[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.007]

[Page 396]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55--COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.007  Collection by offset.

    (a) Whenever feasible, after a debtor fails to pay the claim, 
request a review of the claim, or make an arrangement for payment. The 
Comptroller or his appropriate regional designee will collect claims 
under this part by means of administrative offset against obligations of 
the United States to the debtor, pursuant to 31 U.S.C. 3716, except 
offset of Federal salaries and claims arising out of contracts subject 
to the Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq.
    (b) Salary offsets and offsets against military retired pay are 
governed by 5 U.S.C. 5514.
    (c) Collection by administrative offset of amounts payable from 
Civil Service Retirement and Disability Fund will be made pursuant to 5 
U.S.C. 5514 and 5 U.S.C. 5705 and regulations thereunder.
    (d) The offset of claims arising out of contracts subject to the 
Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq. will be made 
pursuant to the Government common law right of offset.
    (e) GSA will promptly make requests for offset to other agencies 
holding funds payable to a debtor and provide instructions for the 
transfer of these funds. Requests for offset received from other 
agencies shall be processed promptly and the funds transferred to the 
requesting agency.
    (f) If administrative offset cannot be effected through GSA or other 
known agency accounts receivable, then GSA will place a complete stop 
order against amounts otherwise payable to the debtor by placing the 
name of that debtor on the Department of the Army ``List of Contractors 
Indebted to the United States.'' If any amounts are discovered under 
this procedure, they will be offset against the debt owed to GSA.
    (g) GSA should not attempt to effect collection by administrative 
offset when:
    (1) The debtor has ceased to do business and there are no known or 
potential obligations payable by any agency of the United States 
Government to the debtor.
    (2) The debt in question is over ten years old.
    (3) The debtor has either gone into receivership and has liquidated 
all of its assets or has filed a petition in bankruptcy as a no asset 
debtor, and there is no likelihood of the debtor resuming operations; 
and there are no known or potential obligations payable by any agency of 
the United States Government to the debtor. In the case of a bankruptcy 
petition, the automatic stay against setoff must be honored pending 
release from the stay.
    (4) The debtor is deceased, and there are no attachable assets in 
the estate.
    (5) Any other circumstances which would indicate that the likelihood 
of collection by administrative offset is less than probable.

[50 FR 37531, Sept. 16, 1985, as amended at 52 FR 46468, Dec. 8, 1987]