32.800
Scope of subpart
FAR 32.800 sets the framework for assigning payment claims under government contracts, ensuring compliance with the Assignment of Claims Act.
Overview
- FAR 32.800 establishes the scope for Subpart 32.8, outlining the policies and procedures related to the assignment of claims under the Assignment of Claims Act of 1940, as amended. This section clarifies that the subpart governs how contractors may assign their rights to be paid by the government to a third party, typically a financial institution, in accordance with federal law.
Key Rules
- Assignment of Claims Act Coverage
- The subpart applies to assignments of claims arising under government contracts, as authorized by the Assignment of Claims Act.
- Prescribed Policies and Procedures
- The subpart details the required steps and conditions for valid assignments, ensuring compliance with statutory requirements.
Responsibilities
- Contracting Officers: Must ensure that any assignment of claims complies with the Act and FAR requirements.
- Contractors: Must follow the procedures for assigning claims and provide necessary documentation.
- Agencies: Oversee and enforce compliance with assignment of claims policies.
Practical Implications
- This section exists to facilitate contractor financing by allowing assignment of payments due under government contracts, while protecting government interests.
- It impacts contract administration, especially when contractors seek to use contract receivables as collateral.
- Common pitfalls include improper documentation or failure to meet statutory requirements, which can invalidate an assignment.