32.600
Scope of subpart
FAR 32.600 defines the scope for managing contract debts, specifying procedures and key exclusions for certain transportation-related claims.
Overview
- FAR 32.600 establishes the scope for Subpart 32.6, outlining the policies and procedures for identifying, collecting, and deferring collection of contract debts, including any applicable interest. It clarifies that certain sections (32.607, 32.608, and 32.610) do not apply to claims against common carriers for transportation overcharges and freight/cargo losses, which are governed by 31 U.S.C. 3726.
Key Rules
- Identification and Collection of Contract Debts
- The subpart covers how agencies should identify and pursue collection of debts arising from contracts, including interest when applicable.
- Deferral of Collection
- Procedures for deferring the collection of contract debts are included within the subpart.
- Exclusions for Common Carrier Claims
- Claims related to transportation overcharges and freight/cargo losses are excluded from certain sections and are handled under separate statutory authority.
Responsibilities
- Contracting Officers: Must follow prescribed procedures for identifying, collecting, and deferring contract debts, and recognize exclusions for common carrier claims.
- Contractors: Should be aware of the agency’s authority and process for debt collection and any exclusions that may apply.
- Agencies: Ensure compliance with the subpart’s policies and recognize when claims fall under other statutory authorities.
Practical Implications
- This section ensures a standardized approach to contract debt management, reducing ambiguity and promoting consistency across agencies. Contractors should understand these procedures to anticipate and respond to debt collection actions. Awareness of exclusions is important to avoid misapplication of procedures.