FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.8
DFARS 232.803 Policies.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section states that only personal-services contracts may prohibit assigning claims. It also explains that DoD determined a need to agree not to reduce or set off money due under a contract when proceeds have been assigned, but departments or contracting officers may exclude that no-setoff commitment in certain cases.
Applies to: DoD contracts involving assignment of claims
Key terms: personal services · assignment of claims · no-setoff commitment · significantly indebted offeror
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(b) Only contracts for personal services may prohibit the assignment of claims.
(d) Pursuant to 41 U.S.C. 6305, and in accordance with Presidential delegation dated October 3, 1995, Secretary of Defense delegation dated February 5, 1996, and Under Secretary of Defense (Acquisition, Technology, and Logistics) delegation dated February 23, 1996, the Director of Defense Procurement determined on May 10, 1996, that a need exists for DoD to agree not to reduce or set off any money due or to become due under the contract when the proceeds under the contract have been assigned in accordance with the Assignment of Claims provision of the contract. This determination was published in the Federal Register on June 11, 1996, as required by law. Nevertheless, if departments/agencies decide it is in the Government's interests, or if the contracting officer makes a determination in accordance with FAR 32.803(d) concerning a significantly indebted offeror, they may exclude the no-setoff commitment.
← 232.706-70 Clause for limitation of Government's obligation. · 232.805 Procedure. →
Rule changes for DFARS Part 232
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-07-29 · effective 2024-07-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.