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![handle is hein.gao/gaobadhie0001 and id is 1 raw text is:
THE COMPTROLLER GENERAL
DECISION 1OF THE UNITED STATES
WASWINGTON. D. C. 20546
FILE:
MATTER OF:
DIGEST:
B-194945
DATE: June 19, 1979 peQ M65 of
General Services Administration-EAdvance
Decision Assignment of Claims Act]
(A 4
Government contractor's secured note assign-
ing accounts receivable to financial institu-
tion which was executed during the period the
instant Government contract was being per-
formed, should be recognized under Assignment
of Claims Act. Record includes contractor's
schedule of accounts receivable which lists
the instant contract account.
The General Services Administration (GSA) requests V
an advance decision c5Gce-rni--the proper payee under V
GSA contract No. GS-02S-29880 with Teltronis Services, NI
Inc. (Teltronics). GSA, having received performance from
TeTtronics, is now in the position of stakeholder ready
to make payment, but is uncertain as to the proper payee.
This uncertainty stems from a claim of the Sterling
Nation.al Bank and Trust Company of New York '(Sterling) 9
thatit should be the payee by virEue of an agreement
in which Teltronics allegedly assigned the proceeds from
this Government contract to Sterling. The validity of
this assignment under the Assignment of Claims Act of
1940, as amended, 31 U.S.C. S 203 (1976) and 41 U.S.C.
§ 15 (1976) (hereafter referred to as the Act) is the
determinative issue here.
Background
On May 1, 1978, GSA awarded to Teltronics a contract
for the installation and maintenance of a communications
system at Floyd Bennett Field, Brooklyn, New York. Upon
completion- BT ist-IITYon, Teltronics submitted to GSA
on May 4, 1979, an invoice for payment in the amount of
$519,678.00. Previously, on March 16, 1979, Sterling
asserted its claim to any payment under the instant con-
tract by notifying GSA's contracting officer that it was
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