Overview
FAR 32.805 establishes the formal administrative procedures for executing, filing, and releasing assignments of claims under the Assignment of Claims Act. It provides specific execution requirements for different business entities and outlines the Contracting Officer’s responsibility to verify the validity of an assignment before acknowledging receipt.
Key Rules
- Execution Standards:
- Corporations: Must be signed by an authorized representative, attested by a secretary, and include a corporate seal or board resolution.
- Partnerships: May be signed by one partner with evidence of authority as a general partner.
- Individuals: Must sign the assignment in the presence of a notary public or authorized official.
- Filing Requirements: The assignee must provide an original and three copies of the notice of assignment, plus one certified true copy of the instrument of assignment, to the parties designated in FAR 32.802(e).
- SAM Registration: Assignees are required to be registered in the System for Award Management (SAM) unless a specific exception applies.
- Government Verification: Before acknowledging the assignment, the Contracting Officer must ensure the contract is valid, the claims are legally assignable, and the assignment only covers "moneys due or to become due."
- Release Procedures: To reestablish the contractor's right to receive payment or to facilitate a reassignment, specific written notices and release instruments must be filed and acknowledged by the government.
Practical Implications
- Strict Formalism: Failure to adhere to the specific signature and attestation requirements (such as a missing corporate seal or lack of a board resolution) can result in the government rejecting the assignment, delaying a contractor's access to financing.
- Payment Accuracy: These procedures protect the government from the risk of "double payment" by creating a clear paper trail that dictates exactly when the obligation to pay the contractor shifts to the financing institution.