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§ 1-30.529

Title 41- Public Contracts, Property Management

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8 1-30.529 Format 529, Contractor's request for progress payment.

(a) Page 1 of Format 529.

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(b) Page 2 of Format 529.

INSTRUCTIONS

SECTION 1. IDENTIFICATION INFORMATION. Compine irem. I through 6 in accordance with the following instructions:

ITEMI. TO . Enter the name and address of the contracting officer or his representative.

ITEM 2. FROM CONTRACTOR'S WWF AND ADDRESS - Enter the name and railing address of the contractor.

ITEM. TOTAL CONTRACT PRICE . Enter the total contract price, .. amended 11 the contract provide for price redetermination, enter the ionul price voit changed; if the contracts of the incentive type, enter the target price until changed: not ide ceiling or matinur price. For letter contracts. enter the manuten errenduwe authorized by the contract, as amended.

ITEM 3D - CONTRACT PRICE OF ITF US TO BE DE UVERED AND /OR ACCEPTED. Enter the toul billing price of the undelivered items and/or of delivered items not yet accepied and invoiced under the contract.

ITE. CONTRACT NUVBER. Enter the number of the contract on which progress payment is being requested.

17E" S. INVOICE NUMDER AND DATE . Enter the owner and date of the invoice for the progress payment requested herein. If no Invoice is submit and here with, Cuer "none".

ITEN 6. Enter the number assigned to this request. All requests under single contract must be numbered consecutively beginning with I. Each out requent reques under the same ccaTaC * coatinue in sequence the same series of numbers without omission or duplication.

ITEM 6b. Enter the date of this request.

ITEV &c. Enter the amount of progress payment requested bereis, which should not exceed the amount show in item llc.

SECTION 1. GENERAL INSTRUCTIONS. DATES. Spaces are provided in the heading of Section Il for the entry of two dares. In the first sece, enter the date of the first incurrence of cour of performance of the kind eligible for progress payments under the contract. In the second space, enter the dare through which wuch costs have been accumulared for inclusion in this request and are therefore shown individually, as applicable iten entries in Sections I and III.

LINITED COSTS BASIS. Certain contracto limit the progress payme at bare to incwted costs of direct labor and/or direct material or ochet specified couro which are less than inceled "Total costo". Then the contract includes such limitations only those cous eligible for progress payments under om contract are to be identified and reported in Section u.

ECIR

ITEM 7.1. Il applicable, enter the rate wred in computing general ad administrative per and the computed dollar smo mi.

ITEM 7. 4. Selte spins cory.

ITEM & fore the percentagelige for progress payments stated in the Contract (Paragraph (a) (1) () of the uniform progress payment clause) and the computed dollar amount based on that percentage, I. e., the coa puted dollar amount of the entry in keo 76.

ITEMS AND 10. Make no entry unles, the contract requires propres. payments to the correcto on account of progress payments to sub contractors. Include only progress payments on subcontracte which con lor to the progres. bayment provisions of the prime contract.

ITEM... Encer only progress payments actually paid.

ITEV 9-). Enter tot el progress payments recouped from subcontractors.

ITE.C. Seitenplanatory.

ITEM .d . Moke no entry unless the prime contract specifies progres. payment on account of unpaid subcontract progress paymeer billings which bave been approved lor curent payment in the ordinary course of business. Include only such approved apud invoices.

ITEN 10. Seltenplanatory.

ITEN 11 ... Self-esplanatory.

ITEM 11.5. Enter the percentage stated in the contract which limits
*ure de progress paymeno (Paragraph (.) () of the uniform progrese
payment clause) which em be made and compute the dollar amount
based on the percentage, i.e., the computed dolle amount of the entry
io item ).

ITEN 11.6. Self-explanatory.

ITEMS 17 AND 13 - Seltesplanatory.

SECTION III. GENERAL INSTRUCTIONS . This section is to be con plesed only when specifically requested by Government personeel re sponsible for administration of the contract. Completion of this ser tion will be requer when the rate or quality of contract performance is not sayangry. When there is reason to believe the (.) the

in lepo to the contractor; or (b) insufficient cous de divered iters; or (c) outstanding progress payo

fair value of the work accomplished on the ror of the contract or (2) the applicable percentage of

located to unfinished work.

con il

SECTION III SPECIFIC INSTRUCTIONS

TOTAL COST BASIS. Certain contracts provide the Pograde
bese will be for incurred cons, lo such careylonpr nye
penses incurred for performance of the contract with usponaten
cable to the contracı, consistent with sound and gets prediccount
ing principles and practices, and which are not other huded by the con-
wract. (For esclusions, see the progress payment claure of the contract. )

ITEM 14. Of the costs reported in les 7.. compute and enter only
Cons which are opplicable to items delivered, invoiced and accepted

the applicable dore. In order of preference, there Ons are to be computed on the basis of one of the following (.) the actual unit com of items delivered, giving proper consideration to the delerment of the starting load cons; (b) projected unit cons (bared on experienced coste, plus estimated coste to complete the contract), where the con tractor maintains cost daca which will clearly establish the rehability

such estimates; and (c) the total contact price of items delivered.

ITEN IS. Seltenplanatory.

MANUFACTURING AND PRODUCTION EXPENSE: GENERAL AND ADMINIS-
TRATIVE EXPENSE - Under certain conditions, eligible incuned come in-
clude manufacturing and production capenses and general and adminstrative
expenses which have been incurred for perlormance of the contract which
are reasonable, allocable to the contract, and consistent with sound and en
erally accepted accounting principles and practices.

(NOTE: In connection with the first progress payment request on.
contract, attach an explanation of the method, bases and period used
in delennining the amount of each of these two types of expenses. 1!
the method, bases or periods used for computing these expenses dit
ter in subsequent request for progress payments under the contract,
oltach an explanation of such changes to the progreso poyment re.
quest involved.)

ITEM 16. Enter the percentage stored in the contract limiting unliquide sed progress payeceti in relation to eligible cor (Poregraph (o)(1)(1)

the uniform progrese payment clause). Compare sed enter the dollar Seout based on the percearage, i.e., the pacconage of the entry in ices 19.

ITEM 17. Enter the total billing price, sediusced, of ireres delivered, accepted and invoiced to the applicable date.

ITEMS 18 AND 19. Sell-explanatory.

INCURRED COSTS INVOLVING SUBCONTRACTORS .il the incurred costs eligible for propens poyments vader the contract include costs shows on Invoices of subre tractors, suppliers and other portion

the cool computed on the basis of such invoices can only include costa for: (1) completed work to which the prime contractor hos acquired title; (2) maretials delivered to which the prime contractor has acquired tide; (3) service. rendered; and (1) cosas buled under con reimbursement or time and murerie olbcontracts for work to which the prime contractor has acquired title.

ITEM 20. This entry is to be completed from the contractor', records.
It is the total old mount which have been or me to be applied from
previous billing to reduce outstanding progress payments, including
amounts, if any, of paymesto OTHER than those applied from previous
billings. (NOTE: If the entry include reductions effec!ed by means
of her than through previous billinge, altech statement showing details
thertol.)

SECTION 11. SPECIFIC INSTRUCTIONS

ITEM 7. COSTS E LIGIBLE UNDER PROGRESS PAYMENT CLAUSE. Costa to be shown in items 7 through 78 are not to include advance payments, do payments, deposits, or progress payments made or to be made to subcon tractors, suppliers or others.

ITEN 21. Self-explanatory.

ITEN 22... Self-explanatory.

ITEM 1. and . Il applicable, enter the direct material and direct labor

COOL.

ITEM 7.C. Il applicable, enter the rare used in compuring manufacturing and production expenses and the computed dollar amount.

ITEM 22.5. Enter the percentage rared in the contract, limiting w. liquidared progress pyments to that percentage of the contract price of items which have not been delivered and accepted (Paragraph (a)(3)(11) of the unitom progren. Myment clausen

ITEM 7.d. Enter the total of all other direct costs, Atrach srnarne statement identifying each such cost and the amount thereof.

ITEM 22.6. Sell-esplanatory. (NOTE: II the entry in this item is less then the entry in tem 21. there has been an overpayment which requires od jualment.)

ITEN 7. . Self-esplanatory.

ITEM 2). Sellenplan story.

Subpart 1-30.6 [Reserved]
Subpart 1-30.7-Assignment of

Claims
$ 1-30.700 Scope of subpart.

This subpart prescribes the policies and procedures relating to the assignment of claims of money due or to become due under Government contracts. § 1-30.701 General.

The Assignment of Claims Act of 1940, as amended, 54 Stat. 1029, 65 Stat. 41 (31 U.S.C. 203, 41 U.S.C. 15), hereafter referred to in this Subpart 1-30.7 as the Act, permits the assignment to a bank, trust company, or other financing institution, including any Federal lending agency of moneys due or to become due from the United States under a contract providing for payments aggregating $1,000 or more, provided the conditions specified in the Act, as set forth in $ 1-30.702, are met. The Act further provides that an assignee receiving payment under an assignment is not, by reason of any liability of the assignor to the United States or any department or agency thereof, whether arising from or independently of the assigned contract, obligated or liable to make restitution, refund or repayment to the United States. Also, under the Act, the contracts of certain specified agencies, and other agencies designated by the President, may in time of war or national emergency, provide that payments made thereunder to an assignee shall not be subject to reduction or set-off for any liability of the assignor arising independently of the assigned contract. $ 1-30.702 Conditions governing

signment of claims. Moneys due or to become due from the United States, or any agency or department thereof under a contract, may be assigned under the following conditions:

(a) The contract provides for payments aggregating $1,000 or more:

(b) The payments are assigned to a bank, trust company, or other financing institution, including any Federal lending agency;

(c) The contract does not forbid assignment;

(d) Unless otherwise expressly permitted by the contract any assignment shall cover all amounts payable under the contract and not already paid, shall not be made to more than one party, and

shall not be subject to further assignment, except that any assignment may be made to one party as agent or trustee for two or more parties participating in the financing; and

(e) That in the event of any assignment, the assignee shall file written notice of the assignment, together with a true copy of the instrument of assignment with (1) the contracting officer or the head of his department or agency; (2) the surety or sureties upon the bond or bonds, if any, in connection with the assigned contract; and (3) the disbursing officer, if any, designated in the assigned contract to make payment. § 1-30.703 Contract clause-Assign

ment of Claims. The following clause shall be inserted in all contracts except it is not required to be used in construction contracts estimated not to exceed $10,000:

ASSIGNMENT OF CLAIMS (a) Pursuant to the provisions of the Assignment of Claims Act of 1940, as amended (31 U.S.C. 203, 41 U.S.C. 15), if this contract provides for payments aggregating $1,000 or more, claims for moneys due or to become due the Contractor from the Govern. ment under this contract may be assigned to a bank, trust company, or other financing institution, including any Federal lending agency, and may thereafter be further assigned and reassigned to any such institution. Any such assignment or reassignment shall cover all amounts payable under this contract and not already paid, and shall not be made to more than one party, except that any such assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in such financing. Unless otherwise provided in this contract, payments to assignee of any moneys due or to become due under this contract shall not, to the extent provided in said Act, as amended, be subject to reduction or setofi. (The preceding sentence applies only if this contract is made in time of war or national emergency as defined in said Act and is with the Department of Defense, the General Services Administration, the Atomic Energy Commission, the National Aeronautics and Space Administration, the Federal Aviation Agency, or any other department or agency of the United States designated by the President pursuant to Clause 4 of the proviso of section 1 of the Assignment of Claims Act of 1940, as amended by the Act of May 15, 1951. 65 Stat. 41.)

(b) In no event shall copies of this contract or of any plans, specifications, or other simllar documents relating to work under this contract, 11 marked "Top Secret," "Secret,"

as

ACKNOWLEDGMENT

Receipt is hereby acknowledged of the above notice and a copy of the above-mentioned instrument of assignment. These were received at

a.m. (p.m.) On 19----.

(Signature)

(Title)

On behalf of

or "Conidential," be furnished to any assignee of any claim arising under this contract or to any other person not entitled to receive the same. However, a cops of any part or all of this contract so marked may be furnished, or any information contained therein may be disclosed, to such assignee upon the prior written authorization of the Contracting Officer. The last two sentences of paragraph (a) of the foregoing clause shall be deleted from contracts entered into with foreign contractors and may, in accordance with agency procedures, be deleted in other cases where special circumstances make it advisable in the best interests of the Government. § 1-30.704 Forms for assignment and

notice of assignment. There are no forms prescribed for use as an instrument of assignment or as a notice of assignment; however, the following is a suggested format for use by the assignee in providing the notice of the assignment as required by § 1-30.702 (e).

NOTICE OF ASSIGNMENT

Date To: (Address to one of the parties specified

in $ 1-30.702(e)) This has reference to Contract No. dated

entered into between (contractor's name and address) and (Government Agency, Name of Office, and address). for (describe nature of the contract).

PLEASE TAKE NOTICE that moneys due or to become due under the contract described above have been assigned to the undersigned pursuant to the provisions of the Assignment of Claims Act of 1940, as amended, 54 Stat. 1029; 65 Stat. 41 (31 U.S.C. 203, 41 U.S.C. 15).

A true copy of the instrument of assignment executed by the contractor on

(Date) is attached to the original hereof.

Payments due or to become due after such contract should be made to the undersigned assignee.

Please return to the undersigned the three enclosed copies of this notice with appropriate notations showing the date and hour or receipt, and duly signed by the person

Receipt is hereby acknowledged of the addressee.

very truy yours,

(Name of addressee of this

notice) § 1-30.705 Filing notice of assignment

and the instrument of assignment. The assignee should address a notice of assignment to each of the parties specified in § 1-30.702(e) and file with each party four signed copies of the notice, together with one true copy of the instrument of assignment (a certified true duplicate or a photostatic copy of the original). If a disbursing officer is not designated in the contract to make payment, it is not necessary that the notice be filed with any agency or department official other than the contracting officer or the head of his department or agency. 81–30.706 Procedures upon receipt of

notice of assignment and instrument

of assignment. (a) Upon receipt of the four copies of notice of assignment, together with a true copy of the instrument of assignment, by an agency official other than the contracting officer such assignment documents should be immediately forwarded to the appropriate contracting officer of the procuring activity who should, in accordance with agency procedures:

(1) Notify the appropriate certifying or disbursing officer by memorandum of the pending assignment, and subsequently of its acknowledgment or refusal and return.

(2) Examine the notice of assignment and instrument of assignment, and the contract involved to determine that the assignment is in proper form, has been properly executed and that the contractor is empowered under the contract to make the assignment. The details concerning examination of the assignment documents are set forth in § 1-30.708.

(3) If satisfied that the assignment is in proper form, acknowledge receipt of the notice of the assignment in the space provided thereon and return three copies to the assignee.

(Name of assignee) Ву (Signature of signing

officer) Title

(Title of signing officer)

(Address of assignee)

(4) Provide the fourth copy of the notice of assignment duly acknowledged and the true copy of the instrument of assignment for filing with the contract.

(b) If, for any reason, the assignment is one which the contract does not authorize the contractor to make, or is not in proper form, or is not properly executed, the contracting officer should return the copies of the notice of assignment and the copy of the instrument of assignment to the assignee with an explanation of the objections to the proposed assignment. The acknowledgment form on the notice of assignment should not be executed. If, upon receipt of the notice of assignment and a copy of the instrument of assignment, it appears that considerable delay may occur before the notice of assignment can be acknowledged or returned unacknowledged, as the case may be, the contracting officer should advise the assignee that such a delay is likely to occur and should normally furnish the assignee a statement of the reasons for the delay. § 1-30.707 Further assignments and re

assignments. Contracts permitting the assignment of claims for moneys due or to become due thereunder also permit, under the clause prescribed in § 1-30.703, such claims to be further assigned and reassigned by the assignee to another bank. trust company, or other financing institution, including any Federal lending agency. Copies of a written notice of further assignment and reassignment and the copy of the instrument of such further assignment and reassignment should be processed in the same manner as copies to the initial notice of assignment and instrument of initial assignment. The three acknowledged copies of the notice of further assignment or reassignment will be sent to the new assignee designated under the assignment thus acknowledged. f 1–30.708 Examination of assignment.

In ascertaining that an assignment is in proper form, is properly executed, and is one that the contractor is entitled to make under the contract, contracting officers should satisfy themselves that:

(a) The contract has been duly executed and approved where necessary (see § 1-2.407). Contractors frequently make assignments of claims for moneys

due or to become due under a contract, upon receipt of an advance notice of award, even though the contract has neither been executed nor approved. In such cases, the copies of notices of such assignment should be immediately returned to the assignee unacknowledged.

(b) The contract is one under which claims may be assigned under the provisions of the Act. In rare cases, SECRET or CONFIDENTIAL contracts will contain provisions prohibiting assignment of claims thereunder. It should be noted that assignment of claims under SECRET or CONFIDENTIAL contracts, permitting the assignment thereof, should not be acknowledged by contracting officers until adequate steps have been taken to protect the interest of the Government.

(c) The assignment covers all amounts payable under the contract, and not already paid, and is not made to more than one person, and the assignee is a bank, trust company, or other financing institution, including any Federal lending agency. In this connection the following should be noted:

(1) Most contracts provide (see clause prescribed in § 1-30.703) that any assignment of claims thereunder shall cover all amounts payable under the contract, and not already paid, and shall not be made to more than one party, except that assignment may be made to one party as agent or trustee for two or more parties participating in the financing of a contractor. However, under the Assignment of Claims Act there is authority for a contract to embody terms permitting assignment of only a part of the contractor's claims for moneys due or to become due, permitting assignment to more than one person. In the absence of contract provisions specifically authorizing such types of assignment, the assignments are unlawful. Because of the administrative burden on accounting and finance officers, partial assignments or assignments to more than one person, if permitted under a contract, should ordinarily be limited to cases where it is in the interest of the Government to do so, e.g., where the contractor is financially obligated to Government agencies and the assignment is made for protection of such Government agencies.

(2) Where the contract provides for advance payments, whether or not ad

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