52.232-24
Prohibition of Assignment of Claims
If this clause is included in your contract, you are strictly prohibited from assigning your right to payment to any third party.
Overview
FAR 52.232-24, "Prohibition of Assignment of Claims," is a contract clause that explicitly prohibits the assignment of claims under the Assignment of Claims Act of 1940 for the contract to which it is applied. This means that contractors are not allowed to transfer their rights to be paid by the government to a third party, such as a bank or financial institution. The clause is inserted into contracts as directed by FAR 32.806(b), and its presence overrides the general allowance for assignment of claims in other circumstances. The purpose is to ensure that payment rights remain solely with the original contractor and are not transferred without government consent.
Key Rules
- Prohibition of Assignment
- Contractors are not permitted to assign claims for payment under this contract to any third party.
- Applicability
- The clause is included in contracts as specified by FAR 32.806(b), typically when the agency determines assignment of claims should not be permitted.
Responsibilities
- Contracting Officers: Must ensure this clause is included in applicable contracts and enforce its prohibition.
- Contractors: Must not attempt to assign claims for payment to any third party.
- Agencies: Should monitor compliance and address any attempted assignments.
Practical Implications
- This clause exists to protect the government's interests and maintain control over payment obligations.
- Contractors must carefully review contract terms before seeking financing arrangements involving assignment of claims.
- Attempting to assign claims in violation of this clause can result in payment delays, contract disputes, or default.