Delegation of Authority Under the Assignment of Claims Act

This memorandum delegates presidential authority under the Assignment of Claims Act (Federal Acquisition Streamlining Act of 1994) to all federal departments and agencies. It designates all departments and agencies as subject to contract assignment provisions previously limited to DOD, GSA, and DOE, and delegates 'determination of need' authority to agency heads for their respective contracts.

Federal Register Open PDF 60 FR 52289

Impact dates

Date TBD
Further guidance from Office of Federal Procurement Policy
Oct 5, 1995
Publication in Federal Register

Key directives

Designate all other departments and agencies of the United States as subject to section 2451 of the Federal Acquisition Streamlining Act of 1994
Delegate to Secretaries of Defense and Energy, Administrator of General Services, and heads of all other departments and agencies the authority to make determinations of need for their respective agency's contracts
Authority may be further delegated within departments and agencies
Subject to further guidance from Office of Federal Procurement Policy

Who is ordered

Timeline

Immediate

Designation of all departments/agencies as subject to Assignment of Claims Act provisions
Delegation of determination-of-need authority to all agency heads

Near term (90d)

OFPP may issue further guidance on implementation
Agencies may establish internal delegation procedures

Long term

Potential expansion of contractor financing options across all federal agencies
Possible increase in assignment of claims transactions government-wide

Risks & tensions

Potential inconsistency in 'determination of need' standards across agencies without uniform OFPP guidance
Expansion of anti-set-off protection may reduce government's leverage in contract disputes
Text does not specify criteria for 'determination of need,' creating implementation uncertainty