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(a) With respect to cost-type procurement generally, contracting officers shall require contractors to employ private financing with or without assignment of contract payments (FPR 1-30.7). Periodic interim reimbursement on account of incurred cost and payment of fixed fee (if any) will normally be made, reducing the amount of necessary financing for working capital (AECPR 9-7.5006-25). In some instances, where no other means of adequate financing is available on reasonable terms, the AEC may approve (in order of preference) a guaranteed loan or an advance payment for performance of the contract.

(b) Partial payments, as provided for in the standard form of supply contract (FPR 1-16.901-32), should be considered as a form of contractor financing in the second place in the order of preference.

[29 F.R. 13575, Oct. 2, 1964, as amended at 30 F.R. 8682, July 9, 1965]

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§ 9-30.404

Standards-amounts—need.

The total advance payment shall not exceed 90 percent of the value of the uncompleted portion of the contract and shall not include any portion of the anticipated profit or the fixed fee.

§ 9-30.406 Responsibility - delegation of authority.

(a) The Manager of the Field Office or his delegate shall have the responsibility and authority for making the findings and determinations referenced in FPR 1-30.406.

§ 9-30.414 Agreement for special bank account and contract provisions.

(See AECPR 9-7.5006-23, 24 under which the Government retains title to the funds advanced.)

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FPR 1-30.701 is implemented as follows:

(a) In the case of prime contracts, when it has been determined that the financing of defense contracts will be facilitated in the interest of the AEC program, it is the policy of AEC that such contracts provide, or be amended without consideration (see Assignment of Claims Act of 1940) to provide, that payments to be made to an assignee shall not be subject to reduction or set-off:

(1) For any liability of any nature of the assignor to the United States or any department or agency thereof which arises independently of such contracts;

(2) For any liability of the assignor on account of:

(i) Renegotiation under any renegotiation statute or under any statutory renegotiation article in the contract;

(ii) Fines;

(iii) Penalties (which term does not include amounts which may be collected or withheld from the assignor in accordance with, or for failure to comply with, the terms of the contract);

(iv) Taxes, social security contributions, or the withholding or nonwithholding of taxes or social security contributions, whether arising from or independently of such contract.

(b) In the case of subcontracts, when loans are made for the purpose of financing performance of subcontracts under AEC prime contracts, financing institutions (or the Government as guarantor in those instances in which such loans are guaranteed) should not be required to incur risks of loss by reason of possible diversion of assigned subcontract proceeds for payment of other claims of the prime contractor against the borrower otherwise unrelated to the assigned subcontracts. In the interest of national defense financing, Managers of Field Offices shall require the adoption of

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Add the following to the final paragraph of FPR 1-30.703:

The last two sentences of paragraph (a) of the foregoing clause shall also be deleted in all contracts for transportation services. § 9-30.708 Examination of assignment. (a) [Reserved.]

(b) In classified contracts, the assignee should ordinarily be furnished, upon request, with the following information, as applicable, in lieu of a copy of the contract:

(1) Name and address of the AEC prime contractor;

(2) Prime contract number and date; (3) The AEC office and address receiving the material or service;

(4) Subcontract number or purchase order number;

(5) Date of the subcontract or purchase order;

(6) Date on which prime contract, subcontract or purchaser order is to be completed;

(7) Total amount of the subcontract or purchase order;

(8) Dollar amount remaining to be delivered on prime contract, subcontract or purchase order; and

(9) A statement as to the assignability of the prime contract, subcontract or purchase order.

(c) (1) It is AEC policy that any assignment of claims shall cover all amounts payable under the contract and not already paid. Partial assignments shall not be permitted unless they are primarily for the benefit of the Government, as exampled in FPR 1-30.708 (c) (1).

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(a) For the purpose of this part, the term "Contract Actions" includes:

(1) Actions relating to the letting of contracts, subcontracts, agreements with other governmental agencies, and subsequent modifications, extensions, and terminations thereof.

(2) Questions of contract policy or procedure which arise in the course of contract negotiation and administration.

(b) For the purpose of this part, the term "Contract Actions" does not include administrative functions associated with contract administration, such as the development, interpretation and modification of contract cost principles, financial plan and budget operations, labor relations, safety, security, audit, salary and wage administration, foreign travel, programmatic matters (program scope, technical requirements or specifications, project schedules, etc.), and the administration of construction activities. Such matters are handled directly between Field Offices and the Headquarters Division or Office having cognizance over the matter involved.

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