At this time I am asking would a modification be necessary since we are adding the financial instituation; thus altering the information from the original information that was drafted. Contract modification in financial definition refers to a mutually agreed changes or alterations made to a contract. A contract modification may introduce or cancel specifications or terms of an existing contract, while leaving its overall purpose and effect intact. Contract modification is also called contract amendment for example to change payment terms of a contract and/or .Make administrative changes. Please grant clarity. I understand that yes each activity and organization can function differently, but the overall interpretation of the FAR should be uniform should it not?
FAR 2.101 Assignment of claims" means the transfer or making over by the contractor to a bank, trust company, or other financing institution, as security for a loan to the contractor, of its right DFARS 232.805 Procedure to be paid by the Government for contract performance
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Based upon my research, I believe a modification isn't required. What in the contract are you modifying pursuant to FAR 32.805 and DFARS 232.805 entitled "Procedure" or The Assignment of Claims clause at 52.232-23? It is my position that your process should parallel that which is found in the DCMA Guidebook. This process is in full text below and there is no mention of a modification.
"9. Notice of Assignments (NoA):
9.1. Prior to executing a NoA, the ACO ensures that the financial institution is registered for Electronic Funds Transfer (EFT). The best method to assure that the assignee is paid using EFT is to have the financial institution submit a completed Standard Form 3881, which the ACO can forward to DFAS with the NoA package. The assignee also registers in the Central Contractor Registration (CCR) system in order to comply with DFARS 252.204-7004. The DFAS Contract Management Division is responsible for inputting the appropriate R9 remark (50 - when assignment is processed and 51 - when assignment is released).
9.2. The ACO reviews and distributes Assignment of Claims documents in accordance with FAR 32.8/DFARS 232.8 and provides immediate notification to the DFAS Contract Management Division of the NoA. A return receipt is required. DFAS Contract Management points of contact can be found in the Order of Escalation.
9.3. ACOs advise the contractor to inform the ACO when changes to the assignment occur."