Common use of Assignability and Subcontracting Clause in Contracts

Assignability and Subcontracting. A. Subcontracting, assignment, or transfer of all or part of the duties, activities, and responsibilities the AGENCY is obligated to perform by the terms of this AGREEMENT are prohibited except with the prior written approval of the DEPARTMENT. Transit service contracts which provide another party any degree of control over transit service design, scheduling or rider selection are also prohibited without prior written approval of the DEPARTMENT. (1) Before initially entering into, renegotiating or extending, any subcontract to purchase transit services from a non-governmental provider (including any leasing of a vehicle to a non-governmental entity), the AGENCY must solicit interest or proposals from minority organizations to do the same or similar services, and, if necessary, the AGENCY must provide such assistance in developing proposals as might be needed by these organizations. (2) Documentation of the outreach and assistance performed under (1) above shall be provided to the DEPARTMENT when requesting approval of each subcontract with a non-governmental entity, along with information about the minority status of the entity that is to be a party to the proposed subcontract. B. In the event the DEPARTMENT gives such approval, the party or parties to whom such work is subcontracted, assigned or transferred or which receives any degree of control over services shall be bound and obligated by the terms and conditions of this AGREEMENT as fully and completely as the AGENCY. C. The AGENCY shall take such action with respect to any subcontract or procurement as the DEPARTMENT may direct as enforcing such provisions including sanctions for noncompliance; provided, however, that in the event the AGENCY becomes involved in or is threatened with litigation with a subcontractor or supplier as a result of such direction, the AGENCY may request the DEPARTMENT to enter into such litigation to protect the interests of the State.