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ress payments unless there has been material change from the circumstances contemplated by the parties when invitations for bids were issued or the contract was entered into without progress payment provision. However, cases do occur (a) in which the actual lead time or preparatory period between the beginning of work and the first delivery substantially exceeds the estimated lead time and in fact runs or will run over 6 months (§ 1-30.503), or (b) in which unusual circumstances bring about unexpected substantial accumulation of predelivery costs having material impact on the contractor's working funds (§ 130.505). These cases may arise from occurrences such as (a) uncertainties or errors in specifications, (b) contract change notices, (c) Government delays in testing, inspection, furnishing of material or equipment, furnishing of stock numbers, packaging or shipping instructions or shipping documents, or completion of contract supplements, (d) stretchouts or stop-work orders, (e) performance difficulties of subcontractors suppliers, and (f) causes beyond the control and without the fault or negligence of the contractor of the kinds mentioned in paragraph (c) of the Default clause provided in § 1-8.707. In these kinds of cases, requests of contractors for amendments to provide progress payments should be considered promptly, in the light of the circumstances then existing. If the circumstances then existing approximate conditions under which progress payments would have been properly provided in conformity with these regulations at contract inception, if the new circumstances had been foreseen, progress payments should be provided by amendment. In this connection see particularly §§ 1-30.202, 1-30.204, 1-30.205, 1-30.206, 1-30.207, 1-30.210, 1-30.210-1, and 1-30.528.

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amendment provides now and valuable consideration moving to the Government. Appropriate price reduction may provide this consideration. In the varying circumstances of individual cases, the consideration for progress payments need not necessarily be monetary. Agreements by the contractor, incorporated in such an amendment, for the benefit of and substantially advantageous to the Government, may constitute sufficient consideration for an amendment providing for progress payments. When estimated financing costs have been included as an element (whether or not identified) in the contract price of a contract not providing for progress payments, it is fair to expect elimination of the applicable portion of that element of the price when progress payments are provided by amendment. The fair and reasonable consideration for the progress payment amendment should approximate in value as nearly as practically ascertainable the amount by which the contract price would have been smaller if a Progress Payments clause had been contained in the contract in the first instance. In the absence of definite information on this point, pertinent factors for estimating the fair and reasonable amount of consideration would include (a) the amounts of progress payments expected to be outstanding for an estimated period of time, (b) the cost of equivalent working funds to the contractor, and (c) the estimated profit rate expected to be earned by contract performance. If not accomplished by a contract price reduction, other concessions or agreement by the contractor, advantageous to the Government and incorporated in the amendment, may be fairly evaluated and accepted as being of value reasonably equivalent to a price reduction. This consideration should be such as is fair, equitable and reasonable in the light of the circumstances of each case. (See § 1-30.527.) This consideration should be for the progress payment amendment, and there shall be no provision for interest or other specific charge for progress payments, or for a reduction in payments after the progress payment amendment (other than any agreed discount for prompt payment) by reason of the making of progress payments.

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

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(b) Page 2 of Format 529.

INSTRUCTIONS

SECTION I IDENTIFICATION INFORMATION Complete items I 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 NAME AND ADDRESS Enter the name and mailing address of the contractor.

ITEM 30 TOTAL CONTRACT PRICE Enter the total contract price, as amended. If the contract provides for price redetermination, enter the initial price until changed; if the contract is of the incentive type, enter the target price until changed; not the ceiling or maximum price. For letter contracte, enter the maximum expenditure authorized by the contract, as amended.

ITEM 3D CONTRACT PRICE OF ITEMS TO BE DELIVERED AND/OR ACCEPTED. Enter the total billing price of the undelivered item and/or of delivered items not yet accepted and invoiced under the contract.

ITEM 4 CONTRACT NUMBER Enter the number of the contract on which progress payment is being requested.

ITEMS INVOICE NUMBER AND DATE Enter the number and date of the invoice for the progress payments requested herein. If no invoice is submit red herewith, eater "none".

ITEN 60 Enter the number assigned to this request. All requests under single contract must be numbered consecutively beginning with 1. Each subsequent request under the same contract must continue in sequence the same series of numbers without omission or duplication.

ITEM 6D Enter the date of this request.

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

SECTION II. GENERAL INSTRUCTIONS DATES Spaces are provided la the heading of Section II for the entry of two dates. In the first space, enter 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 Il and ill.

LIMITED COSTS BASIS-Cenain contracts limis the progress payment base to lacured costs of direct labor and/or direct material or other specified coats which are less than incurred "Total costs". When the contract includes Buch limitations only those costs eligible for progress payments under contract are to be identified and reported in Section II.

ITEM 7-1. If applicable, enter the rate used in computing general and administrative expenses and the computed dollar amount.

ITEM 7. Self-explanatory.

ITEM Enter the percentage ligue for progress payments stated in the contract (Paragraph (a) (1) (1) of the uniform progress payment cleves) and the computed dollar amount based on that percentage, i.e., the com puted dollar amount of the entry in Item 78.

ITEMS AND 10 Make no entry unless the contract requires progress payments to the contractor on account of progress payments to sub contractors. Include only progress payments on subcontracts which coform to the progress payment provisions of the prime contract. ITEM 9. Enter only progress payments actually paid.

ITEM Enter total progress payments recouped from subcontractors. ITEM 9-c. Self-explanatory.

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

ITER 10 Self-explanatory.

ITEM !! Self-explanatory.

ITEM 11-b. Enter the percentage stated in the contract which limite aggregate progress payments (Paragraph (a) (4) of the uniform progrese Payment clause) which can be made and compute the dollar amount based on that percentage, i.e., the computed dollar amount of the entry is item Ja

ITEM 11c Sell-explanatory.

ITEMS 12 AND 13 Self-explanatory.

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SECTION III GENERAL INSTRUCTIONS This section is to be com pleted only when specifically requested by Govemment personnel responsible for administration of the contract. Completion of this sec tion will be reque when the rate or quality of contract performance is not sationpryhen there is reason to believe that: (a) the con Finvolve bas to the contractor; or (b) insufficient come have bes allocated delivered items; or (c) outstanding progress pay fair value of the work accomplished on the delivered portion of the contract or (2) the applicable percentage of allocated to unfinished work.

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TOTAL COST BASIS Certain contracts provide that the programe day base will be total incurred costs. In such cases/toplot

penses incurred forperformance of the contract hichare resonale, all

cable to the contract, consistent with sound and gerally accepted accounting principles and practices, and which are not othe

tract. (For exclusions, see the progress payment claus of the contract,)

MANUFACTURING AND PRODUCTION EXPENSE; GENERAL AND ADMINIS TRATIVE EXPENSE Under certain conditions, eligible incurred costs la clude manufacturing and production expenses and general and administrative expenses which have been incurred for performance of the contract which are reasonable, allocable to the contract, and consistent with sound and geoerally accepted accounting principles and practices,

(NOTE: In connection with the first progress payment request on a contract, attach an explanation of the method, bases and period used in detennining the amount of each of these two types of expenses. It the method, bases or perioda used for computing these expenses differ in subsequent requeate for progress payments under the contract, attach an explanation of such changes to the progress payment re quest involved.)

INCURRED COSTS INVOLVING SUBCONTRACTORS II the incurred costs eligible for progress payments under the contract include costa shows on invoices of subcontractors, suppliers and others that portion of the costs computed on the basis of such invoices can only include costs for: (1) completed work to which the prime contractor has acquired title; (2) materials delivered to which the prime contractor has acquired tide; (3) services rendered; and (4) costs billed under cost reimbursement or time and materi al subcontracts for work to which the prime contractor has acquired title.

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SECTION UI SPECIFIC INSTRUCTIONS

ITEM 14 of the costs reported in Item 78, compute and emér only costs which are applicable to items 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 unit coor of items delivered, giving proper consideration to the deferment of the starting load costs; (b) projected unit costs (based on experienced coste, plus estimated costs to complete the contract), where the coo tractor maintains cost data which will clearly establish the reliability of such estimates; and (c) she 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 coms (Paragraph (a)(3)() of the uniform progress payment clause) Compute and enter the dollar amount based on that percentage, i.e., the percentage of the entry in item

25.

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

ITEMS 18 AND 19 Self-explanatory.

ITEM 20 This entry is to be completed from the contractor's records. It is the total of all amounts which have been or are to be applied from previous billings to reduce outstanding progress payments, including amounts, if soy, of payments OTHER than those applied from previous billings. (NOTE: If the entry includes reductions effected by meane other than through previous billinge, attach a statement showing detalla thereof.)

ITEM 21 Self-explanatory.

ITEM 22. Self-explanatory.

ITEM 22 b. Enter the percentage stated in the contract, limiting unliquidated progress payments to that percentage of the contract price of items which have not been delivered and accepted (Paragraph (a)(3)(1) of the unifam progress payment clause)

ITEM 22 Self-explanatory. (NOTE: If the entry in this item is leas then the entry in item 21, there has been an overpayment which requires adjustment.)

ITEM 23 Self-explanatory.

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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 assignment 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 cla u s e—Assignment 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 Government 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 setoff. (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.)

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

or "Confidential," 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 copy 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 of receipt, and duly signed by the person Receipt is hereby acknowledged of the addressee.

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(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 spec
ified in § 1-30.702(e) and file with each
party four signed copies of the notice
together with one true copy of the in
strument 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 pay –
ment, 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.
§ 1-30.706 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.

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