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:7 THE C~rrPTR0LLE ENMA
D E CI 1 19-M ae OF THE UNITED ETATE a
WASHINGTON,5W C. 20546
FILE: B-184665 DATE: September 25, 1975
MATTER OF: Navy Accounting and Finance Center
Request for advance decision
DIGEST:
1. Government contractor's assignment to bank of contract (lease)
is not binding upon Government until statutory notice require-
ments stated in Assignment of Claims Act, 41 U.S.C. § 15 (1970),
as implemented by ASPR § 7-103.8 (1974 ed.) have been complied
with. However, Government may recognize assignment as cir-
cumstances warrant.
2. Novation agreement between Government contractor, bank, and
procuring activity may be recognized as valid if third party's
(bank's) interest arises out of transfer of, inter alia, all
that part of contractor's assets involved in performance of
contract.
The Navy Accounting and Finance Center (NAFC) requests an
advance decision as to the legality and propriety of payment to
Northridge Bank (NB) of the sum of $307.50 in view of the Assignment
of Claims Act, 41 U.S.C. § 15 (1970) as implemented by the Armed
Services Procurement Regulation (ASPR) § 7-103.8 (1974 ed.).
On July 1, 1974, Delivery Order N00275/75/F/0117 was issued
under General Services Administration Contract GS-O0S-27849 by the
contracting officer, Naval Air Station, Glenview, Illinois, to
Deltalease, Inc. (Deltalease). The schedule of supplies/services
in the Delivery Order stated that this was a blanket purchase
agreement covering three leases for Toshibafax copying equipment.
On May 1, 1975, the contracting officer issued Modification
One to the Delivery Order which changed the contractor's name to
Northridge Bank in place of Deltalease, Inc. The modification
stated that Deltalease was dissolved and that Paper [was] held by
Northridge Bank, Milwaukee, Wis.
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