Top
Payment Terms – Glotech
8185
page-template-default,page,page-id-8185,mkd-core-1.0,industrialist-ver-1.1,,mkd-smooth-page-transitions,mkd-ajax,mkd-grid-1300,mkd-blog-installed,mkd-header-standard,mkd-no-behavior,mkd-default-mobile-header,mkd-sticky-up-mobile-header,mkd-dropdown-default,mkd-full-width-wide-menu,mkd-header-standard-in-grid-shadow-disable,mkd-search-dropdown,wpb-js-composer js-comp-ver-5.0.1,vc_responsive
 

Payment Terms

CIO-SP3: Payment Terms

FAR 52.232-25 I Prompt Payment.

As prescribed in 32.908(a), insert the following clause:
(a) As authorized in 32.905(a)(2)(ii), the Contracting Officer may modify the date in subdivision (a)(6)(i) of the clause to specify a period longer than 5 working days for constructive acceptance, if considered appropriate due to the nature of the supplies or services to be received, inspected, tested, or accepted by the Government.
(b) As prescribed in 32.906(a) and only as allowed under agency policies and procedures, the Contracting Officer may insert in paragraph (b) of the clause a period shorter than 30 days (but not less than 7 days) for making contract financing payments.
Alternate I (FEB 1988). (a) If the contract contains the clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, or the clause at 52.232-10, Payments Under Fixed-Price Architect-Engineer Contracts, insert Alternate I instead of the basic clause.
(b) As authorized in 32.905(b)(3), the Contracting Officer may modify the date in subdivision (a)(5)(i) of the clause to specify a period longer than 5 working days for constructive acceptance or constructive approval, if considered appropriate due to the nature of the work or services involved.
(c) If applicable, as authorized in 32.906(a) and only as allowed under agency policies and procedures, the Contracting Officer may insert in paragraph (b) of the clause a period shorter than 30 days (but not less than 7 days) for making contract financing payments.

PROMPT PAYMENT–ALTERNATE I (FEB 1988)
Notwithstanding any other payment terms in this contract, the Government will make invoice payments and contract financing payments under the terms and conditions specified in this clause. Payment shall be considered as being made on the day a check dated or an electronic funds transfer is made. Definition of pertinent terms are set forth in 32.902. All days referred to in this clause are calendar days, unless otherwise specified.
(a) Invoice Payments. (1) For purposes of this clause, invoice payment means a Government disbursement of monies to a Contractor under a contract or other authorization for work or services accepted by the Government, payments for partial deliveries that have been accepted by the Government, and progress payments based on contracting officer approval of the estimated amount and value of work or services performed.
(2) The due date for making invoice payments shall be as described in this subparagraph(a)(2).
(i) The due date for work or services completed by the Contractor shall be the later of the following two events:
(A) The 30th day after the designated billing office has received a proper invoice from the Contractor.
(B) The 30th day after Government acceptance of the work or services completed by the Contractor. On a final invoice where the payment amount is subject to contract settlement actions (e.g., release of claims), acceptance shall be deemed to have occurred on the effective date of the contract settlement.
(ii) The due date for progress payments shall be the 30th day after Government approval of Contractor estimates of work or services accomplished.
(3) An invoice is the Contractor’s bill or written request for payment under the contract or work or services performed under the contract. An invoice shall be prepared and submitted to the designated billing office. A proper invoice must include the items listed in subdivisions (a)(3)(i) through (a)(3)(viii) of this clause. If the invoice does not comply with these requirements, then the Contractor will be notified of the defect within 15 days after receipt of the invoice at the designated billing office. Untimely notification will be taken into account in the computation of any interest penalty owed the Contractor in the manner described in paragraph (a)(5) of this clause:
(i) Name and address of the Contractor.
(ii) Invoice date.
(iii) Contract number or other authorization for work or services performed (including order number and contract line item number).
(iv) Description of work or services performed.
(v) Delivery and payment terms (e.g., prompt payment discount terms).
(vi) Name and address of Contractor official to whom payment is to be sent (must be the same as that in the contract or in a proper notice of assignment).
(vii) Name (where practicable), title, phone number, and mailing address of person to be notified in event of a defective invoice.
(viii) Any other information or documentation required by the contract.
(4) An interest penalty shall be paid automatically by the designated payment office, without request from the Contractor, if payment is not made within 15 days after the due date and the following conditions are met, if applicable:
(i) A proper invoice was received by the designated billing office.
(ii) A receiving report or other Government documentation authorizing payment was processed and there was no disagreement over quantity, quality, Contractor compliance with any contract term or condition, or requested progress payment amount.
(iii) In the case of a final invoice for any balance of funds due the Contractor for work or services performed, the amount was not subject to further contract settlement actions between the Government and the Contractor.
(5) The interest penalty shall be at the rate established by the Secretary of the Treasury under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) that is in effect on the payment date, except where the interest penalty is prescribed by other governmental authority. This rate is referred to as the ‘Renegotiation Board Interest Rate,’ and it is published in the Federal Register semiannually on or about January 1 and July 1. The interest penalty shall accrue daily on the invoice payment amount approved by the Government and be compounded in 30-day increments inclusive from the first day after the due date through the payment date. That is, interest accrued at the end of any 30-day period will be added to the approved invoice payment amount and be subject to interest penalties if not paid in the succeeding 30-day period. If the designated billing office failed to notify the Contractor of a defective invoice within the periods prescribed in subparagraph (a)(3) of this clause, then the due date on the corrected invoice will be adjusted by subtracting the number of days taken beyond the prescribed notification of defects period. Any interest penalty owed the Contractor will be based on this adjusted due date. Adjustments will be made by the designated payment office or errors in calculating interest penalties, if requested by the Contractor.
(i) For the sole purpose of computing an interest penalty that might be due the Contractor, Government acceptance or approval shall be deemed to have occurred constructively as shown in subdivisions (a) (5)(i)(A) and (b) of this clause. In the event that actual acceptance or approval occurs within the constructive acceptance or approval period, the determination of an interest penalty shall be based on the actual date of acceptance or approval. Constructive acceptance or constructive approval requirements do not apply if there is a disagreement over quantity, quality, Contractor compliance with a contract provision, or requested progress payment amounts. These requirements also do not compel Government officials to accept work or services, approve Contractor estimates, perform contract administration functions, or make payment prior to fulfilling their responsibilities.
(A) For work or services completed by the Contractor, Government acceptance shall be deemed to have occurred constructively on the 5th working day after the Contractor has completed the work or services in accordance with the terms and conditions of the contract.
(B) For progress payments, Government approval shall be deemed to have occurred on the 5th working day after Contractor estimates have been received by the designated billing office.
(iii) Interest penalties will not continue to accrue after the filing of a claim for such penalties under the clause at 52.233-1, Disputes, or for more than 1 year. Interest penalties of less than $1.00 need not be paid.
(iv) Interest penalties are not required on payment delays due to disagreement between the Government and contractor over the payment amount or other issues involving contract compliance, or on amounts temporarily withheld or retained in accordance with the terms of the contract. Claims involving disputes, and any interest that may be payable, will be resolved in accordance with the clause at 52.233-1, Disputes.
(6) An interest penalty shall also be paid automatically by the designated payment office, without request from the Contractor, if an improperly taken discount for prompt payment was not corrected within 15 days after the expiration of the discount period. The interest penalty will be calculated on the amount of discount taken for the period beginning with the first day after the end of the discount period through the date when the Contractor is paid.

(2) If this contract provides for contract financing, requests for payment shall be submitted to the designated billing office as specified in this contract or as directed by the Contracting Officer. Contract financing payments shall be made on the ______(insert day as prescribed by Agency head; if not prescribed, insert 30th day) day after receipt of a proper contract financing request by the designated billing office. In the event that an audit or other review of a specific financing request is required to ensure compliance with the terms and conditions of the contract, the designated payment office is not compelled to make payment by the due date specified. For advance payments, loans, or other arrangements that do not involve recurrent submissions of contract financing requests, payment shall be made in accordance with the corresponding contract terms or as directed by the Contracting Officer. Contract financing payments shall not be assessed an interest penalty for payment delays.

No Comments

Sorry, the comment form is closed at this time.