All government contractors must be aware of the need to complete a Notice of Assignment on contracts where they intend to finance invoices. Due to FAR regulations, the government contract vehicle must have this amendment completed in order for the agency to pay a third party who has the assignment of proceeds from completed work.
In other words, once a milestone has been met and the contractor sends an invoice through the CO for payment, if financing is place and the payments are being made to the finance company, then the NOA will instruct the payables department where to send the payment. This prepared document is put in place one time for each contract and specifies that it is in place until the finance company releases the Assignment.
It is important for the contractor to explain to their CO that the company has financing in place to help them perform on the contract so a Notice of Assignment will be submitted. All three parties, the contractor, the CO and finance company will sign off on the document. This is all fairly straightforward and should not be too much of an issue but could add a few days to the process.
In many cases a factoring company might already have experience with a particular agency which will help expedite the Assignment.