(a) Each agreement with the department or other recipient that involves DOT funding must include: "The recipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT-assisted contract or in the administration of its DBE program or the requirements of 49 Code of Federal Regulations (C.F.R.) Part 26. The recipient shall take all necessary and reasonable steps under 49 C.F.R. Part 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts. The recipient's DBE program, as required by 49 C.F.R. Part 26 and as approved by DOT, is incorporated by reference into this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved program, the DOT may impose sanctions as provided for under 49 C.F.R. Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S. Code (U.S.C.) Chapter 1001 or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §3801 et seq.)."
(b) Any contract or subcontract that involves DOT funding must contain: "The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 C.F.R. Part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, that may result in the termination of this contract or such other remedy as the recipient deems appropriate."

Source Note: The provisions of this §9.206 adopted to be effective September 1, 2012, 37 TexReg 5320