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(b) Page 2 of Format 529.

INSTRUCTIONS

SECTION 1. IDENTIFICATION INFORMATION Complee items through 6 in accordance with the following instructions:

ITEM I - 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 mailing address of the contractor.

ITEV. TOTAL CONTRACT PRICE . Enter the total contract price, a amended. If the contract provides for price redetermination, enter the initial price uned changed; if the contract is of the incentive type, enter the target price until changed, not the ceiling or masimur price. For letter contracts. enter the maximum expenditure authorized by the contract, as amended.

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

ITEM.. CONTRACT NUMBER. Enter the number of the contract on which progress payment is being requested.

ITEMS INVOICE NUMBER AND DATE - Enter the number and dare of the invoice for the progress payments requested herein. If no invoice is submit red here with, enter "none"

ITEN 6. . Enter the number assigned to this request. All requests under . single contract must be numbered consecutively beginning with 1. Each sub sequent request under the same contract must continue in sequence the same series of numbers without omission of duplication.

ITEM 60. Enter the date of this reques.

ITEN 6c - Enter the amount of progress payment reque sed herein, which should not exceed the amount shown in item llc.

SFCTIOV II. GENERAL INSTRUCTIONS. DATES. Spaces de provided in the heading of Section II for the entry of evo dares to the first space, carer the date of the first incurrence of cons of performance of the kind eligible for progress payments under the contract. In the second space, enter the date through which such costs have been accumulated for inclusion in this request and are therefore shown individually, as applicable item entries in Sections 11 and 111.

LIMITED COSTS BASIS-Cerain contracto limit the progress payment base to incurred costs of direct labor and/or direct material or other specified costs which are less than incwred "Toral costs". Then the contract includes such limitations only those costa eligible for progress payments under the contract are to be identified and reported in Section u.

TOTAL COST BASIS. Certain contracts provide the surf prece base will be to incurred costs. In such caseytonide penses incurred for performance of the contract with mare reasonable, cable to the contract, consistent with sound and Beyolc predccount ing principles and practices, and which are not otheke hiuded by the con tract. (For exclusione, see the progress payment clause of the contract. )

MANUFACTURING AND PRODUCTION EXPENSE: GENERAL AND ADMINISTRATIVE EXPENSE. Under certain conditions, eligible incuned costo in clude manufacturing and production expenses and general and administrative cipenses which have been incurred for performance of the contract which are reasonable, allocable to the contract, and consistent with sound and gen erally accepted accounting principles and practices.

(NOTE: In connection with the first progress payment request on contract, attach an explanation of the method, bores and period weed in delen.nining the amount of each of these two types of expenses. Il the method, bases or periods used for computing these expense dil for in subsequent requests for progress payments under the contract, attach an explanation of such changes to the progress payment re. queer involved.)

INCURRED COSTS INVOLVING SUBCONTRACTORS - I the incurred costs eligible for progress payments under the contract include costo show on invoices of subcontractors, suppliers and others that portion of the com computed on the basis of such invoices can only include costs for: (1) completed work to which the prime contractor has acquired title; (2) macerials delivered to which the prime contractor has acquired tide; (3) services rendered; and (1) comes billed under cost reimbursement or time and materia al subcontracts for work to which the prime contractor has acquired ride.

SECTION 11. SPECIFIC INSTRUCTIONS

ITEM 7. COSTS ELIGIBLE UNDER PROGRESS PAYMENT CLAUSE - Coeta to be shown in items 75 through 73 are not to include advance payments, do payments, deposits, or progress payments made or to be made to subcoetractors, suppliers or others.

ITEM 7. and b. Il applicable, enter the direct material and direct labor costs.

ITEM 7. c. 1f applicable, enter the rare used in computing manufacturing and production expenses and the computed dollar amount.

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

ITEN 7. 4. Sell-explanatory.

ITEM 7.1. If applicable, enter the rate used in computing general and administrative penses and the computed dollar amount.

ITEN 7. 4. Selte aplanatory.

ITEM $. Enter the percentage ligwe for progress payments sared in the contract (Paragraph (.) (1) of the uniform progress payment clause) and the computed dollar amount based on that percentage, i.e., the coe puted dollar amount of the entry in tem 78.

ITEMS AND 10. Make no entry unless the contract require progress peyments to the contractor on account of progress payments to sub contractors. Include only progress payments on subcontracts which confor to the progress payment provisions of the paine contract.

ITEM... Enter only progress payments actually paid.

ITEM.). Enter total progress payments recouped from oubcontractors.

ITE.C. Seltesplanatory.

ITEM 9. Make no entry unless the prime contract specifies progress payments on account of unpaid subcontract progreso payment billings which have been approved for current payment in the ordinary course of business. Include only such approved unpaid invoice..

ITEN 10 - Self-explanatory.

ITEN 11 ... Self-explanatory.

ITEM 11.). Enter the percentage stated in the contract which limits *gregare progress payments (Paragraph (a) () of the uniform progre.. payment clause) which can be made and compute the dollar amount besed on that percentage, i.e., the computed doll amount of the entry in item ja.

ITEM 11. 6. Self-explanatory.

ITENS 12 AND 13 . Self-explanatory.

SECTION III GENERAL INSTRUCTIONS . This section is to be com pleted only when specifically requested by Government personnel te sponsible for administration of the contract. Completion of this sec tion will be regio when the rate or quality of contract performance is not sangry. When there is reason to believe that: (*) the consin halve oss to the contractor; or (b) insufficient costs bet arded delivered items; or (C) outstanding progress pay

fair value of the work Accomplished on portiod of the contract or (2) the applicable percentage of

locared to unfinished work.

SECTION III - SPECIFIC INSTRUCTIONS

ITEM 14. Of the costs reported in leem 7. compute and enter only COB which are applicable to itens delivered, invoiced and accepted to the applicable date. In order of preference, these costs are to be computed on the basis of one of the following: (a) the actual whit cos of items delivered, giving proper consideration to the deferment of the Karting load costs; (b) projected unit coas (bared on experienced costa, plus cstimated costs to complete the contract), where the code tractor maintains con data which will clearly establish the reliability of such estimates; and (c) the total contract price of items delivered.

ITEM 15 . Self-explanatory.

ITEM 16. Enter the percentage stated in the contract limiting unliquide ted progress payments in relation to eligible cos. (Paragraph ()(3)(i) of the unitom progress payment clause). Compute and enter the dollar amount based on the percentage, i.e., the percentage of the entry is item 15.

ITEM 17. Enter the total billing price, as adjusted, of items delivered, accepred and invoiced to the applicable date.

ITENS 18 AND 19. Sell-espimatory.

ITEM 20. This entry is to be completed from the contractor', records. It is the total of all amounts which have been or are to be applied from previou. billings to reduce outstanding progress payments, including amounts, if say, of payment. OTHER than those applied from previous billings. (NOTE: If the entry includes reductions effected by meane other than through previoue billinge, oftech tatement showing details thereol.)

ITEM 21. Self-explanatory,

ITEM 22 ... Self-explanatory.

ITEM 22.). Enter the percentage mured in the contract, limiting un liquidared progress payments to that percentage of the contract price of items which have not been delivered and accepted (Paragraph (a)(3)(ii) of the uniform progress payment clause).

ITEM 22. 6. Self-explan wory. (NOTE: If the entry in this item is less then the entry in item 21. there has been an overpayment which requires adjustment.)

ITEM 23 . Self-explanatory.

Subpart 1-30.6—[Reserved) shall not be subject to further assign

ment, except that any assignment may Subpart 1–30.7-Assignment of be made to one party as agent or trustee Claims

for two or more parties participating in § 1-30.700 Scope of subpart.

the financing; and

(e) That in the event of any assignThis subpart prescribes the policies ment, the assignee shall file written noand procedures relating to the assign- tice of the assignment, together with a ment of claims of money due or to become true copy of the instrument of assigndue under Government contracts.

ment with (1) the contracting officer or § 1-30.701 General.

the head of his department or agency;

(2) the surety or sureties upon the bond The Assignment of Claims Act of 1940,

or bonds, if any, in connection with the as amended, 54 Stat. 1029, 65 Stat. 41

assigned contract; and (3) the disburs(31 U.S.C. 203, 41 U.S.C. 15), hereafter

ing officer, if any, designated in the asreferred to in this Subpart 1-30.7 as the

signed contract to make payment. Act, permits the assignment to a bank, trust company, or other financing insti- $ 1–30.703 Contract clause Assigntution, including any Federal lending

ment of Claims. agency of moneys due or to become due

The following clause shall be inserted from the United States under a contract in all contracts except it is not required providing for payments aggregating to be used in construction contracts esti$1,000 or more, provided the conditions mated not to exceed $10,000: specified in the Act, as set forth in

ASSIGNMENT OF CLAIMS § 1-30.702, are met. The Act further provides that an assignee receiving pay- (a) Pursuant to the provisions of the Asment under an assignment is not, by

signment of Claims Act of 1940, as amended reason of any liability of the assignor to

(31 U.S.C. 203, 41 U.S.C. 15), if this contract the United States or any department or

provides for payments aggregating $1,000

or more, claims for moneys due or to beagency thereof, whether arising from or

come due the Contractor from the Governindependently of the assigned contract, ment under this contract may be assigned obligated or liable to make restitution, to a bank, trust company, or other financing refund or repayment to the United institution, including any Federal lending States. Also, under the Act, the contracts agency, and may thereafter be further asof certain specified agencies, and other

signed and reassigned to any such institution. agencies designated by the President,

Any such assignment or reassignment shall may in time of war or national emergen

cover all amounts payable under this con

tract and not already paid, and shall not be cy, provide that payments made there

made to more than one party, except that under to an assignee shall not be subject

any such assignment or reassignment may be to reduction or set-off for any liability of

made to one party as agent or trustee for the assignor arising independently of the

two or more parties participating in such assigned contract.

financing. Unless otherwise provided in this $ 1–30.702 Conditions governing

contract, payments to assignee of any moneys

due or to become due under this contract signment of claims.

shall not, to the extent provided in said Act, Moneys due or to become due from the

as amended, be subject to reduction or setoff. United States, or any agency or depart- (The preceding sentence applies only if this ment thereof under a contract, may be contract is made in time of war or national assigned under the following conditions:

emergency as defined in said Act and is with (a) The contract provides for pay- the Department of Defense, the General Seryments aggregating $1,000 or more;

ices Administration, the Atomic Energy (b) The payments are assigned to a Commission, the National Aeronautics and bank, trust company, or other financing Space Administration, the Federal Aviation institution, including any Federal lend- Agency, or any other department or agency ing agency;

of the United States designated by the Presi(c) The contract does not forbid as

dent pursuant to Clause 4 of the proviso of

section signment;

of the Assignment of Claims Act of

1940, as amended by the Act of May 15, 1951, (d) Unless otherwise expressly per

65 Stat. 41.) mitted by the contract any assignment

(b) In no event shall copies of this contract shall cover all amounts payable under

or of any plans, specifications, or other simthe contract and not already paid, shall llar documents relating to work under this not be made to more than one party, and contract, if marked "Top Secret," "Secret,"

as

or “Confidential," be furnished to any as

ACKNOWLEDGMENT signee of any claim arising under this con

Receipt is hereby acknowledged of the tract or to any other person not entitled to

above notice and a copy of the above-menreceive the same. However, a copy of any

tioned instrument of assignment. These part or all of this contract so marked may

were received at

a.m. (p.m.) on be furnished, or any information contained

19--therein may be disclosed, to such assignee upon the prior written authorization of the Contracting Officer.

(Signature) The last two sentences of paragraph (a)

(Title) of the foregoing clause shall be deleted from contracts entered into with foreign On behalf of contractors and may, in accordance with agency procedures, be deleted in other

(Name of addressee of this cases where special circumstances make

notice) it advisable in the best interests of the § 1-30.705 Filing notice of assignment Government.

and the instrument of assignment. § 1-30.704 Forms for assignment and The assignee should address a notice of notice of assignment.

assignment to each of the parties specThere are no forms prescribed for use ified in § 1-30.702(e) and file with each as an instrument of assignment or as a party four signed copies of the notice, notice of assignment; however, the fol- together with one true copy of the inlowing is a suggested format for use by strument of assignment (a certified true the assignee in providing the notice of duplicate or a photostatic copy of the the assignment as required by § 1-30.702 original). If a disbursing officer is not (e).

designated in the contract to make payNOTICE OF ASSIGNMENT

ment, it is not necessary that the notice Date

be filed with any agency or department To: (Address to one of the parties specified official other than the contracting officer in § 1-30.702(e))

or the head of his department or agency. This has reference to Contract No. dated entered into between (con

§ 1-30.706 Procedures upon receipt of tractor's name and address) and (Govern

notice of assignment and instrument ment Agency, Name of Office, and address),

of assignment. for (describe nature of the contract).

(a) Upon receipt of the four copies of PLEASE TAKE NOTICE that moneys due or

notice of assignment, together with a to become due under the contract described

true copy of the instrument of assignabove have been assigned to the undersigned pursuant to the provisions of the Assignment

ment, by an agency official other than of Claims Act of 1940, as amended, 54 Stat.

the contracting officer such assignment 1029; 65 Stat. 41 (31 U.S.C. 203, 41 U.S.C. documents should be immediately for15).

warded to the appropriate contracting A true copy of the instrument of assign- officer of the procuring activity who ment executed by the contractor on

should, in accordance with agency (Date)

procedures: is attached to the original hereof.

(1) Notify the appropriate certifying Payments due or to become due after such contract should be made to the undersigned

or disbursing officer by memorandum of assignee.

the pending assignment, and subsePlease return to the undersigned the three quently of its acknowledgment or refusal enclosed copies of this notice with appropri- and return. ate notations showing the date and hour of (2) Examine the notice of assignment receipt, and duly signed by the person and instrument of assignment, and the Receipt is hereby acknowledged of the

contract involved to determine that the addressee. Very truly yours,

assignment is in proper form, has been

properly executed and that the contrac(Name of assignee) tor is empowered under the contract to

make the assignment. The details con(Signature of signing

cerning examination of the assignment officer)

documents are set forth in § 1-30.708. Title

(3) If satisfied that the assignment (Title of signing officer) is in proper form, acknowledge receipt

of the notice of the assignment in the

space provided thereon and return three (Address of assignee) copies to the assignee.

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(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. § 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

vance payments have actually been made to the contractor, notice of assignment shall not be acknowledged unless:

(i) The assignment expressly recites that the rights of the assignee are subordinate to the rights of the Government;

(A) To withhold from the contractor amounts required to liquidate advance payments; and

(B) To have deposited in the contractor's special advance payment bank account (see § 1-30.414) all moneys payable to the contractor which the contract requires the contractor to deposit in that account; and

(ii) The contracting officer obtains from the assignee an agreement that the assignee will pay to the contractor all amounts which may be received by the assignee and which the contractor is obligated by the contract to deposit in its special advance payment bank account. In special cases, additional documents signed by the contractor, or the assignee, or both, thought necessary by the contracting officer to protect the interests of the Government against the assignee, may be required by the contracting officer. Assignments such as those referred to in this § 1-30.708(c) (2) are subordinate to the rights of the Government against the contractor under the contract involved. For the foregoing reason such assignments are not considered to be assignments of less than all amounts payable under the contract nor assignments to more than one person.

(d) The assignment shall cover only claims for moneys due or to become due under the contract involved. It must not cover any of the obligations or duties of the contractor under the contract. The contracting officer shall be sure that the copy of the instrument of assignment which is submitted to him is a duplicate of the original instrument, or has been certified as a true copy, acknowledged as such before a notary public or other officer authorized by law to administer oaths. Care shall also be taken to ascertain that the assignment has been properly executed.

(1) Assignments by corporations should be executed by an authorized representative, attested by the secretary or assistant secretary of the corporation, with the seal of the corporation impressed upon the assignments or in leu

of such seal, accompanied by a certified copy of a resolution of the corporation board of directors authorizing the representative involved to execute the assignment.

(2) If the contractor is a partnership, the instrument of assignment may be signed by one partner, provided it is accompanied by a duly acknowledged certificate to the effect that the signer is a general partner of the partnership.

(3) If the contractor is an individual, the assignment must be signed by such individual and duly acknowledged by him before a notary public or other person authorized to administer oaths.

(e) If there have been previous assignments of claims under the contract, unless assignments to more than one person thereunder are permitted by the contract provisions, the previous assignments have been fully released. Note that further assignment and reassignment is authorized as pointed out in § 1-30.707. 81–30.709 Release of assignment.

The release of an assignment is required whenever there has been a further reassignment or where further payments to the contractor are anticipated under the contract after the contractorassignor's obligation to the original assignee has been satisfied. § 1-30.710 Transfers of businesses and

corporate mergers. Transfers of an entire business, corporate mergers, and assignments by operation of law, each of which may affect the assignment of claims under a contract, are not prohibited by the Federal statutes and hence do not depend upon the Assignment of Claims Act of 1940, as amended, for their validity. However, in the case of transfers of a business or corporate mergers, notices of assignments of claims under the contract made by the transferee or successor corporation should not be acknowledged until the transferee or successor corporation involved has been recognized by the procuring agency as the lawful successor in interest to the Government contract. Similarly, before acknowledging an assignment made by a party who is a transferee by operation of law, the contracting officer should require the submission of a certified copy of the document evidencing the transfer by operation of law.

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