D.C. Mun. Regs. tit. 27, r. 27-3233
If a disbursing officer is the responsible official for collection of a contract debt, or is notified of the debt by the contracting officer, or other officer designated to collect the debt, and has contractor invoices on hand for payment, the disbursing officer shall make an appropriate setoff.
The disbursing officer shall give the contractor written notice of the setoff, including a statement of the reasons for the setoff. The notice shall be delivered to the contractor or mailed by certified mail, return receipt requested.
To the extent that the setoff reduces the debt, the explanation of the setoff shall indicate the extent to which the demand amount described in § 3231 is reduced.
During the thirty (30) days following the issuance of a demand pursuant to § 3231, the contracting officer shall consider the advisability of withholding payments otherwise due to the contractor, based on the circumstances of each individual case.
If, within thirty (30) days of the issuance of the demand, made pursuant to § 3231, the contractor has neither completed payment nor requested deferment, the contracting officer may immediately withhold any contract payment due up to the amount of the debt plus interest.
D.C. Mun. Regs. tit. 27, r. 27-3233