12.215
Notification of overpayment
Contractors must promptly notify the contracting officer of any duplicate or excess payments, triggering formal government recovery procedures.
Overview
FAR 12.215 requires contractors to notify the contracting officer if they discover a duplicate payment or any other overpayment made by the Government. Upon receiving such notification, the contracting officer must follow the procedures outlined in FAR 32.604 to address and resolve the overpayment. This section ensures that overpayments are promptly identified and corrected, maintaining financial integrity in government contracts for commercial products and services.
Key Rules
- Contractor Notification Requirement
- Contractors must inform the contracting officer if they identify a duplicate payment or any overpayment from the Government.
- Contracting Officer Action
- Upon notification, the contracting officer is required to follow the specific procedures in FAR 32.604 to process and recover the overpayment.
Responsibilities
- Contracting Officers: Must act according to FAR 32.604 when notified of an overpayment.
- Contractors: Must promptly notify the contracting officer of any duplicate or excess payments received.
- Agencies: Ensure oversight and compliance with overpayment notification and resolution procedures.
Practical Implications
- This regulation exists to prevent financial loss and ensure accountability in government contracting.
- Contractors should have internal controls to detect overpayments and report them immediately.
- Failure to notify or resolve overpayments can lead to compliance issues, audits, or penalties.