(a) OPM may refer certain debts to commercial collection agencies under the following conditions:

1. (1) All processing required by § 831.1304 has been completed before the debt is released.
2. (2) A contract for collection services has been negotiated.
3. (3) OPM retains the responsibility for resolving disputes, compromising claims, referring the debt for litigation, or suspending or terminating collection action.