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B-200603 1 (1980-11-04)

handle is hein.gao/gaobadiqz0001 and id is 1 raw text is: 





                                v  THE COMPTROLLER GENERAL
          DECISION      .        . OF  THE   UNITED STATES
                                   WASHINGTON. 0. C. 20548




          FILE:     B-200603            DATE:  November 4, 1980

          MATTER   OF:
                         National Aeronautics and Space
!/       /e I4,,.1 Administration--Advance Decision,
          DIGEST:        Assignment of Claims At



                Assignment to partnership of accounts
                receivable from United States may
                not be recognized as valid assignment
                pursuant to Assignment of Claims Act,
                wheretpartnership's primary purpose is
                obtaining Government contracts for ADP
                equipment, since partnership is not
                financing institution within meaning
                of Act.

                The National Aeronautics and Space Administration
           (NASA) requests an advance decision concerning the
           proper payee under contract No. NAS5-25927 with U.S.
           Financial Services, Inc. (Financial). Two parties
           claim the payment--both by virtue of assignments from
           Financial.  The first assignment, dated February 12,
           1980, is t6 Marilyn M. Poling, Donald L. Poling, and
           John D. Williams III (Partnership). Mr. Williams is
           the president of Financial. The second assignment,
           dated May 5, 1980, is to the National Savings and
           Trust Company (Bank).

                NASA believes that the first assignment is invalid,
           since, in its view, the Partnership is not a financing
           institution within the meaning of the Assignment of
           Claims Act of 1940, as amended, 31 U.S.C. § 203 (1976)
           and 41 U.S.C. § 15 (1976) (Act). NASA therefore be-
           lieves that it is appropriate for it to continue making
           contract payments to the Bank. NASA inadvertently over-
           looked the first assignment and has made one payment to
           the Bank of $59,000.

                The Act constitutes a broad prohibition against
           the assignment of claims against the United States to
           third parties.) One purpose of the prohibition is the
           maintenance of the Government's defenses against

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