[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Rules and Regulations]
[Pages 2139-2140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 97-22; FAR Case 1999-021; Item IV]
RIN 9000-AJ05


Federal Acquisition Regulation; Part 12 and Assignment of Claims

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to add, in the 
contract clause addressing terms and conditions for commercial items, 
the prohibition for a contractor to assign its rights to receive 
payment in accordance with the Assignment of Claims Act (31 U.S.C. 
3727) when a third party makes payment under the contract (e.g., use of 
the Governmentwide commercial purchase card). This prohibition is 
currently in the contract clause addressing terms and conditions 
required to implement statutes or Executive orders for commercial 
items.

DATES: Effective Date: March 12, 2001.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 97-22, FAR case 1999-021.

SUPPLEMENTARY INFORMATION:

A. Background

    Paragraph (e) of the clause at FAR 52.232-36, Payment by Third 
Party, states that a contractor may not assign its rights to receive 
payment under the assignment of claims terms of the contract if payment 
is made by a third party (e.g., use of the Governmentwide commercial 
purchase card). This clause is included in paragraph (b)(25) of the 
clause at FAR 52.212-5, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders--Commercial Items.
    Paragraph (b) of the clause at FAR 52.212-4, Contract Terms and 
Conditions--Commercial Items, states that a contractor may assign its 
rights to receive payments due as a result of performance of the 
contract, but paragraph (b) does not include the prohibition against 
the assignment of claims if payment is made by a third party (e.g., use 
of the Governmentwide commercial purchase card). FAR 12.302(b) further 
states that the contracting officer shall not tailor FAR 52.212-4(b).
    The purpose of this rule is to correct the inconsistency between 
FAR 52.212-4(b) and FAR 52.212-5(b)(25). The rule revises FAR 52.212-
4(b) to add the prohibition against the assignment of claims when 
payment is made by a third party.
    This is not a significant regulatory action, and therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. However, the Councils will 
consider comments from small entities concerning the affected FAR part 
52 in accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq. (FAC 97-22, 
FAR case 1999-021), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR part 52

    Government procurement.

    Dated: December 22, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.


    Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth 
below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Amend section 52.212-4 by revising the date of the clause and 
paragraph (b) to read as follows:

[[Page 2140]]

52.212-4  Contract Terms and Conditions--Commercial Items.

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Contract Terms and Conditions--Commercial Items (Mar 2001)

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    (b) Assignment. The Contractor or its assignee may assign its 
rights to receive payment due as a result of performance of this 
contract to a bank, trust company, or other financing institution, 
including any Federal lending agency in accordance with the 
Assignment of Claims Act (31 U.S.C. 3727). However, when a third 
party makes payment (e.g., use of the Governmentwide commercial 
purchase card), the Contractor may not assign its rights to receive 
payment under this contract.
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[FR Doc. 01-14 Filed 1-9-01; 8:45 am]
BILLING CODE 6820-EP-P