FAR 32.800—Scope of subpart.
Plain-English Summary
FAR 32.800 is the scope statement for Subpart 32.8, and it tells readers that this subpart governs the assignment of claims under the Assignment of Claims Act of 1940, as amended. In practical terms, it is the gateway provision for understanding when and how a contractor may assign contract payments to a financing institution, and what policies and procedures the Government will follow when such an assignment is involved. The section ties the FAR subpart to the statutory authorities in 31 U.S.C. 3727 and 41 U.S.C. 6305, making clear that the rules are grounded in federal law rather than optional contract language. Although brief, it is important because it signals that the subpart is about payment rights, financing arrangements, and the Government’s handling of assigned claims, all of which affect contract administration, lender protections, and payment processing. For contracting officers and contractors, this section matters because it identifies the legal framework that controls assignments and alerts users that the detailed requirements appear elsewhere in Subpart 32.8.
Key Rules
Subpart covers claim assignments
This subpart applies to the assignment of claims under the Assignment of Claims Act. It is the controlling FAR framework for those assignments and the related procedures.
Statutory authority governs
The subpart is based on the Act, specifically 31 U.S.C. 3727 and 41 U.S.C. 6305. That means the FAR provisions implement and operate within the limits of the statute.
Policies and procedures are included
The subpart does not just identify the legal authority; it also prescribes the policies and procedures for handling assignments. Users should look to the rest of Subpart 32.8 for the operational rules.
Responsibilities
Contracting Officer
Apply the policies and procedures in Subpart 32.8 when a contractor seeks to assign claims, and ensure actions taken on the contract comply with the Assignment of Claims Act and the FAR.
Contractor
Understand that any assignment of claims must follow the Act and the FAR procedures in this subpart, and use the proper process when arranging financing or payment assignment.
Agency
Administer contract payment and assignment matters consistently with the statutory framework and the procedures prescribed in Subpart 32.8.
Practical Implications
This section is a roadmap, not the full rule set; users must read the rest of Subpart 32.8 to know the actual steps and limitations.
A common mistake is treating payment assignments as a routine business matter without checking the statutory and FAR requirements that control them.
Contracting officers should recognize that an assignment affects how payments are made and documented, so payment administration must be handled carefully.
Contractors seeking financing should confirm that their assignment arrangement fits the Act and the FAR before relying on it for lender protection or payment processing.
Official Regulatory Text
This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of1940, as amended, ( 31 U.S.C.3727 , 41 U.S.C. 6305 ) (hereafter referred to as "the Act").