of the price when progress payments are provided by amendment. The fair and reasonable amount of consideration ress 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.

(b) Page 2 of Format 529.

SECTION 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 MAN AND ADDRESS Enter the name and mailing address of the contracter.

ITE 3 TOTAL CONTRACT PRICE Eater 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 lower contracts, enter the masinsbe expenditure authorized by the contract, as amraded.

ITEM 36 CONTRACT PRICE OF ITS TO BE DELIVERED AND/OR ACCEPTED. Later the total billing price of the undelivered items 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 submitsed herewith, enter "pose".

ITEN Go Eater the number assigned to this request. All requests under a single contract must be numbered consecutively beginning with 1. Each subDequent requem under the same contract must continue in sequence the oame series of numbers without omission or duplication.

ITEM 4b Enter the date of this request.

ITEM 6c Enter the amount of progress payment requeared herein, which should not exceed the mount shown in irem llc.

SECTION II-GENERAL INSTRUCTIONS DATES Spaces are provided in 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 bind eligible for progress payments under the contract. In the second space, enter the date through which much costa have been accumulated for inclusion in this reques and are therefore shows individually, as applicable item entries in Sections II and III.

LIMITED COSTS BASIS-Censia contracte limit the progress payment base to incurved costs of direct labor and/or direct material or other specified conte which are less than incurred "Total conta". Then the contract includes such limitations only these coste eligible for progress payments under contract are to be identified and reported in Section II.

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

ITEN 7 Self-explanatory.

ITEM Enter the percentage figure for progress paymenre rated in the contract (Paragraph (a) (1) (1) of the uniform progress payment clouse) and the computed dollar amount based on that percentage, ie, the com puted dollar amount of the entry in kem 78.

ITEMS AND 10 Make an entry unless the contract requires progress payorals to the contractor as account of progress pay@rate to sub contractors. Include only progress payments on subcontracts which areform to the progress payment provisions of the prime contract. ITEN... Later only progress payments actually paid.

ITEM - Eater total progress payments recouped from subentractors. ITEN. c. Self-explanatory.

ITEN. Moke no entry unless the prime contract specifies progress poymrate on accoum of unpaid subcontract progress payment billings which have been approved for coment payment in the ordinary course of business. Include only such approved unpaid invoices.

ITEK 10-Self-explanatory.

ITEM 11-Self-coplanetary.

ITEM 11-b. Enter the percentage orated in the contract which limito aggregate progress paymems (Paragraph (a) (4) of the uniform progress payment clause) which can be made and compute the dollar amount based on that percentage, l.e., the computed dollar amount of the entry in isem ja.

ITEM 11c Self-explanatory.

ITEMS 12 AND 13. Self-explanatory.

SECTION III GENERAL INSTRUCTIONS This section la so be com pleted only when specifically requested by Government perasanel re apossible for administration of the contract. Completion of this s tion will be req when the rate or quality of contract performance hen there is reason to believe that: (a) the s to the contractor; or (b) insufficient come ivered items; or (c) outstanding progress poplair value of the work accomplished on the

TOTAL COST BASIS Certain contracte provide th base will be total incurred costs. In such case penses incurred forperformance of the contract cable to the contract, consistent with sound and s

epted account Ing principles and practices, and which are not otherded by the con tract. (For exclusions, see the progress payment clade of the contract.)

MANUFACTURING AND PRODUCTION EXPENSE: GENERAL AND ADMINISTRATIVE EXPENSE Under certain conditions, eligible incumed conso include 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 generally accepted accounting principles and practices.

(NOTE: In connection with the first progress payment request an. contract, attach on explanation of the method, besse and period used In defennining the amount of each of these two types of expenses. It the method, besse or periods used for computing these expenses diffor 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 If the incurred costs eligible for progress payments under the contract include coore shows invoices of subcontractors, suppliers and others that portion of the conse computed on the basis of such invoices can only include coors for: (1) completed work to which the prime contractor has acquired title; (2) materiale delivered to which the prime contractor bas acquired tide; (3) services rendered; and (4) coace billed under cost reimbursement or time and material subcontracts for work to which the prime contractor has acquired title.

en the contract or (2) the applicable percentage of allacerad to unfinished work.

SECTION UI SPECIFIC INSTRUCTIONS

ITEM 14 of the coste reported in hem 7g, compute and enter only come which are applicable to items delivered, invoiced and accopied to the applicable dere. In order of preference, these cease are so be computed on the basis of one of the following: (a) the actual mit cost of item delivered, giving proper consideration to the deferment of the starting load costs; (b) projected unit costs (based on experienced costs, plus estimated coste to complete the contract), where the cou tractor maintains cost data which will clearly establish the reliability of such estimates; and (c) the total contract price of items delivered.

ITEM IS Self-explanatory.

ITEM 16 Enter the percentage stated in the contract limiting aliquideted progress payments in relation to eligible come (Pomgraph (a)(3)(1) of the unifom progress payment clause) Compute and enter the dollar amovat based on that percentage, i.e., the percentage of the entry in item 15.

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

ITENS 10 AND 19. Self-explanatory.

ITEM 20 This entry is to be completed from the contractor's recorde. 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 any, of payments OTHER than those applied from previous billings. (NOTE: If the entry includes reductione effected by means other than through previous biffinge, oftech a statement showing detaile thereof.)

ITEM 21-Self-explanatory.

ITEM 22. Self-explanatory.

ITEM 22. Enter the percentage stated in the contract, limiting an. liquidated progress payments to that percentage of the contract price of items which have not been delivered and accepted (Paragraph (4)(3)(11) of the uniform progress payment clause)

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

ITEM 23 Sell-explanatory.

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

signment of claims.

governing as

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-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]

§ 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 US C 15).

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

(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. § 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.