(a) Whenever a DOL agency is holding funds of a debtor from which
administrative offset is sought by another DOL agency or other Federal
agency, the DOL agency holding funds should not initiate the requested
offset until it has been provided by the creditor organization with an
appropriate written certification that the debtor owes a debt (including
the amount) and that applicable provisions of the Federal Claims
Collection Standards have been fully complied with.
(b) Moreover, the DOL agency holding funds of the debtor should
determine whether collection by offset would be in the best interests of
the United States; for example, if the debtor is a contractor for the
DOL agency holding funds, whether administrative offset would impair the
contractor's ability to perform under the terms of the contract. The
creditor organization should be notified promptly of the determination.
