THIRD-PARTY CONTRACT

As used in Federal guidelines and grants, any contract or contract modification between the MTA and another person or firm. Use of the term is generally limited to a contract which is to be funded in whole or in part by the Federal government. The original grant agreement related to a project or to the work to be performed is entered into between the Federal government or other body and its grantee; if the grantee then contracts to have the work performed by another individual or firm, that contract is referred to as a “third party contract.”