. Such conduct may include one or more of the following: (Fee for -Service) GENERAL PROVISIONS Page 19 11/2001 (a) A court of competent jurisdiction finds that PERFORMING AGENCY has failed to adhere to any laws, ordinances, rules, regulations or orders of any public authority having jurisdiction; (b) PERFORMING AGENCY fails to communicate with RECEIVING AGENCY or fails to allow its employees or those of its subrecipients to communicate with RECEIVING AGENCY as necessary to the performance of the contract; (c) PERFORMING AGENCY breaches a standard of confidentiality with respect to the services provided under this contract; (d) RECEIVING AGENCY determines that PERFORMING AGENCY is without the personnel or resources to perform under the contract; (e) RECEIVING AGENCY determines that PERFORMING AGENCY, its agent or another representative offered or gave a gratuity (e.g., an entertainment or gift) to an official or employee of RECEIVING AGENCY for the purpose of obtaining a contract or favorable treatment; (f) PERFORMING AGENCY'S management system does not meet the UGMS management standards; or (g) PERFORMING AGENCY appears to be financially unstable. Indicators of financial instability may include one or more of the following: (i) PERFORMING AGENCY fails to make payments; (ii) PERFORMING AGENCY makes an assignment for the benefit of its creditors; (iii) PERFORMING AGENCY admits in writing its inability to pay its debts generally as they become due; (iv) If judgment for the payment of money in excess of $50,000 (which is not covered by insurance) is rendered by any court or governmental body against PERFORMING AGENCY, and PERFORMING AGENCY does not (a) discharge the judgment or (b) provide for its discharge in accordance with its terms, or (c) procure a stay of execution within thirty (30) days from the date of entry thereof, and within the thirty (30) day period or a longer period during which execution of the judgment shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal while providing such reserves therefore as may be required under generally accepted accounting principles; (v) A writ or warrant of attachment or any similar process shall be issued by any court against all or any material portion of the property of PERFORMING AGENCY, and such writ or warrant of attachment or any similar process is not released or bonded within thirty (30) days after its entry; (vi) PERFORMING AGENCY is adjudicated bankrupt or insolvent; (vii) PERFORMING AGENCY files a case under the Federal Bankruptcy Code or is seeking relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, receivership or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any case or petition against it under any such law; (viii) Any property or portion of the property of PERFORMING AGENCY is sequestered by court order and the order remains in effect for more than thirty (3 0) days after PERFORMING AGENCY obtains knowledge thereof; (ix) A petition is filed against PERFORMING AGENCY under any state reorganization, arrangement, insolvency, readjushnent of debt, dissolution, liquidation, or receivership law of any jurisdiction, whether now or hereafter in effect, and such petition is not dismissed within thirty (30) days; or (x) PERFORMING AGENCY consents to the appointment of a receiver, trustee, or liquidator of PERFORMING AGENCY or of all or any part of its property. (Fee -for -Service) GENERAL PROVISIONS Page 20 11/2001 C. Emergency termination. In emergency circumstances, RECEIVING AGENCY may terminate the contract immediately upon notice to PERFORMING AGENCY by any verifiable means. "Emergency" is defined in the Sanctions Article. Either party may deliver written notice of intent to terminate by any verifiable method. If either party gives notice of its intent to terminate all or a part of this contract, RECEIVING AGENCY and PERFORMING AGENCY will attempt to resolve any issues related to the anticipated termination in good faith during the notice period. Upon termination of all or part of this contract, RECEIVING AGENCY and PERFORMING AGENCY will be discharged from any further obligation created under the applicable terms of this contract except for the equitable settlement of the respective accrued interests or obligations incurred prior to termination. Termination does not, however, constitute a waiver of any remedies for breach of this contract.. In addition, the obligations of PERFORMING AGENCY to retain records and maintain confidentiality of information shall survive this contract. ARTICLE 29. Void Contract RECEIVING AGENCY may hold a contract void upon determination that the contract award was obtained fraudulently or was otherwise illegal or invalid from its inception. ARTICLE 30. Severability If any provision of this contract is construed to be illegal or invalid, the illegal or invalid provision will be deemed stricken and deleted to the same extent and effect as if never incorporated, but all other provisions will continue. ARTICLE 31. Survival of Terms Termination or expiration of this contract for any reason shall not release either party from any liabilities or obligations set forth in this contract that (a) the parties have expressly agreed shall survive any such termination or expiration, or (b) remain to be performed or by their nature would be intended to be applicable following any such termination or expiration. ARTICLE 32. Construction of Ambiguities The parties expressly agree that they have each independently read and understood this contract. Any ambiguities in this contract shall not be construed against the drafters. ARTICLE 33. No Waiver of Sovereign Immunity THE PARTIES EXPRESSLY AGREE THAT NO PROVISION OF TIHS CONTRACT IS IN ANY WAY INTENDED TO CONSTITUTE A WAIVER BY RECEIVING AGENCY OR THE STATE OF TEXAS OF ANY IMMUNITIES FROM SUIT OR FROM LIABILITY THAT RECEIVING AGENCY OR THE STATE OF TEXAS MAY HAVE BY OPERATION OF LAW. (Fee -for -Service) GENERAL PROVISIONS Page 21 11/2001 DOCUMENT NO. 7560005906A-2003 ATTACHMENT NO. 01 PERFORMING AGENCY: LUBBOCK CITY HEALTH DEPARTMENT RECEIVING AGENCY PROGRAM: MILK AND DAIRY PRODUCTS DIVISION TERM: September 01, 2002 THRU: August 31, 2003 SECTION I. SCOPE OF WORK: PERFORMING AGENCY shall provide analyses of milk samples. Analyses shall meet laboratory proficiency standards as set by the National Conference of Interstate Milk Shipments and the 1999 U.S. Public Health Service Grade "A" Pasteurized Milk Ordinance, 25 TAC Chapter 217. PERFORMING AGENCY shall: 1. PERFORMING AGENCY shall only perform the tests requested by RECEIVING AGENCY for each sample and mail results to RECEIVING AGENCY within 48 hours from the date of sample submission to PERFORMING AGENCY laboratory. RECEIVING AGENCY will provide mailers. 2. Send original copy of laboratory results forms to RECEIVING AGENCY, Milk and Dairy Products Division, 1100 West 49th Street, Austin, Texas 78756 to be microfilmed and returned to PERFORMING AGENCY. 3. Submit monthly vouchers, which include total number and type of tests performed to RECEIVING AGENCY, Milk and Dairy Products Division. PERFORMING AGENCY shall comply with Chapter 435, Health and Safety Code, Dairy Products. PERFORMING AGENCY shall provide an estimated 2,124 analyses of milk samples in the service area defined as: Lubbock. SECTION II. SPECIAL PROVISIONS: None. SECTION III. BUDGET: Laboratory analyses shall be performed at a rate per test not to exceed the following schedule: ATTACHMENT — Page 1 Standard Plate Count Direct Microscopic Somatic Cell Count Electronic Somatic Cell Count Added Water Antibiotics Inhibitor (Disk Assay) Antibiotics Confirmation Raid Test AFlatoxin Phosphatase Coliform Water Supply Cooling Water SPC $ 6.00 DMSCC $ 8.00 ESCC $ 8.00 Cryoscope $ 2.00 Disc $ 4.50 Charm I, II, SNAP, etc. $24.00 AFlatoxin $12.50 Fluorophos $ 7.50 Coli $ 5.50 Water $15.00 Glycol -Sweet Water $15.00 ATTACHMENT — Page 2