[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: 14CFR1261.500]

[Page 359]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                          SPACE ADMINISTRATION
 
PART 1261--PROCESSING OF MONETARY CLAIMS (GENERAL)--Table of Contents
 
             Subpart 1261.5--Administrative Offset of Claims
 
Sec. 1261.500  Scope of subpart.

    Source: 52 FR 19487, May 26, 1987, unless otherwise noted.


    (a) This subpart applies to collection of claims by administrative 
offset under section 5 of the Federal Claims Collection Act of 1966 as 
amended by the Debt Collection Act of 1982 (31 U.S.C. 3716), other 
statutory authority, or the common law; it does not include ``Salary 
Offset,'' which is governed by subpart 1261.6, infra. Consistent with 4 
CFR 102.3, collection by administrative offset will be undertaken by 
NASA on all liquidated or certain in amount claims in every instance in 
which such collection is determined to be feasible and not otherwise 
prohibited.
    (b) Whether collection by administrative offset is feasible is a 
determination to be made by NASA on a case-by-case basis, in the 
exercise of sound discretion. NASA will consider not only whether 
administrative offset can be accomplished, both practically and legally, 
but also whether offset is best suited to further and protect all of the 
Government's interests. In appropriate circumstances, NASA may give due 
consideration to the debtor's financial condition; or whether offset 
would tend to substantially interfere with or defeat the purposes of the 
program authorizing the payments against which offset is contemplated. 
For example, under a grant program in which payments are made in advance 
of the grantee's performance, offset will normally be inappropriate.
    (c) NASA is not authorized by 31 U.S.C. 3716 to use administrative 
offset with respect to:
    (1) Debts owed by any State or local Government;
    (2) Debts arising under or payments made under the Social Security 
Act, the Internal Revenue Code of 1954, or the tariff laws of the United 
States; or
    (3) Any case in which collection of the type of debt involved by 
administrative offset is explicitly provided for or prohibited by 
another statute. However, unless otherwise provided by contract or law, 
debts or payments which are not subject to administrative offset under 
31 U.S.C. 3716 may be collected by administrative offset under the 
common law or other applicable statutory authority.