Overview
This section outlines the mandatory procedures a Contracting Officer must follow when a contractor self-identifies and reports a duplicate payment or any other form of overpayment by the Government.
Key Rules
- Mandatory Referral: If a contractor provides notification of an overpayment, the Contracting Officer is required to follow the established debt collection and determination procedures.
- Cross-Reference to Part 32: The section explicitly links commercial product/service acquisitions to FAR 32.604, which governs the formal process for identifying contract debts and issuing demand letters.
- Scope of Overpayment: The rule covers both "duplicate payments" and situations where the Government has "otherwise overpaid" the contractor.
Practical Implications
- Contractors have an affirmative obligation to report overpayments; failure to do so can lead to interest penalties or potential liability under the False Claims Act.
- Once notified, the Contracting Officer must coordinate with the payment office and financial management personnel to reconcile the accounts and issue a formal demand for repayment.