Overview
FAR 32.600 establishes the regulatory framework for managing contract debts, specifically outlining the procedures for identifying, collecting, and deferring payments owed by contractors to the government.
Key Rules
- Debt Management: Governs the entire lifecycle of a contract debt, including its identification, the collection process, and any potential deferment of payments.
- Interest Applicability: Explicitly includes the management of interest on debts where applicable.
- Transportation Exclusions: Specific procedures regarding installment payments (32.607), interest (32.608), and compromising claims (32.610) do not apply to transportation overcharges or freight/cargo losses governed by 31 U.S.C. 3726.
Practical Implications
- Contractor Liability: Contractors must be aware that any overpayments or breaches resulting in debt will be processed under these specific FAR standards, which include standardized interest accrual.
- Regulatory Carve-outs: For common carriers, debt recovery for overcharges is handled under separate statutory authorities rather than the standard FAR debt collection sections, requiring different administrative procedures.