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  • Question

    What are the risks, if any, of administratively closing the contract before the debt is collected?


    Answer

    You took the correct action when the contractor did not pay the government for the overpayment by issuing a Final Decision.  Unfortunately, MOCAS will not allow a contract to close while there is negative money on the ULO line.  You will need to wait until Contractor repays the money to close the contract. After the payment posts to the contract, then the contractor should submit a zero-final voucher to the ACO for review/approval.  If the contractor refuses to pay the money owed, the ACO can take action to encourage payment but these actions are a last resort. Actions could include:
    • Other non-contractual remedies such as inclusion of comments in Preaward Surveys
     
    • Suspend interim financing payments
     
    • Decrement bidding/billing rates
     
    • Maintain fee withholds
     
     


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