[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1261.409]



[Page 345]

 

                     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).