FAR 32.603

(a) If the contracting officer has any indication that a contractor owes money to the Government under a contract, the contracting officer shall determine promptly whether an actual debt is due and the amount. Any unnecessary delay may contribute to- (1) Loss of timely availability of the funds to the program for which the funds were initially provided; (2) Increased difficulty in collecting the debt; or (3) Actual monetary loss to the Government. (b) The amount of indebtedness determined by the contracting officer shall be an amount that- (1) Is based on the merits of the case; and (2) Is consistent with the contract terms.

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