32.601 General.
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(a) Contract debts are amounts that-
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(1) Have been paid to a contractor to which the contractor is not currently entitled under the terms and conditions of the contract; or
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(2) Are otherwise due from the contractor under the terms and conditions of the contract.
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(b) Contract debts include, but are not limited to, the following:
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(1) Billing and price reductions resulting from contract terms for price redetermination or for determination of prices under incentive type contracts.
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(2) Price or cost reductions for defective certified cost or pricing data.
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(3) Financing payments determined to be in excess of the contract limitations at 52.232-16(a)(7), Progress Payments, or 52.232-32(d)(2), Performance-Based Payments, or any contract clause for commercial item financing.
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(4) Increases to financing payment liquidation rates.
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(5) Overpayments disclosed by quarterly statements required under price redetermination or incentive contracts.
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(6) Price adjustments resulting from Cost Accounting Standards (CAS) noncompliances or changes in cost accounting practice.
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(7) Reinspection costs for nonconforming supplies or services.
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(8) Duplicate or erroneous payments.
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(9) Damages or excess costs related to defaults in performance.
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(10) Breach of contract obligations concerning progress payments, performance-based payments, advance payments, commercial item financing, or Government-furnished property.
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(11) Government expense of correcting defects.
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(12) Overpayments related to errors in quantity or billing or deficiencies in quality.
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(13) Delinquency in contractor payments due under agreements or arrangements for deferral or postponement of collections.
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(14) Reimbursement of amounts due under 33.102(b)(3) and 33.104(h)(8).
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