Overview
This section outlines the mandatory procedure a Contracting Officer (CO) must follow when a contractor cannot substantiate a claim due to suspected misrepresentation or fraud.
Key Rules
- Trigger for Action: The contractor is unable to support any portion of a claim.
- Evidence Standard: There must be evidence suggesting the lack of support is attributable to fraud or misrepresentation of fact.
- Mandatory Referral: The Contracting Officer is required ("shall") to refer the matter to the specific agency official responsible for investigating fraud (typically the Office of Inspector General).
- Limited Authority: The CO does not investigate or adjudicate the fraud themselves but serves as the referring authority.
Practical Implications
- Contractors must ensure all claims are backed by rigorous documentation, as even a partial inability to support a claim can trigger a formal fraud investigation.
- This rule reinforces the "Certification of Claims" requirement, where contractors attest to the accuracy and completeness of their data under penalty of law.