FAR 32.602 Responsibilities.

In plain English

This section splits responsibility for handling contract debts between the contracting officer and the payment office. The contracting officer identifies and demands payment of debts, while the payment office collects them and handles duplicate or erroneous payments. It matters because it tells contractors who is responsible for different parts of the debt-collection process.

Applies to: Contracting officers and payment offices handling contract debts

What it requires

• The contracting officer must identify and demand payment of contract debts, except those from payment office errors.
• The contracting officer must not collect contract debts or agree to liquidate them, such as by offsetting debts against unpaid bills or letting contractors retain debts to cover future amounts.

Key terms: contract debts · contracting officer · payment office · liquidate contract debts · offset

Written by AI from this section's text. A guide, not legal advice: the text below rules.