Prompt Payment Interest Rate; Contract Disputes Act, 74408 [07-6197]

Agencies

• Fiscal Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 72, Number 249 (Monday, December 31, 2007)]
[Notices]
[Page 74408]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-6197]


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DEPARTMENT OF THE TREASURY

Fiscal Service


Prompt Payment Interest Rate; Contract Disputes Act

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION:  Notice.

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SUMMARY: For the period beginning January 1, 2008, and ending on June 
30, 2008, the prompt payment interest rate and the contract disputes 
interest rate is 4-\3/4\ per centum per annum.

ADDRESSES: Comments or inquires may be mailed to Carol Brooks, 
Accountant, Borrowings Accounting Team, Division of Accounting 
Operations, Office of Public Debt Accounting, Bureau of the Public 
Debt, Parkersburg, West Virginia, 26106-1328. A copy of this Notice is 
available at http://www.publicdebt.treas.gov.

DATES: Effective January 1, 2008 to June 30, 2008.

FOR FURTHER INFORMATION CONTACT: Veronica Lowther, Acting Director, 
Division of Accounting Operations, Office of Public Debt Accounting, 
Bureau of the Public Debt, Parkersburg, West Virginia, 26106-1328, 
(304) 480-5161; Carol Brooks, Accountant, Borrowings Accounting Team, 
Division of Accounting Operations, Office of Public Debt Accounting, 
Bureau of the Public Debt, Parkersburg, West Virginia 26106-1328, (304) 
480-5167; Amy Mertz Brown, Deputy Chief Counsel, Office of the Chief 
Counsel, Bureau of the Public Debt, (202) 504-3715; or Brenda L. 
Hoffman, Attorney-Advisor, Office of the Chief Counsel, Bureau of the 
Public Debt, (202) 504-3706.

SUPPLEMENTARY INFORMATION: An agency acquiring property or services 
from a business concern, but failing to pay for each complete delivered 
item of property or service by the required payment date, must pay the 
business concern an interest penalty, commonly known as the Prompt 
Payment Interest Penalty. 31 U.S.C. 3902(a). The applicable interest 
rate for determining this penalty is the rate established by the 
Secretary of the Treasury under Sec.  12 of the Contract Disputes Act 
(codified at 41 U.S.C. 611) and in effect at the time the agency 
accrues the obligation to pay this late payment interest penalty. 31 
U.S.C. 3902(a). Agencies must pay the interest penalty calculated with 
the Prompt Payment Interest Rate, ``for the period beginning on the day 
after the required payment date and ending on the date on which the 
payment is made.'' 31 U.S.C. 3902(b). If an interest penalty is owed to 
a business concern because of a late payment, the penalty must be paid 
regardless of whether the business concern requested payment of the 
penalty.
    An agency also must pay interest on claims found due to contractors 
that are submitted to procuring agencies for payment, payable for the 
time period between when the contracting officer receives the claim and 
when the procuring agency pays the claim. Contract Disputes Act Sec.  
12;41 U.S.C. 611.
    The Secretary is required to establish an interest rate for both of 
these purposes. 31 U.S.C. 3902(a); 41 U.S.C. 611. Therefore, notice is 
given that the Secretary of the Treasury has determined that the rate 
of interest for purposes of both Prompt Payment and the Contract 
Disputes Act, applicable for the period beginning January 1, 2008, and 
ending on June 30, 2008, is 4-\3/4\ per centum per annum.

Kenneth E. Carfine,
Fiscal Assistant Secretary
[FR Doc. 07-6197 Filed 12-28-08; 8:45 am]
BILLING CODE 4810-39-M