32.605
Final decisions
Contracting officers must issue and properly communicate a final decision on contract debts when disputes or payment issues remain unresolved, ensuring due process and clear documentation.
Overview
FAR 32.605 outlines the procedures for contracting officers to issue final decisions regarding contract debts when disputes or unresolved payment issues arise. This section ensures that both the government and contractors have a clear process for resolving disagreements about the existence or amount of a debt, handling unpaid debts, and managing requests for deferment of collection. It also specifies the requirements for communicating final decisions and maintaining consistency in payment due dates.
Key Rules
- Issuance of Final Decision
- The contracting officer must issue a final decision if there is no agreement on a debt, if a contractor fails to pay a demanded debt on time, or if the contractor requests a deferment of collection.
- Consistency in Due Dates
- If a demand for payment was previously made, the final decision must reference the same due date as the original demand.
- Notification Requirements
- The final decision must be sent to the contractor using a method that provides evidence of receipt (e.g., certified mail) and a copy must be sent to the payment office listed in the contract.
Responsibilities
- Contracting Officers: Must issue timely final decisions, ensure due dates are consistent, and properly notify both the contractor and payment office.
- Contractors: Must respond to demands for payment, request deferments if needed, and comply with final decisions.
- Agencies: Oversee that contracting officers follow proper procedures and documentation.
Practical Implications
- This section ensures due process in resolving contract debt disputes and provides a clear timeline and documentation trail. Contractors should be aware that failure to respond or pay can trigger a formal final decision, which may have legal and financial consequences. Proper communication and documentation are critical to avoid misunderstandings and ensure compliance.