# 32.603 Debt determination.

1. (a) If the contracting officer has any indication that a contractor owes money to the Government under a contract, the contracting officer shall determine promptly whether an actual debt is due and the amount. Any unnecessary delay may contribute to-

   1. (1) Loss of timely availability of the funds to the program for which the funds were initially provided;

   2. (2) Increased difficulty in collecting the debt; or

   3. (3) Actual monetary loss to the Government.

2. (b) The amount of indebtedness determined by the contracting officer shall be an amount that-

   1. (1) Is based on the merits of the case; and

   2. (2) Is consistent with the contract terms.