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terminate this transaction for cause of default. <br /> <br /> d. The prospective primary participant Shall provide immediate <br />written notice to the department or agency to whom this proposal is <br />submitted if any time the prospective primary participant learns that <br />its certification was erroneous when submitted or has become r <br />erroneous by reason of changed circumstances. <br /> <br /> e. The terms "covered transaction," 'debarred," 'suspended,' <br />'ineligible," "lower tier covered transaction," "participant," "person," <br />'pdmary covered transaction," "principal," "proposal," and 'voluntarily <br />excluded," as used in this clause, have the meanings set out in the <br />Definitions and Coverage sections of rules implementing Executive <br />Order 12549. You may contact the department or agency to which <br />this proposal is submitted for assistance in obtaining a copy of those <br />regulations. <br /> <br /> f. The prospective primary participant agrees by submitting <br />this proposal that, should the proposed covered transaction be <br />entered into, it shall not knowingly enter into any lower tier covered <br />transaction with a person who is debarred, suspended, declared <br />ineligible, or voluntarily excluded from participation in this covered <br />transaction, unless authorized by the department or agency entering <br />into this transaction. <br /> <br /> g. The prospective primary participant further agrees by <br />submitting this proposal that it will include the clause titled "Certifica- <br />tion Regarding Debarment, Suspension, Ineligibility and Voluntary <br />Exclusion-Lower Tier Covered Transaction," provided by the <br />department or agency entering into this covered transaction, without <br />modification, in all lower tier covered transactions and in all solicita- <br />tions for lower tier covered transactions. <br /> <br /> h. A participant in a covered transaction may rely upon a <br />certification of a prospective participant in a lower tier covered <br />transaction that is not debarred, suspended, ineligible, or voluntarily <br />excluded from the covered transaction, unless it knows that the <br />certification is erroneous. A participant may decide the method and <br />frequency by which it determines the eligibility of its principals. Each <br />participant may, but is not required to, check the nonprocurement <br />portion of the "Lists of Parties Excluded From Federal Procurernent <br />or Nonprocurement Programs" (Nonprocurement List) which is <br />compiled by the General Services Adrninistretion. <br /> <br /> i. Nothing contained in the foregoing shall be construed to <br />require establishment of a system of records in order to render in <br />good faith the certification required by this clause. The knowledge <br />and information of participant is not required to exceed that which is <br />normally possessed by a prudent person in the ordinary course of <br />business dealings. <br /> <br /> j. Except for transactions authorized under paragraph f of <br />these instructions, if a participant in a covered transaction knowingly <br />enters into a lower tier covered transaction with a person who is <br />suspended, debarred, ineligible, or voluntarily excluded from <br />participation in this transaction, in addition to other remedies <br />available to the Federal Government, the department or agency may <br />terminate this transaction for cause or default. <br /> <br />Form FHWA-1273 IRev. 3-94) <br /> <br />Page 7 <br /> <br /> <br />