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A3 BREACH OF CONTRACT TERMS <br />A3.1 SOURCE <br />2 CFR § 200 Appendix ll(A) <br />A3.2 APPLICABILITY <br />This provision requires sponsors to incorporate administrative, contractual or legal remedies if <br />contractor violate or breach contract terms . The sponsor must also include appropriate sanctions and <br />penalties. <br />Contract Types -This provision is required for all contracts that exceed the simplified acquisition <br />threshold as stated in 2 CFR Part 200, Appendix II (A). This threshold is occasionally adjusted for inflation <br />and is now equal to $150,000. <br />Use of Provision -No mandatory language provided. The following language is acceptable to the FAA as <br />meeting the intent of this requirement. If the sponsor uses different language, the sponsor's language <br />must fully satisfy the requirements of part 200. Select either "contractor" or "consultant" as applicable. <br />A3.3 CONTRACT CLAUSE <br />BREACH OF CONTRACT TERMS <br />Any violation or breach of terms of this contract on the part of the Century West Engineering Corp. or its <br />subcontractors may result in the suspension or termination of this contract or such other action that may <br />be necessary to enforce the rights of the parties of this agreement. <br />Owner will provide Century West Engineering Corp. written notice that describes the nature of the breach <br />and corrective actions the Century West Engineering Corp. must undertake in order to avoid termination <br />of the contract. Owner reserves the right to withhold payments to Contractor until such time the <br />Contractor corrects the breach or the Owner elects to terminate the contract. The Owner's notice will <br />identify a specific date by which the Century West Engineering Corp. must correct the breach. Owner <br />may proceed with termination of the contract if the Century West Engineering Corp. fails to correct the <br />breach by the deadline indicated in the Owner's notice. <br />The duties and obligations imposed by the Contract Documents and the rights and remedies available <br />thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies <br />otherwise imposed or available by law. <br />Guidelines for Contract Provisions for Obligated Sponsors and Airport Improvement Program Projects <br />Issued on December 12, 2017 Page 5