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regulations, "Buy America Requirements," 49 C.F.R: Part 661 to the extent those regulations are consistent with SAFETEA -LU provisions, and subsequent amendments to those regulations that may be promulgated. The Contractor also agrees to comply with FTA directives to the extent those directives are consistent with SAFETEA -LU provisions, except to the extent that FTA or the Department determines otherwise in writing. b. Cargo Preference -Use of United States -Flag Vessels The Contractor agrees to comply with U.S. Maritime Administration regulations, "Cargo Preference- U.S. -Flag Vessels," 46 C.F.R. Part 381, to the extent those regulations apply to the Project. C. Fly meri ca . The Contractor understands and agrees that the Federal /State A Government will not participate in the costs of international air transportation of any individuals involved in or property acquired for the Project unless that air transportation is provided by U.S. -flag air carriers to the extent service by U.S. -flag air carriers is available, in accordance with the requirements of the International Air Transportation Fair Competitive Practices Act of 1974, as amended 49 U.S.C. § 40118, and with U.S. GSA regulations, "Use of United States Flag Air Carriers," 41 C.F.R. §§ 301 - 10.131 through 301- 10.143. Section 16. Procurement To the extent applicable, the Contractor agrees to comply with the following third party procurement provisions: a. Federal Standards The Contractor agrees to comply with the third party procurement requirements of 49 U.S.C. chapter 53 and other applicable Federal laws in effect now or as subsequently enacted; with U.S. DOT third party procurement regulations of 49 C.F.R. §§ 19.40 through 19.48 and other applicable Federal regulations pertaining to third party procurements and subsequent amendments thereto, to the extent those regulations are consistent with SAFETEA -LU provisions; and Article 8 of Chapter 143 of the North Carolina General Statutes. The Contractor also agrees to comply with the provisions of FTA Circular 4220.1 E, "Third Party Contracting Requirements," to the extent those provisions are consistent with SAFETEA -LU provisions and with any subsequent amendments thereto, except to the extent the Department or the FTA determines otherwise in writing. Although the FTA "Best Practices Procurement Manual" provides additional procurement guidance, the Contractor understands that the FTA Best Practices Procurement Manual" is focused on third party procurement processes and may omit certain Federal requirements applicable to the third party contract work to be performed. The Contractor shall establish written procurement procedures that comply with the required Federal and State standards. b. Full and Open Competition In accordance with 49 U.S.C. § 5325(a), the Contractor agrees to conduct all procurement transactions in a manner that provides full and open competition as determined by the Department and FTA. C. Exclusionary or Discriminatory Specifications Apart from inconsistent requirements imposed by Federal laws or regulations, the Contractor agrees to comply with the requirements of 49 U.S.C. § 5325(h) by not using any Federal assistance awarded by FTA to support a procurement using exclusionary or discriminatory specifications. d. Geographic Restrictions The Contractor agrees that it will not use any State or local geographic preference, except State or local geographic preferences expressly mandated or as permitted by FTA. However, for example, in procuring architectural, engineering, or related services, the Contractor's geographic location may be a selection criterion, provided that a sufficient number of qualified firms are eligible to compete. e. In -State Bus Dealer Restrictions The Contractor agrees that in accordance with 49 U.S.C. § 5325(i), any State law requiring buses to be purchased through in -State dealers will not apply to purchases of vehicles acquired with funding authorized under 49 U.S.C. chapter 53. Updated 3/01/11 Page 17 of 41 Attachment number 2 F_g Page 151