AFARS PART 32

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AFARS -- Part 32

Contract Financing

June 1, 1996

32.006 -- Reduction or Suspension of Contract Payments upon Finding of Fraud.

32.006-1 -- General.

(c) The Secretary of the Army has delegated authority to the ASA(RDA) to reduce or suspend contract payments to contractors when there is substantial evidence that the contractor's request for advance, partial or progress payments is based on fraud.

32.006-2 -- Definitions.

The Army's remedy coordination official is the Chief, Procurement Fraud Division (PFD), OTJAG; Telephone (703) 696-1550; FAX (703) 696-1559. See 1.290(b)(11).

32.006-3 -- Responsibilities.

(b) Report suspected fraud related to advance, partial or progress payments to the local Procurement Fraud Advisor (PFA), who will coordinate the matter as prescribed in Chapter 8, AR 27-40.

32.006-4 -- Procedures.

(a)

(b) The Chief, PFD, shall report requests for reduction or suspension of payments to a contractor to the ASA(RDA) through the addressee in 1.290(b)(1). The report shall contain a recommendation as to whether substantial evidence exists that a contractor's request for payment under a contract is based on fraud.

(c) The ASA(RDA) may reduce or suspend further payments to a contractor, provided that substantial evidence of fraud exists and the amount reduced or suspended is reasonably commensurate with the anticipated loss to the Government resulting from the fraud.

(d)

(e) Agency procedures.

(g) The Chief, PFD, shall provide administrative support to the ASA(RDA) and maintain files for all actions under 10 U.S.C. 2307(h)(2).

32.006-5 -- Reporting.

(a) The Chief, PFD, shall prepare the annual reports regarding recommendations for contractor payment reduction or suspension and forward them to the USD(A&T).

Subpart 32.1 -- Non-Commercial Item Purchase Financing

32.108 -- Financial Consultation.

32.111 -- Contract Clauses.

See DFARS Subpart 232.9.

Subpart 32.4 -- Advance Payments for Non-Commercial Items

32.402 -- General.

(e)

Subpart 32.5 -- Progress Payments Based on Costs

32.501 -- General.

32.501-2 -- Unusual progress payments.

(a)

Subpart 32.6 -- Contract Debts

32.606 -- Debt Determination and Collection.

(c) Case files being transferred to the contract financing office shall be transferred as promptly as possible and normally within 15 calendar days after the end of the 30-day period following the contracting officer's demand for payment. See Chapter 15, AR 37-1. Forward these case files to the Director, Defense Finance and Accounting Service-Columbus Center, Attn: FAS-C0-FPD, P.O. Box 182317, Columbus, Ohio 43218-2317.

32.671 -- Bankruptcy Reporting.

Promptly forward information required by DFARS 232.671 to the addressee in 32.606(c). See Chapter 13, AR 37-103.

Subpart 32.8 -- Assignment of Claims

32.803 -- Policies.

(d) An HCA or PARC may authorize exclusion of Alternate I to the clause at FAR 52.232-23 when it is in the Government's interest.

Subpart 32.10 -- Performance-Based Payments

32.1006 -- Agency Approvals.

The PARC may approve use of performance-based payments. This authority may be delegated no lower than the Chief of the Contracting Office.

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