SpendQueryBeta

FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.6

FAR 32.603 Debt determination.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells the contracting officer to promptly determine whether a contractor actually owes money to the Government under a contract and, if so, how much. Delays can hurt the Government's funds and make collection harder, so the officer must act quickly and base the amount on the facts and the contract terms.

Applies to: Contracting officers handling contracts where a contractor may owe the Government money

What it requires

  • Promptly determine whether an actual debt is due and its amount if there is any indication the contractor owes money
  • Base the amount of indebtedness on the merits of the case
  • Make the amount consistent with the contract terms

Key terms: debt determination · contracting officer · indebtedness · actual debt · merits of the case

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

The text

(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.

Sections that refer to it

← 32.602 Responsibilities. · 32.604 Demand for payment. →

Rule changes for FAR Part 32

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 32.603 Debt determination · SpendQuery