Common use of Pass Along Federal Penalties Clause in Contracts

Pass Along Federal Penalties. a. The Contractor shall indemnify the Department for any federal fiscal sanction taken against the Department or any other state agency which is attributable to action or inaction by the Contractor, its officers, employees, agents, providers, or subcontractors that is contrary to the provisions of this contract. b. Prior to invoking this provision, the Department agrees to pursue any reasonable defense against federal fiscal sanction in the available federal administrative forum. The Contractor shall cooperate in that defense to the extent requested by the Department. c. Upon notice of a threatened federal fiscal sanction, the Department may withhold monthly rate of service (MROS) payments otherwise due to the Contractor to the extent necessary to protect the Department against potential federal fiscal sanction. The Department will consider the Contractor’s requests regarding the timing and amount of any withholding adjustments.

Pass Along Federal Penalties. a. The Contractor shall indemnify the Department for any federal fiscal sanction taken against the Department or any other state agency which is attributable to action or inaction by the Contractor, its officers, employees, agents, providers, or subcontractors that is contrary to the provisions of this contract.contract.‌‌‌ b. Prior to invoking this provision, the Department agrees to pursue any reasonable defense against federal fiscal sanction in the available federal administrative forum. The Contractor shall cooperate in that defense to the extent requested by the Department. c. Upon notice of a threatened federal fiscal sanction, the Department may withhold monthly rate of service (MROS) payments otherwise due to the Contractor to the extent necessary to protect the Department against potential federal fiscal sanction. The Department will consider the Contractor’s requests regarding the timing and amount of any withholding adjustments.