Who shoudl the contractor make check payable to at DFAS?
The Check needs to be payable to The US Treasury.
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Please coordinate with your Property Administrator (PA) who will prepare The Standard Form 1131 to provide all the necessary detail to DFAS for the appropriate credit for the property repair or replacement, unless other directions were provided by the Contracting Officer (KO), who makes the final determination regarding pecuniary liability.
Don't hesitate to ask a new question if this answer isn't entirely satisfactory. Thank you!