[Questions Concerning Reimbursement of GSA Audit Contractors]

The General Services Administration asked whether the Debt Collection Act provides it with the authority to use proceeds recovered from delinquent accounts to reimburse its debt collection contractors. GAO noted that the act authorizes reimbursement only to contractors that service delinquent accounts, but does not authorize payment to contractors who service nondelinquent accounts. Accordingly, those contractors that directly service delinquent accounts may be reimbursed from the recovered proceeds.