# AFARS PART 5132

- 5132.006 -- Reduction or suspension of contract payments upon finding of fraud.

- 5132.006-1 -- General.
- 5132.006-2 -- Definition.
- 5132.006-3 -- Responsibilities.

Subpart 5132.4 -- Advance Payments for Non-Commercial Items

- 5132.402 -- General.

Subpart 5132.5 -- Progress Payments Based on Costs

- 5132.501 -- General.

- 5132.501-2 -- Unusual progress payments.

Subpart 5132.6 -- Contract Debts

- 5132.606 -- Debt determination and collection.
- 5132.671 -- Bankruptcy Reporting.

Subpart 5132.8 -- Assignment of Claims

- 5132.803 -- Policies.

Subpart 5132.71 -- Levies on Contract Payments

- 5132.7101 Policy and procedures.

AFARS -- Part 5132
Contract Financing

5132.006 -- Reduction or suspension of contract payments upon finding of fraud.

5132.006-1 -- General.

(c) The Secretary of the Army has delegated authority to the Assistant Secretary of the Army (Acquisition, Logistics and Technology) (ASA(ALT)) 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.

5132.006-2 -- Definition.

The Army’s Remedy Coordination Official is the Chief, Procurement Fraud Branch (PFB), Office of The Judge Advocate General; Telephone (703) 696-1550; FAX (703) 696-1559. See 5101.290(b)(8). [AFARS Revision #21, dated May 22, 2007]

5132.006-3 -- 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 Army Regulation (AR) 27-40.

Subpart 5132.4 -- Advance Payments for Non-Commercial Items

5132.402 -- General.

(e) (1) The Assistant Secretary of the Army (Financial Management and Comptroller) (ASA(FM&C)) is authorized to make advance payments and determinations pursuant to 10 U.S.C. 2307.

(2) The Office of the ASA(FM&C) will coordinate with the activity that provides contract financing support.

Subpart 5132.5 -- Progress Payments Based on Costs

5132.501 -- General.

5132.501-2 -- Unusual progress payments.

(a) (2) Requests for approval of unusual progress payments must include the following documentation submitted by the contractor:

(A) Monthly cash flow forecasts for the period which include the additional financing.

(B) Estimated Profit and Loss statements and Balance Sheets for the same period as the cash flow forecast.

(C) The most recent, audited financial statements.

(D) A description of significant events before or after preparation of financial statements which materially affect the financial condition of the company, the operating statement or the cash flow statement.

(3) See DFARS PGI 232.501-2. Submit all unusual progress payments requests to the addressee in 5101.290(b)(3). [AFARS Revision #21, dated May 22, 2007]

Subpart 5132.6 -- Contract Debts

5132.606 -- Debt determination and collection.

(c) Case files sent to the contract financing office must be sent within 15 calendar days after the end of the 30-day period following the contracting officer’s demand for payment. Send these case files to the Defense Finance and Accounting Service-Columbus Center, Attn: DFAS-CKSD/ CO, Debt Management Office, P.O. Box 182317, Columbus, Ohio 43218-2317.

(i) In addition to information required by FAR 32.606, the case file must include a copy of the demand made by the contracting officer; a statement as to whether or not the contract contains an Interest clause; and, if so, a copy of the clause or a reference to the clause number.

(ii) If the debt represents excess costs incurred in purchasing supplies or services against the account of a defaulted contractor, the case file shall include --

(A) The name and address of the replacement contractor;
(B) The disbursing office voucher number;
(C) The date paid;
(D) Bills of lading numbers, if any;
(E) The name of the carrier, when applicable; and
(F) The name and symbol number of the disbursing officer.

(i) If the debt represents liquidated damages, the case file shall include an explanation of the basis for assessing liquidated damages.

Other Guidance: See DFAS-IN 37-1, dated Jan 00.

[AFARS Revision #21, dated May 22, 2007]

5132.671 -- Bankruptcy Reporting.

Send information required by DFAS-IN 37-1 to the addressee in 5132.606(c).

Subpart 5132.8 -- Assignment of Claims

5132.803 -- Policies.

(d) A Head of the Contracting Activity (HCA) or a Principal Assistant Responsible for Contracting (PARC) may authorize exclusion of Alternate I to the clause at FAR 52.232-23 when it is in the Government’s interest.

Subpart 5132.71 -- Levies on Contract Payments

5132.7101 Policy and procedures.

(b) (4) Subject to DFARS 232.7101(b) and the procedures at the DFARS Procedures, Guidance and Information (PGI) 232.7101(b), the contracting officer shall ensure that the notification memorandum to the DPAP has the PARC endorsement. The PARC may not further delegate this endorsement. In addition to the assessment provided by the contractor, the appropriate requiring activity shall support the contracting officer in providing any other information necessary to prepare the notification. The contract file will clearly show all reviews and coordination that the action has received at the PARC and lower-levels, to include legal counsel review. When the contracting officer sends the notification memorandum to the Director, DPAP, the contracting officer shall provide a copy of this memorandum to the SAAL-PP by e-mail to psstaff@conus.army.mil.

(c) When the contracting officer receives a response from the DPAP, the contracting officer shall send a copy of the response to the SAAL-PP by e-mail to psstaff@conus.army.mil.

[AFARS Revision #21, dated May 22, 2007] [AFARS Revision #23, dated May 16, 2008]