Treasury Offset Program or TOP Clause Samples

The Treasury Offset Program (TOP) clause authorizes the government to collect outstanding debts owed by a contractor by offsetting payments due under federal contracts. In practice, if a contractor owes money to the federal government—such as unpaid taxes or overpayments—the government can withhold amounts from payments otherwise due to the contractor and apply them to the outstanding debt. This clause ensures that the government can efficiently recover debts by leveraging funds it would otherwise pay, thereby reducing the risk of non-collection and promoting fiscal responsibility.