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<br />the written response shall state how Contractor shall correct the noncompliance or <br />demonstrate in writing that the findings on which the remedies or sanction(s) are <br />based are either invalid or do not warrant the remedies or sanction(s). If <br />Department determines that a remedy or sanction is warranted, unless the remedy or <br />sanction is subject to review under a federal or state statute, regulation or guideline, <br />Department's decision is final. Department shall provide written notice to <br />Contractor of Department's decision. If required by the Department, Contractor <br />shall take corrective action. <br /> <br />Section 14.04 Emergency Action. In an emergency, Department may <br />immediately terminate or suspend all or part of this Contract, temporarily or <br />permanently withhold cash payments, deny contract renewal or future contract <br />awards, or delay contract execution by delivering written notice to Contractor, by <br />any verifiable method, stating the reason for the emergency action. An <br />"emergency" is defined as the following: <br />a) Contractor is noncompliant and the noncompliance has a direct <br />adverse impact on the public or client health, welfare or safety. The <br />direct adverse impact may be programmatic or financial and may <br />include failing to provide services, providing inadequate services, <br />providing unnecessary services, or utilizing resources so that the public <br />or clients do not receive the benefits contemplated by the scope of work <br />or performance measures; or <br />b) Contractor is expending funds inappropriately. <br /> <br />Whether Contractor's conduct or noncompliance is an emergency will be <br />determined by Department on a case-by-case basis and will be based upon the <br />nature of the noncompliance or conduct. <br /> <br />ARTICLE XV CLAIMS AGAINST THE DEPARTMENT. <br /> <br />Section 15.01 Breach of Contract Claim. The process for a breach of contract <br />claim against the Department provided for in Chapter 2260 of Texas Government <br />Code and implemented in the rules at 25 TAC SSl.43l-1.447 shall be used by <br />DSHS and Contractor to attempt to resolve any breach of contract claim against <br />DSHS. <br /> <br />Section 15.02 Notice. Contractor's claims for breach of this Contract that the <br />parties cannot resolve in the ordinary course of business shall be submitted to the <br />negotiation process provided in Chapter 2260, subchapter B, Texas Government <br />Code. To initiate the process, Contractor shall submit written notice, as required by <br />subchapter B, to DSHS's Office of General Counsel. The notice shall specifically <br />state that the provisions of Chapter 2260, subchapter B, are being invoked. A copy <br />of the notice shall also be given to all other representatives of DSHS and <br />Contractor. Subchapter B is a condition precedent to the filing of a contested case <br />proceeding under Chapter 2260, subchapter C, Texas Government Code. <br /> <br />General Provisions (Core Subrecipient 2008) <br /> <br />6/12/2007 <br /> <br />-- ~~-r~ ~-~" <br /> <br />35 <br /> <br />~-T"T"":r-- <br />