Section 105-55.012 - Contracting with private collection contractors and with entities that locate and recover unclaimed assets(a) Subject to the provisions of paragraph (b) of this section, the General Services Administration (GSA) may contract with private collection contractors, as defined in 31 U.S.C. 3701(f) , to recover delinquent debts provided that-(1) GSA retain the authority to resolve disputes, compromise debts, suspend or terminate collection activity, and refer debts for litigation;(2) The private collection contractor is not allowed to offer the debtor, as an incentive for payment, the opportunity to pay the debt less the private collection contractor's fee unless GSA has granted such authority prior to the offer;(3) The contract provides that the private collection contractor is subject to the Privacy Act of 1974 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, including but not limited to the Fair Debt Collection Practices Act, 1 5 U.S.C. 1692 ; and(4) The private collection contractor is required to account for all amounts collected.(b) GSA will use Governmentwide debt collection contracts to obtain debt collection services provided by private collection contractors. However, GSA may refer debts to private collection contractors pursuant to a contract between the Agency and the private collection contractor only if such debts are not subject to the requirement to transfer debts to Treasury for debt collection. See 31 U.S.C. 3711(g) ; 31 CFR 285.12(e) .(c) GSA may fund private collection contractor contracts in accordance with 31 U.S.C. 3718(b) , or as otherwise permitted by law.(d) GSA may enter into contracts for locating and recovering assets of the United States, such as unclaimed assets.(e) GSA may enter into contracts for debtor asset and income search reports. In accordance with 31 U.S.C. 3718(b) , such contracts may provide that the fee a contractor charges the Agency for such services may be payable from the amounts recovered, unless otherwise prohibited by statute.