(b) Page 2 of Format 529.

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

ITEM TO Enter the name and address of the Contracting officer or his representative.

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

ITEM - TOTAL CONTRACT PRICE Enter the total contract price, as amended. If the contract provides for price redetermination, enter the astial 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 contracts. enter the maximum expenditure authorized by the contract, as amended.

ITEM 36 CONTRACT PRICE OF ITEMS TO BE DELIVERED AND 'OR ACCEPTED Enter the total billing price of the undelivered items and/or of delivered items not yet accepted 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 face of the invoice for the progress payments requested herein. If no invoice is submit ted herewith, eater "none".

ITEN 60 Enter the number assigned to this request. All requests under a 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 6- Enter the dore of this request.

ITEM &c. Enter the amount of progress payment requested herein, which should not exceed the amount shown in item 11c.

SFCTION 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 costs 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 Ill.

LIMITED COSTS BASIS-Cemain contracts limit the progress payment base to incurred costs of direct labor and or direct material or other specified costs which are less then incurred "Total coura". Then the contract includes such limitations only these costo eligible for progress payments under i contract are to be identified and reported in Section U.

TOTAL COST BASIS Certain contracco provide the p base will be local incurred costs. In such caseafcopi pem.

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

ITEM# Self explanatory.

ITEM & Eater the percentage figure for progress payments acated in the Contract (Paragraph (0) (1) (1) of the uniform progress payment clause) and the computed dollar amount based on that percentage, i.e., the com puted dollar amount of the entry in irem ".

ITEMS AND 10. Make no entry unless the contract required progress payments to the contractor on account of progress payments to sub contractors. Include only progress payments on subcontracts which a form to the progress payment provisions of the prime contract.

ITEM 9. Enter only progress payments actually paid.

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

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

ITEN 10 Self-explanatory.

ITEM 11 Self-explanatory.

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

ITEM ile. Self-explanatory.

ITEMS 12 AND 13 Self-explanatory.

SECTION III GENERAL INSTRUCTIONS This section is to be car pleted only when specifically requested by Government personaci re sponsible for administration of the contract. Completion of this sec tion will be reque when the rate or quality of contract performance then there is reason to believe that: (0) the pas to the contractor; or (b) indufficient coste delivered iceme; or (c) outstanding progress pay fair value of the work accomplished on the refund of the contract or (2) the applicable percentage of allocated to unfinished work.

penses incurred for performance of the contract hire reasonable.

cable to the contract, consistent with sound and pity crepeet account ing principles and practices, and which are not oth truded by the contract. (For exclusions, see the progress payment ciauer of the contract.)

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

SECTION 11 SPECIFIC INSTRUCTIONS

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

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

costs,

ITEM 7 c. Il applicable, enter the race used in computing manufacturing and production expenses and the compuced dollar amount.

ITEM 7d Inter the total of all other direct costs. Attach a separate statement identifying each such cost and the amount thereof. ITEM ?... Seit explanatory.

SECTION III SPECIFIC INSTRUCTIONS

ITEM 14. Of the costs reported in Item 7g, compute and enter only coms 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 fellowing: (a) the actual unit cost 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 cou tractor maintains cost dare 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 unliquidated progress paymente in relation to eligible coms (Paragraph (•)(3)(1) 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 15.

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 any, of payments OTHER than those applied from previous billings. (NOTE: If the entry includes reductions affected by means ether than through previous billings, attach atatement showing detaile thereal.)

ITEM 21 Self-explanatory.

ITEM 22 Self-explanatory.

ITEM 22 Enter the percentage stated in the contract, limiting unliquidated progress payments to that percentage of the contract price of tems which have not been delivered and accepted (Paragraph (a)(3)() of the unilom 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 requirun adjustment.)

ITEM 23 Self-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 shåll 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 el a us 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 81,000 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.)

(b) In no event shall copies of this contract or of any plans, specifications, or other sim1lar 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

§ 1-30.705

(Signature)

(Title)

(Name of addressee of this notice)

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 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 cf 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.

all

(c) The assignment covers 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 advance payments have actually been made