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<br />the statute, rule, regulation, or guideline can be read together with the provision(s) of this Article to give effect to <br />both. J- <br /> <br />RECEIVING AGENCY may: <br /> <br />A. Terminate all or a part of the contract. Termination is the permanent withdrawal of PERFORMING <br />AGENCY'S authority to obligate previously awarded funds before that authority would otherwise expire <br />or the voluntary relinquishment by PERFORMING AGENCY of the authority to obligate previously <br />awarded funds. PERFORMING AGENCY costs resulting from obligations incurred by PERFORMING <br />AGENCY after termination of an award are not allowable unless expressly authorized by the notice of <br />termination. Termination does not include: (I) withdrawal of funds awarded on the basis of <br />PERFORMING AGENCY'S underestimate of the unobligated balance in a prior period; (2) withdrawal <br />of the unobligated balance as of the expiration of a contract; (3) ref~sal to extend a contract or award <br />additional funds, to make a competing or noncompeting continuation, renewal, extension, or <br />supplemental award; or (4) voiding of a contract upon determination that the award was obtained <br />fraudulently, or was otherwise illegal or invalid from inception; <br /> <br />B. Suspend all or part of the contract. Suspension is, depending on the context, either (I) the temporary <br />withdrawal of PERFORMING AGENCY'S authority to obligate funds pending corrective action by <br />PERFORMING AGENCY or its subrecipient(s) or pending a decision to terminate or amend the contract,' <br />or (2) an action taken by a suspending official in accordance with agency regulations implementing <br />Executive Order 12549 to immediately exclude a person from participating in contract transactions for a <br />period, pending completion of an investigation and such legal or debarment proceedings as may ensue. <br />PERFORMING AGENCY costs resulting from obligations incurred by PERFORMING AGENCY <br />during a suspension are not allowable unless expressly authorized by the notice of suspension; <br /> <br />C. Disallow (deny both use of funds and matching credit for) all or part of the activities or action not in <br />compliance; <br /> <br />D. Temporarily withhold cash payments. Temporarily withholding cash payments means the temporary <br />withholding of advances or reimbursements to PERFORMING AGENCY or its subrecipient(s) for <br />proper charges or obligations incurred, pending resolution of issues of noncompliance with contract <br />conditions or indebtedness to the United States or to the State of Texas; <br /> <br />E. Permanently withhold cash payments. Permanent withholding of cash payment means that RECEIVING <br />AGENCY retains funds billed by PERFORMING AGENCY or its subrecipient(s) for a) unallowable, <br />undocumented, disputed, inaccurate, improper, or erroneous billings; b) failure to comply with contract <br />provisions; or c) indebtedness to the United States or to the State of Texas; <br /> <br />F. Deny contract renewal or future contract awards to a PERFORMING AGENCY; <br /> <br />G. Delay contract execution with PERFORMING AGENCY while other imposed or proposed sanctions are <br />pending resolution; <br /> <br />H. Place PERFORMING AGENCY on probation. Probation means that PERFORMING AGENCY will be <br />placed on accelerated monitoring for a period not to exceed six (6) months at which time items of <br />noncompliance shall be resolved or substantial improvement shown by PERFORMING AGENCY; <br /> <br />(LGS) <br /> <br />GENERAL PROVISIONS Page 19 <br /> <br />11/2001 <br />