longhornjoe Posted June 19, 2010 Report Share Posted June 19, 2010 I have a general question about policy/actual practice and would appreciate hearing any experience or thoughts on what would happen in the following situation. The Contracting Officer for a Corps of Engineers contract has issued a final decision on what is effectively a Government claim and demand for the return of disputed monies paid to the Contractor. The CO can send the final decision to the COE's Finance Center and attempt to collect the demand from payments due to the contractor on its other contracts. The Contractor will appeal the CO's final decision to the Court of Federal Claims. Would the CO continue to pursue collection efforts, even though the decision might be overturned by the Court of Federal Claims? Would the Finance Center, absent any further direction from the CO, continue to pursue the collection efforts if the Finance Center learned of the appeal to the Court of Federal Claims? Thanks in advance for your comments or thoughts. Link to comment Share on other sites More sharing options...
Old-Dog Posted June 23, 2010 Report Share Posted June 23, 2010 I have a general question about policy/actual practice and would appreciate hearing any experience or thoughts on what would happen in the following situation. The Contracting Officer for a Corps of Engineers contract has issued a final decision on what is effectively a Government claim and demand for the return of disputed monies paid to the Contractor. The CO can send the final decision to the COE's Finance Center and attempt to collect the demand from payments due to the contractor on its other contracts. The Contractor will appeal the CO's final decision to the Court of Federal Claims. Would the CO continue to pursue collection efforts, even though the decision might be overturned by the Court of Federal Claims? Would the Finance Center, absent any further direction from the CO, continue to pursue the collection efforts if the Finance Center learned of the appeal to the Court of Federal Claims? Thanks in advance for your comments or thoughts. Link to comment Share on other sites More sharing options...
Old-Dog Posted June 23, 2010 Report Share Posted June 23, 2010 Basically, until it is overturned during appeals, it must be repaid. The certifying officer can be personaly held accountable. Therefore, he/she would request Treasury to recover the funds. See below from 31 CFR Ch. II (7?1?04 Edition): ? 285.12 Transfer of debts to Treasury for collection. (a) Definitions. For purposes of this section: Agency means a department, agency, court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of the Federal Government, including government corporations. Creditor agency means any Federal agency that is owed a debt. Debt means any amount of money, funds or property that has been determined by an appropriate official of the Federal government to be owed to the United States by a person. As used in this section, the term ??debt?? does not include debts arising under the Internal Revenue Code of 1986. Debt collection center means an agency or a unit or subagency within an agency that has been designated by the Secretary of the Treasury to collect debt owed to the United States. FMS is a debt collection center. FMS means the Financial Management Service, a bureau of the Department of the Treasury. Person means an individual, corporation, partnership, association, organization, State or local government, or any other type of entity other than a Federal agency. Secretary means the Secretary of the Treasury. ( In general. Cross-servicing means that FMS or another debt collection center is taking appropriate debt collection action on behalf of one or more Federal agencies or a unit or subagency thereof. © Mandatory transfer of debts to FMS. (1) Except as set forth in paragraph (d) of this section, a creditor agency shall transfer any debt that is more than 180 days delinquent to FMS for debt collection services. For accounting and reporting purposes, the debt remains on the books and records of the agency which transferred the debt. Link to comment Share on other sites More sharing options...
longhornjoe Posted June 26, 2010 Author Report Share Posted June 26, 2010 Basically, until it is overturned during appeals, it must be repaid. The certifying officer can be personaly held accountable. Therefore, he/she would request Treasury to recover the funds. See below from 31 CFR Ch. II (7?1?04 Edition): ? 285.12 Transfer of debts to Treasury for collection. (a) Definitions. For purposes of this section: Agency means a department, agency, court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of the Federal Government, including government corporations. Creditor agency means any Federal agency that is owed a debt. Debt means any amount of money, funds or property that has been determined by an appropriate official of the Federal government to be owed to the United States by a person. As used in this section, the term ??debt?? does not include debts arising under the Internal Revenue Code of 1986. Debt collection center means an agency or a unit or subagency within an agency that has been designated by the Secretary of the Treasury to collect debt owed to the United States. FMS is a debt collection center. FMS means the Financial Management Service, a bureau of the Department of the Treasury. Person means an individual, corporation, partnership, association, organization, State or local government, or any other type of entity other than a Federal agency. Secretary means the Secretary of the Treasury. ( In general. Cross-servicing means that FMS or another debt collection center is taking appropriate debt collection action on behalf of one or more Federal agencies or a unit or subagency thereof. ? Mandatory transfer of debts to FMS. (1) Except as set forth in paragraph (d) of this section, a creditor agency shall transfer any debt that is more than 180 days delinquent to FMS for debt collection services. For accounting and reporting purposes, the debt remains on the books and records of the agency which transferred the debt. Thanks George! Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted June 26, 2010 Report Share Posted June 26, 2010 I have a general question about policy/actual practice and would appreciate hearing any experience or thoughts on what would happen in the following situation. The Contracting Officer for a Corps of Engineers contract has issued a final decision on what is effectively a Government claim and demand for the return of disputed monies paid to the Contractor. The CO can send the final decision to the COE's Finance Center and attempt to collect the demand from payments due to the contractor on its other contracts. The Contractor will appeal the CO's final decision to the Court of Federal Claims. Would the CO continue to pursue collection efforts, even though the decision might be overturned by the Court of Federal Claims? Would the Finance Center, absent any further direction from the CO, continue to pursue the collection efforts if the Finance Center learned of the appeal to the Court of Federal Claims? Thanks in advance for your comments or thoughts. I don't know how the section from 31 CFR cited by George answers your questions, which were: 1. "Would the CO continue to pursue collection efforts, even though the decision might be overturned by the Court of Federal Claims?" 2. "Would the Finance Center, absent any further direction from the CO, continue to pursue the collection efforts if the Finance Center learned of the appeal to the Court of Federal Claims?" The answer to both questions is yes. See FAR Subpart 32.6, Contract Debts. Specifically, see 32.605, Final Decisions; 32.606, Debt Collection; and 32.607-2, Deferment of Collection. If the contractor appeals the CO's final decision, the contractor can ask the CO to defer collection. The appeal does not itself suspend or delay collection. Link to comment Share on other sites More sharing options...
longhornjoe Posted June 28, 2010 Author Report Share Posted June 28, 2010 Thanks Vern. I appreciate your comments. Link to comment Share on other sites More sharing options...
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