The Special Warranty mentioned in paragraph (b)(3)(ii) of Sec. 215.3
refers to the protective arrangements developed for application to the
small urban and rural program under section 5311 of the Federal Transit
statute. The warranty arrangement represents the understandings of the
Department of Labor and the Department of Transportation, reached in May
1979, with respect to the protections to be applied for such grants. The
Special Warranty provides fair and equitable arrangements to protect the
interests of employees and meets the requirements of 49 U.S.C. 5333(b).
