(b) Page 2 of Format 529.

SECTION 1 IDENTIFICATE INFORMATION Complete items I through 6 in accordance with the following instruction:

ITEM 71-11 applicable, enter the rate used in computing groral and adasar strative menses and the computed deller amet.

ITEM 7 Self-explanatory.

ITEM Enes the percentage figue for progress paymene erased in the CONUBE (Paragraph (a)(1)(1) of the unitem progress payment clause) and the computed dollar amount beard on that percentage, ie, the com pured dollar amount of the entry in hem 7g

ITEMS AND 10 Make no entry unless the contract requires progres payaras to the contractor on account of progress payarars to sub contractors. Include only progress payments on subretracto which ma form to the progress payment provisions of the prime contract. ITEM. Later only progress paymrase actually paid.

ITEN Enter total progress payments recouped from subcontractors. ITEN. Selt-explanatory.

ITEM.d. Make no entry unless the prime contract ope. fies progress payments on account of unpaid subrentract progress payment billings which have been approved for cument payment in the ordinary cower of basares. Include caly such approved paid invoices.

ITER 10 Selbeplanerary.

ITEM 11. Self-explanatory.

ITEM 11 Enter the percentage orated in the contract which limite aggregate progress paymes (Porograph (a) (4) of the uniform progress payment clawse) which can be made and compute the dollar amount board on that percentage, ie, the computed dollar amount of the entry in stem Ja.

ITEM !!... Self-explanatory.

ITENS 12 AND 13. Self-explanatory.

GENERAL INSTRUCTIONS This section is to be com pleted only when specifically requested by Government personnel re sponsible for administration of the contract. Completion of this see tion will be qua when the rate or quality of contract performance is not hen there is reason to believe tha (0) the

s to the contractor, or (b) insufficient como divered items; or (c) ourereading progress pay lair value of the warh accomplished on the

at the contract or (2) the applicable percentage of allocored to unfinished work.

TOTAL COST BASIS Certain contracto provide that bear will be total incurred come. In such caseafree! penses incurred for performance of the contrar cable to the contract, consistem with sound and ing principles and practices, and which are not ach VYBEI. (FM eclusione, see the progress payment cio

MANUFACTURING AND PRODUCTION EXPENSE. GENERAL AND ADMINIS TRATIVE EXPENSE Under cruain conditions, eligible incomed come include manalocuring and production expenses and general and administrave expenses which have been incurred las performance of the contract which are seasonable, allocable to the contract, and consistent with sound and gro erally accepted or counting principles and practices.

(NOTE. In comertran with the firet progress payment request on a contract, attach an explanation of the method, boses and parted wood in determining the amount el sach el these two types of expenses. Il the mashed, bases or perseds weed for computing these expenses det for in subsequent requests for progress paymente under the contract, allach an explanation of such changes to the progress payment re quest involved.)

INCURRED COSTS INVOLVING SUBCONTRACTORS If the incurred cosso eligible for progress payments under the contract include conre shown on invosces of subcontractors, suppliers and others that portion of the costo computed on the basis of such invoices can only include cosse lor: (1) completed or to which the prime contractor has arquered tule. (2) materials delivered to which the prime contractor has acquired ade; (3) services rendered, and (4) coste billed under cast reimbursement or time and mueri al sconcia for work to which the prime contracter has acquired title.

SECTION HI SPECIFIC INSTRUCTIONS

ITEM 14 Of the costs reponed in hem 7g, compute and emer only come which are applicable to items delivered, invoiced and accepted to the applicable dace. In order of prefereare, these costs are to be computed on the basis of our of the following: (a) the actual unit coo of eas delivered, giving proper consideration to the deferment of the otarting load costs; (b) projected unit costs (besed an experienced coole, plus setimated costs to complete the contract), where the cou tractor maintains com dere which will clearly corablish 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 limising unliquidated progress payments in relation to eligible come (Pamgraph (a)(2)(1) of the unifam progress payment clause). Compute and enter the dollar amour based on that percentage, i... the percentage of the entry in item 15.

ITEM 17 Enter the total billing price, as adjusted, of items delivered, accepted and invested to the applicable dere.

ITENS 18 AND 10 Self-esplannery.

ITEM 20 This entry is to be completed from the contractor's records. It is the total of all ampante which have been or are to be applied from previous billings to reduce outstanding progress payments, including amounts, if say, of paymeare OTHER than those applied from previous billings. (NOTE If the entry include reductions affected by moons other than through previous billings, ortech a elaremont showing detaile thereal.)

ITEM 71-Self-explanatory.

ITEM 22 Self-explanatory.

ITEM 22 Enter the percentage stated in the contract, limiting un liquidsied progress payments to that percentage of the contract price of items which have not been delivered and accepted (Paragraph (*)(3)(1) of the unstum progress payment clause)

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

ITEM 23 Self-explanerary.

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 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 financ

ing 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-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 an 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 Energy Research and Development Administration, the National Aeronautics and Space Administration, the Federal Aviation Administration, 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 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. [41 FR 19317, May 12, 1976)

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).

§ 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.

§ 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.

(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 reassignments.

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 initia! 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 CONFIDEN