ASBCA 57733

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of— ) Tiger Enterprises, Inc. ) ASBCA No. 57733 Under Contract No. N68836-07-C-0062 ) APPEARANCE FOR THE APPELLANT: Ms. Lillian Mauldin President APPEARANCES FOR THE GOVERNMENT: Ronald J. Borro, Esq. Navy Chief Trial Attorney Russell A. Shultis, Esq. Senior Trial Attorney OPINION BY ADMINISTRATIVE JUDGE CLARKE This appeal was submitted by the parties on the record under Board Rule 11. The appeal involves appellant's claim that the Navy erroneously paid contract amounts to a bank based on an invalid assignment. We have jurisdiction pursuant to the Contract Disputes Act of 1978, 41 U.S.C. §§ 7101-7109. For the reasons stated below, we deny the appeal. FINDINGS OF FACT 1. On 13 September 2007 the Navy (FISC Jacksonville, Naval Air Station, FL) awarded Tiger Enterprises, Inc. (Tiger) Contract No. N68836-07-C-0062 (0062) for the rental and maintenance of washers and dryers at NTTC Cony Station, Pensacola, FL (CLIN 0001); EOD School, Eglin AFB, FL (CLIN 0002); Officer Training Command, Pensacola, FL (CLIN 0003); and CBQ Naval Air Station, Whiting Field, Milton, FL (CLIN 0004) (R4, tab 3 at 68-76). The total amount of the contract at award was $109,156.44 (R4, tab 3 at 68). The contract included two option years, CLINs 0005-0008 {id. at 77-83), and CLINs 0009-0012 {id. at 84-90). The contract did not prohibit assignments. 2. The contract indicated that payments would be made by DFAS - Cleveland Center (R4, tab 3 at 68). Invoices were to be submitted electronically each month through "Wide Area Work Flow - Receipt and Acceptance (WAWF)" (R4, tab 3 at 101).  3. The contract incorporated FAR 52.212-4, CONTRACT TERMS and CONDITIONS - COMMERCIAL Items (Feb 2007) (R4, tab 3 at 94). FAR 52.212-4(b) Assignment, includes similar1 assignment provisions included in non-commercial item contracts2: (b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financial institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). 4. By Modification No. P00001, dated 27 September 2007, the performance start date was changed from 1 October 2007 to 1 November 2007 (R4, tab 4 at 108). Option period 1 was exercised by Modification No. P00007 for performance from 1 October 2008 through 30 September 2009 (R4, tab 10 at 141). Option period 2 was exercised by Modification No. P00011 for performance from 1 October 2009 through 30 September 2010 (R4, tab 14 at 157). By Modification No. P00016 the contract performance period was extended for 6 months from 1 October 2010 through 31 March 2011 (R4, tab 19 at 176). 5. The record includes a document, dated 6 February 2008, titled "CONSENT TO ASSIGNMENT" printed on Tiger letterhead that reads in part: This Consent, dated as of February 6, 2008, is given and made by Tiger Enterprises, Inc. ("Vendor") in favor of Chain Bridge Bank, N.A. ("Bank"). RECITALS Vendor and Anderson Funding Group, Ltd., Inc. ("AFG") are parties to the Purchase Agreement, dated December 1, 2007 (the "AFG Purchase Agreement"), and Delivery Schedule TE-NAS-001, dated December 8, 2007 (the "Delivery Schedule"), issued by Vendor pursuant to the Purchase Agreement. The Purchase Agreement and the 1 FAR 12.210, Contract Financing, provides, "Customary market practice for some commercial items may include buyer contract financing.