Overview
This section addresses the adjustment of debt effective dates and interest accrual when the government is responsible for delays in delivering a demand letter to a contractor.
Key Rules
- Condition for Adjustment: Applies specifically when interest accrual is tied to the date on the demand letter but the letter's delivery is delayed by government action or mail issues.
- Examples of Delay: Includes internal government processing delays (e.g., a letter sitting in an outbox after being dated) or delays occurring within the postal system.
- Required Remedy: The official date of the debt and the start date for interest accrual must be extended.
- Standard of Adjustment: The new date must be determined based on what is "fair and reasonable" given the specific facts of the delay.
Practical Implications
- Protection Against Inefficiency: This rule prevents contractors from being charged interest for periods during which they were unaware of a debt due to government administrative errors.
- Record Keeping: Contractors should carefully document the receipt date and postmark of demand letters to challenge unfair interest charges if a significant gap exists between the letter’s date and its arrival.