[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1261.409]

[Page 350]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                          SPACE ADMINISTRATION
 
PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents
 
Subpart 1261.4--Collection of Civil Claims of the United States Arising 
      Out of the Activities of the National Aeronautics and Space 
                          Administration (NASA)
 
Sec. 1261.409  Contracting for collection services.

    (a) When NASA determines that there is a need to contract for 
collection services, the following conditions must attach:
    (1) The authority to resolve disputes, compromise claims, suspend or 
terminate collection action, and refer the matter for litigation must be 
retained by NASA.
    (2) The contractor shall be subject to the Privacy Act of 1974, as 
amended, to the extent specified in 5 U.S.C. 552a(m), and to applicable 
Federal and State laws and regulations pertaining to debt collection 
practices--for example, the Fair Debt Collection Practices Act (15 
U.S.C. 1692), and 26 U.S.C. 6103(p)(4) and applicable regulations of the 
Internal Revenue Service;
    (3) The contractor must be required to account strictly for all 
amounts collected; and
    (4) The contractor must agree to provide any data contained in its 
files relating to collection actions and related reports, current 
address of debtor, and reasonably current credit information upon 
returning an account to NASA for subsequent referral to the Department 
of Justice for litigation.
    (b) Funding of collection service contracts:
    (1) NASA may fund a collection service contract on a fixed-fee 
basis--that is, payment of a fixed fee determined without regard to the 
amount actually collected under the contract. However, such contract may 
be entered into only if and to the extent provided in the appropriation 
act or other legislation, except that this requirement does not apply to 
the use of a revolving fund authorized by statute. Accordingly, payment 
of the fixed-fee must be charged to available agency appropriations. See 
4 CFR 102.6(b)(1) and (3).
    (2) NASA may also fund a collection service contract on a 
contingent-fee basis--that is, by including a provision in the contract 
permitting the contractor to deduct its fee from amounts collected under 
the contract. The fee should be based on a percentage of the amount 
collected, consistent with prevailing commercial practice. See 4 CFR 
102.6(b)(2).
    (3) Except as authorized under paragraph (b)(2) of this section, or 
unless otherwise specifically provided by law, NASA must deposit all 
amounts recovered under collection service contracts (or by NASA 
employees on behalf of the agency) in the Treasury Department as 
miscellaneous receipts pursuant to 31 U.S.C. 3302. See 4 CFR 
102.6(b)(4).